SF 2315

1st Engrossment - 87th Legislature (2011 - 2012) Posted on 03/21/2012 08:50am

A bill for an act
relating to utilities; requiring utility rates be based primarily on cost of service
between and among consumer classes; proposing a study of low-income
affordability programs; amending Minnesota Statutes 2010, sections 216B.03;
216B.07; 216B.16, by adding a subdivision.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2010, section 216B.03, is amended to read:

216B.03 REASONABLE RATE.

Every rate made, demanded, or received by any public utility, or by any two or
more public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
and consistent in application to a class of consumers new text begin and among classes of consumers new text end .
To the maximum reasonable extent, the commission shall set rates to encourage energy
conservation and renewable energy use and to further the goals of sections 216B.164,
216B.241, and 216C.05. Any doubt as to reasonableness should be resolved in favor of the
consumer. For rate-making purposes a public utility may treat two or more municipalities
served by it as a single class wherever the populations are comparable in size or the
conditions of service are similar.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 2.

Minnesota Statutes 2010, section 216B.07, is amended to read:

216B.07 RATE PREFERENCE PROHIBITED.

No public utility shall, as to rates or service, make or grant any unreasonable
preference or advantage to any person new text begin or class of consumers new text end or subject any person new text begin or class
of consumers new text end to any unreasonable prejudice or disadvantage.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end

Sec. 3.

Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 6e. new text end

new text begin Revenue allocation among consumer classes. new text end

new text begin Cost of service shall
be the primary consideration in the commission's determination of revenue allocation
among consumer classes. Factors other than cost of service, including impact on business
development and job growth, may also be considered and evaluated by the commission
in determining revenue allocations. Revenue allocation among consumer classes that
deviates from the cost of service must be supported by a preponderance of the evidence.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment
and applies to filings for rate changes filed on and after that date.
new text end

Sec. 4. new text begin LOW-INCOME AFFORDABILITY PROGRAMS FOR UTILITY
SERVICE; STUDY.
new text end

new text begin The Department of Commerce shall, by February 1, 2013, make recommendations,
including any proposed legislation, to the committees of the legislature with primary
jurisdiction over energy policy to increase the number of eligible individuals receiving
benefits from low-income affordability programs established under Minnesota Statutes,
section 216B.16, subdivision 15. In developing its recommendations the department must,
among other things, study low-income utility affordability programs in other states and
consult with representatives of interested parties, including utilities and the low-income
community.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end