SF 2382

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/08/2021 08:08am

A bill for an act
relating to energy; establishing a right to market-based power supply for certain
customers; proposing coding for new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.1697] RIGHT TO MARKET-BASED POWER SUPPLY.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given them.
new text end

new text begin (b) "Average delivered cost of electric energy" means the total price that a large industrial
customer pays the electric utility on an annual basis for electric energy, divided by the large
industrial customer's total annual electric energy consumption, on a calendar year basis,
measured by the electric utility for billing purposes. Total price includes all costs assessed
by the electric utility, including but not limited to energy charges, demand charges, customer
charges, rider charges, sales or other true-up mechanisms, franchise fees, and standby
charges.
new text end

new text begin (c) "Eligible customer" means a large industrial customer whose annual average delivered
cost of electric energy, as measured on a dollar per kilowatt-hour basis, fails to comply with
section 216C.05, subdivision 2, clause (4). A large industrial customer remains an eligible
customer for a period of either (1) five years from the date the large industrial customer's
average delivered cost of energy first failed to comply with section 216C.05, subdivision
2, clause (4), or (2) the duration of any written contract entered into pursuant to this section
between an eligible customer and eligible service provider, whichever is longer. For purposes
of determining compliance under this paragraph, 2020 is the earliest possible noncompliance
date. For purposes of this paragraph, the national average under section 216C.05, subdivision
2, clause (4), is the most recent data reported by the United States Energy Information
Administration, on an annual basis, for industrial customers of full-service providers. If the
United States Energy Information Administration is replaced or the category for industrial
customers of full-service providers is no longer reported, the replacement agency or the
reporting category that most closely matches must be used.
new text end

new text begin (d) "Eligible service" means electric service furnished by an investor-owned electric
utility to an eligible customer under terms and conditions mutually agreed upon in a written
contract that sets the power supply price at either (1) the price the investor-owned electric
utility pays for electric energy generated from a renewable energy resource, as defined under
section 216B.2422, subdivision 1, paragraph (c), under a power purchase agreement entered
into pursuant to the eligible customer's request, or (2) the locational marginal price of the
wholesale market, as determined by reference to the Minnesota hub in the Midcontinent
Independent System Operator system or a successor organization.
new text end

new text begin (e) "Fees" means all costs above the power supply price for eligible service, including
but not limited to transmission-related costs an investor-owned electric utility incurs under
a federally approved tariff governing transmission, distribution-related costs, credits or other
value associated with renewable energy generation, and any premium above the power
supply price.
new text end

new text begin (f) "Large industrial customer" means a customer of an investor-owned electric utility
that either (1) takes electric service at a voltage of 69,000 volts or greater, or (2) imposes a
peak demand on an investor-owned electric utility's system of not less than 10,000 kilowatts
at a single site, based on the sum of measured demand of all meters for all buildings,
structures, equipment, and installations at the single site, including demand offset by on-site
generation facilities. For purposes of this paragraph, peak demand is measured in the same
way as the investor-owned electric utility measures electrical demand for billing purposes.
new text end

new text begin Subd. 2. new text end

new text begin Right to contract for eligible service. new text end

new text begin (a) Notwithstanding any other provision
in this chapter, an investor-owned public utility must offer an eligible customer eligible
service within six months of the date the investor-owned utility receives written notice that
the customer qualifies as an eligible customer. The contract for eligible service may be for
all or a portion of the eligible customer's electric service requirements. Commission approval
is not required for a contract entered into under this section. If an investor-owned electric
utility fails to offer eligible service to an eligible customer within the time frame required
under this paragraph, the eligible customer is entitled to recover from the investor-owned
electric utility treble damages and reasonable attorney fees to compel compliance with this
section.
new text end

new text begin (b) A written contract for eligible service must memorialize the terms and conditions
under which an eligible customer receives eligible service. The written contract for eligible
service may include fees. A contract for eligible service must not include fees that are more
than ten percent above the power supply price.
new text end

new text begin (c) An eligible customer that enters into a contract under this section may continue to
receive eligible service for the duration of the written contract, including any amendments,
extensions, or renewals to the contract, regardless of whether the customer continues to
meet the definition of an eligible customer in subdivision 1, paragraph (c), in subsequent
years.
new text end

new text begin (d) A large energy facility, as defined in section 216B.2421, that begins construction
after the effective date of this section and that provides eligible service to one or more
eligible customers under this section is exempt from section 216B.243.
new text end

new text begin (e) The commission is prohibited from assessing a charge, rate, cost, or penalty against
an eligible customer for receiving eligible service under this section.
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