SF 2519

4th Engrossment - 86th Legislature (2009 - 2010) Posted on 05/10/2010 07:50am

A bill for an act
relating to public utilities; modifying provisions related to recovery of expenses
by utilities; amending Minnesota Statutes 2008, sections 13.681, by adding a
subdivision; 216B.16, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2008, section 13.681, is amended by adding a
subdivision to read:

new text begin Subd. 8. new text end

new text begin Public utility expense data. new text end

new text begin Treatment of employee expense data
submitted in a rate case petition is governed by section 216B.16, subdivision 17.
new text end

Sec. 2.

Minnesota Statutes 2008, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 17. new text end

new text begin Travel, entertainment, and related employee expenses. new text end

new text begin (a) The
commission may not allow as operating expenses a public utility's travel, entertainment,
and related employee expenses that the commission deems unreasonable and unnecessary
for the provision of utility service. In order to assist the commission in evaluating the
travel, entertainment, and related employee expenses that may be allowed for ratemaking
purposes, a public utility filing a general rate case petition shall include a schedule
separately itemizing all travel, entertainment, and related employee expenses as specified
by the commission, including but not limited to the following categories:
new text end

new text begin (1) travel and lodging expenses;
new text end

new text begin (2) food and beverage expenses;
new text end

new text begin (3) recreational and entertainment expenses;
new text end

new text begin (4) board of director-related expenses, including and separately itemizing all
compensation and expense reimbursements;
new text end

new text begin (5) expenses for the ten highest paid officers and employees, including and
separately itemizing all compensation and expense reimbursements;
new text end

new text begin (6) dues and expenses for memberships in organizations or clubs;
new text end

new text begin (7) gift expenses;
new text end

new text begin (8) expenses related to owned, leased, or chartered aircraft; and
new text end

new text begin (9) lobbying expenses.
new text end

new text begin (b) To comply with the requirements of paragraph (a), each applicable expense
incurred in the most recently completed fiscal year must be itemized separately, and each
itemization must include the date of the expense, the amount of the expense, the vendor
name, and the business purpose of the expense. The separate itemization required by this
paragraph may be provided using standard accounting reports already utilized by the utility
involved in the rate case, in a written format or an electronic format that is acceptable to
the commission. For expenses identified in response to paragraph (a), clauses (1) and (2),
the utility shall disclose the total amounts for each expense category and provide separate
itemization for those expenses incurred by or on behalf of any employee at the level
of vice president or higher and for board members. The petitioning utility shall also
provide a one-page summary of the total amounts for each expense category included in
the petitioning utility's proposed test year.
new text end

new text begin (c) Except as otherwise provided in this paragraph, data submitted to the commission
under paragraph (a) are public data. The commission or an administrative law judge
assigned to the case may treat the salary of one or more of the ten highest paid officers and
employees, other than the five highest paid, as private data on individuals as defined in
section 13.02, subdivision 12, or issue a protective order governing release of the salary,
if the utility establishes that the competitive disadvantage to the utility that would result
from release of the salary outweighs the public interest in access to the data. Access to the
data by a government entity that is a party to the rate case must not be restricted.
new text end