SF 2591

as introduced - 88th Legislature (2013 - 2014) Posted on 03/13/2014 09:15am

A bill for an act
relating to utilities; requiring that cost of service be the primary factor in
determining revenue allocations between electric utility customer classes;
amending Minnesota Statutes 2012, section 216B.16, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2012, 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 customer classes. new text end

new text begin (a) This subdivision
applies only to investor-owned electric utilities that have at least 50,000 retail electric
customers, but no more than 200,000 retail electric customers.
new text end

new text begin (b) For all rate change notification filings made prior to January 1, 2018, cost of
service shall be the primary consideration in the commission's determination of revenue
allocation among customer classes. The commission's discretion to deviate from cost
of service and consider factors other than cost of service when it determines revenue
allocation among customer classes is limited to the following parameters:
new text end

new text begin (1) no deviations of more than four percent for all filings made after January 1,
2014; and
new text end

new text begin (2) no deviations of more than two percent for all filings made after January 1, 2016.
Revenue allocation among customer classes that deviates from the cost of service must be
supported by a preponderance of the evidence.
new text end

new text begin (c) For all filings made on or after January 1, 2018, cost of service shall be the only
consideration in the commission's determination of revenue allocation among customer
classes.
new text end

new text begin (d) At least 60 days prior to its next general rate proceeding, a utility subject to this
subdivision shall meet with interested stakeholders to explore the possibility of expanding
or increasing access to electric affordability programs for low-income customers.
new text end

new text begin (e) Upon the filing of a general rate case by a utility subject to this subdivision in
which the filing utility seeks to impose rates based on cost of service, the filing utility
must deposit $10,000 into an account devoted to funding a program approved by the
commission under section 216B.16, subdivision 15. The funds shall be used to expand the
outreach of the commission-approved affordability program.
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 a general rate change filed on or after that date.
new text end