SF 2757

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/10/2023 08:26am

A bill for an act
relating to energy; modifying provisions governing cogeneration; amending
Minnesota Statutes 2022, section 216B.164, subdivision 4.

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

Section 1.

Minnesota Statutes 2022, section 216B.164, subdivision 4, is amended to read:

Subd. 4.

Purchases; wheeling; costs.

(a) Except as otherwise provided in paragraph
(c), this subdivision shall apply to all qualifying facilities having 40-kilowatt capacity or
more as well as qualifying facilities as defined in subdivision 3 and net metered facilities
under subdivision 3a, if interconnected to a cooperative electric association or municipal
utility, or 1,000-kilowatt capacity or more if interconnected to a public utility, which elect
to be governed by its provisions.

(b) The utility to which the qualifying facility is interconnected shall purchase all energy
and capacity made available by the qualifying facility. deleted text begin The deleted text end new text begin For a qualifying facility with a
capacity between 1,000 kilowatts and 5,000 kilowatts of both wind and solar that is
interconnected with a public utility at a single point of interconnection, the public utility
must purchase all energy and capacity made available by the qualifying facility at 60 percent
of the public utility's current average residential retail rate plus 100 percent of the energy/fuel
adjustment charge. A new text end qualifying facility new text begin with a capacity over 5,000 kilowatts new text end shall be paid
the utility's full avoided capacity and energy costs as negotiated by the parties, as set by the
commission, or as determined through competitive bidding approved by the commission.
The full avoided capacity and energy costs to be paid a qualifying facility new text begin with a capacity
over 5,000 kilowatts new text end that generates electric power by means of a renewable energy source
are the utility's least cost renewable energy facility or the bid of a competing supplier of a
least cost renewable energy facility, whichever is lower, unless the commission's resource
plan order, under section 216B.2422, subdivision 2, provides that the use of a renewable
resource to meet the identified capacity need is not in the public interest.

(c) For all qualifying facilities having 30-kilowatt capacity or more, the utility shall, at
the qualifying facility's or the utility's request, provide wheeling or exchange agreements
wherever practicable to sell the qualifying facility's output to any other Minnesota utility
having generation expansion anticipated or planned for the ensuing ten years. The
commission shall establish the methods and procedures to insure that except for reasonable
wheeling charges and line losses, the qualifying facility receives the full avoided energy
and capacity costs of the utility ultimately receiving the output.

(d) The commission shall set rates for electricity generated by renewable energy.