SF 2879

as introduced - 90th Legislature (2017 - 2018) Posted on 03/09/2018 08:41am

A bill for an act
relating to energy; public utilities; establishing a pension rate base for purposes
of rate increase hearings; amending Minnesota Statutes 2016, section 216B.16,
by adding a subdivision.

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

Section 1.

Minnesota Statutes 2016, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 13b. new text end

new text begin Pension rate base. new text end

new text begin The commission must allow a public utility to include
in the rate base and recover from ratepayers the costs incurred to contribute to employee
pensions, including (1) accumulated contributions in excess of net periodic benefit costs,
and (2) contributions necessary to comply with the federal Pension Protection Act of 2006
and other applicable federal and state pension funding requirements. A public utility is
authorized to track for future recovery any unrecoverable return of pension rate base costs
and investments at the return on investment level established in the public utility's last
general rate case that have been incurred during the period between general rate cases.
new text end