SF 3504

as introduced - 90th Legislature (2017 - 2018) Posted on 03/28/2018 02:31pm

A bill for an act
relating to energy; establishing a carbon reduction facility designation for certain
large electric generating facilities; 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] CARBON REDUCTION FACILITIES; NUCLEAR ENERGY.
new text end

new text begin Subdivision 1. new text end

new text begin Qualifying facility. new text end

new text begin A carbon reduction facility is an existing large electric
generating power plant that employs nuclear technology to generate electricity.
new text end

new text begin Subd. 2. new text end

new text begin Proposal submission. new text end

new text begin (a) A public utility may submit to the Public Utilities
Commission a proposal to designate a carbon reduction facility under this section. The
proposal must:
new text end

new text begin (1) demonstrate that the facility meets the requirements of subdivision 1; and
new text end

new text begin (2) include a proposed statement of the total expected costs, including but not limited
to capital investments and operation and maintenance costs associated with the facility's
operation.
new text end

new text begin (b) If the information submitted in the original proposal changes, a utility may at its sole
discretion and at any time file additional proposals for the same facility.
new text end

new text begin Subd. 3. new text end

new text begin Proposal approval. new text end

new text begin (a) The commission must approve or reject the proposed
facility designation and the total expected costs submitted by the public utility. The
commission must make a final determination on the petition within ten months of the filing
date.
new text end

new text begin (b) With respect to any carbon reduction facility, approval by the Public Utilities
Commission constitutes a finding of prudency for the proposal's total costs. The utility is
entitled to recover any documented costs that do not exceed the costs provided in the carbon
reduction facility designation proposal using the carbon reduction rider under subdivision
4 or a subsequent rate case.
new text end

new text begin (c) If additional proposals are filed for a single facility, the commission must treat each
proposal the same as an original proposal under this section.
new text end

new text begin Subd. 4. new text end

new text begin Carbon reduction rider. new text end

new text begin A public utility may annually petition the commission
to approve a carbon reduction rider to recover a qualifying facility's total costs outside of a
general rate case proceeding under section 216B.16. In the filing, the public utility must
describe the costs the public utility seeks for rider recovery.
new text end

new text begin Subd. 5. new text end

new text begin Rider approval. new text end

new text begin (a) The commission may approve, modify and approve, or
reject the proposed carbon reduction rider.
new text end

new text begin (b) The commission may approve a rider that:
new text end

new text begin (1) allows the utility to recover the facility's total costs;
new text end

new text begin (2) allows an appropriate return on investment associated with the facility;
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new text begin (3) allocates appropriately between wholesale and retail customers; and
new text end

new text begin (4) recovers costs from retail customer classes in proportion to class energy consumption.
new text end