SF 4583

as introduced - 92nd Legislature (2021 - 2022) Posted on 05/11/2022 07:41am

A bill for an act
relating to utilities; prohibiting rate recovery with respect to certain new facilities;
amending Minnesota Statutes 2020, section 216B.16, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2020, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 20. new text end

new text begin New natural gas facilities; cost recovery prohibition. new text end

new text begin (a) A utility is
prohibited from charging customers using rates under this section for any costs associated
with an electric generating facility placed into service after August 1, 2022, that (1) uses
natural gas as the electric generating facility's main source of fuel, and (2) is not used and
useful in service to the public.
new text end

new text begin (b) The commission must not approve (1) the securitization of costs related to the early
retirement of a natural gas plant, or (2) a cost recovery method that accelerates cost recovery
through rates charged to customers if the securitization or cost recovery method violates
paragraph (a).
new text end

new text begin (c) The commissioner may grant an exemption to this subdivision to a utility that
demonstrates by clear and convincing evidence that (1) the exemption is in the best interests
of ratepayers, and (2) the utility does not receive a rate of return on any ratepayer payments
made under the exemption.
new text end