HF 2486

as introduced - 89th Legislature (2015 - 2016) Posted on 04/14/2016 04:47pm

A bill for an act
relating to energy; allowing municipal utilities and cooperative electric
associations to reduce their annual energy-savings goal; disallowing waste
heat recovery converted to electricity as counting towards a municipal utility's
or cooperative electric association's annual energy-savings goal; amending
Minnesota Statutes 2014, section 216B.241, subdivision 1c.

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

Section 1.

Minnesota Statutes 2014, section 216B.241, subdivision 1c, is amended to
read:

Subd. 1c.

Energy-saving goals.

(a) The commissioner shall establish energy-saving
goals for energy conservation improvement expenditures and shall evaluate an energy
conservation improvement program on how well it meets the goals set.

(b) Each individual utility and association shall have an annual energy-savings
goal equivalent to 1.5 percent of gross annual retail energy sales unless modified by the
commissioner under paragraph (d). The savings goals must be calculated based on the
most recent three-year weather-normalized average. A utility or association may elect to
carry forward energy savings in excess of 1.5 percent for a year to the succeeding three
calendar years, except that savings from electric utility infrastructure projects allowed
under paragraph (d) may be carried forward for five years. A particular energy savings can
be used only for one year's goal.

(c) The commissioner must adopt a filing schedule that is designed to have all
utilities and associations operating under an energy-savings plan by calendar year 2010.

(d) In its energy conservation improvement plan filing, a utility or association may
request the commissioner to adjust its annual energy-savings percentage goal based on
its historical conservation investment experience, customer class makeup, load growth, a
conservation potential study, or other factors the deleted text begin commissioner determines warrants deleted text end new text begin utility
or association asserts warrant new text end an adjustment. The commissioner new text begin :
new text end

new text begin (1) must approve a request by a municipal utility or cooperative electric association
to adjust the utility's or association's annual energy-savings goal;
new text end

new text begin (2) may approve a request from a public utility to adjust its annual energy-savings
goal; and
new text end

new text begin (3) new text end deleted text begin may not approve deleted text end new text begin is prohibited from approving new text end a plan of a public utility that
provides for an annual energy-savings goal of less than one percent of gross annual retail
energy sales from energy conservation improvements.

A new text begin public new text end utility deleted text begin or association deleted text end may include in its energy conservation plan energy
savings from electric utility infrastructure projects approved by the commission under
section 216B.1636 or waste heat recovery converted into electricity projects deleted text begin that deleted text end new text begin , each of
which new text end may count as energy savings new text begin only new text end in addition to a minimum energy-savings goal of
at least one percent for energy conservation improvements. new text begin Energy savings from electric
utility infrastructure projects, as defined in section 216B.1636, may be included in the
energy conservation plan of a municipal utility or cooperative electric association. new text end Electric
utility infrastructure projects must result in increased energy efficiency greater than that
which would have occurred through normal maintenance activity.

(e) An energy-savings goal is not satisfied by attaining the revenue expenditure
requirements of subdivisions 1a and 1b, but can only be satisfied by meeting the
energy-savings goal established in this subdivision.

(f) An association or utility is not required to make energy conservation investments
to attain the energy-savings goals of this subdivision that are not cost-effective even
if the investment is necessary to attain the energy-savings goals. For the purpose of
this paragraph, in determining cost-effectiveness, the commissioner shall consider the
costs and benefits to ratepayers, the utility, participants, and society. In addition, the
commissioner shall consider the rate at which an association or municipal utility is
increasing its energy savings and its expenditures on energy conservation.

(g) On an annual basis, the commissioner shall produce and make publicly available
a report on the annual energy savings and estimated carbon dioxide reductions achieved
by the energy conservation improvement programs for the two most recent years for
which data is available. The commissioner shall report on program performance both in
the aggregate and for each entity filing an energy conservation improvement plan for
approval or review by the commissioner.

(h) By January 15, 2010, the commissioner shall report to the legislature whether
the spending requirements under subdivisions 1a and 1b are necessary to achieve the
energy-savings goals established in this subdivision.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end