HF 1311

as introduced - 94th Legislature (2025 - 2026) Posted on 02/27/2025 04:00pm

A bill for an act
relating to energy; modifying procedures governing cost recovery for public utility
electric generation and transmission assets; amending Minnesota Statutes 2024,
section 216B.16, by adding subdivisions.

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

Section 1.

Minnesota Statutes 2024, section 216B.16, is amended by adding a subdivision
to read:

new text begin Subd. 6e. new text end

new text begin Cost recovery for generation and transmission assets. new text end

new text begin (a) A public utility
that proposes to add an electric generating facility or transmission asset to the public utility's
rate base must include in the filing with the commission (1) a quantitative and qualitative
assessment of the proposed asset's contribution to the utility's system reliability during times
of peak demand, and (2) for an electric generating facility, a calculation of the addition's
seasonal effective load carrying capability and the methodology used to make the calculation.
new text end

new text begin (b) A commission order addressing the addition of an electric generating facility or
transmission asset to a public utility's rate base must:
new text end

new text begin (1) include a finding explaining the extent to which adding the electric generating facility
or transmission asset contributes to the utility's system reliability during times of peak
demand, as determined by the commission;
new text end

new text begin (2) determine what, if any, portion of the costs and expenses related to adding the electric
generating unit or transmission asset to the public utility's rate base are recoverable costs
that may be obtained through rates that are just and reasonable; and
new text end

new text begin (3) include the following information, as applicable:
new text end

new text begin (i) the approved increase in recoverable rates;
new text end

new text begin (ii) the approved rate of return on an electric generating facility or transmission asset,
and the duration of the approved return; and
new text end

new text begin (iii) the amount of the electric generating facility or transmission asset costs and expenses
that the commission has determined are not recoverable costs.
new text end

new text begin (c) For the purposes of this subdivision and subdivision 6f, the following terms have the
meanings given:
new text end

new text begin (1) "electric generating facility" means an asset used to generate or store electricity for
retail sale to Minnesota ratepayers;
new text end

new text begin (2) "recoverable costs" means the revenue a public utility may recover from Minnesota
ratepayers to pay for:
new text end

new text begin (i) the cost of an electric generating facility;
new text end

new text begin (ii) the cost of a transmission asset; and
new text end

new text begin (iii) the rate of return a public utility may earn on items (i) and (ii);
new text end

new text begin (3) "seasonal effective load carrying capability" means the incremental load an electric
system is capable of supplying from a particular electric generating facility while maintaining
the same level of system reliability during each season, as determined by the Midcontinent
Independent System Operator;
new text end

new text begin (4) "system reliability" means an electric system's ability to deliver electricity to the
electric system's customers without interruption or failure; and
new text end

new text begin (5) "transmission asset" means equipment necessary to transmit electricity from an
electric generating facility to a public utility's distribution system for delivery to a retail
electric customer.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to applicable filings made on or after that date.
new text end

Sec. 2.

Minnesota Statutes 2024, section 216B.16, is amended by adding a subdivision to
read:

new text begin Subd. 6f. new text end

new text begin Reduction in capacity or retirement of generation or transmission assets. new text end

new text begin (a)
A public utility that proposes to reduce the capacity of or retire from service an electric
generating facility or a transmission asset must include in the public utility's filing with the
commission evidence that the proposed action does not impair the public utility's ability to
fully meet the public utility's system reliability requirements during times of peak demand,
including a quantitative and qualitative evaluation of the impact of the proposed action on
system reliability.
new text end

new text begin (b) A commission order addressing the reduction in capacity or retirement of an electric
generating facility or transmission facility must contain an explanation describing the extent
to which the action impacts the utility's system reliability during times of peak demand,
taking into account other scheduled utility asset reductions in capacity or retirements from
service.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to applicable filings made on or after that date.
new text end