HF 113

1st Engrossment - 90th Legislature (2017 - 2018) Posted on 02/15/2017 12:39pm

A bill for an act
relating to energy; authorizing construction and operation of a natural gas combined
cycle electric generation plant.

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

Section 1. new text begin NATURAL GAS COMBINED CYCLE ELECTRIC GENERATION
PLANT.
new text end

new text begin (a) Notwithstanding Minnesota Statutes, section 216B.243, or any other law or rule to
the contrary, a public utility may, at its sole discretion, construct, own, and operate a natural
gas combined cycle electric generation plant as proposed to the Public Utilities Commission
in docket number E-002/RP-15-21, provided that the plant is (1) located on property in
Sherburne County, Minnesota, already owned by the public utility, and (2) constructed after
January 1, 2018.
new text end

new text begin (b) The commission must approve recovery of reasonably and prudently incurred costs
associated with the construction and operation of a plant under this section as provided
under Minnesota Statutes, section 216B.16.
new text end

new text begin (c) No less than 20 months prior to the start of construction, a public utility may file
with the commission an independent evaluation of the utility's forecasted costs for a plant
under this section, and may request that the commission establish a sliding scale rate of
return mechanism of no more than 25 basis points above or below the most recently
authorized rate of return on equity for the capital investment under this section, in order to
provide an incentive for the utility to complete the project at or under the forecasted costs.
new text end