Minnesota Session Laws - 1992, Regular Session

  

                         Laws of Minnesota 1992 

                        CHAPTER 478-S.F.No. 1399 
           An act relating to utilities; authorizing a public 
          utility to petition to have a pipeline classified as 
          an intrastate pipeline; requiring conservation 
          improvement plans to address the needs of low-income 
          persons; authorizing utility customers not represented 
          by the attorney general to challenge an energy 
          conservation improvement program; determining when 
          reconciliation of actual assessments to public 
          utilities and telephone companies must be completed; 
          amending Minnesota Statutes 1990, sections 216B.045, 
          subdivision 1; 216B.62, subdivision 3; and 237.295, 
          subdivision 2; Minnesota Statutes 1991 Supplement, 
          section 216B.241, subdivisions 1b and 2.  
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
    Section 1.  Minnesota Statutes 1990, section 216B.045, 
subdivision 1, is amended to read: 
    Subdivision 1.  [DEFINITION.] For the purposes of this 
section "intrastate pipeline" means a pipeline wholly within the 
state of Minnesota which transports or delivers natural gas 
received from another person at a point inside or at the border 
of the state, which is delivered at a point within the state to 
another, provided that all the natural gas is consumed within 
the state.  An intrastate pipeline does not include a pipeline 
owned or operated by a public utility, unless a public utility 
files a petition requesting that a pipeline or a portion of a 
pipeline be classified as an intrastate pipeline and the 
commission approves the petition.  
    Sec. 2.  Minnesota Statutes 1991 Supplement, section 
216B.241, subdivision 1b, is amended to read: 
    Subd. 1b.  [CONSERVATION IMPROVEMENT; COOPERATIVES; 
MUNICIPALITIES.] (a) This subdivision applies to: 
     (1) a cooperative electric association that generates and 
transmits electricity to associations that provide electricity 
at retail including a cooperative electric association not 
located in this state that serves associations or others in the 
state; 
     (2) a municipality that provides electric service to retail 
customers; and 
     (3) a municipality with gross operating revenues in excess 
of $5,000,000 from sales of natural gas to retail customers.  
     (b) Each cooperative electric association and municipality 
subject to this subdivision shall spend and invest for energy 
conservation improvements under this subdivision the following 
amounts: 
     (1) for a municipality, .5 percent of its gross operating 
revenues from the sale of gas and one percent of its gross 
operating revenues from the sale of electricity not purchased 
from a public utility governed by subdivision 1a or a 
cooperative electric association governed by this subdivision; 
and 
    (2) for a cooperative electric association, 1.5 percent of 
its gross operating revenues from service provided in the state. 
    (c) Each municipality and cooperative association subject 
to this subdivision shall identify and implement energy 
conservation improvement spending and investments that are 
appropriate for the municipality or association.  Load 
management may be used to meet the requirements of this 
subdivision if it reduces the demand for or increases the 
efficiency of electric services.  A generation and transmission 
cooperative electric association may include as spending and 
investment required under this subdivision conservation 
improvement spending and investment by cooperative electric 
associations that provide electric service at retail to 
consumers and that are served by the generation and transmission 
association.  By February 1 of each year, each municipality or 
cooperative shall report to the commissioner its energy 
conservation improvement spending and investments with a brief 
analysis of effectiveness in reducing consumption of electricity 
or gas.  The commissioner shall review each report and make 
recommendations, where appropriate, to the municipality or 
association to increase the effectiveness of conservation 
improvement activities.  The commissioner shall also review each 
report for whether a portion of the money spent on residential 
conservation improvement programs is devoted to programs that 
directly address the needs of renters and low-income persons 
unless an insufficient number of appropriate programs are 
available.  For the purposes of this subdivision and subdivision 
2, "low-income" means an income of less than 185 percent of the 
federal poverty level. 
    (d) As part of its spending for conservation improvement, a 
municipality or association may contribute to the energy and 
conservation account.  Any amount contributed must be remitted 
to the commissioner of public service by February 1 of each year.
    Sec. 3.  Minnesota Statutes 1991 Supplement, section 
216B.241, subdivision 2, is amended to read: 
    Subd. 2.  [PROGRAMS.] The commissioner may by rule require 
public utilities to make investments and expenditures in energy 
conservation improvements, explicitly setting forth the interest 
rates, prices, and terms under which the improvements must be 
offered to the customers.  The required programs must cover a 
two-year period.  The commissioner shall require at least one 
public utility to establish a pilot program to make investments 
in and expenditures for energy from renewable resources such as 
solar, wind, or biomass and shall give special consideration and 
encouragement to programs that bring about significant net 
savings through the use of energy-efficient lighting.  The 
commissioner shall evaluate the program on the basis of 
cost-effectiveness and the reliability of technologies 
employed.  The rules of the department must provide to the 
extent practicable for a free choice, by consumers participating 
in the program, of the device, method, or material constituting 
the energy conservation improvement and for a free choice of the 
seller, installer, or contractor of the energy conservation 
improvement, provided that the device, method, material, seller, 
installer, or contractor is duly licensed, certified, approved, 
or qualified, including under the residential conservation 
services program, where applicable.  The commissioner may 
require a utility to make an energy conservation improvement 
investment or expenditure whenever the commissioner finds that 
the improvement will result in energy savings at a total cost to 
the utility less than the cost to the utility to produce or 
purchase an equivalent amount of new supply of energy.  The 
commissioner shall nevertheless ensure that every public utility 
operate one or more programs under periodic review by the 
department.  Load management may be used to meet the 
requirements for energy conservation improvements under this 
section if it results in a demonstrable reduction in consumption 
of energy.  The commissioner shall consider and may require a 
utility to undertake a program suggested by an outside source, 
including a political subdivision or a nonprofit or community 
organization.  No utility may make an energy conservation 
improvement under this section to a building envelope unless: 
     (1) it is the primary supplier of energy used for either 
space heating or cooling in the building; 
     (2) the commissioner determines that special circumstances, 
which would unduly restrict the availability of conservation 
programs, warrant otherwise; or 
    (3) the utility has been awarded a contract under 
subdivision 2a. 
    The commissioner shall ensure that a portion of the money 
spent on residential conservation improvement programs is 
devoted to programs that directly address the needs of renters 
and low-income persons unless an insufficient number of 
appropriate programs are available. 
    A utility, a political subdivision, or a nonprofit or 
community organization that has suggested a program, or the 
attorney general acting on behalf of consumers and small 
business interests, or a utility customer that has suggested a 
program and is not represented by the attorney general under 
section 8.33 may petition the commission to modify or revoke a 
department decision under this section, and the commission may 
do so if it determines that the program is not 
cost-effective, does not adequately address the residential 
conservation improvement needs of low-income persons, has a 
long-range negative effect on one or more classes of customers, 
or is otherwise not in the public interest.  The person 
petitioning for commission review has the burden of proof.  The 
commission shall reject a petition that, on its face, fails to 
make a reasonable argument that a program is not in the public 
interest. 
    Sec. 4.  Minnesota Statutes 1990, section 216B.62, 
subdivision 3, is amended to read: 
    Subd. 3.  The department and commission shall quarterly, at 
least 30 days before the start of each quarter, estimate the 
total of their expenditures in the performance of their duties 
relating to public utilities under section 216A.085, and 
sections 216B.01 to 216B.67, other than amounts chargeable to 
public utilities under subdivision 2 or 6.  The remainder shall 
be assessed by the commission and department to the several 
public utilities in proportion to their respective gross 
operating revenues from retail sales of gas or electric service 
within the state during the last calendar year.  The assessment 
shall be paid into the state treasury within 30 days after the 
bill has been mailed to the several public utilities, which 
shall constitute notice of the assessment and demand of payment 
thereof.  The total amount which may be assessed to the public 
utilities, under authority of this subdivision, shall not exceed 
one-eighth of one percent of the total gross operating revenues 
of the public utilities during the calendar year from retail 
sales of gas or electric service within the state.  The 
assessment for the second third quarter of each fiscal year 
shall be adjusted to compensate for the amount by which actual 
expenditures by the commission and department for the preceding 
fiscal year were more or less than the estimated expenditures 
previously assessed. 
    Sec. 5.  Minnesota Statutes 1990, section 237.295, 
subdivision 2, is amended to read: 
    Subd. 2.  [ASSESSMENT OF COSTS.] The department and 
commission shall quarterly, at least 30 days before the start of 
each quarter, estimate the total of their expenditures in the 
performance of their duties relating to telephone companies, 
other than amounts chargeable to telephone companies under 
subdivision 1 or 5.  The remainder must be assessed by the 
department to the telephone companies operating in this state in 
proportion to their respective gross jurisdictional operating 
revenues during the last calendar year.  The assessment must be 
paid into the state treasury within 30 days after the bill has 
been mailed to the telephone companies.  The bill constitutes 
notice of the assessment and demand of payment.  The total 
amount that may be assessed to the telephone companies under 
this subdivision may not exceed one-eighth of one percent of the 
total gross jurisdictional operating revenues during the 
calendar year.  The assessment for the second third quarter of 
each fiscal year must be adjusted to compensate for the amount 
by which actual expenditures by the commission and department 
for the preceding fiscal year were more or less than the 
estimated expenditures previously assessed.  A telephone company 
with gross jurisdictional operating revenues of less than $5,000 
is exempt from assessments under this subdivision. 
    Presented to the governor April 15, 1992 
    Signed by the governor April 17, 1992, 5:15 p.m.