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Key: (1) language to be deleted (2) new language

                            CHAPTER 200-H.F.No. 1940 
                  An act relating to utilities; modifying requirements 
                  for renewable energy development funding; specifying 
                  that certain required expenditures are recoverable; 
                  providing a siting preference for certain wind energy 
                  facilities; amending Minnesota Statutes 1998, sections 
                  116C.779; 216B.1645; and 216B.2423, by adding a 
           Section 1.  Minnesota Statutes 1998, section 116C.779, is 
        amended to read: 
           (a) The public utility that operates the Prairie Island 
        nuclear generating plant must transfer to a renewable 
        development account $500,000 each year for each dry cask 
        containing spent fuel that is located at the independent spent 
        fuel storage installation at Prairie Island after January 1, 
        1999.  The fund transfer must be made if waste is stored in a 
        cask for any part of a year.  Funds in the account can only may 
        be expended only for development of renewable energy 
        sources.  Preference must be given to development of renewable 
        energy source projects located within the state. 
           (b) Expenditures from the account may only be made after 
        approval by order of the public utilities commission upon a 
        petition by the public utility. 
           Sec. 2.  Minnesota Statutes 1998, section 216B.1645, is 
        amended to read: 
           Upon the petition of a public utility, the public utilities 
        commission shall approve or disapprove power purchase contracts 
        or, investments, or expenditures entered into or made by the 
        utility to satisfy the wind and biomass mandates contained in 
        sections 216B.2423 and 216B.2424, or to develop renewable energy 
        sources from the account required in section 116C.779.  The 
        expenses incurred by the utility over the duration of the 
        approved contract or useful life of the investment and 
        expenditures made pursuant to section 116C.779 shall be 
        recoverable from the ratepayers of the utility, to the extent 
        they are not offset by utility revenues attributable to the 
        contracts or, investments, or expenditures.  Upon petition by a 
        public utility, the commission shall approve or approve as 
        modified a rate schedule providing for the automatic adjustment 
        of charges to recover the expenses or costs approved by the 
        commission.  Nothing in this section shall be construed to 
        determine the manner or extent to which revenues derived from 
        other generation facilities of the utility may be considered in 
        determining the recovery of the approved cost or expenses 
        associated with the mandated contracts or, investments, or 
        expenditures in the event there is retail competition for 
        electric energy. 
           Sec. 3.  Minnesota Statutes 1998, section 216B.2423, is 
        amended by adding a subdivision to read: 
           Subd. 2a.  [SITE PREFERENCE.] The public utilities 
        commission shall ensure that a utility subject to the 
        requirements of subdivision 1, clause (2), shall implement that 
        clause with a preference for wind energy conversion systems 
        within the state.  This preference shall not prevent the utility 
        from constructing or contracting to construct wind energy 
        conversion systems outside the state, if the public utilities 
        commission determines that selection of a facility within the 
        state conflicts with the requirements of section 216B.03. 
           Sec. 4.  [EFFECTIVE DATE.] 
           Sections 1 to 3 are effective the day following final 
           Presented to the governor May 21, 1999 
           Signed by the governor May 24, 1999, 10:04 a.m.

Official Publication of the State of Minnesota
Revisor of Statutes