1.1                          A bill for an act 
  1.2             relating to public utilities; establishing criteria 
  1.3             for the approval by the public utilities commission of 
  1.4             certain transactions by electric public utilities; 
  1.5             amending Minnesota Statutes 1996, section 216B.50, 
  1.6             subdivision 1. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1996, section 216B.50, 
  1.9   subdivision 1, is amended to read: 
  1.10     Subdivision 1.  [COMMISSION APPROVAL REQUIRED.] (a) No 
  1.11  public utility operating in this state shall sell, acquire, 
  1.12  lease, or rent any plant as an operating unit or system in this 
  1.13  state for a total consideration in excess of $100,000, or merge 
  1.14  or consolidate with another public utility ~~operating in this~~ 
  1.15  ~~state~~, without first being authorized so to do by the 
  1.16  commission.  Upon the filing of an application for the approval 
  1.17  and consent of the commission thereto the commission shall 
  1.18  investigate, with or without public hearing, and in case of a 
  1.19  public hearing, upon such notice as the commission may require, 
  1.20  and if it shall find that the proposed action is consistent with 
  1.21  the public interest it shall give its consent and approval by 
  1.22  order in writing.  In reaching its determination the commission 
  1.23  shall take into consideration the reasonable value of the 
  1.24  property, plant, or securities to be acquired or disposed of, or 
  1.25  merged and consolidated.  The provisions of this section shall 
  1.26  not be construed as applicable to the purchase of units of 
  2.1   property for replacement or to the addition to the plant of the 
  2.2   public utility by construction. 
  2.3      (b) Prior to giving its approval and consent under 
  2.4   paragraph (a) to an application for the merger, acquisition, or 
  2.5   control of an electric public utility, the commission must find 
  2.6   that it: 
  2.7      (1) provides, to the fullest extent possible, net benefits 
  2.8   to all affected ratepayers in both the short term and long term, 
  2.9   and that all classes of ratepayers will receive similar 
  2.10  benefits; 
  2.11     (2) does not adversely affect existing competition and will 
  2.12  foster the development of future competition; 
  2.13     (3) maintains or improves the safety, reliability, and 
  2.14  quality of service to the public utility ratepayers in the 
  2.15  state; 
  2.16     (4) is fair and reasonable to affected public utility 
  2.17  employees; 
  2.18     (5) is beneficial to state and local economies, including 
  2.19  job creation and retention, and the communities in the area 
  2.20  served by the public utility operating in the state; 
  2.21     (6) maintains or improves the ability of the state to 
  2.22  protect the environment, promote renewable energy, require 
  2.23  energy conservation, and require long-term resource planning by 
  2.24  electric public utilities; 
  2.25     (7) maintains or improves the financial condition of the 
  2.26  resulting public utility operating in the state; and 
  2.27     (8) preserves the jurisdiction of the commission and the 
  2.28  capacity of the commission to effectively regulate and audit 
  2.29  public utility operations in the state. 
  2.30     (c) The commission may impose conditions on its approval 
  2.31  and consent to attain the goals specified in paragraph (b). 
  2.32     (d) The person or corporation submitting the application 
  2.33  has the burden of proving to the commission, by a preponderance 
  2.34  of the evidence, that the requirements of paragraph (b) are met. 
  2.35     Sec. 2.  [EFFECTIVE DATE.] 
  2.36     Section 1 is effective the day following its final 
  3.1   enactment and applies to applications pending or received on or 
  3.2   after that date.