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    Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the
meanings given them in this subdivision.
(b) "Area development rate" means a rate schedule established by a utility that provides
customers within an area development zone service under a base utility rate schedule, except
that charges may be reduced from the base rate as agreed upon by the utility and the customer
consistent with this section.
(c) "Area development zone" means a contiguous or noncontiguous area designated by
an authority or municipality for development or redevelopment and within which one of the
following conditions exists:
(1) obsolete buildings not suitable for improvement or conversion or other identified hazards
to the health, safety, and general well-being of the community;
(2) buildings in need of substantial rehabilitation or in substandard condition; or
(3) low values and damaged investments.
(d) "Authority" means a rural development financing authority established under sections
469.142 to 469.151; a housing and redevelopment authority established under sections 469.001
to 469.047; a port authority established under sections 469.048 to 469.068; an economic
development authority established under sections 469.090 to 469.108; a redevelopment agency
as defined in sections 469.152 to 469.165; the Iron Range Resources and Rehabilitation Board
established under section 298.22; a municipality that is administering a development district
created under sections 469.124 to 469.134 or any special law; a municipality that undertakes a
project under sections 469.152 to 469.165, except a town located outside the metropolitan area
as defined in section 473.121, subdivision 2, or with a population of 5,000 persons or less; or a
municipality that exercises the powers of a port authority under any general or special law.
(e) "Municipality" means a city, however organized, and, with respect to a project undertaken
under sections 469.152 to 469.165, "municipality" has the meaning given in sections 469.152 to
469.165, and, with respect to a project undertaken under sections 469.142 to 469.151 or a county
or multicounty project undertaken under sections 469.004 to 469.008, also includes any county.
    Subd. 2. Area development rate. The commission may allow gas or electric public utilities
to offer area development rates. The program must be designed to assist industrial revitalization
projects located within the service area of the participating utility.
    Subd. 3. Terms and conditions of rate. An area development rate offered under this section
(1) be offered for a specified length of time to be determined by the commission;
(2) be offered as a supplement to other development incentives offered by the authority or
municipality in which the rate is available;
(3) be available only to new or expanding manufacturing or wholesale trade customers;
(4) be designed to recover at least the incremental cost of providing service to the
participating customers;
(5) be offered in a fixed number of area development zones; and
(6) include a provision that the utility provide participating customers with an energy audit
and inform those customers of all existing energy conservation programs available from the utility.
Recovery of costs under clause (4) must not be from residential customers. A utility within
a general rate case, may seek recovery of the difference in revenue collected under the area
development plan rate and what would have been collected under the standard tariff.
    Subd. 4.[Repealed by amendment, 1995 c 9 s 1]
History: 1990 c 370 s 2,7; 1995 c 9 s 1,2; 1996 c 471 art 7 s 2

Official Publication of the State of Minnesota
Revisor of Statutes