2005 Minnesota Statutes

     216B.169 Renewable and high-efficiency energy rate 
  options. 

    Subdivision 1.    Definitions.  For the purposes of this 
 section, the following terms have the meanings given them. 

    (a) "Utility" means a public utility, municipal utility, or 
 cooperative electric association providing electric service at 
 retail to Minnesota consumers. 

    (b) "Renewable energy" has the meaning given in section 
 216B.2422, subdivision 1, paragraph (c). 

    (c) "High-efficiency, low-emissions, distributed generation"
 means a distributed generation facility of no more than ten 
 megawatts of interconnected capacity that is certified by the 
 commissioner under subdivision 3 as a high-efficiency, 
 low-emissions facility. 

    Subd. 2.    Renewable and high-efficiency energy rate 
 options.  (a) Each utility shall offer its customers, and 
 shall advertise the offer at least annually, one or more options 
 that allow a customer to determine that a certain amount of the 
 electricity generated or purchased on behalf of the customer is 
 renewable energy or energy generated by high-efficiency, 
 low-emissions, distributed generation such as fuel cells and 
 microturbines fueled by a renewable fuel. 

    (b) Each public utility shall file an implementation plan 
 within 90 days of July 1, 2001, to implement paragraph (a). 

    (c) Rates charged to customers must be calculated using the 
 utility's cost of acquiring the energy for the customer and must:

    (1) reflect the difference between the cost of generating 
 or purchasing the renewable energy and the cost of generating or 
 purchasing the same amount of nonrenewable energy; and 

    (2) be distributed on a per kilowatt-hour basis among all 
 customers who choose to participate in the program. 

    (d) Implementation of these rate options may reflect a 
 reasonable amount of lead time necessary to arrange acquisition 
 of the energy.  The utility may acquire the energy demanded by 
 customers, in whole or in part, through procuring or generating 
 the renewable energy directly, or through the purchase of 
 credits from a provider that has received certification of 
 eligible power supply pursuant to subdivision 3.  If a utility 
 is not able to arrange an adequate supply of renewable or 
 high-efficiency energy to meet its customers' demand under this 
 section, the utility must file a report with the commission 
 detailing its efforts and reasons for its failure. 

    Subd. 3.    Certification and tradeable credits.  (a) 
 The commissioner shall certify a power supply or supplies as 
 eligible to satisfy customer requirements under this section 
 upon finding: 

    (1) the power supply is renewable energy or energy 
 generated by high-efficiency, low-emissions, distributed 
 generation; and 

    (2) the sales arrangements of energy from the supplies are 
 such that the power supply is only sold once to retail consumers.

    (b) To facilitate compliance with this section, the 
 commission may, by order, establish a program for tradeable 
 credits for eligible power supplies. 

    HIST: 2001 c 212 art 8 s 2