Bill Text: MN HF2769 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Utility rates required to be based primarily on cost of service between and among consumer classes; clarifying and technical, and low-income affordability program changes made.
Sponsorship: Partisan Bill (Republican 2)
Status: (Introduced - Dead) 2012-03-12 - Introduction and first reading, referred to Environment, Energy and Natural Resources Policy and Finance [HF2769 Detail]
Download: Minnesota-2011-HF2769-Introduced.html
1.2relating to utilities; requiring utility rates be based primarily on cost of service
1.3between and among consumer classes; making clarifying and technical changes;
1.4making changes to the low-income affordability program;amending Minnesota
1.5Statutes 2010, sections 216B.03; 216B.07; 216B.16, by adding subdivisions.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 216B.03, is amended to read:
1.8216B.03 REASONABLE RATE.
1.9Every rate made, demanded, or received by any public utility, or by any two or
1.10more public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
1.11preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
1.12and consistent in application to a class of consumers and among classes of consumers.
1.13To the maximum reasonable extent, the commission shall set rates to encourage energy
1.14conservation and renewable energy use and to further the goals of sections216B.164 ,
1.15216B.241
, and
216C.05 . Any doubt as to reasonableness should be resolved in favor of the
1.16consumer. For rate-making purposes a public utility may treat two or more municipalities
1.17served by it as a single class wherever the populations are comparable in size or the
1.18conditions of service are similar.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 216B.07, is amended to read:
1.21216B.07 RATE PREFERENCE PROHIBITED.
2.1No public utility shall, as to rates or service, make or grant any unreasonable
2.2preference or advantage to any person or class of consumers or subject any person or class
2.3of consumers to any unreasonable prejudice or disadvantage.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 3. Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
2.6to read:
2.7 Subd. 6e. Revenue allocation among consumer classes. Cost of service shall
2.8be the primary consideration in the commission's determination of revenue allocation
2.9among consumer classes. Factors other than cost of service, including impact on business
2.10development and job growth, may also be considered and evaluated by the commission
2.11in determining revenue allocations. Revenue allocation among consumer classes that
2.12deviates from the cost of service must be supported by clear and convincing record
2.13evidence.
2.14EFFECTIVE DATE.This section is effective the day following final enactment
2.15and applies to filings for rate changes filed on and after that date.
2.16 Sec. 4. Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
2.17to read:
2.18 Subd. 15a. Electric utility low-income affordability program improvements.
2.19(a) This subdivision applies only to investor-owned electric public utilities with more than
2.20100,000 residential service customers as of the effective date of this section.
2.21(b) The Department of Commerce, in consultation with other interested parties, is
2.22authorized to review and make recommendations to improve low-income affordability
2.23programs under subdivision 15.
2.24(c) In addition to the requirements under subdivision 15, any affordability program
2.25implemented by a public utility subject to this subdivision must also:
2.26(1) be designed to increase the percentage of low-income residential ratepayers
2.27enrolled in the program;
2.28(2) have an adequate and stable source of funding; and
2.29(3) operate efficiently and with minimal administrative expenses.
2.30(d) The allocation and recovery of costs for affordability programs approved under
2.31this subdivision must be determined on the basis of each public utility's number of
2.32customers. Cost cannot be allocated to rate classes on the basis of revenue or volume of
2.33consumption, and cannot be recovered from ratepayers through a volumetric charge.
3.1(e) Any proposed improvements under paragraph (c) are subject to review and
3.2approval by the commission. The Department of Commerce is authorized to administer
3.3or assist in the administration of low-income affordability programs approved by the
3.4commission under this subdivision.
3.5EFFECTIVE DATE.This section is effective the day following final enactment.
1.3between and among consumer classes; making clarifying and technical changes;
1.4making changes to the low-income affordability program;amending Minnesota
1.5Statutes 2010, sections 216B.03; 216B.07; 216B.16, by adding subdivisions.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2010, section 216B.03, is amended to read:
1.8216B.03 REASONABLE RATE.
1.9Every rate made, demanded, or received by any public utility, or by any two or
1.10more public utilities jointly, shall be just and reasonable. Rates shall not be unreasonably
1.11preferential, unreasonably prejudicial, or discriminatory, but shall be sufficient, equitable,
1.12and consistent in application to a class of consumers and among classes of consumers.
1.13To the maximum reasonable extent, the commission shall set rates to encourage energy
1.14conservation and renewable energy use and to further the goals of sections
1.16consumer. For rate-making purposes a public utility may treat two or more municipalities
1.17served by it as a single class wherever the populations are comparable in size or the
1.18conditions of service are similar.
1.19EFFECTIVE DATE.This section is effective the day following final enactment.
1.20 Sec. 2. Minnesota Statutes 2010, section 216B.07, is amended to read:
1.21216B.07 RATE PREFERENCE PROHIBITED.
2.1No public utility shall, as to rates or service, make or grant any unreasonable
2.2preference or advantage to any person or class of consumers or subject any person or class
2.3of consumers to any unreasonable prejudice or disadvantage.
2.4EFFECTIVE DATE.This section is effective the day following final enactment.
2.5 Sec. 3. Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
2.6to read:
2.7 Subd. 6e. Revenue allocation among consumer classes. Cost of service shall
2.8be the primary consideration in the commission's determination of revenue allocation
2.9among consumer classes. Factors other than cost of service, including impact on business
2.10development and job growth, may also be considered and evaluated by the commission
2.11in determining revenue allocations. Revenue allocation among consumer classes that
2.12deviates from the cost of service must be supported by clear and convincing record
2.13evidence.
2.14EFFECTIVE DATE.This section is effective the day following final enactment
2.15and applies to filings for rate changes filed on and after that date.
2.16 Sec. 4. Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
2.17to read:
2.18 Subd. 15a. Electric utility low-income affordability program improvements.
2.19(a) This subdivision applies only to investor-owned electric public utilities with more than
2.20100,000 residential service customers as of the effective date of this section.
2.21(b) The Department of Commerce, in consultation with other interested parties, is
2.22authorized to review and make recommendations to improve low-income affordability
2.23programs under subdivision 15.
2.24(c) In addition to the requirements under subdivision 15, any affordability program
2.25implemented by a public utility subject to this subdivision must also:
2.26(1) be designed to increase the percentage of low-income residential ratepayers
2.27enrolled in the program;
2.28(2) have an adequate and stable source of funding; and
2.29(3) operate efficiently and with minimal administrative expenses.
2.30(d) The allocation and recovery of costs for affordability programs approved under
2.31this subdivision must be determined on the basis of each public utility's number of
2.32customers. Cost cannot be allocated to rate classes on the basis of revenue or volume of
2.33consumption, and cannot be recovered from ratepayers through a volumetric charge.
3.1(e) Any proposed improvements under paragraph (c) are subject to review and
3.2approval by the commission. The Department of Commerce is authorized to administer
3.3or assist in the administration of low-income affordability programs approved by the
3.4commission under this subdivision.
3.5EFFECTIVE DATE.This section is effective the day following final enactment.
