Bill Text: MN SF2494 | 2013-2014 | 88th Legislature | Introduced
Bill Title: City energy goals cost allocation
Sponsorship: Slight Partisan Bill (Republican 2-1)
Status: (Introduced - Dead) 2014-03-10 - Referred to Finance [SF2494 Detail]
Download: Minnesota-2013-SF2494-Introduced.html
1.2relating to energy; allocating costs of meeting certain local energy goals;
1.3amending Minnesota Statutes 2012, section 216B.36.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 216B.36, is amended to read:
1.6216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.
1.7 Subdivision 1. Fees authorized. Any public utility furnishing the utility services
1.8enumerated in section216B.02 or occupying streets, highways, or other public property
1.9within a municipality may be required to obtain a license, permit, right, or franchise
1.10in accordance with the terms, conditions, and limitations of regulatory acts of the
1.11municipality, including the placing of distribution lines and facilities underground. Under
1.12the license, permit, right, or franchise, the utility may be obligated by any municipality to
1.13pay to the municipality fees to raise revenue or defray increased municipal costs accruing
1.14as a result of utility operations, or both. The fee may include but is not limited to a sum
1.15of money based upon gross operating revenues or gross earnings from its operations in
1.16the municipality so long as the public utility shall continue to operate in the municipality,
1.17unless upon request of the public utility it is expressly released from the obligation at any
1.18time by such municipality. Notwithstanding the definition of "public utility" in section
1.19216B.02, subdivision 4
, a municipality may require payment of a fee under this section
1.20by a cooperative electric association organized under chapter 308A that furnishes utility
1.21services within the municipality. All existing licenses, permits, franchises, and other
1.22rights acquired by any public utility or municipality prior to April 11, 1974, including the
1.23payment of existing franchise fees, shall not be impaired or affected in any respect by the
1.24passage of this chapter, except with respect to matters of rate and service regulation,
2.1service area assignments, securities, and indebtedness that are vested in the jurisdiction
2.2of the commission by this chapter. However, in the event that a court of competent
2.3jurisdiction determines, or the parties by mutual agreement determine, that an existing
2.4license, permit, franchise, or other right has been abrogated or impaired by this chapter, or
2.5its execution, the municipality affected shall impose and the public utility shall collect
2.6an excise tax on the utility charges which from year to year yields an amount which is
2.7reasonably equivalent to that amount of revenue which then would be due as a fee, charges
2.8or other thing or service of value to the municipality under the franchise, license, or
2.9permit. The authorization shall be over and above taxing limitations including, but not
2.10limited to, those of section477A.016 . Franchises granted pursuant to this section shall be
2.11exempt from the provisions of chapter 80C. For purposes of this section, a public utility
2.12shall include a cooperative electric association.
2.13 Subd. 2. City energy goals; cost allocation. (a) The incremental cost of any
2.14activities undertaken by a public utility to meet public policy, energy, conservation, or
2.15environmental goals that exceed or supplement comparable statewide goals and are
2.16contained in a franchise agreement or other agreement between a city and a public utility
2.17must be recovered entirely from the ratepayers of the city.
2.18 (b) For the purposes of this section, "city" means a city of the first class located in
2.19a county with a population greater than 1,000,000 in which the Minnesota corporate
2.20headquarters of the utility providing electric service to the city is located.
1.3amending Minnesota Statutes 2012, section 216B.36.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2012, section 216B.36, is amended to read:
1.6216B.36 MUNICIPAL REGULATORY AND TAXING POWERS.
1.7 Subdivision 1. Fees authorized. Any public utility furnishing the utility services
1.8enumerated in section
1.9within a municipality may be required to obtain a license, permit, right, or franchise
1.10in accordance with the terms, conditions, and limitations of regulatory acts of the
1.11municipality, including the placing of distribution lines and facilities underground. Under
1.12the license, permit, right, or franchise, the utility may be obligated by any municipality to
1.13pay to the municipality fees to raise revenue or defray increased municipal costs accruing
1.14as a result of utility operations, or both. The fee may include but is not limited to a sum
1.15of money based upon gross operating revenues or gross earnings from its operations in
1.16the municipality so long as the public utility shall continue to operate in the municipality,
1.17unless upon request of the public utility it is expressly released from the obligation at any
1.18time by such municipality. Notwithstanding the definition of "public utility" in section
1.20by a cooperative electric association organized under chapter 308A that furnishes utility
1.21services within the municipality. All existing licenses, permits, franchises, and other
1.22rights acquired by any public utility or municipality prior to April 11, 1974, including the
1.23payment of existing franchise fees, shall not be impaired or affected in any respect by the
1.24passage of this chapter, except with respect to matters of rate and service regulation,
2.1service area assignments, securities, and indebtedness that are vested in the jurisdiction
2.2of the commission by this chapter. However, in the event that a court of competent
2.3jurisdiction determines, or the parties by mutual agreement determine, that an existing
2.4license, permit, franchise, or other right has been abrogated or impaired by this chapter, or
2.5its execution, the municipality affected shall impose and the public utility shall collect
2.6an excise tax on the utility charges which from year to year yields an amount which is
2.7reasonably equivalent to that amount of revenue which then would be due as a fee, charges
2.8or other thing or service of value to the municipality under the franchise, license, or
2.9permit. The authorization shall be over and above taxing limitations including, but not
2.10limited to, those of section
2.11exempt from the provisions of chapter 80C. For purposes of this section, a public utility
2.12shall include a cooperative electric association.
2.13 Subd. 2. City energy goals; cost allocation. (a) The incremental cost of any
2.14activities undertaken by a public utility to meet public policy, energy, conservation, or
2.15environmental goals that exceed or supplement comparable statewide goals and are
2.16contained in a franchise agreement or other agreement between a city and a public utility
2.17must be recovered entirely from the ratepayers of the city.
2.18 (b) For the purposes of this section, "city" means a city of the first class located in
2.19a county with a population greater than 1,000,000 in which the Minnesota corporate
2.20headquarters of the utility providing electric service to the city is located.
