1.2relating to energy; authorizing the Public Utilities Commission to approve a
1.3multiyear rate plan for certain utilities; providing for cost recovery for certain
1.4pollution control products;amending Minnesota Statutes 2010, section 216B.16,
1.5subdivision 7, by adding a subdivision.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7    Section 1. Minnesota Statutes 2010, section 216B.16, subdivision 7, is amended to read:
1.8    Subd. 7. Energy and emission control products cost adjustment. Notwithstanding
1.9any other provision of this chapter, the commission may permit a public utility to file
1.10rate schedules containing provisions for the automatic adjustment of charges for public
1.11utility service in direct relation to changes in:
1.12(1) federally regulated wholesale rates for energy delivered through interstate
1.13facilities;
1.14(2) direct costs for natural gas delivered; or
1.15(3) costs for fuel used in generation of electricity or the manufacture of gas; or
1.16(4) prudent costs incurred by a public utility for sorbents, reagents, or chemicals
1.17used to control emissions from an electric generation facility, provided that these costs are
1.18not recovered elsewhere in rates. The utility must track and report annually the volumes
1.19and costs of sorbents, reagents, or chemicals using separate accounts by generating plant.

1.20    Sec. 2. Minnesota Statutes 2010, section 216B.16, is amended by adding a subdivision
1.21to read:
1.22    Subd. 19. Multiyear rate plan. (a) A public utility may propose, and the
1.23commission may approve, approve as modified, or reject a multiyear rate plan as provided
1.24in this subdivision. The term "multiyear rate plan" refers to a plan establishing the rates the
2.1utility may charge for each year of the specified period of years to be covered by the plan.
2.2The commission may approve a multiyear rate plan only if it finds that the plan establishes
2.3just and reasonable rates for the utility, applying the factors described in subdivision 6.
2.4(b) Rates charged under a multiyear rate plan must be based only upon the utility's
2.5reasonable and prudent costs of service over the term of the plan, as determined by the
2.6commission, provided that the costs are not being recovered elsewhere in rates. Rate
2.7adjustments authorized under subdivisions 6b and 7 may continue outside of a plan
2.8authorized under this subdivision.
2.9(c) The commission may, by order, establish terms, conditions, and procedures
2.10necessary to implement this subdivision, including a mechanism to periodically examine
2.11a multiyear rate plan to ensure rates charged under the plan remain just and reasonable.
2.12In reviewing a multiyear rate plan proposed in a general rate case under this section,
2.13the commission may extend the time requirements for issuance of a final determination
2.14prescribed in this section by an additional 90 days beyond its existing authority under
2.15subdivision 2, paragraph (f).