1.2relating to public utilities; revising process and standard for approval of interim
1.3rates;amending Minnesota Statutes 2012, section 216B.16, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5    Section 1. Minnesota Statutes 2012, section 216B.16, subdivision 3, is amended to read:
1.6    Subd. 3. Interim rate. (a) Notwithstanding any order of suspension of a proposed
1.7increase in rates, the commission shall may order an interim rate schedule into effect not
1.8later than 60 days after the initial filing date. The commission shall order the interim
1.9rate schedule ex parte without a public hearing. An interim rate schedule may only be
1.10authorized upon a finding that an immediate and compelling necessity exists for an interim
1.11rate increase. Notwithstanding the provisions of sections 216.25, 216B.27, and 216B.52,
1.12no interim rate schedule ordered by the commission pursuant to this subdivision shall be
1.13subject to an application for a rehearing or an appeal to a court until the commission has
1.14rendered its final determination.
1.15(b) Unless the commission finds that exigent circumstances exist, the interim rate
1.16schedule shall be calculated using the proposed test year cost of capital, rate base, and
1.17expenses, except that it shall If the commission finds that interim rate relief is necessary,
1.18the commission may authorize an interim rate schedule under which the utility's revenues
1.19will be increased by an amount deemed necessary to prevent injury to the public or utility,
1.20not exceeding the amount requested by the utility. Any authorized interim rate schedule
1.21may include:
1.22(1) a rate of return on common equity for the utility equal to no more than that
1.23authorized by the commission in the utility's most recent rate proceeding;
2.1(2) rate base or expense items the same in nature and kind as those allowed by a
2.2currently effective order of the commission in the utility's most recent rate proceeding; and
2.3(3) no change in the existing rate design. In the case of a utility which has not been
2.4subject to a prior commission determination, the commission shall base the any interim
2.5rate schedule on its most recent determination concerning a similar utility.
2.6(c) If, at the time of its final determination, the commission finds that the any
2.7authorized interim rates are in excess of the rates in the final determination, the
2.8commission shall order the utility to refund the excess amount collected under the interim
2.9rate schedule, including interest on it which shall be at the rate of interest determined by
2.10the commission. The utility shall commence distribution of the refund to its customers
2.11within 120 days of the final order, not subject to rehearing or appeal. If, at the time of its
2.12final determination, the commission finds that the interim rates are less than the rates in
2.13the final determination, the commission shall prescribe a method by which the utility will
2.14recover the difference in revenues between the date of the final determination and the date
2.15the new rate schedules are put into effect. In addition, when an extension is granted for
2.16settlement discussions under subdivision 1a, the commission shall allow the utility to also
2.17recover the difference in revenues for a length of time equal to the length of the extension.
2.18(d) If the public utility fails to make refunds within the period of time prescribed
2.19by the commission, the commission shall sue therefor and may recover on behalf of all
2.20persons entitled to a refund. In addition to the amount of the refund and interest due,
2.21the commission shall be entitled to recover reasonable attorney's fees, court costs and
2.22estimated cost of administering the distribution of the refund to persons entitled to it. No
2.23suit under this subdivision shall be maintained unless instituted within two years after the
2.24end of the period of time prescribed by the commission for repayment of refunds.
2.25(e) The commission shall not order an interim rate schedule in a general rate case
2.26into effect as provided by this subdivision until at least four months after it has made a
2.27final determination concerning any previously filed change of the rate schedule or the
2.28change has otherwise become effective under subdivision 2, unless:
2.29(1) the commission finds that a four-month delay would unreasonably burden the
2.30utility, its customers, or its shareholders and that an earlier imposition of interim rates
2.31is therefore necessary; or
2.32(2) the utility files a second general rate case at least 12 months after it has filed a
2.33previous general rate case for which the commission has extended the suspension period
2.34under subdivision 2.