Bill Text: MN SF1231 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Wholesale energy rate payment for qualifying energy producing facilities requirement
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2011-04-18 - Referred to Energy, Utilities and Telecommunications [SF1231 Detail]
Download: Minnesota-2011-SF1231-Introduced.html
1.2relating to energy; providing for payment of wholesale energy rate for qualifying
1.3facility;amending Minnesota Statutes 2010, section 216B.164, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.164, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Purchases; small facilities. (a) For a qualifying facility having less than
1.840-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
1.9according to the applicable rate schedule for sales to that class of customer. In the case
1.10of net input into the utility system by a qualifying facility having less than 40-kilowatt
1.11capacity, compensation to the customer shall be at a per kilowatt-hour rate determined
1.12under paragraph (b) or (c).
1.13(b) In setting rates, the commission shall consider the fixed distribution costs to the
1.14utility not otherwise accounted for in the basic monthly charge and shall ensure that the
1.15costs charged to the qualifying facility are not discriminatory in relation to the costs
1.16charged to other customers of the utility. The commission shall set the rates for net
1.17input into the utility system based on avoided costs as defined in the Code of Federal
1.18Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
1.19Federal Regulations, title 18, section292.304 , and all other relevant factors.
1.20(c) Notwithstanding any provision in this chapter or any rule to the contrary, a
1.21qualifying facility having less than 40-kilowatt capacity may elect that the compensation
1.22for net input by the qualifying facility into the utility system shall be at the averageretail
1.23wholesale utility energy rate. "Averageretail wholesale utility energy rate" is defined
1.24as the average of theretail wholesale energy rates, exclusive of special rates based on
2.1income, age, or energy conservation, according to the applicable rate schedule of the
2.2utility for sales to that class of customer.
2.3(d) If the qualifying facility is interconnected with a nongenerating utility which has
2.4a sole source contract with a municipal power agency or a generation and transmission
2.5utility, the nongenerating utility may elect to treat its purchase of any net input under this
2.6subdivision as being made on behalf of its supplier and shall be reimbursed by its supplier
2.7for any additional costs incurred in making the purchase. Qualifying facilities having
2.8less than 40-kilowatt capacity may, at the customer's option, elect to be governed by
2.9the provisions of subdivision 4.
1.3facility;amending Minnesota Statutes 2010, section 216B.164, subdivision 3.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 216B.164, subdivision 3, is amended to
1.6read:
1.7 Subd. 3. Purchases; small facilities. (a) For a qualifying facility having less than
1.840-kilowatt capacity, the customer shall be billed for the net energy supplied by the utility
1.9according to the applicable rate schedule for sales to that class of customer. In the case
1.10of net input into the utility system by a qualifying facility having less than 40-kilowatt
1.11capacity, compensation to the customer shall be at a per kilowatt-hour rate determined
1.12under paragraph (b) or (c).
1.13(b) In setting rates, the commission shall consider the fixed distribution costs to the
1.14utility not otherwise accounted for in the basic monthly charge and shall ensure that the
1.15costs charged to the qualifying facility are not discriminatory in relation to the costs
1.16charged to other customers of the utility. The commission shall set the rates for net
1.17input into the utility system based on avoided costs as defined in the Code of Federal
1.18Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
1.19Federal Regulations, title 18, section
1.20(c) Notwithstanding any provision in this chapter or any rule to the contrary, a
1.21qualifying facility having less than 40-kilowatt capacity may elect that the compensation
1.22for net input by the qualifying facility into the utility system shall be at the average
1.23wholesale utility energy rate. "Average
1.24as the average of the
2.1
2.2
2.3(d) If the qualifying facility is interconnected with a nongenerating utility which has
2.4a sole source contract with a municipal power agency or a generation and transmission
2.5utility, the nongenerating utility may elect to treat its purchase of any net input under this
2.6subdivision as being made on behalf of its supplier and shall be reimbursed by its supplier
2.7for any additional costs incurred in making the purchase. Qualifying facilities having
2.8less than 40-kilowatt capacity may, at the customer's option, elect to be governed by
2.9the provisions of subdivision 4.
