Subdivision 1. Definitions. (a) "Gas utility" means a public utility as defined in section 216B.02, subdivision 4, that furnishes natural gas service to retail customers.
(b) "Gas utility infrastructure costs" or "GUIC" means costs incurred in gas utility projects that:
(1) do not serve to increase revenues by directly connecting the infrastructure replacement to new customers;
(2) are in service but were not included in the gas utility's rate base in its most recent general rate case, or are planned to be in service during the period covered by the report submitted under subdivision 2, but in no case longer than the one-year forecast period in the report; and
(3) do not constitute a betterment, unless the betterment is based on requirements by a political subdivision or a federal or state agency, as evidenced by specific documentation, an order, or other similar requirement from the government entity requiring the replacement or modification of infrastructure.
(c) "Gas utility projects" means:
(1) replacement of natural gas facilities located in the public right-of-way required by the construction or improvement of a highway, road, street, public building, or other public work by or on behalf of the United States, the state of Minnesota, or a political subdivision; and
(2) replacement or modification of existing natural gas facilities, including surveys, assessments, reassessment, and other work necessary to determine the need for replacement or modification of existing infrastructure that is required by a federal or state agency.
Subd. 2. Gas infrastructure filing. A public utility submitting a petition to recover gas infrastructure costs under this section must submit to the commission, the department, and interested parties a gas infrastructure project plan report and a petition for rate recovery of only incremental costs associated with projects under subdivision 1, paragraph (c). The report and petition must be made at least 150 days in advance of implementation of the rate schedule, provided that the rate schedule will not be implemented until the petition is approved by the commission pursuant to subdivision 5. The report must be for a forecast period of one year.
Subd. 3. Gas infrastructure project plan report. The gas infrastructure project plan report required to be filed under subdivision 2 shall include all pertinent information and supporting data on each proposed project including, but not limited to, project description and scope, estimated project costs, and project in-service date.
Subd. 4. Cost recovery petition for utility's facilities. Notwithstanding any other provision of this chapter, the commission may approve a rate schedule for the automatic annual adjustment of charges for gas utility infrastructure costs net of revenues under this section, including a rate of return, income taxes on the rate of return, incremental property taxes, incremental depreciation expense, and any incremental operation and maintenance costs. A gas utility's petition for approval of a rate schedule to recover gas utility infrastructure costs outside of a general rate case under section 216B.16 is subject to the following:
(1) a gas utility may submit a filing under this section no more than once per year; and
(2) a gas utility must file sufficient information to satisfy the commission regarding the proposed GUIC. The information includes, but is not limited to:
(i) the information required to be included in the gas infrastructure project plan report under subdivision 3;
(ii) the government entity ordering or requiring the gas utility project and the purpose for which the project is undertaken;
(iii) a description of the estimated costs and salvage value, if any, associated with the existing infrastructure replaced or modified as a result of the project;
(iv) a comparison of the utility's estimated costs included in the gas infrastructure project plan and the actual costs incurred, including a description of the utility's efforts to ensure the costs of the facilities are reasonable and prudently incurred;
(v) calculations to establish that the rate adjustment is consistent with the terms of the rate schedule, including the proposed rate design and an explanation of why the proposed rate design is in the public interest;
(vi) the magnitude and timing of any known future gas utility projects that the utility may seek to recover under this section;
(vii) the magnitude of GUIC in relation to the gas utility's base revenue as approved by the commission in the gas utility's most recent general rate case, exclusive of gas purchase costs and transportation charges;
(viii) the magnitude of GUIC in relation to the gas utility's capital expenditures since its most recent general rate case; and
(ix) the amount of time since the utility last filed a general rate case and the utility's reasons for seeking recovery outside of a general rate case.
Subd. 5. Commission action. Upon receiving a gas utility report and petition for cost recovery under subdivision 2 and assessment and verification under subdivision 4, the commission may approve the annual GUIC rate adjustments provided that, after notice and comment, the costs included for recovery through the rate schedule are prudently incurred and achieve gas facility improvements at the lowest reasonable and prudent cost to ratepayers.
Subd. 6. Rate of return. The return on investment for the rate adjustment shall be at the level approved by the commission in the public utility's last general rate case, unless the commission determines that a different rate of return is in the public interest.
Subd. 7. Commission authority; rules. The commission may issue orders and adopt rules necessary to implement and administer this section.
History: 2005 c 97 art 10 s 1,3; 2013 c 85 art 7 s 2,9
NOTE: This section expires June 30, 2023. Laws 2005, chapter 97, article 10, section 3, as amended by Laws 2013, chapter 85, article 7, section 9.
Structure Minnesota Statutes
Chapters 216 - 217 — Utilities
Chapter 216B — Public Utilities
Section 216B.01 — Legislative Findings.
Section 216B.02 — Definitions.
Section 216B.022 — Submetering.
Section 216B.025 — Municipal Regulation Option.
Section 216B.026 — Cooperative Electric Association; Election On Regulation.
Section 216B.027 — Cooperative Electric Association Stockholder Rights.
Section 216B.029 — Standards For Distribution Utilities.
Section 216B.03 — Reasonable Rate.
Section 216B.04 — Standard Of Service.
Section 216B.045 — Regulation Of Intrastate Natural Gas Pipeline.
Section 216B.05 — Filing Schedules, Rules, And Service Agreements.
Section 216B.06 — Receiving Different Compensation.
Section 216B.07 — Rate Preference Prohibited.
Section 216B.075 — Meter Reading; Customer Scheduling Needs.
Section 216B.08 — Duties Of Commission.
Section 216B.09 — Standards; Classifications; Rules; Practices.
Section 216B.091 — Monthly Reports.
Section 216B.0951 — Propane Prepurchase Program.
Section 216B.096 — Cold Weather Rule; Public Utility.
Section 216B.097 — Cold Weather Rule; Cooperative Or Municipal Utility.
Section 216B.0975 — Disconnection During Extreme Heat Conditions.
Section 216B.0976 — Notice Of Utility Disconnection.
Section 216B.098 — Residential Customer Protections.
Section 216B.0991 — Definitions.
Section 216B.0992 — Price And Fee Disclosure.
Section 216B.0993 — Budget Payment Plan.
Section 216B.0994 — Propane Purchase Contracts.
Section 216B.0995 — Terms Of Sale.
Section 216B.105 — Customer Share Of Mercury Control Costs.
Section 216B.11 — Depreciation Rates And Practices.
Section 216B.12 — Right Of Entrance; Inspection.
Section 216B.13 — Production And Examination Of Records.
Section 216B.14 — Investigation.
Section 216B.15 — Hearings; Examiner.
Section 216B.16 — Rate Change; Procedure; Hearing.
Section 216B.161 — Area Development Rate Plan.
Section 216B.1611 — Interconnection Of On-site Distributed Generation.
Section 216B.1613 — Standardized Contract.
Section 216B.1614 — Electric Vehicle Charging Tariff.
Section 216B.162 — Competitive Rate For Electric Utility.
Section 216B.1621 — Electric Service Agreement.
Section 216B.163 — Flexible Tariff.
Section 216B.1635 — Recovery Of Gas Utility Infrastructure Costs.
Section 216B.1636 — Recovery Of Electric Utility Infrastructure Costs.
Section 216B.1638 — Recovery Of Natural Gas Extension Project Costs.
Section 216B.164 — Cogeneration And Small Power Production.
Section 216B.1641 — Community Solar Garden.
Section 216B.1642 — Solar Site Management.
Section 216B.1645 — Power Purchase Contract Or Investment.
Section 216B.1646 — Rate Reduction; Property Tax Reduction.
Section 216B.1647 — Property Tax Adjustment; Cooperative Association.
Section 216B.166 — Cogenerating Power Plant.
Section 216B.167 — Performance-based Gas Purchasing Plan.
Section 216B.1675 — Performance Regulation Plan For Gas Utility Service.
Section 216B.1681 — Curtailment Payments.
Section 216B.169 — Renewable And High-efficiency Energy Rate Options.
Section 216B.1691 — Renewable Energy Objectives.
Section 216B.1692 — Emissions-reduction Rider.
Section 216B.1694 — Innovative Energy Project.
Section 216B.1695 — Environmental Projects; Advance Determination Of Prudence.
Section 216B.1696 — Competitive Rate For Energy-intensive, Trade-exposed Electric Utility Customer.
Section 216B.17 — Complaint Investigation And Hearing.
Section 216B.18 — Service Of Notice.
Section 216B.19 — Joint Hearing And Investigation.
Section 216B.20 — Separate Rate Hearing.
Section 216B.21 — Summary Investigation.
Section 216B.22 — Municipality; Amicus Curiae Authority.
Section 216B.23 — Lawful Rate; Reasonable Service.
Section 216B.24 — Construction Of Major Facility; Filing Plans.
Section 216B.2401 — Energy Savings And Optimization Policy Goal.
Section 216B.2402 — Definitions.
Section 216B.2403 — Consumer-owned Utilities; Energy Conservation And Optimization.
Section 216B.241 — Public Utilities; Energy Conservation And Optimization.
Section 216B.2411 — Distributed Energy Resources.
Section 216B.2412 — Decoupling Of Energy Sales From Revenues.
Section 216B.2421 — Definition Of Large Energy Facility.
Section 216B.2422 — Resource Planning; Renewable Energy.
Section 216B.2423 — Wind Power Mandate.
Section 216B.2424 — Biomass Power Mandate.
Section 216B.2425 — State Transmission And Distribution Plan.
Section 216B.2426 — Opportunities For Distributed Generation.
Section 216B.2427 — Natural Gas Utility Innovation Plans.
Section 216B.243 — Certificate Of Need For Large Energy Facility.
Section 216B.244 — Nuclear Plant Capacity Requirements.
Section 216B.2445 — Decommissioning Nuclear Plant; Storing Used Fuel.
Section 216B.245 — Pump And Store Hydropower Facility; Prohibition.
Section 216B.246 — Federally Approved Transmission Lines; Incumbent Transmission Lineowner Rights.
Section 216B.25 — Further Action On Previous Order.
Section 216B.26 — Order; Effective Date.
Section 216B.27 — Rehearing; Condition Precedent To Judicial Review.
Section 216B.28 — Subpoena; Witness Fee And Mileage.
Section 216B.29 — Hearing And Subpoena Compliance Powers.
Section 216B.31 — Testimony And Production Of Records; Perjury.
Section 216B.32 — Certified Copy Of Document As Evidence.
Section 216B.33 — Commission Ruling Written, Filed, And Certified.
Section 216B.34 — Public Records.
Section 216B.35 — Transcribed Record.
Section 216B.36 — Municipal Regulatory And Taxing Powers.
Section 216B.361 — Township Agreement With Natural Gas Utility.
Section 216B.37 — Assigned Service Area; Electric Utility; Legislative Policy.
Section 216B.38 — Definitions.
Section 216B.39 — Assigned Service Area.
Section 216B.40 — Exclusive Service Right; Service Extension.
Section 216B.41 — Effect Of Incorporation, Annexation, Or Consolidation.
Section 216B.42 — Service Extension In Certain Situations.
Section 216B.421 — Homestead; Option Of Electric Service.
Section 216B.43 — Hearing On Complaint.
Section 216B.44 — Municipal Service Territory Extension.
Section 216B.45 — Municipal Purchase Of Public Utility.
Section 216B.46 — Municipal Acquisition Procedures; Notice; Election.
Section 216B.465 — Voter Ratification Of Municipal Purchase; Limited Application.
Section 216B.47 — Acquisition By Eminent Domain.
Section 216B.48 — Relations With Affiliated Interest.
Section 216B.49 — Securities; Public Financing.
Section 216B.50 — Restrictions On Property Transfer And Merger.
Section 216B.51 — Stock Purchase.
Section 216B.53 — Suspension Of Commission Order.
Section 216B.54 — Legal Action Against Violation.
Section 216B.56 — Burden Of Proof.
Section 216B.57 — Penalty For Violation Of Act.
Section 216B.58 — Penalties; Construing Act, Omission, And Failure.
Section 216B.59 — Continuing Violation.
Section 216B.60 — Penalties Cumulative.
Section 216B.61 — Actions To Recover Penalties.
Section 216B.62 — Regulatory Expenses.
Section 216B.63 — Interest On Assessment.
Section 216B.64 — Attorney General's Responsibilities.
Section 216B.65 — Department To Employ Necessary Staff.
Section 216B.66 — Construction.
Section 216B.68 — Definitions; Mercury Emissions Reduction.
Section 216B.681 — Monitoring Mercury Emissions.
Section 216B.682 — Mercury Emissions-reduction Plans.
Section 216B.683 — Mercury Emissions Reduction; Cost Recovery, Financial Incentives.
Section 216B.684 — Environmental Assessment Of Mercury Emissions-reduction Plan.
Section 216B.685 — Mercury Emissions-reduction Plan Approval.
Section 216B.6851 — Utility Option.
Section 216B.686 — Other Environmental Improvement Plans.
Section 216B.687 — Mercury Emissions Reduction Implementation, Operation.
Section 216B.688 — Relationship To Other State Financial Requirements.