Subdivision 1. Findings. The legislature finds and declares that significant public benefits may be derived from the cogeneration of electrical and thermal energy and that cogenerated district heating may result in improved utilization and conservation of fuel, the substitution of coal for scarce oil and natural gas, the substitution of domestic fuel for imported fuel, and the establishment of a reliable, competitively priced heat source. Since the cost of cogenerated thermal energy is dependent upon the method used to allocate costs between the production of electric and thermal energy at a power plant, and because the method of cost allocation can be a significant factor in determining investment in district heating, it is necessary to develop cost allocation methods rapidly.
Subd. 2. Definitions. For the purpose of this section, the following terms shall have the meanings given.
(a) "Cogeneration" means a combined process whereby electrical and thermal energy are simultaneously produced by a public utility power plant.
(b) "District heating" means a process whereby thermal energy is distributed within a community for use as a primary heat source.
(c) "District heating utility" means any person, corporation, or other legal entity which owns and operates a facility for district heating.
Subd. 3. Cost allocation. The methods used to allocate or assign costs between electrical and thermal energy produced by cogeneration power plants owned by public utilities shall be consistent with the following principles:
(a) The method used shall result in a cost per unit of electricity which is no greater than the cost per unit which would exist if the power plants owned by the public utility had been normally constructed and operated without cogenerating capability.
(b) Costs which the public utility incurs for the exclusive benefit of the district heating utility, including but not limited to backup and peaking facilities, shall be assigned to thermal energy produced by cogeneration.
(c) The methods and procedures may be different for retrofitted than for new cogeneration power plants.
(d) The methods should encourage cogeneration while preventing subsidization by electric consumers so that both heating and electricity consumers are treated fairly and equitably with respect to the costs and benefits of cogeneration.
1981 c 334 s 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.