ERMUSR MISC ITEMS 06-10-2003 - Laserfiche WebLink

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Vol. 6, No. 18, May 30, 2003 The MINI Capitol � LLLLLLLLLLLL Tattler It's over!The Legislature has adjourned for the ses- annually by Xcel to the Prairie Island Indian Community for sion, and it has approved the Prairie Island bill(HF 9, relocation purposes. authored by Rep.Torrey Westrom,R-Elbow Lake). Of more interest to utilities,the law requires Xcel to Gov.Tim Pawlenty is expected to sign the bill. transfer$16 million each year the plant is in operation to a As with all omnibus energy bills of recent memory,this Renewable Development Account. Much of this money will go bill has things to be happy about and items of concern.The gen- to provide renewable energy production incentives. It seems that era! feeling is,however,that the bill,on balance, is good for municipal utilities would be among those eligible for these municipal utilities. incentives—eligibility will be determined by the Department of Commerce. The bill modifies Conservation Improvement Program reporting requirements for small municipal utilities. The legislation says it is a goal of the state to"move to The law states,`The overview filed by a municipality with less hydrogen as an increasing source of energy for its electrical than$2,500,000 in annual gross revenues from the retail sale of power,heating and transportation needs" Hydrogen is listed as a electric service may consist of a letter from the governing board renewable fuel,as is mixed municipal solid waste or refuse- of the municipal utility to the Department of Commerce provid- derived fuel from mixed municipal solid waste. ing the amount of annual conservation spending required of that municipality and certifying that the required amount has been The University of Minnesota comes out well,as Xcel spent on conservation programs . . " is required to send 5 percent of its required spending amount to The bill also allows a municipality to spend up to 50 the U of M Initiative for Renewable Energy and the percent of its required spending to refurbish an existing district Environment.And,$10 million from the renewable development heating or cooling system.That provision sunsets on July 1, account goes to this U of M Initiative to support basic and 2007. applied research and demonstration activities. Of concern,the bill stipulates that service limiters may The bill builds on current requirements to make a good not be used unless steps taken prior to disconnection under the faith effort to use renewable resources to provide 10 percent of Cold Weather Rule are followed.This should force little the electric energy provided to retail customers by 2015.The change in the way municipals use such Limiters. new bill puts some structure to that, ordering the MPUC"to And,the bill forbids disconnections"when an excessive issue an order by June 1,2004"detailing the criteria and stan- heat watch,heat advisory,or excessive heat warning issued by dards by which it will measure an electric utility's efforts to the National Weather Service is in effect."MMUA will engage meet the renewable energy objectives. . .to determine whether in further discussions with consumer advocates and regulators the utility is making the required good faith effort."(Electric on this law to clarify certain concerns. utility is defined to include municipal power agencies,but not municipal distribution utilities.) Of course,most folks were focused on the provision And,in a proceeding we will no doubt need to be that allows the unit 1 reactor at Prairie Island to operate until the involved in,the MPUC is directed to provide"a weighted scale end of its current license in 2013 and unit 2 to operate until the of how energy produced by various eligible energy technologies end of its current license in 2014. shall count toward a utility's objective." Additional spent nuclear fuel storage in dry casks is This provision is balanced by language that the renew- subject to approval of a certificate of need by the Minnesota able energy objective"is a requirement to the extent that the eli- Public Utilities Commission.That decision will be subject to gible resources are the utility's least cost resource. . ."or unless Legislative review. reliability is jeopardized. The bill is chock full of studies,reports,and money Fallout from the 2001 omnibus energy bill is still keep- being spent on this or that project,and increased renewable ener- ing MMUA and its members busy (witness the distribution relia- gy requirements on "an electric utility that owns a nuclear gener- bility standards,etc.).The 2003 legislation could also have far- ation facility." reaching impacts.Look for more on this from MMUA in the For example,it orders the MPUC to approve a rate future.M for this publication,see you next session! schedule that includes annual payments of up to$2.5 million