Utility allowed to charge a fee to a customer who has entered into a payment agreement and whose household income is above 50 percent of state median income, utility allowed to charge a reconnection fee, and utility allowed to charge a late payment charge subject to conditions.

A bill for an act

relating to energy; allowing a utility to charge a fee to a customer who has entered

into a payment agreement and whose household income is above 50 percent of

state median income; allowing a utility to charge a reconnection fee; allowing a

utility to charge a late payment charge subject to conditions; amending Minnesota

Statutes 2024, sections 216B.096, subdivision 10; 216B.098, by adding

subdivisions.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216B.096, subdivision 10, is amended to read:

Subd. 10.

Customers above 50 percent of state median income.

During the cold

weather period, a customer whose household income is above 50 percent of state median

income:

(1) has the right to a payment agreement that takes into consideration the customer's

financial circumstances and any other extenuating circumstances of the household; and

(2) may not be disconnected and must be reconnected if the customer makes timely

payments under a payment agreement accepted by a utility.

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Subdivision 7, paragraph (b), does not apply to customers whose household income is

above 50 percent of state median income.

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Sec. 2.

Minnesota Statutes 2024, section 216B.098, is amended by adding a subdivision

to read:

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Subd. 8.

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Reconnection fees.

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(a) If service has been disconnected for unauthorized use

or tampering with the utility's equipment, the utility may charge a reconnection fee based

on the cost to reinstate service that is stated in the utility's tariff. A utility must not charge

a fee to a residential customer to reconnect service that has been disconnected due to a

customer's failure to pay a utility bill.

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(b) For the purpose of this subdivision, "unauthorized use" means using utility services

in a manner that breaches the customer's service contract or violates tariffs on file with the

commission for reasons other than a customer's failure to pay a utility bill.

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Sec. 3.

Minnesota Statutes 2024, section 216B.098, is amended by adding a subdivision

to read:

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Subd. 9.

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Late payment charges.

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(a) A utility may impose a late payment charge only

if:

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(1) the customer's current delinquent amount exceeds $100;

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(2) the late payment charge does not exceed a reasonable approximation of the utility's

actual cost to carry the unpaid balance; and

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(3) the utility does not impose more than $50 in cumulative late payment fees on a single

customer during a 12-month period.

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(b) A utility is prohibited from imposing a late payment charge on:

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(1) a low-income household, as defined in section 216B.16, subdivision 1b, or a household

that participates in a low-income program under section 216B.2403, subdivision 5, or

216B.241, subdivision 7; or

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(2) a household that has entered into and is reasonably up to date on a payment agreement

pursuant to subdivision 3; section 216B.096, subdivisions 5 and 10; or 216B.097, subdivision

1, paragraph (a), clause (2).

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(c) Notwithstanding paragraph (a), a public utility or a cooperative electric association

subject to rate regulation under section 216B.026 may impose a late payment charge only

if the commission finds the public utility or electric cooperative association has demonstrated

by clear and convincing evidence that a late payment charge is just, reasonable, and in the

public interest.

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EFFECTIVE DATE.

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This section is effective October 1, 2026.

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