Public utility interim rate amounts limited.

A bill for an act

relating to energy; limiting public utility interim rate amounts; amending Minnesota

Statutes 2024, section 216B.16, subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 216B.16, subdivision 3, is amended to read:

Subd. 3.

Interim rate.

(a) Notwithstanding any order of suspension of a proposed

increase in rates, the commission shall order an interim rate schedule into effect not later

than 60 days after the initial filing date. The commission shall order the interim rate schedule

ex parte without a public hearing. Notwithstanding the provisions of sections
216.25
,

216B.27
, and
216B.52
, no interim rate schedule ordered by the commission pursuant to this

subdivision shall be subject to an application for a rehearing or an appeal to a court until

the commission has rendered its final determination.

(b) Unless the commission finds that exigent circumstances exist, the interim rate schedule

shall be calculated using the proposed test year cost of capital, rate base, and expenses,

except that it shall include: (1) a rate of return on common equity for the utility equal to

that authorized by the commission in the utility's most recent rate proceeding; (2) rate base

or expense items the same in nature and kind as those allowed by a currently effective order

of the commission in the utility's most recent rate proceeding; and (3) no change in the

existing rate design. In the case of a utility which has not been subject to a prior commission

determination, the commission shall base the interim rate schedule on its most recent

determination concerning a similar utility.
new text begin
An interim rate increase must not exceed five

percent relative to the existing rate schedule.
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(c) If, at the time of its final determination, the commission finds that the interim rates

are in excess of the rates in the final determination, the commission shall order the utility

to refund the excess amount collected under the interim rate schedule, including interest on

it which shall be at the rate of interest determined by the commission. The utility shall

commence distribution of the refund to its customers within 120 days of the final order, not

subject to rehearing or appeal. If, at the time of its final determination, the commission finds

that the interim rates are less than the rates in the final determination, the commission shall

prescribe a method by which the utility will recover the difference in revenues between the

date of the final determination and the date the new rate schedules are put into effect. In

addition, when an extension is granted for settlement discussions under subdivision 1a, the

commission shall allow the utility to also recover the difference in revenues for a length of

time equal to the length of the extension.

(d) If the public utility fails to make refunds within the period of time prescribed by the

commission, the commission shall sue therefor and may recover on behalf of all persons

entitled to a refund. In addition to the amount of the refund and interest due, the commission

shall be entitled to recover reasonable attorney's fees, court costs and estimated cost of

administering the distribution of the refund to persons entitled to it. No suit under this

subdivision shall be maintained unless instituted within two years after the end of the period

of time prescribed by the commission for repayment of refunds.

(e) The commission shall not order an interim rate schedule in a general rate case into

effect as provided by this subdivision until at least four months after it has made a final

determination concerning any previously filed change of the rate schedule or the change

has otherwise become effective under subdivision 2, unless:

(1) the commission finds that a four-month delay would unreasonably burden the utility,

its customers, or its shareholders and that an earlier imposition of interim rates is therefore

necessary; or

(2) the utility files a second general rate case at least 12 months after it has filed a previous

general rate case for which the commission has extended the suspension period under

subdivision 2.