as introduced - 86th Legislature (2009 - 2010) Posted on 03/02/2010 07:53am
A bill for an act
relating to local government; authorizing Hennepin County to purchase energy
under forward pricing mechanisms; proposing coding for new law in Minnesota
Statutes, chapter 383B.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
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The following definitions apply in this section.
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(a) "Energy" means natural gas, heating oil, diesel fuel, or any other energy source,
except electric, used in Hennepin County operations.
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(b) "Forward pricing mechanism" means either:
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(1) a contract or financial instrument that obligates Hennepin County to buy or sell a
specified amount of an energy commodity at a future date and at a set price; or
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(2) an option to buy or sell the contract or financial instrument.
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Notwithstanding any other law to the contrary,
the Hennepin County Board of Commissioners may use forward pricing mechanisms
for budget risk reduction.
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(a) Forward pricing transactions made under this section must
be made only under the conditions in this subdivision.
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(b) The amount of energy forward priced must not exceed the estimated energy
usage for Hennepin County operations for the period of time covered by the forward
pricing mechanism.
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(c) The holding period and expiration date for any forward pricing mechanism must
not exceed 24 months from the trade date of the transaction.
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(d) Separate accounts must be established for each operational energy for which
forward pricing mechanisms are used under this section.
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Before exercising authority under
subdivision 2, the Hennepin County Board of Commissioners must have written policies
and procedures governing the use of forward pricing mechanisms.
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(a) Before exercising authority under subdivision 2,
the Hennepin County Board of Commissioners must establish an oversight process that
provides for review of the county's used of forward pricing mechanisms.
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(b) The process must include:
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(1) internal or external audit reviews;
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(2) quarterly reports to, and review by, an internal investment committee; and
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(3) internal management control.
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This section is effective without local approval the day
following final enactment as provided under Minnesota Statutes, section 645.023,
subdivision 1, paragraph (a).
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