1.1                          A bill for an act 
  1.2             relating to utilities; reorganizing legislative 
  1.3             electric energy task force; requiring comprehensive 
  1.4             study, findings, and legislative recommendations and 
  1.5             proposals regarding electric energy restructuring and 
  1.6             regulation; amending Minnesota Statutes 1996, section 
  1.7             216C.051, by adding subdivisions; repealing Minnesota 
  1.8             Statutes 1996, section 216C.051, subdivisions 1, 2, 3, 
  1.9             4, 5, and 6. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11                             ARTICLE 1
  1.12     Section 1.  Minnesota Statutes 1996, section 216C.051, is 
  1.13  amended by adding a subdivision to read: 
  1.14     Subd. 1a.  [REORGANIZATION OF LEGISLATIVE ELECTRIC ENERGY 
  1.15  TASK FORCE; FINDINGS.] The legislature finds that: 
  1.16     (1) with the submission of the final report required under 
  1.17  Minnesota Statutes 1996, section 216C.051, subdivision 5, the 
  1.18  legislative electric energy task force will complete its 
  1.19  statutorily assigned duties; 
  1.20     (2) the electric industry is undergoing extraordinary and 
  1.21  fundamental changes; 
  1.22     (3) the underlying characteristic of these changes is the 
  1.23  call for effective and more pervasive competition by 
  1.24  policymakers, regulators, consumers, and suppliers; 
  1.25     (4) the increased reliance on competition in the electric 
  1.26  industry must be carefully managed in order to preserve 
  1.27  fundamental policy goals such as universal service, affordable 
  2.1   access, and environmental protection; and 
  2.2      (5) the expected benefits and potential risks of an 
  2.3   expanded role for competition in the electric industry are 
  2.4   sufficiently high to warrant additional and specific legislative 
  2.5   attention. 
  2.6      Sec. 2.  Minnesota Statutes 1996, section 216C.051, is 
  2.7   amended by adding a subdivision to read: 
  2.8      Subd. 2a.  [EXPANDED PURPOSE.] The legislative electric 
  2.9   energy task force is reorganized as herein provided.  In 
  2.10  addition to considering and proposing electric energy policy for 
  2.11  the state, the purpose of the task force is expanded to include 
  2.12  the provision of legislative oversight and leadership as 
  2.13  policymakers at the federal, regional, and state levels 
  2.14  transform the electric industry from a comprehensively regulated 
  2.15  industry to one in which regulation is imposed only when 
  2.16  competition cannot provide sufficient economic discipline for 
  2.17  markets to operate efficiently and effectively. 
  2.18     Sec. 3.  Minnesota Statutes 1996, section 216C.051, is 
  2.19  amended by adding a subdivision to read: 
  2.20     Subd. 3a.  [MEMBERSHIP; STAFF.] (a) The task force shall 
  2.21  consist of: 
  2.22     (1) ten members of the house of representatives, including 
  2.23  the chair of the committee on regulated industries and energy; 
  2.24  the chair of the committee on environment and natural resources; 
  2.25  and eight members to be appointed by the speaker of the house; 
  2.26  and 
  2.27     (2) ten members of the senate, including the chair of the 
  2.28  committee on jobs, energy and community development; the chair 
  2.29  of the committee on environment and natural resources; and eight 
  2.30  members to be appointed by the subcommittee on committees. 
  2.31     (b) A chair of a legislative committee named in paragraph 
  2.32  (a) may choose a designee to serve on the task force in that 
  2.33  chair's place.  If a chair of one of these committees chooses to 
  2.34  name a designee, the chair shall designate a member of the 
  2.35  chair's legislative body in conformance with the requirements of 
  2.36  paragraph (c). 
  3.1      (c) The membership from each house shall include: 
  3.2      (1) four legislators who are from the minority caucus; 
  3.3      (2) four legislators who are members of the committee with 
  3.4   primary jurisdiction over utility regulation; 
  3.5      (3) two legislators who are members of the committee with 
  3.6   primary jurisdiction over environmental protection; and 
  3.7      (4) one legislator who is a member of the committee with 
  3.8   primary jurisdiction over taxes and tax laws.  A single 
  3.9   legislator may count toward meeting more than one of the 
  3.10  requirements listed in clauses (1) to (4). 
  3.11     (d) Vacancies occurring on the task force do not affect the 
  3.12  authority of the remaining members of the task force to carry 
  3.13  out the functions of the task force.  Vacancies must be filled 
  3.14  in the same manner as the original positions. 
  3.15     (e) The task force shall elect two members of the task 
  3.16  force, one from each house, to be cochairs of the task force.  
  3.17  The members of the task force from the house shall vote for the 
  3.18  house cochair, and members of the task force from the senate 
  3.19  shall vote for the senate cochair. 
  3.20     (f) Within 45 days from the date of final enactment, the 
  3.21  legislative coordinating commission shall employ a director 
  3.22  selected by the task force, and shall provide secretarial and 
  3.23  other administrative personnel and equipment as needed.  The 
  3.24  legislative coordinating commission shall also employ a policy 
  3.25  analyst selected by the executive director and the cochairs of 
  3.26  the task force.  The task force may contract for services to 
  3.27  obtain necessary data and information, including consulting 
  3.28  services.  Salaries and benefits for the task force staff shall 
  3.29  be provided for under the assessment authority established in 
  3.30  subdivision 6a. 
  3.31     Sec. 4.  Minnesota Statutes 1996, section 216C.051, is 
  3.32  amended by adding a subdivision to read: 
  3.33     Subd. 4a.  [SUBCOMMITTEES.] The cochairs of the task force 
  3.34  may establish, and appoint members to, ad hoc subcommittees as 
  3.35  needed.  The cochairs shall establish the following permanent 
  3.36  subcommittees: 
  4.1      (1) a subcommittee of three members from each house to 
  4.2   review the impacts of restructuring and the development of 
  4.3   renewable energy sources on rural economies in the state, to be 
  4.4   cochaired by rural task force members appointed by the task 
  4.5   force cochairs; and 
  4.6      (2) a subcommittee of five members from each house to 
  4.7   review issues relating to energy provision and environmental 
  4.8   policy, to be cochaired by the chairs of the legislative 
  4.9   committees with primary jurisdiction over environmental 
  4.10  protection in the house and senate, or the chairs' designees. 
  4.11     Sec. 5.  Minnesota Statutes 1996, section 216C.051, is 
  4.12  amended by adding a subdivision to read: 
  4.13     Subd. 5a.  [POWERS AND DUTIES.] (a) Each executive branch 
  4.14  agency, department, board, or commission relating to the 
  4.15  regulation or provision of electric energy services shall 
  4.16  coordinate and cooperate with the task force.  The task force 
  4.17  may request information from any state officer or agency in 
  4.18  order to assist it in carrying out its duties and the officer or 
  4.19  agency is authorized and directed to promptly furnish any data 
  4.20  required, subject to applicable requirements or restrictions 
  4.21  imposed by chapter 13 and section 15.17. 
  4.22     (b) The task force shall conduct public hearings and 
  4.23  otherwise secure data and expressions of opinion.  The task 
  4.24  force shall make recommendations as it deems proper on issues 
  4.25  involving electric energy policy and competition for electric 
  4.26  utility services, to assist the legislature in formulating 
  4.27  legislation.  Data or information compiled by the task force 
  4.28  must be made available to any standing or interim committee of 
  4.29  the legislature upon request of the chair of the respective 
  4.30  committee. 
  4.31     Sec. 6.  Minnesota Statutes 1996, section 216C.051, is 
  4.32  amended by adding a subdivision to read: 
  4.33     Subd. 6a.  [ASSESSMENT; APPROPRIATION.] On request by the 
  4.34  chair of the task force, and after approval of the legislative 
  4.35  coordinating commission, the commissioner of the department of 
  4.36  public service shall assess from electric utilities, as defined 
  5.1   in section 216B.38, subdivision 5, amounts sufficient to cover 
  5.2   the task force's expenses.  These assessments are in addition to 
  5.3   assessments made under section 216B.62.  Amounts assessed under 
  5.4   this section are appropriated to the director of the legislative 
  5.5   coordinating commission for those purposes, and are available 
  5.6   until spent.  The public utilities commission shall allow a 
  5.7   utility to recover assessments made under this subdivision.  
  5.8      Sec. 7.  [REPEALER.] 
  5.9      Minnesota Statutes 1996, section 216C.051, subdivisions 1, 
  5.10  2, 3, 4, 5, and 6, are repealed. 
  5.11     Sec. 8.  [EFFECTIVE DATE.] 
  5.12     Sections 1 to 7 are effective the day following final 
  5.13  enactment. 
  5.14                             ARTICLE 2
  5.15     Section 1.  [ANALYSIS OF ELECTRIC INDUSTRY RESTRUCTURING.] 
  5.16     Subdivision 1.  [PURPOSE.] In the past 18 months, the 
  5.17  legislature, the department of public service, and the public 
  5.18  utilities commission have conducted separate analyses and 
  5.19  reviews of issues related to electric industry restructuring.  
  5.20  In order to ensure that public and private resources are 
  5.21  utilized in the most efficient and effective manner, these 
  5.22  independent efforts must be integrated and coordinated.  In 
  5.23  addition, the views and suggestions of electricity consumers and 
  5.24  industry participants must be solicited and fully incorporated 
  5.25  into any legislatively established process to review electric 
  5.26  industry restructuring. 
  5.27     Subd. 2.  [DUTIES OF DEPARTMENT OF PUBLIC SERVICE.] (a) The 
  5.28  commissioner of the department of public service shall conduct 
  5.29  technical analyses of electric industry restructuring issues as 
  5.30  directed by the legislative electric energy task force.  The 
  5.31  commissioner may solicit comments from interested parties on the 
  5.32  development of each technical analysis conducted under this 
  5.33  paragraph. 
  5.34     (b) The commissioner shall develop and propose legislation 
  5.35  regarding electric industry restructuring to the legislative 
  5.36  electric energy task force and the public utilities commission 
  6.1   by October 1, 1997. 
  6.2      (c) In developing the legislation under paragraph (b), the 
  6.3   commissioner shall work closely with, provide drafts to, and 
  6.4   solicit comments and suggestions from, the advisory committee 
  6.5   established by the legislative electric energy task force under 
  6.6   subdivision 4, paragraph (b).  The commissioner, or the 
  6.7   commissioner's designee, shall meet with the members of the 
  6.8   advisory committee twice each month, as schedules permit.  The 
  6.9   commissioner shall request that committee members provide their 
  6.10  comments and suggestions to the commissioner in writing.  On the 
  6.11  basis of these written materials, the commissioner shall develop 
  6.12  and maintain a record of the comments and suggestions of the 
  6.13  advisory committee, in order to develop an information resource 
  6.14  for legislators.  Along with the legislative proposal issued 
  6.15  under paragraph (b), the commissioner shall provide to the task 
  6.16  force and the public utilities commission a report that 
  6.17  summarizes: 
  6.18     (1) the response of the commissioner to the comments and 
  6.19  suggestions made by committee members; and 
  6.20     (2) whether and how the comments or suggestions were 
  6.21  incorporated into the draft legislative proposal. 
  6.22     The comments and suggestions of the advisory committee are 
  6.23  advisory only.  The commissioner shall have the final authority 
  6.24  over the legislation proposed under paragraph (b).  
  6.25     (d) The commissioner of public service, in consultation 
  6.26  with the commissioner of trade and economic development, shall 
  6.27  also analyze the effects that electric industry restructuring 
  6.28  may have on the overall state's economy and on various sectors 
  6.29  within that economy, including the effect on electricity costs 
  6.30  at health care facilities, educational institutions, and local 
  6.31  and state government buildings.  The commissioner shall also 
  6.32  consider what effect restructuring may have on the cost of doing 
  6.33  business in the state, and on residential electricity rates.  
  6.34  The commissioner shall issue the findings of this analysis to 
  6.35  the legislative electric energy task force by November 15, 1997. 
  6.36     Subd. 3.  [DUTIES OF PUBLIC UTILITIES COMMISSION.] (a) By 
  7.1   August 1, 1997, the chair of the public utilities commission 
  7.2   shall convene a consumer resource group as described in this 
  7.3   paragraph.  This group shall consist of: 
  7.4      (1) three industrial or large commercial electricity 
  7.5   customers; 
  7.6      (2) three small business electricity customers; 
  7.7      (3) three residential electricity customers; and 
  7.8      (4) three low-income electricity customers.  
  7.9      To the extent practicable, the members of the consumer 
  7.10  resource group shall be chosen to represent all geographic 
  7.11  regions of the state.  For each customer class described in 
  7.12  clauses (1) to (4), the chair shall choose one customer of an 
  7.13  investor-owned utility, one customer of a rural electric 
  7.14  cooperative utility, and one customer of a municipal electric 
  7.15  utility.  The chair shall periodically provide the draft 
  7.16  proposals developed by the commissioner of public service under 
  7.17  subdivision 2, paragraph (b), to the consumer resource group, 
  7.18  and shall solicit comments and suggestions from the members of 
  7.19  the group.  The commission shall provide the members of the 
  7.20  group technical assistance as needed, to aid the group in their 
  7.21  understanding of the legislation as proposed.  By November 1, 
  7.22  1997, the commission shall issue a report to the legislative 
  7.23  electric energy task force and the commissioner of public 
  7.24  service summarizing the comments and suggestions of the consumer 
  7.25  resource group on the legislation proposed under subdivision 2, 
  7.26  paragraph (b).  The consumer resource group expires as of 
  7.27  November 1, 1997. 
  7.28     (b) As soon as possible following the effective date of 
  7.29  this section, the public utilities commission shall solicit 
  7.30  suggestions from industry participants, interest groups, and 
  7.31  electricity consumers concerning the issues the legislative 
  7.32  electric energy task force should review, the activities the 
  7.33  task force should undertake, and the experts the task force 
  7.34  should hear from.  The commission shall provide the task force 
  7.35  with a summary of these suggestions two weeks prior to the first 
  7.36  task force meeting following the effective date of this section. 
  8.1      (c) The public utilities commission may continue its own 
  8.2   investigation of competition in the electric industry, and shall 
  8.3   coordinate that investigation with the activities of the task 
  8.4   force and the department of public service to the fullest extent 
  8.5   practicable. 
  8.6      (d) Upon request by the cochairs of the legislative 
  8.7   electric energy task force, the public utilities commission 
  8.8   shall also establish technical committees on issues regarding 
  8.9   electric industry restructuring and order utilities to make 
  8.10  informational filings to assist the task force in conducting its 
  8.11  analysis. 
  8.12     Subd. 4.  [DUTIES OF LEGISLATIVE ELECTRIC ENERGY TASK 
  8.13  FORCE.] (a) At the first meeting of the legislative electric 
  8.14  energy task force after the effective date of this section, the 
  8.15  task force shall establish an interim plan for the task force to 
  8.16  study issues regarding restructuring the electric industry, 
  8.17  taking into consideration the suggestions provided under 
  8.18  subdivision 3, paragraph (b), and the views and wishes of task 
  8.19  force members.  At a minimum, the task force shall study the 
  8.20  potential costs and benefits of restructuring on:  
  8.21     (1) low-income, residential, small business, and large 
  8.22  commercial and industrial consumer electricity prices and 
  8.23  services, including the viability of all customers to 
  8.24  participate in and benefit from competition in a restructured 
  8.25  electric industry; 
  8.26     (2) the overall state's economy, as well as the economy of 
  8.27  regions within the state; 
  8.28     (3) the reliability and safety of the electricity system, 
  8.29  including system planning and operation; 
  8.30     (4) the state's environment, including the cost-effective 
  8.31  promotion of conservation and renewable energy; and 
  8.32     (5) public, private, and cooperative utilities, and 
  8.33  alternative suppliers, including the development of 
  8.34  competitively neutral markets. 
  8.35     (b) Also at the first task force meeting after the 
  8.36  effective date of this section, the task force shall convene an 
  9.1   advisory committee to assist the task force in its work in 
  9.2   reviewing electric industry restructuring, and to assist the 
  9.3   commissioner of public service in developing the commissioner's 
  9.4   legislative proposal under subdivision 2, paragraph (b).  The 
  9.5   advisory committee shall consist of 13 members chosen to reflect 
  9.6   a broad range of interests and expertise in electric industry 
  9.7   operations, policy, technical issues, economics, and legal 
  9.8   environment.  The advisory committee shall include 
  9.9   representatives of:  private, public, and cooperative utilities; 
  9.10  environmentalists; renewable energy suppliers; power marketers, 
  9.11  aggregators, or independent power producers; labor; natural gas 
  9.12  utilities; low-income electricity consumers; large commercial or 
  9.13  industrial electricity consumers; and representatives of the 
  9.14  attorney general, the department of public service, and the 
  9.15  public utilities commission. 
  9.16     (c) The legislative electric energy task force shall 
  9.17  convene joint hearings of the task force and the advisory 
  9.18  committee to review, critique, and consider presentations on 
  9.19  issues relating to electric industry restructuring by the 
  9.20  department of public service and other experts.  In addition to 
  9.21  hosting these joint hearings, the task force shall conduct its 
  9.22  own inquiry into restructuring the electric industry.  The task 
  9.23  force shall undertake such activities as the task force deems 
  9.24  necessary to develop a thorough understanding of the issues 
  9.25  raised in the restructuring debate. 
  9.26     (d) The legislative electric energy task force shall 
  9.27  present recommendations to the legislature regarding electric 
  9.28  industry restructuring by January 15, 1998. 
  9.29     Sec. 2.  [INTERVENTION IN FEDERAL PROCEEDINGS.] 
  9.30     If the legislative electric energy task force concludes, as 
  9.31  part of the legislative recommendations under section 1, 
  9.32  subdivision 4, paragraph (d), that deregulation of the electric 
  9.33  industry is not consistent with the interests of the state of 
  9.34  Minnesota, the commissioner of public service shall, as part of 
  9.35  the duties of the energy issues intervention office within the 
  9.36  department of public service, intervene in federal proceedings 
 10.1   on deregulation to represent, and advocate for, the position of 
 10.2   the state in opposition to deregulation of the electric 
 10.3   industry.  The commissioner shall report periodically to the 
 10.4   task force on the commissioner's progress in that regard. 
 10.5      Sec. 3.  [EFFECTIVE DATE.] 
 10.6      Section 1 is effective the day following final enactment.