1.1                          A bill for an act 
  1.2             relating to utilities; allowing small gas utility 
  1.3             franchises an exemption from rate regulation for 
  1.4             incidental utility service; amending Minnesota 
  1.5             Statutes 1994, section 216B.16, subdivision 12. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1994, section 216B.16, 
  1.8   subdivision 12, is amended to read: 
  1.9      Subd. 12.  [EXEMPTION FOR SMALL GAS UTILITY FRANCHISE.] (a) 
  1.10  A municipality may file with the commission a resolution of its 
  1.11  governing body requesting exemption from the provisions of this 
  1.12  section for a public utility that is under a franchise with the 
  1.13  municipality to supply natural, manufactured, or mixed gas and 
  1.14  that serves 650 or fewer customers in the municipality as long 
  1.15  as the public utility serves no more than a total of 2,000 
  1.16  customers.  
  1.17     (b) The commission shall grant an exemption from this 
  1.18  section for that portion of a public utility's business that is 
  1.19  requested by each municipality it serves.  Furthermore, the 
  1.20  commission shall also grant the public utility an exemption from 
  1.21  this section for any service provided outside of a 
  1.22  municipality's border that is considered by the commission to be 
  1.23  incidental.  The public utility shall file with the commission 
  1.24  and the department all initial and subsequent changes in rates, 
  1.25  tariffs, and contracts for service outside the municipality at 
  2.1   least 30 days in advance of implementation. 
  2.2      (c) However, the commission shall require the utility to 
  2.3   adopt the commission's policies and procedures governing 
  2.4   disconnection during cold weather.  The utility shall annually 
  2.5   submit a copy of its municipally approved rates to the 
  2.6   commission. 
  2.7      (d) In all cases covered by this subdivision in which an 
  2.8   exemption for service outside of a municipality is granted, the 
  2.9   commission may initiate an investigation under section 216B.17, 
  2.10  on its own motion or upon complaint from a customer. 
  2.11     (e) If a municipality files with the commission a 
  2.12  resolution of its governing body rescinding the request for 
  2.13  exemption, the commission shall regulate the public utility's 
  2.14  business in that municipality under this section.