HF3640 Summary

• Public utilities may petition the Public Utilities Commission for an advance determination of prudence for projects complying with federal or state air quality standards when the project's expected jurisdictional cost to Minnesota ratepayers is at least $10,000,000.

• Utilities requesting an advance determination must provide the Commission and Pollution Control Agency with an assessment of anticipated state and federal environmental regulations, including regulations on air pollution, coal waste, and water consumption, plus analysis of regulatory response scenarios and compliance costs.

• Petitions must include project descriptions, evidence of reasonableness, discussion of alternatives, implementation schedules, cost estimates, and efforts to ensure lowest reasonable costs; the Commission shall decide within ten months of filing with supporting findings.

• Utilities must file notice with the Pollution Control Agency at least 60 days before petitioning the Commission; the Agency has 60 days to verify project qualification and forward written verification to the Commission.

• Utilities may recover project costs in the next rate case following an advance determination of prudence; the Commission may accept, modify, or reject costs and determine whether to require allowances for funds used during construction offset.

• Petitions for advance determinations of prudence may not be filed after December 31, 2015.