MN HF3714

Increases the capacity threshold for small energy generation projects from 40-kilowatt to 2-megawatt in Minnesota Statutes 2008, section 216B.164, subdivisions 3, 4, and 6.

Customers with qualifying facilities under 2-megawatt capacity are billed for net energy supplied at applicable rate schedules, with compensation for net input determined by the commission based on avoided costs and federal regulations.

Qualifying facilities under 2-megawatt capacity may elect compensation at the average retail utility energy rate instead of the avoided cost rate.

Utilities must provide wheeling or exchange agreements for qualifying facilities with 30-kilowatt or more capacity to sell output to other Minnesota utilities with generation expansion planned for the next ten years.

Establishes a uniform statewide form of contract for utilities and qualifying facilities under 2-megawatt capacity, with existing contracts remaining in force until either party provides 10-30 days written notice to switch to the new uniform contract.