MN SF3051

Increases the kilowatt-hour threshold for low-income electric rate discounts from 300 to 400 kilowatt-hours per billing period, maintaining the 50 percent discount rate for eligible customers receiving federal low-income home energy assistance.

Applies to public utilities with more than 200,000 residential electric service customers and extends the same 400 kilowatt-hour discount to low-income customers aged 62 or older or those who are disabled.

Authorizes the commission to establish affordability programs using inverted block rates that provide lower energy prices to lower usage customers to ensure affordable and reliable service.

Requires any commissioned affordability program to lower the percentage of income devoted to energy bills, increase payment frequency, reduce arrears and collection costs, and coordinate with other low-income assistance resources.

Limits utility cost recovery for affordability programs to five percent of total program costs for administrative expenses (excluding start-up costs) and two percent for program evaluation costs, allowing deferred accounting for recovery between rate cases.

Incorporates inverted block rates as part of Minnesota's energy conservation policy goal to achieve 1.5 percent annual energy savings through rate design and efficiency improvements.