1.1Senator .................... moves to amend S.F. No. 355 as follows:
1.2Delete everything after the enacting clause and insert:

1.3    "Section 1. Minnesota Statutes 2008, section 216B.16, subdivision 6, is amended to
1.4read:
1.5    Subd. 6. Factors considered, generally. The commission, in the exercise of its
1.6powers under this chapter to determine just and reasonable rates for public utilities, shall
1.7give due consideration to the public need for adequate, efficient, and reasonable service
1.8and to the need of the public utility for revenue sufficient to enable it to meet the cost of
1.9furnishing the service, including adequate provision for depreciation of its utility property
1.10used and useful in rendering service to the public, and to earn a fair and reasonable return
1.11upon the investment in such property. In determining the rate base upon which the utility
1.12is to be allowed to earn a fair rate of return, the commission shall give due consideration to
1.13evidence of the cost of the property when first devoted to public use, to prudent acquisition
1.14cost to the public utility less appropriate depreciation on each, to construction work in
1.15progress except for a new nuclear-powered electric generating plant, to offsets in the
1.16nature of capital provided by sources other than the investors, and to other expenses of
1.17a capital nature. For purposes of determining rate base, the commission shall consider
1.18the original cost of utility property included in the base and shall make no allowance for
1.19its estimated current replacement value.

1.20    Sec. 2. Minnesota Statutes 2008, section 216B.16, subdivision 6a, is amended to read:
1.21    Subd. 6a. Construction work in progress. (a) To the extent that construction work
1.22in progress is included in the rate base, the commission shall determine in its discretion
1.23whether and to what extent the income used in determining the actual return on the public
1.24utility property shall include an allowance for funds used during construction, considering
1.25the following factors:
1.26(1) the magnitude of the construction work in progress as a percentage of the net
1.27investment rate base;
1.28(2) the impact on cash flow and the utility's capital costs;
1.29(3) the effect on consumer rates;
1.30(4) whether it confers a present benefit upon an identifiable class or classes of
1.31customers; and
1.32(5) whether it is of a short-term nature or will be imminently useful in the provision
1.33of utility service.
1.34(b) Paragraph (a) does not apply to a nuclear-powered electric generating plant
1.35that receives a certificate of need under this chapter after August 1, 2010. Construction
2.1work in progress may not be included in the rate base of a utility for such a nuclear plant
2.2nor may any other cost recovery be authorized by the commission for that construction
2.3work in progress.

2.4    Sec. 3. Minnesota Statutes 2008, section 216B.243, subdivision 3b, is amended to read:
2.5    Subd. 3b. Nuclear power plant; new construction prohibited; relicensing
2.6Additional storage of spent nuclear fuel. (a) The commission may not issue a certificate
2.7of need for the construction of a new nuclear-powered electric generating plant.
2.8(b) Any certificate of need for additional storage of spent nuclear fuel for a facility
2.9seeking a license extension shall address the impacts of continued operations over the
2.10period for which approval is sought.

2.11    Sec. 4. Minnesota Statutes 2008, section 216B.243, is amended by adding a
2.12subdivision to read:
2.13    Subd. 3c. Additional requirements for certificate of need for a new
2.14nuclear-powered electric generating plant. In addition to the requirements of
2.15subdivision 3 and other law, no new nuclear-powered electric generating plant shall be
2.16certified for construction unless the applicant has shown that:
2.17(1) a storage facility operated by the federal government and not located at or
2.18adjacent to the plant site is available to accept and permanently and safely store spent
2.19nuclear fuel resulting from electric generation at the proposed plant;
2.20(2) a safe and reliable transportation method is available to move the spent nuclear
2.21fuel from the plant to the permanent storage site described in clause (1);
2.22(3) there is no significant risk of construction cost overruns;
2.23(4) if significant construction cost overruns do occur, ratepayers would not pay
2.24for those overruns;
2.25(5) there is full consideration of the extended economic, social, and environmental
2.26costs that the plant and related spent fuel storage facilities place on local host communities;
2.27(6) the plant and related spent fuel storage facilities will be protected from risks
2.28associated with threats to their physical integrity;
2.29(7) Minnesota taxpayers are not at risk to pay for the plant through state taxes; and
2.30(8) the applicant, if applicable, is meeting or has met its renewable energy objectives
2.31and standards under section 216B.1691 and its energy-savings goals under section
2.32216B.241, subdivision 1c.

3.1    Sec. 5. Minnesota Statutes 2008, section 216B.243, is amended by adding a
3.2subdivision to read:
3.3    Subd. 3d. New nuclear plant; monitoring the impact on state energy policy and
3.4related issues. The commissioner of commerce, in consultation with the Public Utilities
3.5Commission, shall continuously monitor and study any potential impact of issuing a
3.6certificate of need for a new nuclear-powered electric generating plant could have on
3.7achieving the state's various electric energy policies. Those policies include, without
3.8limitation:
3.9(1) maximizing energy conservation and energy efficiency;
3.10(2) meeting the renewable energy standards in section 216B.1691;
3.11(3) maximizing the generation of electricity with renewable fuels;
3.12(4) minimizing costs to ratepayers;
3.13(5) ensuring a reliable supply of electricity; and
3.14(6) protecting the environment.
3.15If requested by the commissioner, the commission shall open a docket to receive
3.16public comment concerning the issues being monitored and studied. The commissioner
3.17may study and monitor activities in other states. The commissioner shall report the results
3.18of the study and monitoring by January 15, 2013, and annually each January 15 thereafter,
3.19to the chairs and ranking minority members of the senate and house committees with
3.20primary jurisdiction over energy policy."
3.21Delete the title and insert:
3.23relating to energy; abolishing prohibition on issuing certificate of need for new
3.24nuclear power plant; regulating issuance of certificate of need for new nuclear
3.25power plants; requiring monitoring and study on various impacts of permitting a
3.26nuclear-powered electric generating plant; amending Minnesota Statutes 2008,
3.27sections 216B.16, subdivisions 6, 6a; 216B.243, subdivision 3b, by adding
3.28subdivisions."