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S.F. No. 3870 - Supplemental Energy Omnibus (First Engrossment)
Author: Senator David J. Osmek
Prepared By: Carlon D. Fontaine, Senate Counsel (651/296-4395)
Date: April 20, 2018



Section 1.  Appropriations.

Section 2.  Department of Commerce.

Subdivision 2.  Energy Resources.  Appropriates $150,000 in fiscal year 2019 from the renewable development fund to the Department of Commerce to conduct the energy storage systems cost-benefit analysis in section 12.


Section 1.  Renewable development account. Beginning in 2018, fixes the annual contribution to the renewable development account required for Xcel Energy’s Prairie Island and Monticello nuclear generating plants at $16,000,000 each year. Once both nuclear plants are closed, the amount collected would be fixed at $12,750,000 per year ($7,500,000 attributed to the Prairie Island plant and $5,250,000 for the Monticello plant). Clarifies that recovery of funds withheld shall be done through a rate rider. Directs Xcel to select members of the advisory group. Allows Xcel Energy to pay the third party evaluator from money withheld from the transfer to the renewable development account. This is from S.F. 3870 (Osmek).   

Section 2. Solar energy incentive program.  Amends Xcel Energy’s Solar Rewards program, by expanding eligibility for the incentive by increasing the maximum capacity of a solar energy system from 20 kW to 40 kW.  Restricts funds for the program from being used for any other purpose or program. Provides that unspent funds from 2018, are available to spend in 2019.  After 2019, unspent funds must be returned to the renewable development account. This is from S.F. 2696 (Osmek).

Section 3. Pension rate base.  Allows a public utility to include excess pension contributions in the utility’s rate base.  If made part of the rate base, the excess contributions would be recovered from ratepayers. This is from S.F. 2879 (Jasinski).

Section 4. Energy storage system pilot projects. Allows a public utility to petition the public utilities commission to recover costs associated with implementation of an energy storage system pilot project. Sections 4, 7, 8, and 12 are from S.F. 3266 (Osmek).

Section 5. Solar energy standard. Allows systems up to 40 kW to be counted toward Xcel’s solar energy standard, which requires that 0.15 percent of the utility’s retail electric sales be generated from solar energy systems at or below that capacity by the end of 2020. This is from S.F. 2696 (Osmek).

Section 6. Technical assistance. Eliminates the expiration date allowing a portion of the assessment for technical assistance to be used for a uniform electronic data reporting and tracking system, which is currently set to expire on June 20, 2018. Requires the commissioner to establish a utility stakeholder group to direct development and maintenance of the uniform electronic data reporting and tracking system. Allows the utility stakeholder group to direct 50 percent of the biennium expenditures. Specifies membership of the utility stakeholder group. Requires the stakeholder group to develop and submit a work plan to the commissioner. This is from S.F. 3558 (Goggin).

Section 7. Definitions. Provides definitions for “energy storage system” and “investor-owned utility” within the resource planning statute.

Section 8. Energy storage systems assessment. Requires investor-owned utilities to include an assessment of energy storage systems in any integrated resource plan or plan modification filed by an investor-owned utility. Provides considerations for the Public Utilities Commission in approving a plan with respect to an energy storage system assessment submitted by an investor-owned utility.

Section 9. Assessment for department regional and national duties. Extends the expiration date for the assessment until June 30, 2019.

Section 10. Contact information database. Requires the evacuation system’s notification center (Gopher One) to collect contact information for each owner or operator of underground facilities and create, maintain, and update annually a database that contains the contact information in case of an emergency or for purposes of damage prevention. This is from S.F. 3441 (Lang).

Section 11. Cost-benefit analysis of energy storage systems. Requires the commissioner of commerce to contract with an independent consultant selected through a request for proposal process to produce a report analyzing the potential costs and benefits of energy storage systems. Requires the study to be submitted to the Legislature by December 31, 2018.


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