This bill amends Minnesota Statutes 2024, section 216B.16, by adding a new subdivision that limits the rate recovery of executive compensation for certain public utilities. Specifically, it prohibits the Minnesota Public Utilities Commission from allowing ratepayers to cover compensation for any of the ten highest-paid officers or employees of a public utility if that compensation exceeds the annual salary of the governor. The definition of "compensation" includes salary, incentive payments, and other forms of compensation, but excludes expense reimbursements and benefits that are comparable to those offered to other employees of the utility.

Additionally, the bill clarifies that this limitation does not affect compensation sourced from investors or other non-ratepayer funds, provided that such compensation does not disproportionately impact ratepayers in other states. The new regulation applies to public utilities with at least 300,000 retail customers in Minnesota and will take effect the day after final enactment, applying to rate filings submitted thereafter.

Statutes affected:
Introduction: 216B.16