Subd. 6.

Factors considered, generally.

The commission, in the exercise of its powers
under this chapter to determine just and reasonable rates for public utilities, shall give due
consideration to the public need for adequate, efficient, and reasonable service and to the
need of the public utility for revenue sufficient to enable it to meet the cost of furnishing
the service, including adequate provision for depreciation of its utility property used and
useful in rendering service to the public, and to earn a fair and reasonable return upon the
investment in such property. In determining the rate base upon which the utility is to be
allowed to earn a fair rate of return, the commission shall give due consideration to evidence
of the cost of the property when first devoted to public use, to prudent acquisition cost to
the public utility less appropriate depreciation on each, to construction work in progress, to
offsets in the nature of capital provided by sources other than the investors, and to other
expenses of a capital nature. For purposes of determining rate base, the commission shall
consider the original cost of utility property included in the base and shall make no allowance
for its estimated current replacement value. If the commission orders a generating facility
to terminate its operations before the end of the facility's physical life in order to comply
with a specific state or federal energy deleted text beginstatute ordeleted text end policy, the commission may allow the public
utility to recover any positive net book value of the facility as determined by the commission.

Subd. 13.

Economic and community development.

The commission may allow a
public utility to recover from ratepayers thenew text begin reasonablenew text end expenses incurrednew text begin (1)new text end for economic
and community developmentnew text begin, and (2) to employ local workers to construct and maintain
generation facilities that supply power to the utility's customersnew text end.

Subdivision 1.

Commission authority.

Upon the petition of a public utility, the Public
Utilities Commission shall approve or disapprove power purchase contracts, investments,
or expenditures entered into or made by the utility to satisfy the wind and biomass mandates
contained in sections 216B.169, 216B.2423, and 216B.2424, and to satisfy the renewable
energy objectives and standards set forth in section 216B.1691, including reasonable
investments and expendituresnew text begin, net of revenues,new text end made to:

(1) transmit the electricity generated from sources developed under those sections that
is ultimately used to provide service to the utility's retail customers, including studies
necessary to identify new transmission facilities needed to transmit electricity to Minnesota
retail customers from generating facilities constructed to satisfy the renewable energy
objectives and standards, provided that the costs of the studies have not been recovered
previously under existing tariffs and the utility has filed an application for a certificate of
need or for certification as a priority project under section 216B.2425 for the new
transmission facilities identified in the studies;

(2) provide storage facilities for renewable energy generation facilities that contribute
to the reliability, efficiency, or cost-effectiveness of the renewable facilities; or

(3) develop renewable energy sources from the account required in section 116C.779.

Subd. 2.

Cost recovery.

The expenses incurred by the utility over the duration of the
approved contract or useful life of the investment deleted text beginanddeleted text endnew text begin,new text end expenditures made pursuant to section
116C.779 deleted text beginshall bedeleted text endnew text begin, and the expenses incurred to employ local workers to construct and
maintain generation facilities that supply power to the utility's customers arenew text end recoverable
from the ratepayers of the utilitydeleted text begin,deleted text end to the extent deleted text begintheydeleted text endnew text begin the expenses or expendituresnew text end are not
offset by utility revenues attributable to the contracts, investments, or expendituresnew text begin, and if
the expenses or expenditures are deemed reasonablenew text end. Upon petition by a public utility, the
commission shall approve or approve as modified a rate schedule providing for the automatic
adjustment of charges to recover the expenses or costs approved by the commission under
subdivision 1, which, in the case of transmission expenditures, are limited to the portion of
actual transmission costs that are directly allocable to the need to transmit power from the
renewable sources of energy. The commission may not approve recovery of the costs for
that portion of the power generated from sources governed by this section that the utility
sells into the wholesale market.

Subd. 9.

Local benefits.

The commission shall take all reasonable actions within its
statutory authority to ensure this section is implemented to maximize benefits to Minnesota
citizensnew text begin and local workers, as defined in section 216B.2422, subdivision 1new text end, balancing factors
such as local ownership of or participation in energy productiondeleted text begin,deleted text endnew text begin; local job impacts, as
defined in section 216B.2422, subdivision 1;new text end development and ownership of eligible energy
technology facilities by independent power producersdeleted text begin,deleted text endnew text begin;new text end Minnesota utility ownership of
eligible energy technology facilitiesdeleted text begin,deleted text endnew text begin;new text end the costs of energy generation to satisfy the renewable
standarddeleted text begin,deleted text endnew text begin;new text end and the reliability of electric service to Minnesotans.

Subdivision 1.

Definitions.

(a) For purposes of this section, the terms defined in this
subdivision have the meanings given them.

(b) "Utility" means an entity with the capability of generating 100,000 kilowatts or more
of electric power and serving, either directly or indirectly, the needs of 10,000 retail
customers in Minnesota. Utility does not include federal power agencies.

(c) "Renewable energy" deleted text beginmeans electricity generated through use of any of the following
resources:deleted text endnew text begin has the meaning given in section 216B.1691, subdivision 1.
new text end

deleted text begin (1) wind;
deleted text end

deleted text begin (2) solar;
deleted text end

deleted text begin (3) geothermal;
deleted text end

deleted text begin (4) hydro;
deleted text end

deleted text begin (5) trees or other vegetation;
deleted text end

deleted text begin (6) landfill gas; or
deleted text end

deleted text begin (7) predominantly organic components of wastewater effluent, sludge, or related
by-products from publicly owned treatment works, but not including incineration of
wastewater sludge.
deleted text end

(d) "Resource plan" means a set of resource options that a utility could use to meet the
service needs of its customers over a forecast period, including an explanation of the supply
and demand circumstances under which, and the extent to which, each resource option
would be used to meet those service needs. These resource options include using,
refurbishing, and constructing utility plant and equipment, buying power generated by other
entities, controlling customer loads, and implementing customer energy conservation.

(e) "Refurbish" means to rebuild or substantially modify an existing electricity generating
resource of 30 megawatts or greater.

(f) "Energy storage system" means a commercially available technology that:

(1) uses mechanical, chemical, or thermal processes to:

(i) storenew text begin carbon-free or renewablenew text end energy, deleted text beginincluding energy generated from renewable
resources and energy that would otherwise be wasted,deleted text end and deliver the stored energy for use
at a later time; or

(ii) store thermal energy for direct use for heating or cooling at a later time in a manner
that reduces the demand for electricity at the later time;

deleted text begin (2) is composed of stationary equipment;
deleted text end

deleted text begin (3)deleted text endnew text begin (2)new text end if being used for electric grid benefits, isnew text begin (i)new text end operationally visible