21.0486.03000
Sixty-seventh
Legislative Assembly SENATE BILL NO. 2206
of North Dakota
Introduced by
Senator Bell
1 A BILL for an Act to amend and reenact section 49-06-02 of the North Dakota Century Code,
2 relating to value of property for ratemaking purposes.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Section 49-06-02 of the North Dakota Century Code is
5 amended and reenacted as follows:
6 49-06-02. Value of property for ratemaking purposes - Determination.
7 The value of the property of a public utility, as determined by the commission for ratemaking
8 purposes, is the money honestly and prudently invested therein by the utility including
9 construction work in progress for new facilities that use lignite mined in this state to generate
10 electricity, as well as additions or modifications to existing lignite facilities, less accrued
11 depreciation. The commission shall allow a public utility for those new or existing facilities
12 utilizing lignite mined in this state as its primary fuel:
13 1. To recover its research and development costs incurred to develop lignite more
14 cleanly, efficiently, or economically, including carbon dioxide capture and sequestration
15 utilization and a reasonable rate of return on capital expenditures;
16 2. To recover its incremental costs of complying with federal environmental laws,
17 including a reasonable rate of return on capital expenditures. The commission may
18 allow these costs to be recovered by an environmental surcharge that may be added
19 to existing rates; and
20 3. To recover all costs resulting from a coal severance tax pursuant to chapter 57-61 and
21 all costs resulting from a coal conversion tax pursuant to chapter 57-60. The
22 commission shall allow the inclusion of these costs in the base rates and the inclusion
23 in the automatic adjustment clause of any of these costs not in base rates; and
Page No. 1 21.0486.03000
 Sixty-seventh
Legislative Assembly
1 4. To recover costs in rates, including rate of return and the rate base, for power
2 purchase agreements of a coal-fired electric generating unit, plant, or facility.
Page No. 2 21.0486.03000


Statutes affected:
INTRODUCED: 49-06-02
FIRST ENGROSSMENT: 49-06-02
Enrollment: 49-06-02