This bill proposes modifications to the procedures governing cost recovery for public utility electric generation and transmission assets in Minnesota. It adds a new subdivision to Minnesota Statutes, Section 216B.16, requiring public utilities seeking to add new electric generating facilities or transmission assets to their rate base to include both quantitative and qualitative assessments of the asset’s contribution to system reliability during peak demand.

The bill mandates that when the Minnesota Public Utilities Commission reviews such proposals, it must determine: 1. The extent to which the proposed asset enhances system reliability during peak demand. 2. The portion of the costs and expenses for the asset that are considered recoverable through utility rates. 3. Specific details regarding: - Approved rate increases. - The approved rate of return on the asset and the duration of that return. - The costs and expenses that are deemed non-recoverable.

The bill also provides definitions for key terms, including: - Electric generating facility: An asset that generates or stores electricity for retail sale in Minnesota. - Recoverable costs: Costs a public utility may charge to Minnesota ratepayers, covering expenses such as the facility or transmission asset cost and the permitted rate of return. - Seasonal effective load carrying capability: A measure of how much incremental load a facility can support while maintaining system reliability. - System reliability: The ability of the electric system to deliver uninterrupted electricity to customers. - Transmission asset: Equipment required to transmit electricity from a generating facility to a public utility’s distribution system.

Ultimately, the bill aims to ensure that public utilities justify the necessity and reliability benefits of new generation and transmission investments while providing a structured approach to determining cost recovery in utility rates.