1.1.................... moves to amend H.F. No. 1605 as follows:
1.2Page 2, after line 33, insert:

1.3    "Sec. 3. STUDY OF TREATING CONSERVATION INVESTMENTS AS
1.4UTILITY ASSETS.
1.5(a) The Public Utilities Commission shall contract for a study to examine the
1.6concept of treating utility conservation measures as other utility investments are treated in
1.7all respects, including allowing a utility to earn the same rate of return on conservation
1.8investments as that earned on other utility investments that deliver energy services to
1.9customers, as a means of accelerating the rate of cost-effective investments in conservation
1.10measures in an economical manner. In preparing a Request for Proposal for the study
1.11and in selecting a contractor to conduct the study, the commission shall consult with the
1.12Office of Energy Services.
1.13(b) The study must include, but is not limited to, analysis of:
1.14(1) any legal, financial, or other barriers to implementing a policy of equal treatment
1.15of conservation and other utility investments;
1.16(2) the effects of implementing a policy of equal treatment of conservation and other
1.17utility investments in jurisdictions that have done so, including:
1.18(i) a utility's incentive to make conservation investments;
1.19(ii) the level of utility conservation investments;
1.20(iii) the utility's overall risk and its cost of capital;
1.21(iv) the cost of conservation per unit of energy conserved; and
1.22(v) any other factors the commission deems relevant;
1.23(3) the expected effects of adopting a policy of equal treatment of conservation
1.24and other utility investments in Minnesota, including those effects listed in clause (2),
1.25subclauses (i) to (v); and
2.1(4) identifying any actual or perceived higher costs to a utility of making
2.2conservation investments vis-à-vis investing in additional generation capacity or
2.3purchasing energy under contract.
2.4(c) By January 1, 2010, the commission shall submit a copy of the study to the
2.5chairs and ranking minority members of the senate and house committees with primary
2.6jurisdiction over energy policy.
2.7(d) Under its authority under Minnesota Statutes 2008, section 216B.241,
2.8subdivision 1e, the Public Utilities Commission shall assess utilities $....... for the
2.9purposes of conducting the study described in this section.
2.10EFFECTIVE DATE.This section is effective the day following final enactment."