1.1.................... moves to amend H.F. No. 956, the delete everything amendment
1.2(H0956DE3), as follows:
1.3Page 2, after line 26, insert:

1.4    "Sec. 4. Minnesota Statutes 2012, section 216B.16, subdivision 7b, is amended to read:
1.5    Subd. 7b. Transmission cost adjustment. (a) Notwithstanding any other provision
1.6of this chapter, the commission may approve a tariff mechanism for the automatic annual
1.7adjustment of charges for the Minnesota jurisdictional costs of (i) new transmission
1.8facilities that have been separately filed and reviewed and approved by the commission
1.9under section 216B.243 or are certified as a priority project or deemed to be a priority
1.10transmission project under section 216B.2425; and (ii) new transmission facilities approved
1.11by the regulatory commission of the state in which the new transmission facilities are to be
1.12constructed to the extent approval is required by the laws of that state, and determined by
1.13the Midwest Independent Transmission System Operator to benefit the utility or integrated
1.14utility transmission system; (iii) net charges incurred by a utility under a federally approved
1.15tariff that accrue from other transmission owners' regionally planned transmission projects
1.16that have been determined by the Midwest Independent Transmission System Operator to
1.17benefit the utility, as provided for under a federally approved tariff or integrated system.
1.18    (b) Upon filing by a public utility or utilities providing transmission service, the
1.19commission may approve, reject, or modify, after notice and comment, a tariff that:
1.20    (1) allows the utility to recover on a timely basis the costs net of revenues of
1.21facilities approved under section 216B.243 or certified or deemed to be certified under
1.22section 216B.2425 or exempt from the requirements of section 216B.243;
1.23    (2) allows the utility to recover charges incurred by a utility under a federally
1.24approved tariff that accrue from other transmission owners' regionally planned
1.25transmission projects that have been determined by the Midwest Independent Transmission
1.26System Operator to benefit the utility, as provided for under a federally approved tariff or
1.27integrated system. These charges must be reduced or offset by revenues received by the
2.1utility and by amounts the utility charges to other regional transmission owners, to the
2.2extent those revenues and charges have not been otherwise offset;
2.3    (3) allows the utility to recover on a timely basis the net costs of revenues of facilities
2.4approved by the regulatory commission of the state in which the new transmission
2.5facilities are to be constructed and determined by the Midwest Independent Transmission
2.6System Operator to benefit the utility or integrated transmission system;
2.7    (4) allows a return on investment at the level approved in the utility's last general
2.8rate case, unless a different return is found to be consistent with the public interest;
2.9    (4) (5) provides a current return on construction work in progress, provided that
2.10recovery from Minnesota retail customers for the allowance for funds used during
2.11construction is not sought through any other mechanism;
2.12    (5) (6) allows for recovery of other expenses if shown to promote a least-cost project
2.13option or is otherwise in the public interest;
2.14    (6) (7) allocates project costs appropriately between wholesale and retail customers;
2.15    (7) (8) provides a mechanism for recovery above cost, if necessary to improve the
2.16overall economics of the project or projects or is otherwise in the public interest; and
2.17    (8) (9) terminates recovery once costs have been fully recovered or have otherwise
2.18been reflected in the utility's general rates.
2.19    (c) A public utility may file annual rate adjustments to be applied to customer bills
2.20paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
2.21    (1) a description of and context for the facilities included for recovery;
2.22    (2) a schedule for implementation of applicable projects;
2.23    (3) the utility's costs for these projects;
2.24    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
2.25the project; and
2.26    (5) calculations to establish that the rate adjustment is consistent with the terms
2.27of the tariff established in paragraph (b).
2.28    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
2.29paragraph (b), the commission shall approve the annual rate adjustments provided that,
2.30after notice and comment, the costs included for recovery through the tariff were or are
2.31expected to be prudently incurred and achieve transmission system improvements at the
2.32lowest feasible and prudent cost to ratepayers."
2.33Renumber the sections in sequence and correct the internal references
2.34Amend the title accordingly