1.1.................... moves to amend H.F. No. 956, the first engrossment, as follows:
1.2Page 9, delete section 8 and insert:

1.3    "Sec. 8. Minnesota Statutes 2012, section 216B.1635, is amended to read:
1.4216B.1635 RECOVERY OF GAS UTILITY INFRASTRUCTURE COSTS.
1.5    Subdivision 1. Definitions. (a) "Gas utility" means a public utility as defined in
1.6section 216B.02, subdivision 4, that furnishes natural gas service to retail customers.
1.7(b) "Gas utility infrastructure costs" or "GUIC" means costs incurred in gas utility
1.8projects that:
1.9(1) do not serve to increase revenues by directly connecting the infrastructure
1.10replacement to new customers;
1.11(2) are in service but were not included in the gas utility's rate base in its most recent
1.12general rate case; and, or are planned to be in service during the period covered by the
1.13report submitted under subdivision 2, but in no case longer than the one year forecast
1.14period in the report; and
1.15(3) replace or modify existing infrastructure if the replacement or modification does
1.16not constitute a betterment, unless the betterment is required by a political subdivision,
1.17as evidenced by specific documentation from the government entity requiring the
1.18replacement or modification of infrastructure do not constitute a betterment, unless the
1.19betterment is based on requirements by a political subdivision or a federal or state agency,
1.20as evidenced by specific documentation, an order, or other similar requirement from the
1.21government entity requiring the replacement or modification of infrastructure.
1.22(c) "Gas utility projects" means relocation and:
1.23(1) replacement of natural gas facilities located in the public right-of-way required
1.24by the construction or improvement of a highway, road, street, public building, or other
1.25public work by or on behalf of the United States, the state of Minnesota, or a political
1.26subdivision.; and
2.1(2) replacement or modification of existing natural gas facilities, including surveys,
2.2assessments, reassessment, and other work necessary to determine the need for replacement
2.3or modification of existing infrastructure that is required by a federal or state agency.
2.4    Subd. 2. Gas infrastructure filing. (a) The commission may approve a gas utility's
2.5petition for a rate schedule A public utility submitting a petition to recover GUIC gas
2.6infrastructure costs under this section. A gas utility may must submit to the commission,
2.7the department, and interested parties a gas infrastructure project plan report and a
2.8petition the commission to recover a rate of return, income taxes on the rate of return,
2.9incremental property taxes, plus incremental depreciation expense associated with GUIC
2.10 for rate recovery of only incremental costs associated with projects under subdivision
2.111, paragraph (c), clause (2). The report and petition must be made at least 150 days in
2.12advance of implementation of the rate schedule, provided that the rate schedule will not be
2.13implemented until the petition is approved by the commission pursuant to subdivision
2.146. The report must be for a forecast period of one year.
2.15(b) The filing is subject to the following:
2.16(1) A gas utility may submit a filing under this section no more than once per year.
2.17(2) A gas utility must file sufficient information to satisfy the commission regarding
2.18the proposed GUIC or be subject to denial by the commission. The information includes,
2.19but is not limited to:
2.20(i) the government entity ordering the gas utility project and the purpose for which
2.21the project is undertaken;
2.22(ii) the location, description, and costs associated with the project;
2.23(iii) a description of the costs, and salvage value, if any, associated with the existing
2.24infrastructure replaced or modified as a result of the project;
2.25(iv) the proposed rate design and an explanation of why the proposed rate design
2.26is in the public interest;
2.27(v) the magnitude and timing of any known future gas utility projects that the utility
2.28may seek to recover under this section;
2.29(vi) the magnitude of GUIC in relation to the gas utility's base revenue as approved
2.30by the commission in the gas utility's most recent general rate case, exclusive of gas
2.31purchase costs and transportation charges;
2.32(vii) the magnitude of GUIC in relation to the gas utility's capital expenditures since
2.33its most recent general rate case;
2.34(viii) the amount of time since the utility last filed a general rate case and the utility's
2.35reasons for seeking recovery outside of a general rate case; and
2.36(ix) documentation supporting the calculation of the GUIC.
3.1    Subd. 3. Gas infrastructure project plan report. The gas infrastructure project
3.2plan report required to be filed under subdivision 2 shall include all pertinent information
3.3and supporting data on each proposed project including, but not limited to, project
3.4description and scope, estimated project costs, and project in-service date.
3.5    Subd. 4. Cost recovery petition for utility's facilities. Notwithstanding any other
3.6provision of this chapter, the commission may approve a rate schedule for the automatic
3.7annual adjustment of charges for gas utility infrastructure costs net of revenues under
3.8this section, including a rate of return, income taxes on the rate of return, incremental
3.9property taxes, incremental depreciation expense, and any incremental operation and
3.10maintenance costs. A gas utility's petition for approval of a rate schedule to recover
3.11gas utility infrastructure costs outside of a general rate case under section 216B.16, is
3.12subject to the following:
3.13(1) a gas utility may submit a filing under this section no more than once per year; and
3.14(2) a gas utility must file sufficient information to satisfy the commission regarding
3.15the proposed GUIC. The information includes, but is not limited to:
3.16(i) the information required to be included in the gas infrastructure project plan
3.17report under subdivision 3;
3.18(ii) the government entity ordering or requiring the gas utility project and the
3.19purpose for which the project is undertaken;
3.20(iii) a description of the estimated costs and salvage value, if any, associated with the
3.21existing infrastructure replaced or modified as a result of the project;
3.22(iv) a comparison of the utility's estimated costs included in the gas infrastructure
3.23project plan and the actual costs incurred, including a description of the utility's efforts to
3.24ensure the costs of the facilities are reasonable and prudently incurred;
3.25(v) calculations to establish that the rate adjustment is consistent with the terms
3.26of the rate schedule, including the proposed rate design and an explanation of why the
3.27proposed rate design is in the public interest;
3.28(vi) the magnitude and timing of any known future gas utility projects that the
3.29utility may seek to recover under this section;
3.30(vii) the magnitude of GUIC in relation to the gas utility's base revenue as approved
3.31by the commission in the gas utility's most recent general rate case, exclusive of gas
3.32purchase costs and transportation charges;
3.33(viii) the magnitude of GUIC in relation to the gas utility's capital expenditures
3.34since its most recent general rate case; and
3.35(ix) the amount of time since the utility last filed a general rate case and the utility's
3.36reasons for seeking recovery outside of a general rate case.
4.1    Subd. 5. Commission action. Upon receiving a gas utility report and petition for
4.2cost recovery under subdivision 2 and assessment and verification under subdivision 4, the
4.3commission may approve the annual GUIC rate adjustments provided that, after notice
4.4and comment, the costs included for recovery through the rate schedule are prudently
4.5incurred and achieve gas facility improvements at the lowest reasonable and prudent
4.6cost to ratepayers.
4.7    Subd. 5a. Rate of return. The return on investment for the rate adjustment shall be
4.8at the level approved by the commission in the public utility's last general rate case, unless
4.9the commission determines that a different rate of return is in the public interest.
4.10    Subd. 3 6. Commission authority; rules. The commission may issue orders and
4.11adopt rules necessary to implement and administer this section.
4.12EFFECTIVE DATE.This section is effective the day following final enactment."
4.13Page 40, line 17, delete "216B.37" and insert "216B.1637"
4.14Renumber the sections in sequence and correct the internal references
4.15Amend the title accordingly