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.1635, is amended to read:
1.5216B.1635 RECOVERY OF GAS UTILITY INFRASTRUCTURE COSTS.
1.6    Subdivision 1. Definitions. (a) "Gas utility" means a public utility as defined in
1.7section 216B.02, subdivision 4, that furnishes natural gas service to retail customers.
1.8(b) "Gas utility infrastructure costs" or "GUIC" means costs incurred in gas utility
1.9projects that:
1.10(1) do not serve to increase revenues by directly connecting the infrastructure
1.11replacement to new customers;
1.12(2) are in service but were not included in the gas utility's rate base in its most recent
1.13general rate case; and or planned to be in service during the period covered by the report
1.14submitted in accordance with subdivision 2; 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
1.19the betterment is based on requirements by a political subdivision or federal or state
1.20regulation, as evidenced by specific documentation or regulation from the government
1.21entity 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 federal or state regulation.
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, the
2.7department, the Office of Pipeline Safety, and interested parties a gas infrastructure project
2.8plan report and a petition the commission to recover a rate of return, income taxes on the
2.9rate of return, incremental property taxes, plus incremental depreciation expense associated
2.10with GUIC for rate recovery. The report and petition must be made at least 150 days in
2.11advance of implementation of the rate schedule, provided that the rate schedule will not be
2.12implemented until the petition is approved by the commission pursuant to subdivision 7.
2.13(b) The filing is subject to the following:
2.14(1) A gas utility may submit a filing under this section no more than once per year.
2.15(2) A gas utility must file sufficient information to satisfy the commission regarding
2.16the proposed GUIC or be subject to denial by the commission. The information includes,
2.17but is not limited to:
2.18(i) the government entity ordering the gas utility project and the purpose for which
2.19the project is undertaken;
2.20(ii) the location, description, and costs associated with the project;
2.21(iii) a description of the costs, and salvage value, if any, associated with the existing
2.22infrastructure replaced or modified as a result of the project;
2.23(iv) the proposed rate design and an explanation of why the proposed rate design
2.24is in the public interest;
2.25(v) the magnitude and timing of any known future gas utility projects that the utility
2.26may seek to recover under this section;
2.27(vi) the magnitude of GUIC in relation to the gas utility's base revenue as approved
2.28by the commission in the gas utility's most recent general rate case, exclusive of gas
2.29purchase costs and transportation charges;
2.30(vii) the magnitude of GUIC in relation to the gas utility's capital expenditures since
2.31its most recent general rate case;
2.32(viii) the amount of time since the utility last filed a general rate case and the utility's
2.33reasons for seeking recovery outside of a general rate case; and
2.34(ix) documentation supporting the calculation of the GUIC.
2.35    Subd. 3. Commission authority; rules. The commission may issue orders and
2.36adopt rules necessary to implement and administer this section.
3.1    Subd. 4. 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. 5. Gas infrastructure project plan report review. The Office of Pipeline
3.6Safety shall evaluate the gas utility's report filed under subdivision 4and, within 60 days of
3.7the filing, provide the commission with:
3.8(1) verification that a gas utility project associated with federal or state regulations
3.9complies with subdivision 1, paragraph (c), clause (2); and
3.10(2) an assessment of the appropriateness of the gas utility's proposed plans.
3.11    Subd. 6. Cost recovery petition for utility's facilities. Notwithstanding any other
3.12provision of this chapter, the commission may approve a rate schedule for the automatic
3.13annual adjustment of charges for gas utility infrastructure costs under this section,
3.14including a rate of return, income taxes on the rate of return, incremental property taxes,
3.15incremental depreciation expense, and incremental operation and maintenance costs. A
3.16gas utility's petition for approval of a rate schedule to recover gas utility infrastructure
3.17costs outside of a general rate case under section 216B.16, is subject to the following:
3.18(1) a gas utility may submit a filing under this section no more than once per year; and
3.19(2) a gas utility must file sufficient information to satisfy the commission regarding
3.20the proposed GUIC. The information includes, but is not limited to:
3.21(i) the information required to be included in the gas infrastructure project plan
3.22report under subdivision 4;
3.23(ii) the government entity ordering the gas utility project and the purpose for which
3.24the project is undertaken, or the federal or state regulations causing the project;
3.25(iii) a description of the estimated costs, and salvage value, if any, associated with
3.26the existing infrastructure replaced or modified as a result of the project;
3.27(iv) a comparison of the utility's estimated costs included in the gas infrastructure
3.28project plan and the actual costs incurred, including a description of the utility's efforts to
3.29ensure the costs of the facilities are reasonable and were or will be prudently incurred;
3.30(v) calculations to establish that the rate adjustment is consistent with the terms
3.31of the rate schedule, including the proposed rate design and an explanation of why the
3.32proposed rate design is in the public interest;
3.33(vi) the magnitude and timing of any known future gas utility projects that the
3.34utility may seek to recover under this section;
4.1(vii) the magnitude of GUIC in relation to the gas utility's base revenue as approved
4.2by the commission in the gas utility's most recent general rate case, exclusive of gas
4.3purchase costs and transportation charges;
4.4(viii) the magnitude of GUIC in relation to the gas utility's capital expenditures
4.5since its most recent general rate case; and
4.6(ix) the amount of time since the utility last filed a general rate case and the utility's
4.7reasons for seeking recovery outside of a general rate case.
4.8    Subd. 7. Commission action. Upon receiving a gas utility report and petition for
4.9cost recovery under subdivision 2 and assessment and verification under subdivision
4.105, the commission may approve the annual GUIC rate adjustments provided that, after
4.11notice and comment, the costs included for recovery through the rate schedule were or are
4.12expected to be prudently incurred and achieve gas facility improvements at the lowest
4.13reasonable and prudent cost to ratepayers.
4.14EFFECTIVE DATE.This section is effective the day following final enactment."
4.15Page 22, after line 28, insert:

4.16    "Sec. 31. Laws 2005, chapter 97, article 10, section 3, is amended to read:
4.17    Sec. 3. SUNSET.
4.18    Sections 1 and 2 shall expire on June 30, 2015 2023.

4.19    Sec. 32. REPEALER.
4.20Minnesota Statutes 2012, section 216B.37, is repealed."
4.21Renumber the sections in sequence and correct the internal references
4.22Amend the title accordingly