1.1.................... moves to amend H.F. No. 956, the delete everything amendment
1.2(H0956DE3), as follows:
1.3Page 3, delete section 5 and insert:

1.4    "Sec. 5. Minnesota Statutes 2012, section 216B.164, subdivision 3, is amended to read:
1.5    Subd. 3. Purchases; small facilities. (a) For a qualifying facility having less
1.6than 40-kilowatt 105-kilowatt capacity, the customer shall be billed for the net energy
1.7supplied by the utility according to the applicable rate schedule for sales to that class of
1.8customer. In the case of net input into the utility system by a qualifying facility having
1.9less than 40-kilowatt 105-kilowatt capacity, compensation to the customer shall be at a per
1.10kilowatt-hour rate determined under paragraph (b) or (c).
1.11(b) In setting rates, the commission shall consider the fixed distribution costs to the
1.12utility not otherwise accounted for in the basic monthly charge and shall ensure that the
1.13costs charged to the qualifying facility are not discriminatory in relation to the costs
1.14charged to other customers of the utility. The commission shall set the rates for net
1.15input into the utility system based on avoided costs as defined in the Code of Federal
1.16Regulations, title 18, section 292.101, paragraph (b)(6), the factors listed in Code of
1.17Federal Regulations, title 18, section 292.304, and all other relevant factors.
1.18(c) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
1.19having less than 40-kilowatt 105-kilowatt capacity may elect that the compensation for net
1.20input by the qualifying facility into the utility system shall be at the average retail utility
1.21energy rate plus the premium charged by the utility to customers of that customer class
1.22who elect to purchase renewable electricity under section 216B.169. If the utility does not
1.23offer a renewable rate under section 216B.169, the rate that a qualifying facility may elect
1.24to receive under this paragraph is the average rate charged under section 216B.169 to the
1.25applicable customer class by the three utilities that offer such a rate whose service areas
1.26are located closest to that of the utility that does not offer a rate under section 216B.169.
1.27"Average retail utility energy rate" is defined as the average of the retail energy rates,
2.1exclusive of special rates based on income, age, or energy conservation, according to the
2.2applicable rate schedule of the utility for sales to that class of customer.
2.3(d) If the qualifying facility is interconnected with a nongenerating utility which has
2.4a sole source contract with a municipal power agency or a generation and transmission
2.5utility, the nongenerating utility may elect to treat its purchase of any net input under this
2.6subdivision as being made on behalf of its supplier and shall be reimbursed by its supplier
2.7for any additional costs incurred in making the purchase. Qualifying facilities having less
2.8than 40-kilowatt 105-kilowatt capacity may, at the customer's option, elect to be governed
2.9by the provisions of subdivision 4.
2.10(e) A utility may elect to take possession of any renewable energy credits attached to
2.11electricity purchased under this section.
2.12EFFECTIVE DATE.This section is effective the day following final enactment."
2.13Page 5, line 19, delete "1,000-kilowatt" and insert "105-kilowatt"
2.14Page 7, after line 12, insert:

2.15    "Sec. 10. Minnesota Statutes 2012, section 216B.164, subdivision 5, is amended to read:
2.16    Subd. 5. Nondiscrimination; dispute; resolution. (a) A utility may not impose
2.17unduly burdensome conditions or stipulations on, and may not discriminate against, a
2.18qualifying facility seeking to interconnect with and sell electric power to the utility.
2.19(b) In the event of disputes between an electric utility and a qualifying facility,
2.20either party may request a determination of the issue by the commission. In any such
2.21determination, the burden of proof shall be on the utility. The commission in its order
2.22resolving each such dispute shall require payments to the prevailing party of the prevailing
2.23party's costs, disbursements, and reasonable attorneys' fees, except that the qualifying
2.24facility will be required to pay the costs, disbursements, and attorneys' fees of the utility
2.25only if the commission finds that the claims of the qualifying facility in the dispute have
2.26been made in bad faith, or are a sham, or are frivolous.
2.27EFFECTIVE DATE.This section is effective the day following final enactment."
2.28Page 7, delete section 10 and insert:

2.29    "Sec. 11. Minnesota Statutes 2012, section 216B.164, subdivision 6, is amended to read:
2.30    Subd. 6. Rules and uniform contract. (a) The commission shall promulgate rules
2.31to implement the provisions of this section. The commission shall also establish a uniform
2.32statewide form of contract for use between utilities and a qualifying facility having less
2.33than 40-kilowatt 105-kilowatt capacity.
2.34(b) The commission shall require the qualifying facility to provide the utility with
2.35reasonable access to the premises and equipment of the qualifying facility if the particular
3.1configuration of the qualifying facility precludes disconnection or testing of the qualifying
3.2facility from the utility side of the interconnection with the utility remaining responsible
3.3for its personnel.
3.4(c) The uniform statewide form of contract shall be applied to all new and existing
3.5interconnections established between a utility and a qualifying facility having less than
3.640-kilowatt 105-kilowatt capacity, except that existing contracts may remain in force
3.7until written notice of election that the uniform statewide contract form applies is given
3.8by either party to the other, with the notice being of the shortest time period permitted
3.9under the existing contract for termination of the existing contract by either party, but
3.10not less than ten nor longer than 30 days.
3.11EFFECTIVE DATE.This section is effective the day following final enactment.

3.12    Sec. 12. Minnesota Statutes 2012, section 216B.164, is amended by adding a
3.13subdivision to read:
3.14    Subd. 6a. Generation exceeding capacity. Electrical generation that exceeds a
3.15qualifying facility's nameplate capacity:
3.16(1) does not nullify the contract between a qualifying facility and a utility purchasing
3.17electricity under this section; and
3.18(2) must be purchased at the utility's avoided cost rate, as defined by the commission
3.19under subdivision 3 or 4, as applicable.
3.20EFFECTIVE DATE.This section is effective the day following final enactment."
3.21Renumber the sections in sequence and correct the internal references
3.22Amend the title accordingly