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
1.11proposed to be constructed by a utility, or an affiliate operating an integrated system
1.12with the utility, approved by the regulatory commission of the state in which the new
1.13transmission facilities are to be constructed to the extent approval is required by the laws
1.14of that state, and determined by the Midwest Independent Transmission System Operator
1.15to benefit the utility or integrated utility transmission system; (iii) charges incurred by a
1.16utility that accrue from other transmission owners' regionally planned transmission projects
1.17that have been determined by the Midwest Independent Transmission System Operator to
1.18benefit the utility or integrated system, as provided for under a federally approved tariff.
1.19    (b) Upon filing by a public utility or utilities providing transmission service, the
1.20commission may approve, reject, or modify, after notice and comment, a tariff that:
1.21    (1) allows the utility to recover on a timely basis the costs net of revenues of
1.22facilities approved under section 216B.243 or certified or deemed to be certified under
1.23section 216B.2425 or exempt from the requirements of section 216B.243;
1.24    (2) allows the charges incurred by a utility that accrue from other transmission
1.25owners' regionally planned transmission projects that have been determined by the
1.26Midwest Independent Transmission System Operator to benefit the utility or integrated
1.27system, as provided for under a federally approved tariff. These charges must be reduced
2.1or offset by revenues received by the utility and by amounts the utility charges to other
2.2regional transmission owners, to the extent those revenues and charges have not been
2.3otherwise offset;
2.4    (3) allows the utility to recover on a timely basis the costs net of revenues of facilities
2.5approved by the regulatory commission of the state in which the new transmission
2.6facilities are to be constructed and determined by the Midwest Independent Transmission
2.7System Operator to benefit the utility or integrated transmission system;
2.8    (4) allows a return on investment at the level approved in the utility's last general
2.9rate case, unless a different return is found to be consistent with the public interest;
2.10    (4) (5) provides a current return on construction work in progress, provided that
2.11recovery from Minnesota retail customers for the allowance for funds used during
2.12construction is not sought through any other mechanism;
2.13    (5) (6) allows for recovery of other expenses if shown to promote a least-cost project
2.14option or is otherwise in the public interest;
2.15    (6) (7) allocates project costs appropriately between wholesale and retail customers;
2.16    (7) (8) provides a mechanism for recovery above cost, if necessary to improve the
2.17overall economics of the project or projects or is otherwise in the public interest; and
2.18    (8) (9) terminates recovery once costs have been fully recovered or have otherwise
2.19been reflected in the utility's general rates.
2.20    (c) A public utility may file annual rate adjustments to be applied to customer bills
2.21paid under the tariff approved in paragraph (b). In its filing, the public utility shall provide:
2.22    (1) a description of and context for the facilities included for recovery;
2.23    (2) a schedule for implementation of applicable projects;
2.24    (3) the utility's costs for these projects;
2.25    (4) a description of the utility's efforts to ensure the lowest costs to ratepayers for
2.26the project; and
2.27    (5) calculations to establish that the rate adjustment is consistent with the terms
2.28of the tariff established in paragraph (b).
2.29    (d) Upon receiving a filing for a rate adjustment pursuant to the tariff established in
2.30paragraph (b), the commission shall approve the annual rate adjustments provided that,
2.31after notice and comment, the costs included for recovery through the tariff were or are
2.32expected to be prudently incurred and achieve transmission system improvements at the
2.33lowest feasible and prudent cost to ratepayers."
2.34Renumber the sections in sequence and correct the internal references
2.35Amend the title accordingly