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Current as of January 01, 2025 | Updated by Findlaw Staff
Subdivision 1. Definitions. (a) For purposes of this section, the following terms have the meanings given them in this subdivision.
(b) “Area development rate” means a rate schedule established by a utility that provides customers within an area development zone service under a base utility rate schedule, except that charges may be reduced from the base rate as agreed upon by the utility and the customer consistent with this section.
(c) “Area development zone” means a contiguous or noncontiguous area designated by an authority or municipality for development or redevelopment and within which one of the following conditions exists:
(1) obsolete buildings not suitable for improvement or conversion or other identified hazards to the health, safety, and general well-being of the community;
(2) buildings in need of substantial rehabilitation or in substandard condition; or
(3) low values and damaged investments.
(d) “Authority” means a rural development financing authority established undersections 469.142to469.151; a housing and redevelopment authority established undersections 469.001to469.047; a port authority established undersections 469.048to469.068; an economic development authority established undersections 469.090to469.108; a redevelopment agency as defined insections 469.152to469.165; the Department of Iron Range Resources and Rehabilitation established undersection 298.22; a municipality that is administering a development district created undersections 469.124to469.133or any special law; a municipality that undertakes a project undersections 469.152to469.165, except a town located outside the metropolitan area as defined insection 473.121, subdivision 2, or with a population of 5,000 persons or less; or a municipality that exercises the powers of a port authority under any general or special law.
(e) “Municipality” means a city, however organized, and, with respect to a project undertaken undersections 469.152to469.165, “municipality” has the meaning given insections 469.152to469.165, and, with respect to a project undertaken undersections 469.142to469.151or a county or multicounty project undertaken undersections 469.004to469.008, also includes any county.
Subd. 2. Area development rate. The commission may allow gas or electric public utilities to offer area development rates. The program must be designed to assist industrial revitalization projects located within the service area of the participating utility.
Subd. 3. Terms and conditions of rate. An area development rate offered under this section must:
(1) be offered for a specified length of time to be determined by the commission;
(2) be offered as a supplement to other development incentives offered by the authority or municipality in which the rate is available;
(3) be available only to new or expanding manufacturing or wholesale trade customers;
(4) be designed to recover at least the incremental cost of providing service to the participating customers;
(5) be offered in a fixed number of area development zones; and
(6) include a provision that the utility provide participating customers with an energy audit and inform those customers of all existing energy conservation programs available from the utility.
Recovery of costs under clause (4) must not be from residential customers. A utility within a general rate case, may seek recovery of the difference in revenue collected under the area development plan rate and what would have been collected under the standard tariff.
Subd. 4. Deleted by amendment,Laws 1995, c. 9, § 1.
Cite this article: FindLaw.com - Minnesota Statutes Utilities (Ch. 216-216H) § 216B.161. Area development rate plan - last updated January 01, 2025 | https://codes.findlaw.com/mn/utilities-ch-216-216h/mn-st-sect-216b-161/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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