1998 Fiscal Review Appropriations - Regulated Industries


Energy

Much of the energy legislation that passed in the 1998 legislative session involved an alfalfa biomass generation facility in Granite Falls. The facility is being constructed by the Minnesota Valley Alfalfa Producers (MNVAP) under an agreement with Northern States Power (NSP) in partial satisfaction of the biomass energy mandate which was included in the 1994 Prairie Island legislation.

This session's provisions relating to the facility were:

• A $500,000 grant to the Granite Falls economic development authority to be used to "manage the development, seek financing and equity participation, reimburse costs of third-party due diligence exercises, and perform environmental review and permitting" of the alfalfa biomass generation facility;

• Authorization to use non-biomass fuel for more than 25 percent of the facility's fuel if biomass fuels are not reasonably available due to flood, fire, drought, disease, etc.;

• Authorization to the Minnesota Environmental Quality Board to waive fees associated with environmental review and permitting; and

• Clarification of 1997 legislation specifying that NSP may recover its investment in the biomass facility from ratepayers, provided the Minnesota Public Utilities Commission approves the MNVAP/NSP agreement and the investment in the biomass facility is not offset by revenues generated by the facility.

In addition, the 1998 Legislature passed legislation regarding the Gopher One-Call system clarifying responsibilities for locating underground facilities and increasing fees for violations of the one-call duties.



Telecommunications

The 1998 Legislature passed a telecommunications consumer protection law which:

• Tightens the state's anti-slamming laws ("slamming" refers to an unauthorized change in a consumer's telephone service provider);

• Requires prior disclosure of terms and prices by long-distance telecommunications providers when soliciting business; and

• Requires telecommunications providers to offer international toll blocking of non-domestic area codes that are part of the North American numbering plan. This is an extension of a 1994 law regarding "information services" (i.e., 1-900 numbers, etc.).

This legislation also included a provision which changes the method by which regulatory expenses for a telecommunications proceeding are assessed. Prior to this legislation, the telephone company was assessed for all such expenses, but current law now provides that all parties to the proceedings (except nonprofit organizations, government agencies, and others) be assessed a portion of those expenses.

In addition, the Legislature passed, but the Governor vetoed, legislation extending the state's Telephone Assistance Plan to all eligible low-income customers. Current law restricts assistance only to low-income households with senior citizens or disabled residents.

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