HB 1111 — Public interest exemptions for electric public utilities (North Dakota)
Summary
This bill would add a new section to chapter 49‑02 of the North Dakota Century Code to authorize the Public Service Commission (PSC) to grant targeted regulatory exemptions to electric public utilities when the PSC finds doing so is “in the public interest.” The PSC could attach reasonable terms and conditions to any exemption, and the exemption could be revoked or suspended using the administrative procedures in chapter 28‑32. The bill expressly preserves the PSC’s other authorities under chapter 49‑03.
Main purpose and intent
- Give the PSC explicit statutory authority to exempt an electric public utility from particular regulations (for example, rules affecting rates, contracts, services, or facility adequacy) where an exemption would serve the public interest.
- Allow the PSC to approve conditional, limited, or project‑specific departures from existing regulatory requirements to enable flexibility, innovation, or timely action.
Key provisions
- Creates a new statutory provision in NDCC chapter 49‑02 authorizing the PSC to exempt an electric public utility from a regulation that affects:
- rates,
- contracts,
- services rendered,
- adequacy or sufficiency of facilities, or
- rules or restrictions of a public utility.
- Grants the PSC discretion to impose terms and conditions on any exemption it grants.
- Clarifies the new exemption authority does not limit other PSC powers conferred under chapter 49‑03.
- Specifies that exemptions may be revoked or suspended following the procedures in chapter 28‑32 (North Dakota’s administrative/contested‑case procedures).
Who would be affected
- Electric public utilities operating in North Dakota (investor‑owned utilities and other entities regulated under chapter 49).
- Customers and ratepayers, because exemptions could alter how rates, services, or contracts are applied in particular cases.
- The PSC and other stakeholders (developers, project partners, consumer advocates), who would use or respond to the exemption authority in rulemaking, enforcement, pilot projects, negotiated settlements, or emergency responses.
Potential impacts and considerations
- Flexibility: The authority could facilitate pilot programs, novel service arrangements, expedited infrastructure projects, or negotiated settlements that don’t fit neatly within current rules.
- Consumer protections and oversight: While the bill preserves revocation procedures and allows conditions on exemptions, granting exemptions that affect rates or services could reduce protections or change cost allocation in specific cases; oversight and transparency would be important.
- Regulatory certainty: Targeted exemptions can reduce delays and barriers for new projects but may create case‑by‑case variability that stakeholders must monitor.
- Administrative controls: The PSC’s ability to set conditions and to revoke/suspend exemptions provides mechanisms to limit unintended consequences.
Procedural status (as provided)
- Introduced: November 12, 2024 (at the request of the Public Service Commission; introduced by the Energy & Natural Resources Committee).
- Status noted in the materials: Second reading — failed to pass (vote recorded as yeas 0, nays 93). Because it did not pass, the provision was not enacted and no effective date applies.
For readers seeking more detail
- Text references: new section to chapter 49‑02 NDCC; preservation of authority under chapter 49‑03; use of chapter 28‑32 for revocation/suspension procedures.
- Questions about likely use or examples (e.g., pilot rate designs, temporary waivers for interconnection rules, emergency measures) may be addressed by reviewing PSC orders and proceedings where similar waivers have been considered.
