HF3912
Utility allowed to charge a fee to a customer who has entered into a payment agreement and whose household income is above 50 percent of state median income, utility allowed to charge a reconnection fee, and utility allowed to charge a late payment charge subject to conditions.
Legislative Session 94 (2025-2026)
Related bill: SF3991
AI Generated Summary
Purpose
This bill focuses on how Minnesota utilities handle payment commitments, reconnection after service issues, and late fees. It creates protections for customers with higher household incomes during cold weather, clarifies when a reconnection fee can be charged, and sets rules for late payment charges to balance customer fairness with utility costs.
Main Provisions
Payment agreements for higher-income households during cold weather
- For households with income above 50 percent of the state median income, during the cold weather period:
- The utility must offer a payment agreement that considers the household’s financial situation and other extenuating circumstances.
- The customer may not be disconnected while on this payment agreement and must be reconnected if they make timely payments under the agreement.
- This protection is not subject to previous subparagraphs that apply to other customers (i.e., it provides a specific emphasis for the higher-income group during cold weather).
Reconnection fees
- Utilities may charge a reconnection fee if service was disconnected for unauthorized use or tampering with the utility’s equipment, based on the cost to reinstate service as stated in the utility’s tariff.
- Utilities may not charge a reconnection fee to residential customers who were disconnected for failing to pay a bill.
Unauthorized use
- Unauthorized use means using utility services in a way that breaches the service contract or violates tariffs on file with the public utilities commission, for reasons other than a failure to pay the bill.
Late payment charges
- A late payment charge may be imposed only if:
- The current delinquent amount exceeds $100.
- The charge roughly matches the utility’s actual cost to carry the unpaid balance.
- The total late payment charges do not exceed $50 in any 12-month period for a single customer.
- Exemptions from late payment charges:
- Low-income households (as defined by the statute) or households participating in certain low-income programs.
- Households that have entered into and are reasonably up to date on a payment agreement.
- Possibility for exceptions:
- Public utilities or cooperative electric associations subject to rate regulation may impose late payment charges only if the commission finds, by clear and convincing evidence, that the charge is just, reasonable, and in the public interest.
Relationship to existing law
- The bill makes targeted amendments to Minnesota Statutes 2024 §216B.096 (subd. 10) and §216B.098 (adding new subdivisions 8 and 9) to implement these rules.
Significant Changes to Existing Law
Section 216B.096, subdivision 10 (new text):
- Adds a specific protection for customers with household income above 50% of the state median income during the cold weather period, creating a right to a payment agreement and prohibiting disconnection while the agreement is in effect, with reconnection required when timely payments are made.
Section 216B.098 (new subdivision 8):
- Establishes reconnection fees for unauthorized use or tampering, tied to the cost to reinstate service as per the tariff, and clarifies that reconnection fees cannot be charged for disconnections due to nonpayment.
Section 216B.098 (new subdivision 9):
- Sets rules for late payment charges with specific thresholds and a cap, and lists exemptions for low-income households and households in certain programs or with up-to-date payment agreements. Also allows regulated utilities to impose late charges only if the commission finds them just, reasonable, and in the public interest.
Potential Impacts (Plain Language)
- Higher-income households (above 50% of state median income) may receive more structured payment options and greater protection from disconnection during cold weather if they enter into a payment agreement.
- Residential customers will face clearer limits on how much a late fee can cost and how often such fees can be charged.
- Utilities can recover some costs through reconnection fees, but only in specific scenarios (not for standard nonpayment disconnections).
- The Public Utilities Commission retains oversight to ensure late charges are fair for regulated utilities, providing a check on potentially excessive fees.
Relevant Terms
- payment agreement
- above 50 percent of state median income
- cold weather period
- disconnection
- reconnection
- reconnection fee
- unauthorized use
- tampering
- tariffs
- delinquent amount
- late payment charge
- cost to carry unpaid balance
- cumulative late payment fees
- low-income households
- low-income program
- public utilities commission
- tariff on file
- cost to reinstate service
- actual cost
- just and reasonable
- public interest
Relevant Terms - payment agreement - above 50 percent of state median income - cold weather period - disconnection - reconnection - reconnection fee - unauthorized use - tampering - tariffs - delinquent amount - late payment charge - cost to carry unpaid balance - cumulative late payment fees - low-income households - low-income program - public utilities commission - tariff on file - cost to reinstate service - just and reasonable - public interest
Bill text versions
- Introduction PDF PDF file
Past committee meetings
- Energy Finance and Policy on: March 10, 2026 13:00
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 02, 2026 | House | Action | Introduction and first reading, referred to | Energy Finance and Policy |
Citations
[
{
"analysis": {
"added": [
"Adds a payment agreement provision for higher-income customers during cold weather.",
"Requires reconnection if timely payments are made under the agreement."
],
"removed": [],
"summary": "Amends Subdivision 10 of Minnesota Statutes 216B.096 to require a payment agreement for customers with household income above 50% of state median during the cold weather period, prohibits disconnection, and requires reconnection if timely payments are made; clarifies that Subd.7 paragraph b does not apply to these customers.",
"modified": [
"Subd.10 is amended to implement new protections for higher-income customers during cold weather."
]
},
"citation": "216B.096",
"subdivision": "Subdivision 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill references Minnesota Statutes 216B.096 subdivision 5 as part of its provisions regarding payment agreements and other related sections; the text does not explicitly describe modifications to Subd.5 itself.",
"modified": [
"No direct modification to Subd.5 is described; Subd.5 is cited in connection with Subd.10 and other provisions."
]
},
"citation": "216B.096",
"subdivision": "Subdivision 5"
},
{
"analysis": {
"added": [
"Permits a reconnection fee based on cost to reinstate service for unauthorized use or tampering."
],
"removed": [],
"summary": "Adds authority for reconnection fees under certain conditions; permits a reconnection fee when service was disconnected for unauthorized use or tampering, based on the cost to reinstate service; prohibits charging a reconnection fee for residential customers disconnected due to nonpayment.",
"modified": [
"Subd.8 is added to 216B.098 addressing reconnection fees."
]
},
"citation": "216B.098",
"subdivision": "Subdivision 8"
},
{
"analysis": {
"added": [
"Defines criteria for late payment charges, including delinquency thresholds, cost-based limits, and a 12-month cap of 50."
],
"removed": [],
"summary": "Establishes rules for late payment charges, including thresholds, cost-based caps, and annual limits; excludes certain households and programs from late charges; allows the commission to require just and reasonable findings for imposition of late charges.",
"modified": [
"Subd.9 is added to regulate late payment charges."
]
},
"citation": "216B.098",
"subdivision": "Subdivision 9"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Defines low-income households (Subdivision 1b) used to determine exemptions from late payment charges.",
"modified": [
"Provides the low-income household definition used for late payment charge exemptions in Subd.9."
]
},
"citation": "216B.16",
"subdivision": "Subdivision 1b"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cited as part of the exemptions framework for late payment charges; referenced alongside other subdivisions (e.g., 216B.241 Subd.7).",
"modified": [
"No direct modification described; cited in relation to exemptions for certain households."
]
},
"citation": "216B.2403",
"subdivision": "Subdivision 5"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Cited as part of the exemptions framework for late payment charges alongside 216B.2403 Subd.5.",
"modified": [
"No direct modification described; cited in the exemptions framework."
]
},
"citation": "216B.241",
"subdivision": "Subdivision 7"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Noted as the rate-regulation basis; the bill references rate regulation under this section in the context of late payment charges.",
"modified": [
"No direct modification to 216B.026; referenced to justify just and reasonable standards for charges."
]
},
"citation": "216B.026",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "References 216B.097 Subdivision 2.1 (paragraphs and clauses) in relation to the late payment charge framework; the exact modifications to Subd.2.1 are not explicitly stated in the text.",
"modified": [
"No explicit modification to Subd.2.1 is described; cited as a cross-reference."
]
},
"citation": "216B.097",
"subdivision": "Subdivision 2.1"
}
]Progress through the legislative process
In Committee