HF3733

Purpose

To limit how much a recreational camping area owner can charge RV owners for electricity. The bill sets that charges must not exceed the commodity rate the utility provider charges, and it prohibits adding extra charges for administrative costs, capital costs, distribution costs, meter charges, demand charges, or taxes.

Main Provisions

• Adds Subd.5 to Minnesota Statutes 327.20 to govern charges for electricity by a recreational camping area owner.
• Definitions:
  • commodity rate: defined as in Minnesota Statutes section 327C.015 subdivision 3a.
  • utility provider: defined as in Minnesota Statutes section 327C.015 subdivision 17a.
• Pricing rule:
  • A recreational camping owner may charge a recreational camping vehicle only for its use of electricity at a rate no more than the commodity rate charged by the utility provider.
• Exclusions from charges:
  • A charge under the pricing rule must not include administrative costs, capital costs, or any other expenses related to distribution or use of utility services, including meter charges, service charges, demand charges, or taxes.
• Enforcement:
  • Any violation of this subdivision is treated as a violation of a law described in Minnesota Statutes section 8.31, subdivision 1.

Significant Changes to Existing Law

• Establishes a new subdivision (Subd.5) under Minnesota Statutes 327.20, specifically regulating electricity pricing by recreational camping area owners.
• Introduces a mandatory cap on electricity charges tied to the commodity rate charged by the utility provider.
• Tightens what may be billed to campers by prohibiting extra charges beyond the actual electricity use, thereby removing potential profits from administrative, capital, or distribution-related costs.

Potential Impacts

• For campground operators: limits on pricing for electricity may reduce revenue from charging ancillary fees; operators must align charges with the utility’s commodity rate and remove extra fees.
• For campers: potential savings or more predictable electricity costs; fewer surprise charges beyond basic electricity use.
• For regulators/enforcement: creates a clear violation standard linked to the state’s existing violation framework.

Relevant Terms - commodity rate - utility provider - recreational camping area owner - recreational camping vehicle - meter charges - service charges - demand charges - administrative costs - capital costs - taxes - Minnesota Statutes 327.20 - Minnesota Statutes 327C.015 - 8.31, subdivision 1