Legislative Recap: Quiet year for energy policy

The Minnesota Legislative session came to a close this week with little movement on energy-related bills. Though CUB’s priorities did not pass this session, we were happy to see strong support among legislative leaders and from diverse organizations and partners. We look forward to building on the foundation laid this year in future sessions. 

What energy bills passed? 

Almost no energy bills passed this year, though the tax bill included $500,000 for a study of the potential impacts of new nuclear power generation in Minnesota. 

The legislature also provided $40 million in funding for the Family Homelessness Prevention and Assistance Program, which can provide grants for utility assistance to qualified households.  

What happened with CUB’s priorities? 

Energy Assistance 

CUB, alongside more than 40 partners, pushed to secure state funding for Energy Assistance (SF 486). The federal Energy Assistance Program already supports thousands of Minnesotans each year, but current funding is only enough to reach about 1 of every 4 qualified households. Dozens of utility providers, agencies, local governments, and other groups contributed to the effort. The Senate passed a $15 million appropriation for Energy Assistance, but this measure was not put to a vote in the House. Expanding the Energy Assistance program has been one of CUB’s top priorities for several years, and we’ll continue this work to provide essential relief to Minnesotans. 

Energy Affordability Policy 

In response to requests from legislators, CUB put forward several options to help reduce utility costs or increase transparency in bills: 

• Clarify that ratemaking should promote affordable service for all Minnesotans, and that the Public Utilities Commission must consider customers’ ability to pay when determining a fair return on equity for utility companies (HF 3777). 
• Limit late fees and other charges imposed on customers who are unable to keep up with utility bills (HF 3912). 
• Require regulated utilities to regularly and transparently report how their actual revenue compared with the revenue approved by the PUC in rate cases and other proceedings (HF 3778). 

These bills received committee hearings in the House but did not advance this year. 

Thermal Energy Networks 

CUB also engaged in a bill (SF 4281) intended to allow regulated utilities to provide heating service via thermal energy networks rather than natural gas. A thermal energy network circulates thermal energy from geothermal heat pumps, waste heat recovery, or other sources among buildings, and is a promising way to replace some gas use with zero-carbon heating. A version of the bill advanced in the Senate but did not ultimately pass. 

Opposing the Gas Utility Infrastructure Cost Rider and Ensuring Transparency in Expenses Charged to Ratepayers 

Xcel Energy brought a bill (HF 3830) that would have made permanent the Gas Utility Infrastructure Cost rider (GUIC). GUIC allows gas companies to more quickly charge customers for millions of dollars of pipe investments. Rather than subject these costs to review through a rate case, where intervening parties and the public have months to review a robust record and request discovery, GUIC filings typically provide only about 40 days for review. GUIC also allows utilities to charge customers more if actual spending exceeds budgets.  

GUIC shifts risks from utility companies to their ratepayers, and allows gas utilities to more quickly raise rates, even while increased infrastructure spending continues to push bills upward. Fortunately, this bill did not pass. GUIC remains in place but is scheduled to terminate in 2028. 

The same bill would have removed the requirement that utilities report the vendors associated with employee expenses that are being covered by ratepayers. If the bill had passed, the PUC would no longer know, for example, if ratepayers were charged for utility executives to stay at the Days Inn or the Ritz Carlton. CUB raised concerns about this proposal. It also did not pass. 

Retaining the Ratepayer Protection Duties of the Attorney General’s Office 

HF 3674 would have eliminated the ratepayer protection duties of the Attorney General’s Office. While CUB appreciates the desire to ensure that taxpayer and ratepayer money is well spent, this proposal would almost surely have resulted in Minnesotans being charged higher rates by for-profit utility companies due to reduced oversight. CUB opposed this proposal, and it did not pass. 

What’s next? 

While CUB’s priorities did not pass this session, they received strong support in the House and Senate, as well as among partner organizations and the public. We look forward to coming back in the 2027 legislative session to cement improvements to energy affordability, ratepayer protections, and cost-effective clean energy.