Energy Affordability Legislative Agenda
Here in Minnesota, utility service is unaffordable for many, and public concern around energy affordability is growing. There is no silver bullet to solving Minnesota's energy affordability problems, but there is plenty that policymakers could do to help.
This year, the state Legislature has the opportunity to provide critical assistance for thousands of Minnesotans, and to pass common-sense policies to improve energy affordability.
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If you work at the Minnesota Capitol or represent an organization with an interest in this topic, please reach out to CUB’s Executive Director, Annie Levenson-Falk (annielf@cubminnesota.org).
Expand the Energy Assistance Program
CUB—together with dozens of community groups, housing advocates, utility providers, and more—is asking the legislature to provide state funding to Minnesotans in the form of Energy Assistance. SF 486/HF 771 would use a portion of the state's projected budget surplus to help income-qualified Minnesotans with home energy bills.
Led by Senator Dibble and Representative Kraft, the coalition is requesting $40 million in state funding, which would be used to help thousands more Minnesotans over the next three years. It would also keep the Energy Assistance program open during the summer months, to help families keep their homes cool and avoid utility shutoffs.
Energy Assistance (also known as LIHEAP) is a lifeline for about 125,000 Minnesotans each year, helping them afford electricity and heating fuels. However, the program is supported only by federal funding, is only open between October and May, and can only assist about 20% of qualified Minnesota households.
Policy Improvements for Energy Affordability
CUB is supporting a number of bills to improve affordability and transparency related to energy costs. Each of these proposals can be done at no cost to taxpayers.
(HF 3912/SF 3991) Customers who are unable to pay their monthly bills in full are typically charged late fees at 1.5% per month (18% per year)—far more than the utility’s cost of carrying the unpaid balance. These late fees compound each month and can add up quickly. Some Minnesotans owe thousands of dollars in fees, alone, on top of the cost of utility service. Further, customers who have been shutoff for nonpayment are charged additional reconnection fees in order to restore service. CUB proposes to eliminate residential reconnection fees for nonpayment, and to limit the imposition of late fees. This proposal would apply to all utilities in Minnesota, including cooperatives and municipal utilities.
(HF 3777/SF 3992) Even though affordability is widely understood to be a key consideration in the PUC’s charge to set “just and reasonable rates,” it is not clearly stated in Minnesota statute. We’re seeking legislation to clarify that the PUC must seek rates that promote affordable service for all Minnesotans, and that customers’ ability to pay must be a factor in determining a reasonable return on equity for utility companies.
(HF 3778/SF 4002) To set a utility's base rates, the PUC does a comprehensive review of every cost of providing utility service. These costs are totaled into a "revenue requirement," usually in the hundreds of millions or billions of dollars each year. The PUC also makes its best projection of how much energy the utility's customers will purchase over the course of the year. Put simply, the revenue requirement is divided by the total amount of expected sales to set the rate that customers are charged per unit of electricity or natural gas. This is done with detailed review, but it is still based on a best estimate of expectations for the year to come.
However, there is no clear, standard manner in which utilities report on how much revenue they actually collect from customers. CUB proposes that regulated utilities be required to make a public filing each year showing their authorized revenues and actual revenues side by side.
Utilities that are regulated by the PUC issue customer notices each time they request a rate increase, including information about the proposed rate increase, how it will affect the typical customer, and top reasons a utility cites for needing to increase rates. CUB proposes to set customer notice requirements in state statute with some updates, including how to file a public comment electronically, and information about how much of the proposed rate increase is due to a utility’s requested increase to its return on equity.
Energy Affordability by the Numbers
CUB's 2026 Legislature Article Library
The state of energy affordability in Minnesota
In Minnesota, our average electric rates and average monthly bills are lower than most of the country, and both are rising more slowly than the national average, too. However, that good news hides a deeper problem: data reported by our state’s utilities show that home energy service is unaffordable for a significant portion of Minnesotans.