Chapter 216B — Minnesota Public Utilities Act

Minnesota Statutes Chapter 216B — Minnesota Public Utilities Act

216B.01 Legislative Findings The state regulates public utilities to ensure reliable gas and electric service at fair prices for Minnesota consumers. 216B.013 Repealed section of public utilities law. 216B.02 Definitions Defines key terms used throughout the public utilities chapter, including 'public utility' and 'commission.' 216B.022 Submetering in Shared-metered Residential Buildings Defines terms for submetering of utilities in buildings where tenants share a single utility meter. 216B.023 Shared-metered Residential Buildings; Billing; Consumer Protections Sets billing rules and consumer protections for tenants in buildings with shared utility meters. 216B.024 Shared-metered Residential Buildings; Dispute Resolution Tenants who dispute utility bills in shared-meter buildings can file complaints with the PUC consumer affairs office. 216B.025 Municipal Regulation Option A city-owned utility can choose to be regulated by the Public Utilities Commission by passing a resolution. 216B.026 Cooperative Electric Association; Election on Regulation A cooperative electric association can vote to have its rates regulated by the Public Utilities Commission. 216B.027 Cooperative Electric Association Stockholder Rights Protects the rights of cooperative electric association stockholders to participate in their organization's operations. 216B.029 Standards for Distribution Utilities The PUC and each cooperative and municipal utility must adopt safety, reliability, and service quality standards. 216B.03 Reasonable Rate All utility rates must be fair and reasonable, favor energy conservation, and any doubt should benefit the consumer. 216B.04 Standard of Service Every public utility must provide safe, adequate, and efficient service within 90 days of a customer's request. 216B.045 Regulation of Intrastate Natural Gas Pipeline Regulates natural gas pipelines that operate entirely within Minnesota, including rate-setting and safety standards. 216B.05 Filing Schedules, Rules, and Service Agreements Public utilities must file all their rates, rules, and service agreements with the PUC for public inspection. 216B.06 Receiving Different Compensation Utilities cannot charge customers more or less than their filed rates, and customers cannot accept different rates. 216B.07 Rate Preference Prohibited Utilities cannot give unfair advantages or disadvantages to any customer in rates or service. 216B.075 Meter Reading; Customer Scheduling Needs Utilities must read meters at least every 18 months and offer evening or weekend readings for customers who need them. 216B.08 Duties of Commission The PUC has the power and duty to regulate all public utilities and can make rules to carry out utility laws. 216B.09 Standards; Classifications; Rules; Practices The PUC can set standards, classifications, and rules that utilities must follow for service quality. 216B.091 Monthly Reports Public utilities must report monthly data on residential customers, including past-due accounts and disconnections. 216B.095 Repealed section of public utilities law. 216B.0951 Propane Prepurchase Program The state runs a propane prepurchase program to help low-income households buy heating fuel at lower prices. 216B.096 Cold Weather Rule; Public Utility The Cold Weather Rule prevents utilities from shutting off heat for residential customers from October 1 to April 30. 216B.097 Cold Weather Rule; Cooperative or Municipal Utility Municipal and cooperative utilities cannot disconnect heating service from October 1 to April 30 if the customer meets … 216B.0975 Disconnection During Extreme Heat Conditions Utilities cannot disconnect residential electric service when the National Weather Service issues an extreme heat … 216B.0976 Notice of Utility Disconnection Utilities must notify cities and the state when they disconnect a customer's gas or electric service. 216B.098 Residential Customer Protections Residential customers have rights to payment plans, meter testing, and protection from unfair disconnection practices. 216B.0991 Definitions Defines terms used in the propane consumer protection sections. 216B.0992 Price and Fee Disclosure Propane distributors must tell customers the per-gallon price and all fees before starting service. 216B.0993 Budget Payment Plan Propane distributors who offer budget payment plans must make them available to all customers, including low-income … 216B.0994 Propane Purchase Contracts Propane distributors cannot add extra fees to customers who prepurchased propane at a fixed price. 216B.0995 Terms of Sale Propane distributors must sell to customers who can pay cash, with limits on when they can refuse service. 216B.10 Accounting The PUC sets the accounting system that public utilities must use, consistent with federal requirements. 216B.105 Customer Share of Mercury Control Costs Electric utilities must show customers how much of their bill goes toward mercury emission control costs. 216B.11 Depreciation Rates and Practices The PUC sets depreciation rates for utility property, and utilities must follow those rates. 216B.12 Right of Entrance; Inspection The PUC and its staff can enter utility facilities during business hours to inspect equipment and records. 216B.13 Production and Examination of Records The PUC can require utilities to produce any business records, even from out of state, for review. 216B.14 Investigation The PUC can investigate any utility's condition and operations, either on its own or after receiving a complaint. 216B.15 Hearings; Examiner The PUC can hold hearings and designate members or employees as examiners to conduct those hearings. 216B.16 Rate Change; Procedure; Hearing Sets the procedure utilities must follow to change their rates, including notice, hearings, and PUC review. 216B.161 Area Development Rate Plan Allows utilities to offer lower rates to attract or retain businesses in areas with development needs. 216B.1611 Interconnection of On-site Distributed Generation Sets rules for connecting small on-site power generators like solar panels to the electric grid. 216B.1612 Repealed section of public utilities law. 216B.1613 Standardized Contract Utilities must file a standard contract for buying electricity from small power projects of 5 megawatts or less. 216B.1614 Electric Vehicle Charging Tariff Creates special electric rates for charging electric vehicles, including time-of-use pricing options. 216B.1615 Electric Vehicle Deployment Program Establishes a program for utilities to help deploy electric vehicles and charging infrastructure. 216B.162 Competitive Rate for Electric Utility Allows utilities to offer competitive rates to keep large customers from leaving the utility system. 216B.1621 Electric Service Agreement When a large customer plans to build its own power plant, the utility can negotiate to keep serving that customer. 216B.1622 Service to Very Large Customers The PUC must define a 'very large customer' class for each electric utility by December 2026. 216B.1623 Clean Energy and Capacity Tariff Utilities must offer a clean energy tariff letting businesses choose to get their power from new clean energy sources. 216B.163 Flexible Tariff Allows utilities to offer flexible tariff rates to compete for customers who might otherwise leave the system. 216B.1635 Recovery of Gas Utility Infrastructure Costs Gas utilities can recover costs of replacing aging natural gas infrastructure through a special rate rider. 216B.1636 Recovery of Electric Utility Infrastructure Costs Electric utilities can recover costs of replacing aging infrastructure through a special rate rider between rate cases. 216B.1637 Repealed section of public utilities law. 216B.1638 Recovery of Natural Gas Extension Project Costs Gas utilities can recover costs of extending natural gas service to new areas through a special rate mechanism. 216B.164 Cogeneration and Small Power Production Encourages small power production and cogeneration by requiring utilities to buy power from qualifying facilities. 216B.1641 Community Solar Garden Allows groups of people to share the benefits of a solar energy system through community solar garden subscriptions. 216B.1642 Solar Site Management Solar site owners can plant native vegetation and pollinator habitat on ground-mounted solar installations. 216B.1645 Power Purchase Contract or Investment The PUC approves or rejects utility contracts and investments needed to meet wind, biomass, and renewable energy … 216B.1646 Rate Reduction; Property Tax Reduction Electric utilities must pass along property tax savings to customers through lower rates. 216B.1647 Property Tax Adjustment; Cooperative Association Regulated cooperative electric associations can file for rate adjustments to cover property tax changes. 216B.165 Repealed section of public utilities law. 216B.166 Cogenerating Power Plant Promotes cogeneration of electricity and heat together, which saves fuel and provides cheaper heating. 216B.167 Performance-based Gas Purchasing Plan Gas utilities can use performance-based plans for purchasing gas, sharing savings and losses with customers. 216B.1675 Performance Regulation Plan for Gas Utility Service Allows gas utilities to use performance-based regulation instead of traditional rate cases to save costs. 216B.168 Repealed section of public utilities law. 216B.1681 Curtailment Payments The PUC must study whether utilities discriminate in curtailment payments to different wind energy project types. 216B.169 Renewable and High-efficiency Energy Rate Options Utilities must offer customers the option to buy electricity from renewable or high-efficiency energy sources. 216B.1691 Renewable Energy Objectives Sets Minnesota's renewable energy standard, requiring utilities to generate increasing percentages from renewable … 216B.1692 Emissions-reduction Rider Allows utilities to add a rate rider to recover costs of projects that reduce carbon and greenhouse gas emissions. 216B.1693 Repealed section of public utilities law. 216B.1694 Innovative Energy Project Provides a framework for approving innovative energy projects that use new generation technologies. 216B.1695 Environmental Projects; Advance Determination of Prudence Utilities can get advance approval for spending on projects to meet air quality standards, protecting cost recovery. 216B.1696 Competitive Rate for Energy-intensive, Trade-exposed Electric Utility Customer Creates competitive electric rates for large energy-intensive businesses that compete with companies in other states. 216B.17 Complaint Investigation and Hearing Anyone can file a complaint about unfair utility rates or poor service, triggering a PUC investigation. 216B.172 Consumer Disputes Establishes a process for resolving disputes between utility customers and their utility companies. 216B.18 Service of Notice PUC notices, complaints, and orders are served by personal delivery, electronic service, or mail. 216B.19 Joint Hearing and Investigation The PUC can hold joint hearings and investigations with other states' commissions and federal agencies. 216B.20 Separate Rate Hearing The PUC can hold separate hearings on different rate complaints and decide them at different times. 216B.21 Summary Investigation The PUC can investigate any utility rate or service concern on its own, even without a formal hearing. 216B.22 Municipality; Amicus Curiae Authority Cities with home rule charters can participate as a 'friend of the court' in PUC utility proceedings. 216B.23 Lawful Rate; Reasonable Service When the PUC finds rates are unfair, it must set new reasonable rates by order. 216B.24 Construction of Major Facility; Filing Plans Public utilities must file plans with the PUC before building major facilities like large power plants or transmission … 216B.2401 Energy Savings and Optimization Policy Goal Minnesota's policy goal is to save at least 2.5% of annual retail energy sales through efficiency and conservation. 216B.2402 Definitions Defines key terms for the energy conservation and optimization programs, including efficiency and beneficial … 216B.2403 Consumer-owned Utilities; Energy Conservation and Optimization Sets energy conservation and optimization requirements for municipal utilities and cooperative electric associations. 216B.241 Public Utilities; Energy Conservation and Optimization Public utilities must run energy conservation and optimization programs, spending a set percentage of their revenue. 216B.2411 Distributed Energy Resources Utilities can use up to 5% of their conservation funds for small distributed energy generation projects. 216B.2412 Decoupling of Energy Sales From Revenues Decoupling separates a utility's revenue from the amount of energy it sells, removing the incentive to sell more energy. 216B.242 Repealed section of public utilities law. 216B.2421 Definition of Large Energy Facility Defines 'large energy facility' as power plants of 50MW or more, and transmission lines of 115kv or more. 216B.2422 Resource Planning; Renewable Energy Utilities must file 15-year resource plans showing how they will meet customer energy needs reliably and affordably. 216B.2423 Wind Power Mandate The utility that operates a nuclear plant in Minnesota must build or buy 425 megawatts of wind power capacity. 216B.2424 Biomass Power Mandate Requires the nuclear plant utility to generate electricity from farm-grown biomass and other biomass sources. 216B.2425 State Transmission and Distribution Plan The PUC maintains a plan for high-voltage transmission lines and grid improvements across the state. 216B.2426 Opportunities for Distributed Generation The PUC must consider distributed generation opportunities in resource planning and transmission proceedings. 216B.2427 Natural Gas Utility Innovation Plans Gas utilities can file innovation plans to reduce greenhouse gas emissions using renewable gas and other new … 216B.2428 Lifecycle Greenhouse Gas Emissions Accounting Framework; Cost-benefit Test for Innovative Resources The PUC must create a framework for comparing greenhouse gas emissions and costs of innovative energy resources. 216B.243 Certificate of Need for Large Energy Facility Large energy facilities (power plants and transmission lines) need a certificate of need from the PUC before … 216B.244 Nuclear Plant Capacity Requirements A nuclear reactor that operates below 55% capacity for three straight years must be shut down within 500 days. 216B.2445 Decommissioning Nuclear Plant; Storing Used Fuel The PUC must evaluate the costs of decommissioning nuclear plants and storing used nuclear fuel. 216B.245 Pump and Store Hydropower Facility; Prohibition No state permits can be issued for a hydropower facility that would pump water from the Mississippi River bluffs. 216B.246 Federally Approved Transmission Lines; Incumbent Transmission Lineowner Rights Protects the rights of existing transmission line owners when federal agencies approve new transmission projects. 216B.25 Further Action on Previous Order The PUC can change, cancel, or reopen any previous rate or regulatory order at any time. 216B.26 Order; Effective Date PUC orders take effect 20 days after being filed and served, unless a different date is specified. 216B.27 Rehearing; Condition Precedent to Judicial Review Any affected party can ask the PUC for a rehearing within 20 days of a decision, which is required before court review. 216B.28 Subpoena; Witness Fee and Mileage The PUC can issue subpoenas, and witnesses at PUC hearings receive the same fees as witnesses in court. 216B.29 Hearing and Subpoena Compliance Powers The PUC can administer oaths and use contempt proceedings to compel compliance with subpoenas. 216B.30 Deposition The PUC or any party can take depositions in utility proceedings using the same rules as civil court cases. 216B.31 Testimony and Production of Records; Perjury Witnesses must testify and produce records when ordered, even if it might be incriminating, but get immunity in return. 216B.32 Certified Copy of Document as Evidence Certified copies of PUC documents are accepted as evidence in the same way as the originals. 216B.33 Commission Ruling Written, Filed, and Certified All PUC orders must be in writing and kept in official records, and certificates of their status are valid evidence. 216B.34 Public Records All PUC decisions, transcripts, and orders are public records. 216B.35 Transcribed Record PUC hearings must have a complete record with all testimony transcribed by a reporter. 216B.36 Municipal Regulatory and Taxing Powers Cities can require utilities to get franchises and pay fees, including fees based on gross revenue from city operations. 216B.361 Township Agreement With Natural Gas Utility Townships can make agreements with gas utilities to provide service in their area, even if the land is later annexed by … 216B.37 Assigned Service Area; Electric Utility; Legislative Policy Minnesota is divided into exclusive electric service areas so each utility serves customers without overlap or … 216B.38 Definitions Defines terms used in the assigned service area provisions for electric utilities. 216B.39 Assigned Service Area Each electric utility must file maps of its service lines and a list of municipalities it serves with the PUC. 216B.40 Exclusive Service Right; Service Extension Each electric utility has the exclusive right to serve all current and future customers in its assigned service area. 216B.41 Effect of Incorporation, Annexation, or Consolidation When a city annexes an area, the existing electric utility keeps its service rights unless the city buys the utility's … 216B.42 Service Extension in Certain Situations Large customers outside cities with 2,000+ kilowatt loads can choose their electric utility under certain conditions. 216B.421 Homestead; Option of Electric Service If your homestead spans two utility service areas, you can choose which utility provides all your electric service. 216B.422 Electricity Sales for Charging Electric Vehicles Selling electricity to charge electric vehicles does not violate exclusive service area rules if the power comes from … 216B.43 Hearing on Complaint Sets rules for electric utility service boundaries when a customer's property crosses two or more service areas. 216B.44 Municipal Service Territory Extension A municipal utility can buy an electric utility's facilities in newly annexed areas at fair market value. 216B.45 Municipal Purchase of Public Utility Cities can build their own gas or electric utility to replace a private utility, following specific legal requirements. 216B.46 Municipal Acquisition Procedures; Notice; Election When a city acquires a utility, the price is determined by agreement or, if they cannot agree, by three appraisers. 216B.465 Voter Ratification of Municipal Purchase; Limited Application Any city can own and operate an electric utility, either by building new facilities or acquiring existing ones. 216B.47 Acquisition by Eminent Domain Sets the process for determining the value of a utility system when a city exercises its right to purchase. 216B.48 Relations With Affiliated Interest Sets penalties for utilities that violate PUC orders, with fines up to $10,000 per day of violation. 216B.49 Securities; Public Financing Sets penalties for violating the assigned service area provisions, including fines and injunctive relief. 216B.491 Definitions Definitions for the tribal utility authority provisions in this chapter. 216B.492 Financing Order Tribal nations in Minnesota can create tribal utility authorities to provide utility services to their communities. 216B.493 Postorder Commission Duties Tribal utility authorities can exercise powers of a public utility on tribal lands, with PUC oversight. 216B.494 Use of Outside Experts Tribal utility authorities are governed by a board appointed or elected under the tribe's law. 216B.495 Extraordinary Event Charge; Billing Treatment Tribal utility authorities can issue bonds, set rates, and enter contracts to build and operate utility systems. 216B.496 Extraordinary Event Property A tribal utility must negotiate with the existing electric utility before taking over service on tribal land. 216B.497 Extraordinary Event Bonds Sets requirements for transfer of utility facilities and service areas to a tribal utility authority. 216B.498 Assignee or Financing Party Not Subject to Commission Regulation Tribal utilities must meet the same safety and reliability standards as other Minnesota utilities. 216B.499 Effect on Other Laws Tribal utility authorities can participate in wholesale power markets and renewable energy programs. 216B.50 Restrictions on Property Transfer and Merger Public utilities must get PUC approval before issuing stocks, bonds, or other securities. 216B.51 Stock Purchase Public utilities must get PUC approval before merging with, acquiring, or selling their utility operations. 216B.52 Appeal A utility that gets PUC approval to issue securities is not relieved of other legal requirements. 216B.53 Suspension of Commission Order The PUC can issue orders needed to enforce the securities and merger approval requirements. 216B.54 Legal Action Against Violation Any securities issued without PUC approval are void and have no legal effect. 216B.55 Filing fees for utility rate cases and securities applications are set by law and paid to the PUC. 216B.56 Burden of Proof Utilities must get PUC approval before entering affiliated interest contracts worth more than $250,000. 216B.57 Penalty for Violation of Act The PUC must determine that affiliated interest contracts are reasonable and in the public interest. 216B.58 Penalties; Construing Act, Omission, and Failure Electric utilities can form or join regional transmission organizations to coordinate the electric grid. 216B.59 Continuing Violation The PUC can approve utility participation in regional organizations that manage wholesale electricity markets. 216B.60 Penalties Cumulative The PUC can allocate costs of transmission facilities among utilities based on benefits received. 216B.61 Actions to Recover Penalties The PUC can resolve disputes between utilities about transmission access, costs, and service. 216B.62 Regulatory Expenses Sets rules for how the Department of Commerce funds its utility regulation activities through assessments on utilities. 216B.63 Interest on Assessment The PUC can adjust rates to cover costs of commission proceedings and regulatory activities. 216B.631 Compensation for Participants in Proceedings Creates a program to fund energy assistance for low-income utility customers through a surcharge on utility bills. 216B.64 Attorney General's Responsibilities Cooperative electric associations may charge rates that include a reasonable return on equity to their members. 216B.65 Department to Employ Necessary Staff In emergency situations, the PUC can issue temporary orders without a hearing to protect the public. 216B.66 Construction Nothing in this chapter limits the PUC's authority to regulate natural gas or electric utilities. 216B.67 Citation This chapter does not affect a utility's obligation to comply with environmental and pollution laws. 216B.68 Definitions; Mercury Emissions Reduction Sets additional mercury reduction requirements for coal-burning power plants. 216B.681 Monitoring Mercury Emissions Defines terms used in the mercury emissions reduction sections. 216B.682 Mercury Emissions-reduction Plans Sets mercury emission reduction goals for Minnesota power plants to protect public health. 216B.683 Mercury Emissions Reduction; Cost Recovery, Financial Incentives Requires power plants to install best available mercury control technology by specific deadlines. 216B.684 Environmental Assessment of Mercury Emissions-reduction Plan The PUC approves mercury reduction plans and allows cost recovery for mercury control investments. 216B.685 Mercury Emissions-reduction Plan Approval Establishes mercury emissions monitoring and reporting requirements for power plants. 216B.6851 Utility Option Sets additional mercury reduction requirements and monitoring for specific power plant categories. 216B.686 Other Environmental Improvement Plans Creates an advisory task force to review mercury reduction progress and recommend improvements. 216B.687 Mercury Emissions Reduction Implementation, Operation The PUC can grant variances from mercury reduction requirements in limited circumstances. 216B.688 Relationship to Other State Financial Requirements Existing mercury reduction requirements supplement but do not replace federal Clean Air Act obligations. 216B.72 Qualified Large-scale Data Center Fee Provides for interconnection standards when customers connect distributed generation to the utility grid. 216B.79 Preventative Maintenance Creates a framework for utility investment in grid modernization and advanced metering technology. 216B.81 Sets definitions for the community energy transition provisions. 216B.8109 Reserved or transitional section of public utilities law. 216B.811 Creates the Community Energy Transition program to help communities affected by power plant closures. 216B.812 Establishes a Community Energy Transition grant program funded through utility rates. 216B.813 Sets eligibility criteria and application process for Community Energy Transition grants. 216B.815 Creates worker transition assistance for employees affected by power plant closures. 216B.82 Local Power Quality Zones Requires utilities to notify communities and workers in advance of planned power plant retirements.