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MN SF425

Small natural gas utilities Minnesota Public Utilities Commission regulation exemption eligibility provision


summary

Introduced
01/21/2025
In Committee
01/21/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to energy; amending the eligibility of small natural gas utilities to be exempt from regulation by the Minnesota Public Utilities Commission; amending Minnesota Statutes 2024, section 216B.16, subdivision 12.

AI Summary

This bill modifies the regulations for small natural gas utilities in Minnesota by changing the customer threshold for exemption from Minnesota Public Utilities Commission (PUC) oversight. Currently, a municipality could request an exemption for utilities serving 650 or fewer customers, but the bill would raise this limit to 2,500 customers within the municipality and allow for up to 5,000 total customers across the utility's system. The bill clarifies that exemptions apply to both customers within and outside municipal corporate limits, provided that the same tariff rates are applied consistently. The utility must still adopt the commission's cold weather disconnection policies and submit annual rate approvals. The bill introduces a new definition of "system" as physically connected infrastructure owned by a single utility and receiving wholesale gas from one supplier. The PUC retains the ability to investigate the utility's operations if complaints arise, and municipalities can still rescind their exemption request at any time, which would return the utility to full PUC regulation. The changes are intended to provide more flexibility for small natural gas utilities while maintaining basic consumer protections.

Committee Categories

Agriculture and Natural Resources

Sponsors (2)

Last Action

Chief author added Heintzeman (on 05/16/2025)

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