Utilities could offer thermal energy networks with gas-service customer protections

Public utilities could offer thermal energy network service and would recover reasonable, responsibly incurred costs of approved projects through customer rates. Service permission and cost recovery would cover public utilities. Customer protections and location preferences would also cover municipal and cooperative utilities. The Public Utilities Commission would review and approve cost recovery. Municipal, cooperative, and public utilities would follow the laws and customer protections that apply to their gas service. Commission authority over municipal and cooperative utilities would remain limited to its gas-service authority. Utilities would favor areas where residents want a network, areas resembling successful networks under natural gas innovation plans, or areas meeting another definition in state law. These rules would take effect the day following final enactment. Utilities could recover costs through a general rate review or, before December 31, 2036, a separate network charge.

Public utilities would have to file an affordability program with the Public Utilities Commission. The requirement would cover public utilities serving low-income households that heat with thermal energy networks. The filing requirement would apply when a public utility serves low-income residential customers who use thermal energy network service for heating. This requirement would take effect the day following final enactment.

Municipal councils could build, rebuild, extend, and maintain thermal energy networks as public improvements. Cities and towns would also count thermal energy networks as waterworks under the law governing those systems. The networks would have to meet the definition referenced in section 216B.2427, subdivision 1, paragraph (s).

The proposal would set aside $40,000 from the state general fund for the Public Utilities Commission. The funding would go to the Public Utilities Commission. The money would support thermal energy network services under the proposed utility rules. The funding would be for fiscal year 2027.