SF 425

Introduction - 94th Legislature (2025 - 2026)

Posted on 05/17/2025 11:58 a.m.

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.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 216B.16, subdivision 12, is amended to read:

Subd. 12.

Exemption for small gas utility franchise.

(a) A municipality may file with
the commission a resolution of deleted text begin its deleted text end new text begin the municipality's new text end governing body requesting exemption
from the provisions of this section for a public utility that is under a franchise with the
municipality to supply natural, manufactured, or mixed gas and that serves deleted text begin 650 deleted text end new text begin 2,500 new text end or
fewer customers in the municipality deleted text begin as long as deleted text end new text begin if new text end the public utility serves no more than a
total of 5,000 customers new text begin : (1) from the system serving the municipality; and (2) located
outside the municipality's corporate limits, as provided under paragraph (b), if applicable new text end .

(b) The commission shall grant an exemption from this section for that portion of a
public utility's business that is requested by each municipality it serves. deleted text begin Furthermore, deleted text end The
commission shall also grant the public utility an exemption from this section for any service
provided new text begin by a system to customers located new text end outside of a municipality's deleted text begin border that is
considered by the commission to be incidental. The public utility shall file with the
commission and the department all initial and subsequent changes in rates, tariffs, and
contracts for service outside the municipality at least 30 days in advance of implementation deleted text end new text begin
corporate limits, provided that the same applicable tariff rates apply to customers located
outside the municipality's corporate limits as apply to customers located within the
municipality's corporate limits new text end .

(c) deleted text begin However, deleted text end The commission shall require the new text begin public new text end utility to adopt the commission's
policies and procedures governing disconnection during cold weather. The utility shall
annually submit a copy of its municipally approved rates to the commission.

(d) In all cases covered by this subdivision in which an exemption for service outside
of a municipality is granted, the commission may initiate an investigation under section
216B.17, on its own motion or upon complaint from a customer.

(e) If a municipality files with the commission a resolution of its governing body
rescinding the request for exemption, the commission shall regulate the public utility's
business in that municipality under this section.

new text begin (f) For the purposes of this subdivision, "system" means physically connected
infrastructure that:
new text end

new text begin (1) is owned and operated by a public utility that is subject to this subdivision and receives
wholesale natural, manufactured, or mixed gas from a supplier and delivers the gas to the
public utility's customers; and
new text end

new text begin (2) is not physically connected to another system owned and operated by the same public
utility.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end