HF 4874
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/09/2026 02:49 p.m.
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A bill for an act
relating to electric cooperatives and municipal utilities; clarifying the recovery of
certain fixed costs with respect to net metered facilities; allowing meter aggregation
for electric cooperatives and municipal utilities; clarifying commission authority
with respect to electric cooperative practices; improving member access to
cooperative documents and meetings; requiring electronic voting and voting by
mail for cooperative board directors; amending Minnesota Statutes 2024, sections
216B.164, subdivisions 3, 4a; 216B.17, subdivision 6a; 308A.327.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 216B.164, subdivision 3, is amended to read:
Subd. 3.
Purchases; small facilities.
(a) This paragraph applies to cooperative electric
associations and municipal utilities. For a qualifying facility having less than 40-kilowatt
capacity, the customer shall be billed for the net energy supplied by the utility according to
the applicable rate schedule for sales to that class of customer. A cooperative electric
association or municipal utility may charge an additional fee to recover the fixed costs not
already paid for by the customer through the customer's existing billing arrangement. new text begin A
cooperative electric association or municipal utility is prohibited from recovering fixed
costs identified in this paragraph by any other means. new text end Any additional charge by the utility
must be reasonable and appropriate for that class of customer based on the most recent cost
of service study. The cost of service study must be made available for review by a customer
of the utility new text begin or a member of the public new text end upon requestnew text begin when additional charges are made
under this paragraphnew text end . In the case of net input into the utility system by a qualifying facility
having less than 40-kilowatt capacity, compensation to the customer shall be at a per
kilowatt-hour rate determined under paragraph (c), (d), or (f).
(b) This paragraph applies to public utilities. For a qualifying facility having less than
1,000-kilowatt capacity, the customer shall be billed for the net energy supplied by the
utility according to the applicable rate schedule for sales to that class of customer. In the
case of net input into the utility system by a qualifying facility having: (1) more than
40-kilowatt but less than 1,000-kilowatt capacity, compensation to the customer shall be at
a per kilowatt-hour rate determined under paragraph (c); or (2) less than 40-kilowatt capacity,
compensation to the customer shall be at a per-kilowatt rate determined under paragraph
(c) or (d).
(c) In setting rates, the commission shall consider the fixed distribution costs to the
utility not otherwise accounted for in the basic monthly charge and shall ensure that the
costs charged to the qualifying facility are not discriminatory in relation to the costs charged
to other customers of the utility. The commission shall set the rates for net input into the
utility system based on avoided costs as defined in the Code of Federal Regulations, title
18, section 292.101, paragraph (b)(6), the factors listed in Code of Federal Regulations,
title 18, section 292.304, and all other relevant factors.
(d) Notwithstanding any provision in this chapter to the contrary, a qualifying facility
having less than 40-kilowatt capacity may elect that the compensation for net input by the
qualifying facility into the utility system shall be at the average retail utility energy rate.
"Average retail utility energy rate" is defined as the average of the retail energy rates,
exclusive of special rates based on income, age, or energy conservation, according to the
applicable rate schedule of the utility for sales to that class of customer.
(e) If the qualifying facility or net metered facility is interconnected with a nongenerating
utility which has a sole source contract with a municipal power agency or a generation and
transmission utility, the nongenerating utility may elect to treat its purchase of any net input
under this subdivision as being made on behalf of its supplier and shall be reimbursed by
its supplier for any additional costs incurred in making the purchase. Qualifying facilities
or net metered facilities having less than 1,000-kilowatt capacity if interconnected to a
public utility, or less than 40-kilowatt capacity if interconnected to a cooperative electric
association or municipal utility may, at the customer's option, elect to be governed by the
provisions of subdivision 4.
(f) A customer with a qualifying facility or net metered facility having a capacity below
40 kilowatts that is interconnected to a cooperative electric association or a municipal utility
may elect to be compensated for the customer's net input into the utility system in the form
of a kilowatt-hour credit on the customer's energy bill carried forward and applied to
subsequent energy bills. Any kilowatt-hour credits carried forward by the customer cancel
at the end of the calendar year with no additional compensation.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2024, section 216B.164, subdivision 4a, is amended to read:
Subd. 4a.
Aggregation of meters.
(a) For the purpose of measuring electricity under
subdivisions 3 and 3a, a deleted text begin publicdeleted text end utility must aggregate for billing purposes a customer's
designated meter with one or more aggregated meters if a customer requests that it do so.
To qualify for aggregation under this subdivision, a meter must be owned by the customer
requesting the aggregation, must be located on contiguous property owned by the customer
requesting the aggregation, and the total of all aggregated meters must be subject to the size
limitation in this section.
(b) A deleted text begin publicdeleted text end utility must comply with a request by a customer-generator to aggregate
additional meters within 90 days. The specific meters must be identified at the time of the
request. In the event that more than one meter is identified, the customer must designate
the rank order for the aggregated meters to which the net metered credits are to be applied.
At least 60 days prior to the beginning of the next annual billing period, a customer may
amend the rank order of the aggregated meters, subject to this subdivision.
(c) The aggregation of meters applies only to charges that use kilowatt-hours as the
billing determinant. All other charges applicable to each meter account shall be billed to
the customer.
(d) A deleted text begin publicdeleted text end utility will first apply the kilowatt-hour credit to the charges for the
designated meter and then to the charges for the aggregated meters in the rank order specified
by the customer. If the net metered facility supplies more electricity to the deleted text begin publicdeleted text end utility
than the energy usage recorded by the customer-generator's designated and aggregated
meters during a monthly billing period, the deleted text begin publicdeleted text end utility shall apply credits to the customer's
next monthly bill for the excess kilowatt-hours.
(e) deleted text begin With the commission's prior approval, a publicdeleted text end new text begin Anew text end utility may charge the
customer-generator requesting to aggregate meters a reasonable fee to cover the
administrative costs incurred in implementing the costs of thisnew text begin subdivision. A public utility
that charges a fee under thisnew text end subdivisiondeleted text begin ,deleted text end pursuant to a tariff approved by the commission
deleted text begin for a public utilitydeleted text end new text begin must receive approval from the commission before charging the feenew 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
Sec. 3.
Minnesota Statutes 2024, section 216B.17, subdivision 6a, is amended to read:
Subd. 6a.
Cooperative electric associations.
For the purposes of this section, public
utility deleted text begin shall includedeleted text end new text begin includesnew text end cooperative electric associations new text begin only new text end with respect to service
standards and practices deleted text begin onlydeleted text end new text begin and associated rules, terms, conditions, and policiesnew 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
Sec. 4.
Minnesota Statutes 2024, section 308A.327, is amended to read:
308A.327 ELECTRIC COOPERATIVE; deleted text begin BOARD MEETINGSdeleted text end new text begin TRANSPARENCY;
ELECTIONSnew text end .
new text begin Subdivision 1. new text end
new text begin Open board meetings; remote participation. new text end
new text begin (a) new text end A regular or special
meeting of the board of directors of an electric cooperative deleted text begin that has more than 50,000
membersdeleted text end must be open deleted text begin todeleted text end new text begin for new text end all members of the cooperativenew text begin to attendnew text end . The board shall give
reasonable prior notice of meetings. The board may close a meeting or a portion of a meeting,
provided the board has made a written determination that a closed meeting is necessary for
one of the following reasons:
(1) to discuss personnel matters, compensation issues, labor negotiations, billing and
credit information, or an issue that may tend to prejudice the reputation of an individual;
(2) to discuss threatened or pending litigation, issues subject to an attorney-client
privilege, or other legal information, the knowledge of which may have an adverse effect
on the cooperative's legal position; or
(3) to discuss or disclose information that, if discussed in an open meeting, would result
in impairment of the cooperative's competitive or financial position, interfere with a business
opportunity, or reveal proprietary information.
For the purposes of clause (3), a business opportunity means an opportunity for substantial
financial improvement of the cooperative that, if generally known, would likely jeopardize
the opportunity itself.
The board may close a portion of a meeting after announcing during an open meeting
the item of business to be discussed during the closed portion.
new text begin
(b) An electric cooperative must provide the opportunity for all members to attend and
participate in a special or regular meeting of the board of directors remotely through Internet
access.
new text end
new text begin Subd. 2. new text end
new text begin Member access to information. new text end
new text begin
An electric cooperative must maintain on the
electric cooperative's website and allow members to access:
new text end
new text begin
(1) the following electric cooperative documents:
new text end
new text begin
(i) articles of incorporation;
new text end
new text begin
(ii) bylaws;
new text end
new text begin
(iii) board of directors meeting minutes;
new text end
new text begin
(iv) annual reports;
new text end
new text begin
(v) Internal Revenue Service Form 990;
new text end
new text begin
(vi) audited financial statements; and
new text end
new text begin
(vii) if the electric cooperative has an ownership interest in a subsidiary, nonconfidential
and operational information regarding the subsidiary; and
new text end
new text begin
(2) information regarding:
new text end
new text begin
(i) dates, times, and locations of upcoming board of directors meetings;
new text end
new text begin
(ii) how to contact all the board of directors members;
new text end
new text begin
(iii) how to vote in board of directors elections; and
new text end
new text begin
(iv) the number and percentage of members who voted in the most recent board of
directors election, including the number of votes that were proxy votes cast on behalf of
other members.
new text end
new text begin Subd. 3. new text end
new text begin Access to membership list. new text end
new text begin
(a) The electric cooperative must make available
to a member a list of all electric cooperative members, provided the member complies with
this subdivision.
new text end
new text begin
(b) A member's request to access the electric cooperative's membership list must be:
new text end
new text begin
(1) requested in good faith; and
new text end
new text begin
(2) directly connected to and used for a purpose relevant to the member's interest as a
member.
new text end
new text begin
(c) A member is prohibited from using the membership list for commercial, sales, or
similar purposes.
new text end
new text begin
(d) An electric cooperative may require a member requesting access to the membership
list to sign an affidavit certifying that the membership list must be used for a proper purpose
and agreeing to pay damages to the electric cooperative if the membership list is used
improperly.
new text end
new text begin
(e) For the purposes of this subdivision, "membership list" means the names, street
addresses, telephone numbers, and email addresses of every member of the electric
cooperative.
new text end
new text begin Subd. 4. new text end
new text begin Board of directors nominations. new text end
new text begin
An electric cooperative must allow a candidate
to be nominated for election to the board of directors by a petition signed by 40 or more
members of the electric cooperative.
new text end
new text begin Subd. 5. new text end
new text begin Board elections; voting. new text end
new text begin
An electric cooperative must develop a secure system
that maintains ballot secrecy while allowing members to vote in an election for the board
of directors by mail and using the Internet.
new text end
new text begin Subd. 6. new text end
new text begin Capital credits notification. new text end
new text begin
(a) An electric cooperative must notify each
member annually, on a bill or otherwise, of the member's capital credit allocation for the
previous calendar year.
new text end
new text begin
(b) An electric cooperative must respond to a request by a member to calculate the
member's cumulative but unretired capital credit allocation amassed since becoming a
member of the electric cooperative within 45 days of the date the request is received.
new text end
new text begin
(c) For the purposes of this subdivision, "capital credit allocation" means a member's
share of the electric cooperative's surplus of revenues over costs during the most recent
calendar year, allocated to each member based on the member's revenue contributed to the
electric cooperative during the year.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
Subdivision 5 applies to electric cooperative board elections held on or after September 1,
2026.
new text end