SF 4591

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/19/2026 09:26 a.m.

A bill for an act
relating to energy; establishing standards for distributed energy resource
aggregators; authorizing certain fees; appropriating money; proposing coding for
new law in Minnesota Statutes, chapter 216B.

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

Section 1.

new text begin [216B.1616] DISTRIBUTED ENERGY RESOURCE AGGREGATORS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have
the meanings given.
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new text begin (b) "Distributed energy resources" means:
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new text begin (1) distributed generation, as defined in section 216B.164, subdivision 2a;
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new text begin (2) energy efficiency, as defined in section 216B.2402, subdivision 7;
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new text begin (3) load management, as defined in section 216B.2402, subdivision 15;
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new text begin (4) energy storage systems, as defined in section 216B.2422, subdivision 1; and
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new text begin (5) other distributed resources located on the distribution system, at a distribution
substation, or behind a retail customer meter.
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new text begin (c) "Distributed energy resource aggregator" or "DER aggregator" means an entity that
aggregates one or more distributed energy resources of retail customers for participation in
wholesale markets administered by a regional transmission organization. A DER aggregator
is not a public utility under section 216B.02, subdivision 4.
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new text begin Subd. 2. new text end

new text begin Commission authority. new text end

new text begin (a) The commission may regulate the operations of
DER aggregators to the extent consistent with federal regulation, including:
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new text begin (1) regulating the operations of DER aggregators as needed to ensure the safety and
reliability of utility distribution systems;
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new text begin (2) protecting the interests of retail customers against subsidizing the wholesale market
operations of DER aggregators; and
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new text begin (3) resolving disputes regarding DER aggregator operations.
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new text begin (b) Nothing in this section regulates wholesale market rules or participation requirements
established under federal jurisdiction.
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new text begin (c) A DER aggregator is prohibited from operating in the service area of an electric
utility, as defined in section 216B.38, subdivision 5, with retail electric sales of less than
four million megawatt hours during the prior calendar year unless the electric utility submits
a request to and receives permission from the electric utility's cooperative board, a municipal
utility board, or the commission to allow DER aggregators to operate in the electric utility's
service area.
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new text begin Subd. 3. new text end

new text begin Retail rate integrity. new text end

new text begin (a) A distributed energy resource enrolled in a utility
program must not receive compensation for the same service provided during the same
interval or for the same performance obligation in a wholesale market.
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new text begin (b) The commission may by order establish verification and accounting standards to
prevent double counting of capacity, energy, or ancillary services.
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new text begin (c) Nothing in this subdivision prohibits a DER aggregator from simultaneously
participating in retail and wholesale programs if the services provided are distinct and not
duplicative.
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new text begin Subd. 4. new text end

new text begin Dispute resolution. new text end

new text begin (a) The commission has jurisdiction to resolve disputes
between (1) a DER aggregator and a public utility, or (2) a DER aggregator and a retail
customer.
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new text begin (b) The commission may resolve disputes regarding:
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new text begin (1) the interpretation of distribution tariffs;
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new text begin (2) retail contract terms; and
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new text begin (3) the application of interconnection and distribution-level technical standards.
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new text begin Subd. 5. new text end

new text begin Utility DER aggregation tariffs. new text end

new text begin (a) As directed by the commission, a public
utility and electric utility with retail electric sales in excess of four million megawatt hours
during the previous calendar year and that has opted for rate regulation under section
216B.026 must file with the commission for commission approval a tariff governing the
terms and conditions for DER aggregators to operate within the electric utility's service
territory.
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new text begin (b) The tariffs under paragraph (a) must include provisions related to:
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new text begin (1) protocols for communication and coordination between the utility and the DER
aggregator to ensure the safety and reliability of the distribution system;
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new text begin (2) accounting mechanisms to ensure that a DER aggregator or the DER's customers do
not receive compensation from both wholesale markets and retail utility programs for the
same service or benefit; and
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new text begin (3) the exchange of customer usage data and system data between the utility and the
DER aggregator.
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new text begin Subd. 6. new text end

new text begin Fees. new text end

new text begin (a) The commission may assess fees on DER aggregators for the
administrative costs incurred to implement this section.
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new text begin (b) The money received from the assessment must be deposited into an account in the
special revenue fund. All money deposited in the account is appropriated to the commission
for the purposes specified under this section. An assessment made under this subdivision
is not subject to the cap on assessments provided under section 216B.62 or any other law.
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new text begin EFFECTIVE DATE. new text end

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