SF1975

SF1975 (Legislative Session 94 (2025-2026))

Various net metering governing provisions modifications

AI Generated Summary

This bill proposes modifications to Minnesota’s net metering laws, specifically amending portions of Minnesota Statutes 2024, Section 216B.164, subdivisions 2a and 3. The key changes introduced in this bill include:

Definitions Update (Subdivision 2a):
- Introduces and clarifies several terms related to net metering, including "aggregated meter," "capacity," "cogeneration," "contiguous property," "designated meter," "distributed generation," "high-efficiency distributed generation," "net metered facility," "renewable energy," and "standby charge."
- Defines distributed generation as a facility with up to 10 megawatts (MW) capacity that connects to a utility’s distribution system and generates electricity from natural gas, renewable fuels, or other clean sources.
- Establishes clearer rules for how net metering credits will be applied to customer bills.
Purchasing from Small Facilities (Subdivision 3):
- Differentiates rules for different types of utilities (cooperative electric associations, municipal utilities, and public utilities).
- Customers with qualifying facilities under 40 kW (kilowatts) connected to co-ops or municipal utilities will be billed based on net energy use, with the possibility of an additional charge to recover fixed costs.
- Customers with qualifying facilities under 1,000 kW connected to public utilities will also be billed for net energy usage, with different compensation rules depending on facility size.
- Introduces considerations for setting compensation rates for excess energy input into the grid, requiring utilities to calculate fair value based on "avoided costs" (a federally defined metric).
- Allows consumers with facilities under 40 kW to opt to receive compensation at the average retail utility energy rate instead of avoided cost rates.
- Establishes compensation options for customers, ensuring that small generators can receive bill credits for excess energy, but these credits expire at the end of the year without additional financial reimbursement.

The overall intent of the bill is to refine and better regulate Minnesota's net metering policies, ensuring fair compensation while allowing utilities to recover necessary costs.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 26, 2025	House	Floor	Action	Introduction and first reading
February 26, 2025	Senate	Floor	Action	Introduction and first reading
February 26, 2025	House	Floor	Action	Referred to	Energy, Utilities, Environment, and Climate
February 26, 2025	Senate	Floor	Action	Referred to	Energy, Utilities, Environment, and Climate

Citations

[
  {
    "analysis": {
      "added": [
        "Definitions for aggregated meter, capacity, cogeneration, contiguous property, customer, designated meter, distributed generation, high-efficiency distributed generation, net-metered facility, renewable energy, standby charge."
      ],
      "removed": [
        ""
      ],
      "summary": "Amends the definitions related to net metering in section 216B.164.",
      "modified": [
        ""
      ]
    },
    "citation": "216B.164",
    "subdivision": "subdivision 2a"
  },
  {
    "analysis": {
      "added": [
        "Elects options for compensation under certain conditions for distributed generation."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the compensation structure and net metering options for qualifying facilities under section 216B.164.",
      "modified": [
        "Adjusts capacity distinctions for compensation and billing for small facilities."
      ]
    },
    "citation": "216B.164",
    "subdivision": "subdivision 3"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References calculation of minimum efficiency for distributed generation.",
      "modified": [
        ""
      ]
    },
    "citation": "272.0211",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References the definition of renewable energy.",
      "modified": [
        ""
      ]
    },
    "citation": "216B.2411",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "References federal regulation in determining costs for net metering.",
      "modified": [
        ""
      ]
    },
    "citation": "18 U.S.C. § 292.101",
    "subdivision": "paragraph b6"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Lists factors to consider for setting rates for net metering.",
      "modified": [
        ""
      ]
    },
    "citation": "18 U.S.C. § 292.304",
    "subdivision": ""
  }
]