This bill proposes changes to the rules regarding exemptions from regulation by the Minnesota Public Utilities Commission for small natural gas utilities. Specifically, it allows small utilities serving up to 2,500 customers within a municipality and no more than 5,000 customers overall (including those outside the municipality) to be exempt from commission regulation if approved by the local government. The utility would still need to follow certain commission procedures, like submitting changes in rates and following disconnection policies during cold weather. If the municipality later decides it wants the utility to be regulated, it can rescind its exemption request. This legislation aims to adjust regulatory oversight based on customer numbers and the specific needs of smaller utility services.