This bill proposes changes to the current laws governing small natural gas utility companies in Minnesota. Specifically, it amends how these utilities can be exempted from regulation by the Minnesota Public Utilities Commission.

Under the proposed changes: 1. Small gas utilities serving between 650 and 2500 customers in a municipality, and not more than 5000 customers overall, can request exemption from regulation. 2. The exemption applies to services the utility provides both within the municipality and to a limited extent outside the municipality if such services are considered incidental. 3. Utilities receiving the exemption are required to follow specific commission policies, including those governing disconnection of service during cold weather. 4. The utilities must also submit changes in their rates and service contracts to the commission 30 days before they take effect and must ensure consistency in rates charged to customers inside and outside the municipality. 5. If a municipality decides to rescind its request for exemption, then the utility will become subject to regulation by the commission for that municipality. 6. The bill also defines what constitutes a "system" in terms of infrastructure for delivering gas.

The bill aims to provide more flexibility and less regulatory burden to smaller gas utilities, while still maintaining certain protections and oversight, especially concerning rate changes and fair treatment of customers.