HF4919
Distributed energy resource aggregator standards established, fees authorized, and money appropriated.
Legislative Session 94 (2025-2026)
Related bill: SF4591
AI Generated Summary
Purpose
- Establish standards and oversight for distributed energy resource (DER) aggregators in Minnesota.
- Regulate DER aggregators to protect safety and reliability of electric distribution systems, and to prevent retail customers from subsidizing wholesale market activities.
- Create a framework for disputes, tariffs, and funding for the new regulatory activities.
Key Definitions
- Distributed energy resources (DER): Includes distributed generation, energy efficiency, load management, energy storage, and other resources located on the distribution system (at a distribution substation or behind a retail customer meter).
- DER aggregator: An entity that pools one or more DERs from retail customers to participate in wholesale markets run by a regional transmission organization. A DER aggregator is not a public utility.
What DER Aggregators Do
- Aggregates customer DERs to participate in wholesale energy markets, coordinating services like capacity, energy, and ancillary services through the regional market operator.
Commission Authority and Scope
- The Minnesota Public Utilities Commission (the commission) can regulate DER aggregators to the extent allowed by federal regulation.
- Regulation aims to ensure safety and reliability of the distribution system, protect retail customers from subsidizing wholesale operations, and help resolve disputes related to DER aggregator operations.
- The commission does not regulate wholesale market rules or participation requirements that fall under federal jurisdiction.
Operating Restrictions and Permissions
- A DER aggregator cannot operate in a utility’s service area if that area has retail electric sales under four million megawatt hours in the prior year, unless:
- the electric utility board (or its cooperative/municipal utility board) approves, or
- the commission approves, allowing DER aggregators to operate there.
Retail Rate Integrity and double counting
- A DER enrolled in a utility program cannot be paid again for the same service in the wholesale market during the same time period.
- The commission can set rules to prevent double counting of capacity, energy, or ancillary services.
- DER aggregators may participate in both retail and wholesale programs at the same time only if the services are distinct and not duplicative.
Dispute Resolution
- The commission has the authority to resolve disputes between a DER aggregator and a public utility, or between a DER aggregator and a retail customer.
- The commission can interpret distribution tariffs, retail contract terms, and interconnection/distribution-level technical standards.
Utility DER Aggregation Tariffs
- Utilities with high retail electric sales (over four million MWh in the previous year) that choose rate regulation must file tariffs with the commission.
- Tariffs must cover:
- Protocols for communication and coordination between the utility and the DER aggregator to maintain safety and reliability.
- Accounting rules to ensure DER aggregators and DER customers are not paid twice for the same service.
- Rules for exchanging customer usage data and system data between the utility and the DER aggregator.
Fees and Funding
- The commission may charge DER aggregators fees to cover administrative costs of implementing these provisions.
- Fee revenue goes into a special revenue fund and is appropriated to the commission for the purposes of this section.
- These assessments are not subject to existing caps on assessments or other limits.
Other Notes
- DERs include generation, energy efficiency, load management, storage, and other resources on the distribution system.
- DER aggregators are not classified as public utilities under Minnesota law.
Relevant Terms - distributed energy resources (DER) - DER aggregator - retail customers - wholesale markets - regional transmission organization (RTO) - Minnesota Public Utilities Commission (commission) - tariffs - interconnection - distribution-level technical standards - data exchange - double counting - capacity, energy, ancillary services - utility (public utility, cooperative utility, municipal utility) - four million megawatt hours (4,000,000 MWh) - special revenue fund - regulatory framework - safety and reliability
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| April 09, 2026 | House | Action | Introduction and first reading, referred to | Energy Finance and Policy | |
| Showing the 5 most recent stages. This bill has 1 stages in total. Log in to view all stages | |||||
Citations
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Progress through the legislative process
In Committee
Sponsors
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