SF1975

SF1975 (Legislative Session 94 (2025-2026))

Various net metering governing provisions modifications

AI Generated Summary

This Minnesota Senate bill (S.F. No. 1975) proposes amendments to the state's net metering laws under Minnesota Statutes 2024, section 216B.164, specifically modifying definitions and compensation provisions for distributed energy generation.

Key changes include: - Defining new terms: It introduces definitions for "aggregated meter," "designated meter," "distributed generation," "high-efficiency distributed generation," and "standby charge," among others. - Clarifying compensation rules: It revises how qualifying facilities (such as solar or renewable energy systems) are compensated for excess energy supplied to the grid. - Differentiating compensation for small vs. large generators: - For cooperative electric associations & municipal utilities: Customers with systems under 40 kW continue to be billed based on net energy supplied, but utilities can recover additional fixed costs through reasonable charges. - For public utilities: Customers with systems under 1,000 kW will follow new compensation structures, with those under 40 kW having the option of being paid at the average retail energy rate. - Annual credit expiration: Customers compensated via kilowatt-hour credits (instead of monetary payments) will see unused credits canceled at the end of the calendar year, with optional compensation at an avoided-cost rate.

Overall, the bill updates net metering policies in Minnesota, adjusting compensation structures for small renewable energy producers, refining cost recovery for utilities, and offering greater clarity in definitions related to distributed generation systems.

Bill text versions

Introduction PDF file

Actions

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

Citations

[
  {
    "analysis": {
      "added": [
        "Additions to definitions related to energy terms such as 'aggregated meter', 'contiguous property', and 'distributed generation'."
      ],
      "removed": [],
      "summary": "This bill modifies provisions governing net metering under section 216B.164, specifically subdivisions 2a and 3.",
      "modified": [
        "Changes to the billing and compensation structure for qualifying facilities.",
        "Amendments to the role of cooperative electric associations and municipal utilities in setting rates.",
        "Clarifications on compensation methods for qualifying facilities interconnected with public utilities."
      ]
    },
    "citation": "216B.164"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 272.0211 for calculating the minimum efficiency of high-efficiency distributed generation.",
      "modified": []
    },
    "citation": "272.0211"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The bill references section 216B.2411 for the definition of renewable energy.",
      "modified": []
    },
    "citation": "216B.2411"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Federal regulations are referenced for defining avoided costs under the Code of Federal Regulations title 18, section 292.101.",
      "modified": []
    },
    "citation": "18 CFR 292.101"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Federal regulations are referenced for factors in setting rates under the Code of Federal Regulations title 18, section 292.304.",
      "modified": []
    },
    "citation": "18 CFR 292.304"
  }
]