Purpose of the Bill

The purpose of this bill is to modify existing definitions related to energy sales and to specifically exclude data centers from calculations of gross annual retail energy sales for the purposes of energy conservation and optimization in Minnesota.

Main Provisions

• Definition Addition: The bill introduces a new definition for "data center" within Minnesota energy statutes. A data center is defined as a freestanding structure primarily used for processing, storing, and transmitting digital information.

• Exclusions from Gross Annual Energy Sales: The bill modifies the calculation of gross annual retail energy sales by excluding certain energy sales from being counted. Specifically, energy sales to data centers, data mining facilities, and specific large customer facilities can be exempted if they meet defined criteria.

• Criteria for Exemption: For a data center or data mining facility to be excluded from these sales counts, the facility must provide a letter verifying it meets the definition of a data center and exert a peak electrical demand on a consumer-owned utility's system that is at least 40% of the peak electrical demand of the system.

• Future Considerations: There is a provision that indicates after December 31, 2032, the calculation of gross annual retail energy sales will include the incremental sales from electric vehicles, which were previously excluded under certain conditions.

Significant Changes to Existing Law

• The bill amends Minnesota Statutes to create a new exclusion category specifically for data centers regarding energy sales calculations.
• It updates the criteria under which large customer facilities and data centers can be exempt from being included in a utility's gross annual retail sales calculations, effectively changing how utility companies report their sales for conservation and optimization purposes.

Relevant Terms

data center, gross annual retail energy sales, energy conservation, optimization, data mining facility, peak electrical demand, electric vehicles, utility exemption