Notable Commission Decisions or Actions
Filings can be accessed using the docket number at: MN PUC eFiling Search
January 6, 2021 Decisions
Xcel Energy’s Load Flexibility Pilot Programs and Financial Incentive (Docket 21-401) and Performance Metrics and Incentives for Electric Utility Operations (Docket 17-401). In response to a Commission Order in Xcel’s last Integrated Resource Plan, Xcel developed four pilots and two demonstration projects intended to reduce, control, or manage electric consumption (load flexibility) as means to avoid building new supply-side resources. The Commission approved Xcel’s revised Peak Flex Credit Rider, including requirements on back-up generation and allowed Time-of-Use pilot customers to participate, and required Xcel to further develop the Peak Flex Credit Rider to allow participation by third-party aggregators. The Commission also approved the Commercial Thermal Storage and Electric Vehicle Optimization pilots (with modifications to further protect customer privacy) and rejected Xcel’s Heating, Ventilation, and Air Conditioning Optimization pilot. In addition to the three approved pilots, the Commission approved two demonstration projects: Excess Supply Partners and Vehicle to Grid.
The Commission rejected the financial incentive mechanism proposed by Xcel, approved the deferral of pilot expenses in a load flexibility tracker account, and limited the rate recovery of load flexibility programs to the incremental costs for “Bill Credits” and “Customer Services – Equipment Costs.”
Transmission Line Permit Transfer Request from Great River Energy to Nexus Line (Docket 21-434) In July 2022, Great River Energy (GRE) sold their North Dakota-based Coal Creek Generating Station to Rainbow Energy Center, LLC. Coal Creek is connected to the Minnesota electrical system through a 400-kV direct current transmission line (historically known as the CU Line). The HVDC transmission line runs across Minnesota from the North Dakota border to the Dickinson Substation in Wright County, Minnesota. GRE sold the 400-kV HVDC line to Nexus Line, LLC (a subsidiary of Rainbow) conditional on the Commission’s approval of a transfer of the transmission line permit from GRE to Nexus.
The Commission ultimately found that Nexus would be able to comply with the existing terms and conditions of the permit and approved the transfer. The Commission required additional information, a decommissioning plan, including financial assurances from Nexus, and specifics regarding an Operations & Maintenance (O&M) Agreement where GRE will perform O&M duties for the next 20 years, among other items.
Freeborn Wind Site Permit – Motion for Release of Noise Information (Docket 17-410) The Commission did not approve motions filed by the Association of Freeborn County Landowners and an individual landowner, regarding the release of information pertaining to noise studies, as the studies are on-going and pending. However, the Commission did require Xcel to provide data from recent noise monitoring conducted near the landowner’s residence, by February 1, 2022.
The Freeborn Wind Project is an 84-megawatt wind energy facility owned and operated by Xcel Energy. The site permit requires Xcel to perform noise monitoring to confirm compliance noise standards. Xcel began monitoring in the Fall of 2021 and will provide a monitoring study by September 2021. The petitions alleged violations of the state and site permit noise requirements. The Commission will review the final noise study results when they are filed and take action as warranted at that time.
January 13, 2022 Decisions
Xcel Energy Workforce Training and Development Pilot (21-558) The Commission approved a Workforce Training and Development Program pilot that will provide training opportunities to 150 participants in energy-related construction at the 460-megawatt Sherco Solar Project. Efforts will create opportunities for women, veterans, and members of the Black, Indigenous, and People of Color community. Xcel Energy partnered with the Minnesota Department of Employment and Economic Development (DEED) who will lead and administer the pilot. The Commission conditioned the pilot, requested that that DEED include members of the target community, and for regional workforce centers to be part of the evaluation team for the RFP proposals. Last, the Commission required Xcel to expand the program to include veterans as a targeted recipient of the outreach and training.
In 2019, the Commission required regulated utilities to report investments that would further economic recovery efforts amid the COVID-19 pandemic. Utilities outlined investments that met certain conditions, including creating jobs or otherwise assisted in Minnesota’s economic recovery, and used woman, veteran, or minority owned businesses as much as possible. As a result of this Commission request, on July 14, 2021, Xcel filed this petition for approval of a Workforce Training and Development Program Pilot, as a means of economic recovery and a way to create opportunities for those in traditionally under-represented communities.
Xcel Energy, Otter Tail Power and Minnesota Power’s 2020 Annual Report on Safety, Reliability, and Service Quality (Docket 21-237, 21-225, 21-230) The Commission accepted Xcel Energy, Minnesota Power, and Otter Tail Power’s Safety and Reliability sections of their annual Service Quality Standards Reports, set standards for 2021 and required Xcel in its current rate case (Docket 21-630) to develop a record that examines Xcel’s distribution system spending and maintenance in the Southeast Work Center compared to other areas of the company’s service territory. This was in response to concerns regarding Xcel’s Southeast Work Center reliability and historical staffing reductions.
Minnesota Power’s July 2018-December 2019 Annual Automatic Adjustments Report (Docket 20-171) The Commission agreed with and amended the findings of the Administrative Law Judge’s (ALJ) Report and analysis regarding several unexpected generator outages at Minnesota Power’s (MP) electric generating plants. First, the ALJ’s Report found MP did not use good utility practice in its maintenance of a Boswell Unit Hot Reheat (HRH) line that ultimately ruptured, resulting in the unit’s outage and purchased replacement power costs of $4,482,456. The replacement power costs (already recovered through customer bills) will be refunded to customers, plus interest. Second, the ALJ report found MP was reasonable in its actions related to other unexpected outages from a hydrogen leak and its Boswell Unit’s bushing failure, and therefore, no refunds will be remitted to customers for those outages.
Minnesota Law allows utilities to automatically adjust their rates to account for fuel purchases, including those from outages. MP filed their fuel cost report on March 2, 2020 outlining the costs for the covered period of July 1, 2018 to December 31, 2019. On September 16, 2020, the Commission accepted the Company’s fuel cost report as substantially complete, however, it questioned whether MP’s outage costs were prudently incurred and referred the matter to the Minnesota Office of Administrative Hearings (OAH) for review in an evidentiary hearing.
January 20, 2022 Decisions
Minnesota Power’s Petition for Approval of a Variance to the Customer Service Rules Governing Billing Errors, (Docket 21-790) The Commission approved a variance to allow a Minnesota Power (MP) customer to be refunded going back to October 2014, and established a process to allow streamlined refunds for future billing errors.
Minnesota Rule 7820.3800 (Electric Utility Billing Errors) places a three-year limit on the timeframe for which public utilities can refund customers who have been overcharged. When overcharges can be traced back further than three years, the utility must petition the Commission for a variance. The Commission approved a simplified process for future filings, to allow refunds to distributed faster, by establishing a 30-day negative check off process for billing error variance requests from MP, and authorized MP to provide refunds if no objections are made within 30 days.
Updating the Generic Standards for the Interconnection and Operation of Distributed Generation Facilities Established under Minn. Stat. §216B.1611 (Docket 16-521) The Commission, via its Distributed Generation Working Group (DGWG) worked to identify solutions to address complaints and delays due to the high volume of interconnection applications and areas with high penetration. As a result of their efforts, several issues were raised to the Commission for resolution. The Commission ordered several changes to Xcel Energy’s implementation of the Minnesota Distributed Energy Resource (DER) Interconnection Process (MN DIP) in the following areas:
Interconnection Queue Management - The Commission ordered Xcel to phase out within a year, its “on-hold” practice, for projects on feeders and substations that are not facing capacity constraints and to expand parallel and semi-parallel processing of a greater scope of interconnection applications.
Mandatory Group Studies - Xcel will begin Mandatory Group Study pilots to speed up study processing times and allow for shared study and distribution upgrade costs between developers. Xcel will convene a 120-day Work Group to determine the details and parameters of the policy. Xcel will report back on the outcome of the study and present at a Solar*Rewards Community meeting.
Small DER Cost-Sharing (System Upgrade Cost-Sharing Fund) - Xcel must create a plan to implement, by August 31, 2022, cost-sharing that will charge a flat fee from all DER applications under 40kW. The fees would establish a fund to pay for distribution upgrades, up to $15,000 per DER customer. Xcel will report costs incurred and rationale for each upgrade under this cost-share program.
DER Technical Planning Limit - The Commission made no changes at this time, due to reliability and safety concerns. Future implementation of advanced inverters, additional data and analysis, and grid modernization technologies may allow for more precise planning limits.
Other - The Commission requested the Distributed Generation Workgroup (DGWG) to propose solutions to reduce interconnection appeals and complaints to the Commission. The Commission directed Xcel to stay the implementation of an Affected System Study Agreement until a comment period is held on the specifics of the plan, whether or not the agreement requires changes to the MN DIP or a tariff, and other related issues has concluded.
January 25 & 27, 2022 Activity
Xcel Energy’s 2020-2034 Integrated Resource Plan (Docket 19-368) The Commission heard oral argument and asked questions of the parties. The Commission will deliberate and decide the matter at its February 8, 2022, agenda meeting. The issues to be decided include whether to approve Xcel’s proposed plan (Xcel’s Alternate Plan), what conditions should be placed on the five-year action plan, whether the life of the Monticello Nuclear Plant be extended by 10-years, whether to allow Xcel to build transmission lines from the Sherco and King sites to interconnect to wind and solar resources, what type of competitive bid process should be used to solicit bids for new resources, and when should Xcel file its next plan.
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