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NEWSLETTER - NOVEMBER 2023 |
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Commission update
Commissioner Matthew Schuerger is departing the Public Utilities Commission after eight years of service. We are grateful for his dedication to making Minnesota’s energy system cleaner, more reliable and more affordable.
The application to fill Commissioner Schuerger’s seat is open. Applications will be accepted until the position is filled. The Governor and Lieutenant Governor are seeking individuals with experience in law, engineering, accounting, property and utility valuation, finance, science, agriculture, or natural resources. Those interested can find more information and apply for the position on the Secretary of State’s website.
Commission calendar and upcoming events
The information below is subject to change. Current information available online at PUC calendar.
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DATE
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TIME
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DETAILS
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Nov 2
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10 AM
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Agenda meeting
Xcel Energy’s 2024 annual fuel forecast and monthly fuel cost charges; Minnesota Power’s annual forecast of automatic adjustment charges for January 2024-December 2024; Otter Tail Power Company’s annual forecasted rates for its energy adjustment rider, rate schedule; Commission investigation to identify and develop performance metrics and, potentially, incentives for Xcel Energy’s electric utility operations; Xcel Energy’s petition for approval of a development transfer resource acquisition process.
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Nov 9
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10 AM
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Agenda meeting
Minnesota Power proposal for a Certificate of Need for the HVDC Modernization Project in Hermantown; Request for a minor alteration to Great River Energy’s 170 MW, natural gas-fired, simple cycle combustion turbine generator at its Cambridge 2 Peaking Plant Site; Implementation of 2023 legislation changes to Xcel Energy’s Community Solar Garden Program.
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Nov 10
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Closed
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Veteran’s Day – office closed
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Nov 16
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10 AM
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Agenda meeting
Revoke the expanded Eligible Telecommunications Carrier (“ETC”) designation of LTD Broadband, LLC (“LTD”) and deny LTD’s funding certification for 2023; Otter Tail Power’s Electric Vehicle Direct Current Fast Charging (DCFC) general service - Time of Day pilot rates; US Solar Reconsideration of Commission’s Decision on Xcel Energy’s Community Solar Garden tariff re: Applicable Retail Rate definition; Certificate of Need and Route Permit for the Big Stone South-Alexandria-Big Oaks Transmission Project in central Minnesota.
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Nov 20
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1 PM
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Special planning meeting – Sabathani Community Center site visit
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Planning meeting – Xcel Energy Equity Stakeholder Advisory Group
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Nov 23-24
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Closed
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Thanksgiving Holiday – office closed. No Agenda Meeting this week.
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Nov 28
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10 AM
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Planning meeting – Community Solar Garden updates
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Nov 28
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6 PM
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Public hearing (Slayton)
Lake Wilson Solar Energy LLC (Lake Wilson Solar) certificate of need and site permit for proposed 150-megawatt solar energy and associated battery storage project in Murray County.
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Nov 29
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6 PM
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Public hearing (virtual)
Lake Wilson Solar Energy LLC (Lake Wilson Solar) certificate of need and site permit for proposed 150-megawatt solar energy and associated battery storage project in Murray County.
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Nov 30
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10 AM
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Agenda meeting
Service quality and reliability for Xcel, Minnesota Power, Otter Tail Power; Dairyland Cooperative’s 116KV transmission reroute; Telephone Assistance Program budget.
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Noteworthy decisions
Filings can be accessed using the docket number at: MN PUC eFiling Search
October 5
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Application of Heartland Corn Products for a Route Permit for the Heartland Corn Natural Gas Pipeline Project in Sibley County (23-43) The Commission issued a route permit to Heartland Corn Products (HCP) to construct a 7.8-mile, 6.625-inch outside diameter steel pipeline to provide a source of increased natural gas capacity to the HCP ethanol plant located in Winthrop, MN. The proposed pipeline will allow HCP to maintain current operations and allow for future expansion of the ethanol facility. Completion is expected before the end of the year.
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Application of Great River Energy and Minnesota Power for a Certificate of Need and Route Permit for an approximately 180-mile, double circuit 345-kV transmission in Itasca, Aitkin, Crow Wing, Morrison, Benton, and Sherburne Counties (22-416, 22-415) The Commission approved the application and permitting process for a 180-mile high-voltage transmission line from Itasca County to Benton County (Northern Reliability Project).
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Xcel Energy’s Competitive Resource Acquisition Process for up to 800 Megawatts of Firm Dispatchable Generation (23-212) The Commission approved Xcel Energy’s “Notice Petition,” which requested the Commission initiate a competitive resource acquisition proceeding to acquire up to 800 megawatts (MW) of firm dispatchable generation. The Commission set a procedural schedule, which included a requirement that Xcel Energy and competitors file proposals on January 22, 2024, to meet the identified need. The Commission also approved Xcel’s proposed evaluation process and a modified version of the Company’s Resource Attributes Matrix to use when considering proposals.
October 12
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Xcel Energy’s Petition for Approval of Contracts for Provision of Service to a New Large Customer’s Minnesota Data Center Project (22-572, 22-579) The Commission approved electric service agreements and related ratemaking treatments for Xcel to provide service to a proposed new data center in Rosemount, MN owned and operated by an affiliate of Meta Platforms. News release.
October 19
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All electric utilities in the matter of an investigation into implementing changes to the Renewable Energy Standard and the newly created Carbon Free Standard (23-151) The Commission approved several reporting requirements reflecting statutory changes to the Renewable Energy Standard and Solar Energy Standard from House File 7 passed in the 2023 legislative session. This completes the first of four procedural matters implementing House File 7, which enacted the state’s Carbon Free Standard. The Commission will issue a notice in November to clarify the definition of “carbon free” and address other matters.
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Great River Energy for a Route Permit for the Reroute of the 115-kV Cedar Lake Transmission Line Project in Scott and Rice Counties (23-170) The Commission considered the project route alternatives to be evaluated in the environmental assessment (EA). The Commission supported inclusion of the applicant’s preferred route and the Country Hollows Lane Alignment Modification. Additionally, the Commission required that the EA provide an assessment of potential impacts in an expanded route width in the southern and western portion of the proposed route. The Commission also required the EA to include an analysis of a complete under-build for the full length of the proposed route which parallels Highway 19.
October 26
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Minnesota Energy Resources Corporation for authority to increase natural gas rates in Minnesota (22-504, 22-505) The Commission approved Minnesota Energy Resources Corporation’s (MERC) natural gas rate settlement. Under the agreement, MERC will receive an annual $21.24 million increase. This final agreement is a reduction from the Company’s initial $32.76 million request. News release.
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Decommissioning Trust Fund for the Enbridge Energy, Limited Partnership Line 3 Replacement Pipeline (21-823) The Commission approved the terms and conditions of a Decommissioning Trust Fund for the Enbridge Energy, Limited Partnership Line 93 pipeline (aka the Line 3 Replacement Project) to pay for the costs of decommissioning the pipeline when it reaches the end of its economic usefulness. The agreement requires Enbridge to make annual payments of approximately $61 million annually. The Trust will be fully funded (approximately $1.2 billion) by October 1, 2041, 20 years from the pipeline in-service date. The Commissioner of the Department of Commerce will serve as the Trust Protector.
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Xcel Energy’s petition for approval of the 2022 Annual Review of Remaining Lives (ARL) and Depreciation Rates for Electric and Gas Production and Gas Storage Facilities (EGPS) & for Transmission, Distribution, and General Accounts (TDG) & Five-Year Transmission, Distribution, and General Depreciation Study (22-299) The Commission approved Xcel’s petition with the following exceptions: Deferred any decision on the Sherco and King depreciation lives until a decision of the new docket (Docket #23-375) for ratemaking treatment for early retired coal plants is opened. Denied Xcel’s proposal to defer any changes resulting from the results of the Five-Year Study to a future rate case; and require Xcel to implement the changes to depreciation rates effective January 1, 2023.
Other decisions
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DOCKET
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DOCKET SUMMARY
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23-224, 235
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The Commission approved Otter Tail Power’s requests for variances and the Company’s tariffs to approve billing errors refunds to customers and approved a 30-day negative check-off process for future OTP billing errors.
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22-162
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The Commission approved streamlined reporting requirements for Xcel’s Safety, Reliability, and Service Quality reporting, including clarification on previous variances.
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13-867
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The Commission chose not to renew Xcel Energy’s residential adder for the 2023 Value of Solar vintage.
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23-217
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The Commission accepted Xcel Energy’s site permit application for the up to 250 MW Sherco 3 Solar Energy Generating System in Sherburne County. Additionally, the Commission directed the Executive Secretary to issue authorization to initiate SHPO consultation.
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20-711
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The Commission approved variances related to billing and metering errors for Xcel’s commercial EV pilot programs.
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17-879
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The Commission authorized the Department to seek authority to incur costs for work related to upcoming EV dockets.
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20-760
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The Commission accepted Xcel Energy’s 26-month status report for the Payment Plan Credit Program (PPCP) and directed Xcel to deploy all the remaining amount from the PPCP fund of $17.5 million for use in the PowerON Program and close the program.
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23-443
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The Commission granted Peerless’ petition for arbitration of the four unresolved issues related to the interconnection agreement between Peerless and CenturyLink.
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19-704, 19-809
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The Commission approved the electric utilities annual reports into self-scheduling activities and ordered Xcel to file a plan to reimplement seasonal operations at its Allen S. King plant.
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Public meetings and hearings
Northland Reliability Project – The week of October 23, 2023, the Department of Commerce and Public Utilities Commission held public meetings along the 180-mile transmission line project called the Northland Reliability Project. The meetings helped inform the public on how to participate in the permitting process. It was also an opportunity for the public to ask the applicants questions and submit route and system alternatives. In total, there were seven meetings with approximately 160 attendees. The current comment period ends on November 21, 2023.
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Notable new dockets or filings
You can search for a docket as well as subscribe to receive email notifications when new documents are added to a docket. Learn more on our eDockets webpage.
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DOCKET
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DOCKET OR FILING SUMMARY
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23-117
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CUB filed a “Long Term System Planning” proposal for natural gas utilities including evaluation criteria, process, and components after discussions at Great Plains Institute-led stakeholder meetings. Parties will now comment on this proposal.
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23-457
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Xcel filed a petition for approval of recovery of updated Gas Utility Investment Costs (GUIC) of ~$15.7 million through 2024 GUIC Rider. Xcel estimates a residential gas bill impact of ~$1.88/mo.
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23-460
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Minnesota Power filed a 2024 TCR petition and requested provisional approval to implement effective Jan. 1, 2024, or concurrent with interim rates in forthcoming rate case. The 2024 revenue requirement is ~$10.5 million.
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23-454
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Xcel filed a petition Xcel filed a petition for approval of the 2024 Renewable Energy Standard Rider revenue requirement for five wind repowering projects, Sherco Solar 1-3, and the Sherco Long Duration Battery Storage Pilot and includes a true-up of actual wind PTCs with a provisionally implemented date of Jan. 1, 2024. “The Company’s proposed rate factor in this Petition of 0.981 percentage of base revenue for all customer classes is based on a total 2024 revenue requirement of $21.03 million. The proposed rate factor is a significant decrease compared to the current rate factor of 6.087 percentage of base revenue.”
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23-453
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Minnesota Power filed advanced notification of an upgrade to the 105 Line 230 kV HVTL between Blackberry and Iron Range substations in Itasca County and noted the proposed maintenance activities (includes replacement of three structures and upgrading the conductor) qualifies for Exceptions to Permitting Requirements. MP plans to begin project construction activities in December 2023. MP filed updated maps.
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10-854, 04-1956
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Due to auto enrollment in PowerOn, Xcel predicts participation to approximately double while Medical Assistance Program (MAP) participation is decreasing. Xcel modified their request to transfer MAP funds to PowerOn to include increasing PowerOn funding from ~$3.5m to $18m ($14.5m increase).
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22-532
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Xcel Energy filed a request for approval of the Notice Plan. The Project consists of a new 345kV transmission line between the Wilmarth Substation in Mankato and the Mississippi River and a new 161 kV transmission line between the North Rochester Substation near Pine Island and an existing transmission line northeast of Rochester and is comprised of 4 segments. Xcel is joined by Dairyland, SMMPA, and Rochester in joint ownership of this LRTP 1 project. Xcel is also requesting an exemption from certain CN application content requirements.
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21-694
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Xcel filed a letter noting federal funds of $9 million match for the Resilient Minneapolis Project. Will discuss further in 2023 IDP (Nov. 1) and the annual report (Dec. 1) for the RMP.
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22-538, 23-159
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Xcel et al filed the CN for this LRTP 1 project to improve reliability on the existing 230 kV system in Eastern ND/SD and West/Central MN by adding another 345 kV circuit for additional capacity to support new renewables – estimated to provide up to $2.1B in economic savings in MISO footprint in first 20 years and $3.8B over 40 years. The project has an Eastern (23-159) and Western segment (TBD, 2024) and runs from Big Stone City, SD to Sherburne County, MN. The Notice Plan was also filed. The Eastern Route Permit was filed in Docket No. 23-159.
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21-33
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Minnesota Power filed an RFP for up to 300 MW of regional/in-service territory or net-zero solar by 2026. The Company plans to file an RFP by the end of 2023 for up to 400 MW of wind.
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23-368
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PUC dismissed the first consumer complaint appeal because the customer was not residential as required in the new legislation.
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Get involved in the PUC process
The Commission encourages Minnesotans to get involved in our processes, stay informed on utility-related issues, and provide input on topics of interest. Visit our website to see what is currently open for public comment. Also, check out the series of short videos that explains who we are, how we work and how to get involved.
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