St. Paul, Minn. – The Minnesota Public Utilities Commission (PUC) approved Minnesota Energy Resources Corp.’s (MERC) request to introduce renewable natural gas (RNG) into its distribution system, opening a path for the utility to decarbonize its infrastructure and encourage biogas production in Minnesota.
The PUC accepted MERC’s proposed process for purchasing the gas from suppliers, as well as its interconnection agreement, which spells out the supplier's obligations. Some of the items decided at the Commission meeting include guidelines for protecting ratepayers while still meeting demand from potential producers, and standardizing reporting requirements on RNG interconnections.
RNG is a natural gas alternative processed from methane waste sources like farms and landfills. Producers can capture methane that would otherwise be released into the atmosphere and refine it into a natural gas replacement. MERC is part of a growing nationwide effort of gas utilities seeking to interconnect RNG producers to their distribution networks, with a particular focus on Midwest RNG producers. MERC’s proposal focuses on farmers who produce RNG from dairy or other animal waste, using anaerobic biological decomposition.
“This is an example of a broader discussion happening around natural gas planning,” said PUC Commissioner Valerie Means. “The passage of the Natural Gas Innovation Act combined with the momentum to decarbonize is allowing utilities to pursue multiple pathways to reduce or avoid emissions while continuing to provide safe, reliable, and cost-effective energy.”
Passed in 2021, the Natural Gas Innovation Act (NGIA) allows Minnesota's utilities to submit a gas innovation plan to the PUC and also addresses how utilities can procure treatment of innovative resources, providing a pathway to recover the cost of displacing standard gas supplies with low- and zero-carbon alternatives.
MERC is not the only utility bringing forward RNG-related issues. The PUC approved CenterPoint Energy’s interconnection tariff in 2021 and Xcel Energy and CenterPoint Energy both proposed several RNG interconnection and pilots in their NGIA petitions. Great Plains Natural Gas Co. has also filed a proposal to add RNG to its system.
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The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
