St. Paul, Minn. – On Thursday, the Minnesota Public Utilities Commission (PUC) issued necessary decisions to guide electric utilities in achieving compliance with the state’s Carbon-Free Standard enacted in 2023. These decisions address critical aspects of the clean energy transition, including utility preparedness, compliance measurement, the continued use of Renewable Energy Credits, the accounting of net market purchases and the expedited deployment of carbon-free projects.

"These decisions represent a crucial step in ensuring Minnesota's clean energy transition is both affordable and on track," said Commissioner Audrey Partridge. "We are establishing a clear framework that will guide utilities to ensure they are meeting their carbon-free obligations as directed under the Carbon-Free Standard. The Commission also took proactive steps to respond to major changes in federal policies. Our focus remains securing a reliable, affordable, and sustainable energy future for all Minnesotans."

Key decisions from the Commission include:

• Preparing to meet the Carbon-Free Standard: To ensure transparency and accountability, electric utilities will submit additional information with their annual Renewable Energy Objective Reports from 2026-2030, including the estimated carbon-free generation needed to meet the Standard in 2030, and a summary of ongoing efforts to obtain carbon-free energy and the anticipated resource mix for compliance.

• Response to federal policy changes: Electric utilities required to file resource plans will need to submit plans to the Commission outlining how they intend to accelerate the construction and in-service dates of carbon-free energy projects to maximize federal tax credits, which will be terminated by the federal 2025 Budget Reconciliation Law. The plans must also detail efforts to avoid cost increases due to other aspects of the federal law and identify supportive actions the Commission or other state regulatory bodies could take.

These decisions provide essential clarity and direction for Minnesota's electric utilities as they work to meet the state's ambitious clean energy goals. The Commission will continue to monitor progress and adapt regulatory frameworks as needed, and collaborate with stakeholders to ensure a successful, equitable and affordable energy transition.