Minnesota Public Utilities Commission directs Minnesota Valley to stop unlawful disconnection threats to Upper Sioux
St. Paul, MN — The Minnesota Public Utilities Commission (Commission) determined that Minnesota Valley Cooperative Light & Power Association is acting unlawfully and unreasonably when it threatens to disconnect the Upper Sioux Community over its behind‑the‑meter solar and battery project.
After extensive evidence-gathering by the Court of Administrative Hearings, the Commission agreed with the Administrative Law Judge, the Department of Commerce, and all other parties that Minnesota Valley’s attempt to block the Upper Sioux Community’s non‑export project violates state law. The Commission also agreed with the Department that Minnesota Valley’s actions were driven by concerns over lost sales, rather than legitimate safety concerns, noting evidence that the Cooperative may be charging the Tribe relatively higher rates than other customers.
The Commission’s decision requires Minnesota Valley to continue serving the Upper Sioux Community as long as the project operates behind the meter and safely. To ensure safety, the Commission directed that an independent engineering study must guide any equipment or operational recommendations for the project. If the Community follows the independent engineer’s recommendations, Minnesota Valley may not disconnect service based on the existence of the project.
The Commission also directed the Office of the Attorney General to investigate whether Minnesota Valley’s conduct violates this or any other Commission order or applicable state law, and to take enforcement action when warranted. Minnesota Valley must promptly report to the Commission and the Attorney General if it disconnects any facilities related to the project.
“Minnesota Valley didn’t uphold its duty to its members. Cooperatives rely on trust, and threatening disconnection because the Upper Sioux Community pursued a solar project violates that trust,” said Commissioner Joseph Sullivan. “The record shows broad agreement that Minnesota Valley’s actions were not just out of line, they were unlawful.”
In addition to state agencies, more than two dozen electric cooperatives from across Minnesota filed comments supporting the ALJ’s findings. These cooperatives stated that Minnesota Valley’s approach was inconsistent with cooperative principles, and that threatening disconnection for a non‑export project is unacceptable.
The Upper Sioux Community began developing its solar and storage project in 2024 to offset a portion of its energy use. Despite agreement among engineers that the system was not designed to export power, Minnesota Valley threatened disconnection and pushed for a reinterpretation of the project’s design – actions that led to this complaint. Full record information is available in Docket 25-219.
About
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.
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