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For Immediate Release:
February 7, 2025
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Minnesota Public Utilities Commission
Contact: Cori Rude-Young, 651-201-2241
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Minnesota Public Utilities Commission approves Xcel Energy’s first-ever Natural Gas Innovation Plan
St. Paul, Minn. – The Minnesota Public Utilities Commission (PUC) approved Xcel Energy’s first-ever Natural Gas Innovation Plan, marking a significant step in advancing cleaner, more sustainable energy solutions in Minnesota. The plan is designed to reduce or avoid at least 687,000 metric tons of greenhouse gas emissions, explore innovative technologies, and support the state’s transition to a lower-carbon energy future.
The Natural Gas Innovation Plan, developed in response to Minnesota’s 2021 Natural Gas Innovation Act, includes a comprehensive approach to incorporating alternative fuels, enhancing energy efficiency, and investing in emerging technologies. Xcel's plan supports 13 pilot programs and seven research and development projects. After feedback from ratepayer protection and environmental advocates, the PUC ordered Xcel to reallocate some of the funds from carbon capture and renewable natural gas (RNG) initiatives towards electrification and energy efficiency programs, with a focus on low-income customers.
The pilots approved in the plan include:
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Network Geothermal System – Using the ambient temperature of the earth to provide space heating and cooling for a neighborhood in Xcel’s service territory.
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Renewable Natural Gas Integration – Supporting the development of Minnesota-based RNG production from organic waste, dairy farms, and landfills.
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Green Hydrogen Development – Using Sherco solar to generate hydrogen for industrial uses, with the goal of creating new jobs around Becker.
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Carbon Capture and Utilization – Exploring technologies to capture carbon emissions including those generated from the RNG production process.
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Advanced Energy Efficiency Programs – Implementing new strategies to help customers reduce energy consumption and lower costs.
"The Minnesota Public Utilities Commission is committed to ensuring reliable and affordable energy for all Minnesotans. By approving Xcel Energy’s Natural Gas Innovation Plan, we are supporting a forward-thinking approach that balances affordability with the need for cleaner energy solutions,” said PUC Commissioner Hwikwon Ham. “This plan paves the way for innovative technologies that will help keep costs manageable for customers while advancing our state’s energy transition."
The Commission's approval comes after a thorough review process, which included input from environmental groups, labor organizations, industry representatives, and community organizations.
Xcel aims to generate nearly 400 new jobs through its program and will begin implementing the approved initiatives immediately. To assess the plan's impact and effectiveness, progress reports will be submitted to the PUC.
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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