PUC Newsletter - August 2025

July 1

• The Commission approved site permits for Northern Crescent Solar Project which includes up to 150 MW of alternating current (MWac) solar generation and a 50 MWac battery energy storage system (BESS). The battery system will be housed in a 3.2-acre facility using lithium iron phosphate battery technology. The project will interconnect to the grid via a short 300-foot, 161 kV transmission line to an existing Xcel Energy substation. A final interconnection agreement is expected from the Midcontinent Independent System Operator in the second half of 2025. (Docket 22-57) News release

• The Commission approved the Iron Pine Solar Project site permit for a 325 MW solar energy facility in Pine County, along with a route permit for a 1-mile, 230 kilovolt (kV) generation tie-line that will connect the project to the grid. The project represents one of the largest single-site solar installations approved in the state and will play a key role in delivering low-cost, clean power to Minnesota’s electric system. (Docket 23-414) News release

• The Commission approved a methodology for calculating the payback period of grid enhancing technologies (GETs) and established requirements for transmission owners' 2025 GETs reports, which will be filed November 3, 2025. (Docket 25-99)

• The Commission approved Minnesota Power’s Consolidated Capital Structure for 2025. (Docket 25-138)

July 10

• The Commission approved permit amendments for the Plum Creek Wind Farm. The amendments changed the type and number of turbines used, approved a new shorter transmission line route, and extended the construction commencement and in-service date to September 25, 2027, and December 31, 2028, respectively. (Docket 18-699)

• The Commission approved Xcel Energy's proposal to remotely reconnect involuntarily disconnected customers with Advanced Metering Infrastructure during extreme heat events and air quality alerts starting May 1, 2026. Xcel is required to consult with the Minnesota Department of Health and the Minnesota Pollution Control Agency about whether changes in Air Quality Index (AQI), advancements in the understanding of health impacts from air pollution and extreme heat, or the appropriate number of hours in which extreme heat or AQI above 151 occurs and/or is forecast, might warrant modification of the protection thresholds or trigger the suspension of disconnections and reconnections. (Docket 25-2)

July 17

• The Commission issued 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. (Docket 23-151) News release

• The Commission approved Xcel Energy’s proposal to use Advanced Metering Infrastructure (AMI) to remotely reconnect customers who were involuntarily disconnected during extreme heat events and air quality alerts, beginning May 1, 2026. Under the approved plan, Xcel Energy will remotely restore power to AMI-equipped customers who have been involuntarily disconnected when the National Weather Service issues a heat advisory or excessive heat warning. In addition, the utility will suspend remote disconnections for customers with AMI when the Air Quality Index (AQI) reaches 151 or higher and will remotely reconnect customers who were previously disconnected once the AQI reaches this threshold. (Docket 25-27)

July 24

• The Commission ordered an investigation regarding the Upper Sioux Community’s complaint against its electric cooperative, MN Valley Cooperative Light & Power Association, using the Commission’s jurisdiction under Minn. Stat. § 216B.17, subd.6a. The Community alleges that the Cooperative’s threat to disconnect them for turning on its behind-the-meter solar array is discriminatory and unjust. The Commission will refer the case to the Office of the Administrative Hearings, who will use a judicial process to collect testimony and facts about the case and provide a recommendation to the Commission for a final decision. In addition, the Commission made a referral to the Office of the Attorney General, as the Commission believes that the coop’s threat to disconnect the Tribe constitutes a violation of Minn. Stat. § 216B.54.  (Docket 25-219)

• The Commission adopted a Framework for Proactive Distribution Upgrades for Xcel Energy. The framework establishes evaluation and cost recovery criteria for proactively planning distribution grid upgrades outside of the historical utility planning period to meet customer demand for distributed energy resources (DER) and new load. The Commission ordered creation of the framework in response to Xcel Energy's large forecasted spending from its 2023 Integrated Distribution Planning. Minnesota is the first state to establish a framework for proactive upgrades that considers both load and DER adoption. (Docket 24-318)

July 31          

• The Commission received five distinct petitions requesting that it reconsider certain decisions related to its June 11, 2025, Order Modifying and Adopting Administrative Law Judge Report, Granting Certificate of Need, and Issuing Route Permit for the Minnesota Energy Connection Project. The Commission denied each of the petitions for reconsideration. (Docket 22-131, 22-132)

• The Commission approved the Birch Coulee Solar site permit for a project of up to 125 MW in Renville County, Minnesota. In doing so, the Commission included some mitigation measures recommended by state agencies, landowners, and Renville County in its decision. The commercial operation date is anticipated to be in 2028. (Docket 23-477)

• The Commission approved the service territory transfer and contribution-in-aid-of-construction (CIAC) exemption between Xcel Energy and the City of Wasota. (Docket 25-192)

• The Commission required all rate-regulated public utilities to submit filings with their current policies and practices on disconnections, service deposits, and payment agreements. Utilities are also required to work with the Commission's Consumer Affairs Office on public-facing language describing these policies and practices which are to be placed on their respective websites and in all paper, mailed materials. Additionally, the Commission reviewed whether Greater Minnesota Gas should be referred to the Office of the Attorney General for late CWR reports but opted to not do so. (Docket 25-2)

Planning meeting/special meeting

The Commission met on July 24 to discuss its role in verifying projects for the Mid-Continent Independent System Operator’s (MISO) Expedited Resource Addition Study (ERAS) process, which is a process approved by the Federal Energy Regulatory Commission to quickly review projects that address urgent resource and reliability needs. During the meeting, the Commission verified several projects and delegated the verification of additional projects to the Executive Secretary. In total, 11 wind, solar, gas, and energy storage projects from Xcel Energy, Minnesota Power, and Otter Tail Power were verified. The Commission’s verification letter will be included in the utilities' ERAS applications to MISO.

Project meetings

The Commission held multiple public meetings from July 22-28 on Minnesota Power’s 2025-2039 Integrated Resource Plan (IRP). The purpose of the public meetings was to present information, answer questions and take public input on the proposed IRP and compile a record of public comments for the Commission to consider when making its decision on the IRP. Written comments are accepted through November 15, 2025. Public notice

Stakeholder meetings

Assistance Program Eligibility considering changes to Minnesota Law and potential changes to Federal Assistance Programs – With the potential discontinuation of the federal Low Income Home Energy Assistance Program (LIHEAP), utilities and community partners are exploring alternative ways to verify eligibility for low-income utility affordability programs. A stakeholder meeting was held on July 23, 2025, bringing together utilities, non-profits, and other community groups to discuss this critical issue. The meeting focused on three potential alternative pathways to replace LIHEAP as the eligibility verification method:

• Geographic proxies: Using location-based data to determine eligibility.
• Self-attestation: Allowing customers to self-declare their income without additional verification.
• Categorical eligibility: Allowing customers enrolled in other qualifying low-income programs to automatically be eligible.

Stakeholders provided initial feedback on the strengths and challenges of each option. A second stakeholder meeting will be scheduled to continue discussions and refine these approaches to eligibility verification. Click here for full recap.