Energy Efficiency / Renewables: Conservation

Statutory Reference

Conservation activities of municipal utilities are heavily regulated under state law.  See Minn. Stat. Section 216B.241.

Spending requirement

An electric municipal utility with 1,000 or more customers must spend 1.5% of its gross operating revenues on energy conservation improvements.  A gas municipal utility with more than 1,000,000,000 cubic feet in annual sales to natural gas retail customers must spend 0.5 percent of its gross operating revenues from the sale of gas on energy conservation improvements.

Energy-saving goals

An electric municipal utility with 1,000 or more customers is required to achieve annual energy savings equivalent to 1.5 percent of gross annual retail energy sales.  A utility may only take credit for savings from a particular measure in the year in which it is implemented.  Savings over the lifetime of the measure following the year in which it is implemented are not considered.  At least one percent of each year’s savings must be from conservation improvement projects.  The remaining savings may be from electric utility infrastructure projects that result in increased energy efficiency greater than that which would have occurred through normal maintenance activity.  If a utility is able to exceed 1.5% in energy savings, the excess over 1.5% may be carried forward to the succeeding three calendar years.  Savings from electric utility infrastructure projects may be carried forward for five years.