This bill changes Minnesota’s current energy savings goal from 1.5% of annual retail energy sales of electricity and natural gas to 2.5%. These energy savings may be achieved through multiple measures, including cost-effective energy conservation programs, rate design, energy efficiency achieved through energy customers without direct utility involvement, advancements in statewide energy codes and appliance and equipment standards, programs designed to transform the market and change consumer behavior, energy-savings resulting from efficiency improvements to the utility infrastructure and system and any other efforts that promote energy efficiency and energy conservation.
Additionally, utilities are encouraged to design and offer customers load management programs. This bill requires consumer-owned utilities with an annual energy savings goal of 1.5% of gross annual retail sales to be met with a minimum of energy savings from energy conservation improvements equivalent to at least 0.95% of the consumer-owned utility’s gross annual retail energy sales. This goal may be achieved by the following consumer-owned utility activities: energy savings from additional energy conservation improvements, electric utility infrastructure projects that result in increased efficiency greater than would have occurred through regular maintenance activity, net energy savings from efficient fuel-switching improvements, and demand-side natural gas or electric energy displaced by the use of waste heat recovered and used as thermal energy.
This bill requires that by June 1, 2022, and at least every three years after that, each consumer-owned utility file, with the commissioner of the Minnesota Department of Commerce, an energy conservation and optimization plan that describes the programs for energy conservation, efficient fuel-switching, load management, and other measures the consumer-owned utility intends to offer to achieve the utility’s energy savings goal. Beginning June 1, 2023, and every June 1 after that, each consumer-owned utility must file: (1) an annual update identifying the status of the plan; and (2) a summary of the annual energy savings achievements. The plan must include activities to improve energy efficiency in the public schools served by the utility, including increasing the efficiency of the school’s lighting and heating and cooling systems; recommissioning buildings; training building operators; and providing opportunities to educate students, teachers, and staff regarding energy efficiency measures implemented at the school. Additionally, these plans must include energy conservation programs for low-income households and details on the eligibility of multifamily buildings to participate in energy conservation programs.
This bill also requires a public utility that provides electric services with an annual energy savings goal equivalent to 1.75% of the gross annual retail energy sales, and a public utility providing natural gas service must have an annual energy savings goal equal to 1% of gross annual retail energy sales. A public utility must file an energy conservation and optimization plan by June 1, at least every three years. Plans may include programs for efficient fuel-switching improvements and load management.