Minnesota Commission Establishes Utility Gas Planning Requirements

The Minnesota Public Utilities Commission has formalized planning requirements for the state’s major natural gas utilities. The initiative stems from the 2021 gas price spike during Winter Storm Uri, which underscored the need for a comprehensive planning approach to safeguard consumers from price volatility. The process aims to ensure safe, reliable, and cost-effective utility service for consumers.

Unlike electricity resource planning, which has been a part of the commission’s regulations for several years, gas resource planning is a new endeavor and is modeled after initiatives in other states. Stakeholders, including utilities, consumer advocates, and clean energy organizations, collaborated to define Minnesota’s gas resource planning framework.

The initiative establishes resource plan requirements and tasks utilities with evaluating options to ensure adequate gas supply for consumers at a reasonable cost. The process also calls for disclosing distribution system investments and exploring opportunities to deploy new technologies to avoid infrastructure projects. Integrated resource planning is seen as crucial for maintaining affordable rates and ensuring energy reliability amidst evolving energy landscapes.

Minnesota gas utilities have been working on resource plans pursuant to the 2021 Natural Gas Innovation Act, which established a framework to allow utilities to meet the state’s emissions reduction and renewable energy goals through innovative resources.

Long-term planning strategies of natural gas utilities across the U.S. are evolving in response to ambitious clean energy and emissions reduction goals. Policies to achieve net-zero emissions by mid-century are leading state regulators and utilities to explore pathways to decarbonize the energy system.