Minnesota Commission Finalizes Utility Gas Resource Planning Requirements

The Minnesota Public Utilities Commission on Sept. 13 established a final gas integrated resource planning framework for three major gas utility companies in the state: Xcel Energy, CenterPoint Energy, and Minnesota Energy Resources Corp. The commission’s directive on gas resource planning will ensure that residents have a stable and affordable gas supply during uncertainty or disruptions such as natural disasters.

Minnesota already has an electric resource planning framework in place to ensure reliable and stable electricity prices, and the state is implementing a similar procedure for gas utilities. The need for robust gas resource planning was highlighted during Winter Storm Uri, when gas prices spiked in 2021. During the storm, in five days, the state’s gas utilities incurred costs of $660 million, with most of the costs recovered through customer bills, according to the Citizens Utility Board of Minnesota.

The commission started proceedings in 2023 to consult and gather perspectives from various stakeholders, such as gas utility companies, consumer advocates, clean energy groups, and labor organizations to develop a comprehensive gas resource planning framework. In early 2024, the commission formally established planning requirements for gas utility companies.

In its final decision, the commission specified actions and key focus areas for the gas utility firms. The utilities are required to consult and gain input from stakeholders on their planning process and “Expansion Alternative Analysis.” Further, utilities must cooperate with stakeholders and local governments to ensure the gas resource planning aligns with the state’s climate goals and greenhouse gas emissions targets.

Several states, including Colorado, Massachusetts, and Vermont have initiated long-term proceedings to examine the operations of natural gas utilities, aiming to incorporate the implications of electrification goals and emissions reduction requirements into the planning processes of distribution utilities.