Minnesota Public Utilities Commission

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On December 23, 2019, the Minnesota Court of Appeals reversed and remanded a decision by the Minnesota Public Utilities Commission (the “Commission”) approving affiliated-interest agreements permitting Minnesota Power and its Wisconsin affiliate to move forward with the construction of a large natural gas facility – the Nemadji Trail Energy Center (“NTEC”) – in Superior, Wisconsin (the “Order”). The result of the Order may complicate the already complex issue of state permitting, specifically a state’s ability to regulate activity occurring in another state.

Honor the Earth and certain Clean Energy Organizations sought additional review of the Commission’s order based on concern about the lack of a Commission-ordered environmental assessment worksheet (“EAW”) pursuant to the Minnesota Environmental Policy Act (“MEPA”). During the initial Commission proceeding, Minnesota Power, and indeed the Commission, determined that an EAW was not necessary because (1) MEPA does not apply to the affiliated-interest agreements because NTEC does not meet the definition of “project” under MEPA, and (2) the Commission does not have authority to order an EAW for a project located in Wisconsin. In its Order, the Court of Appeals addresses each point, in turn.

The Order holds that MEPA applies to affiliated-interest agreements. Contrary to the Commission’s interpretation, the Court of Appeals concludes that the NTEC affiliated-interest agreements are “projects” as defined by MEPA. The Court’s definition of “project” is “a definite, site-specific, action that contemplates on-the-ground environmental changes.” The Order notes that the construction and operation of NTEC are definite and site-specific actions that will affect the immediate location as well as the surrounding environment (including Minnesota – 2.5 miles away – and Lake Superior). The Court went on to note that because the construction of NTEC is an environmentally significant event that may not occur without Commission approval of the affiliated-interest agreements, Commission approval of such agreements constitutes indirect governmental action manipulating the environment and triggering MEPA. Therefore, the Court concluded that MEPA “applies to the governmental action of approving the NTEC affiliated-interest agreements.”Continue Reading Minnesota Court of Appeals Determines MEPA Review Required for Wisconsin Natural Gas Generating Facility

Today, the MN PUC concluded a nearly four-year effort on updating environmental costs established under section 216B.2422 subd. 3 of the Minnesota Statutes.  Before getting to the decision, a bit of context.

Background:

Under section 216B.2422, the MN PUC is required to, “to the extent practicable, quantify and establish a range of environmental costs…

Yesterday, the Minnesota Public Utilities Commission (“MPUC”) approved a settlement between Xcel Energy and various intervening stakeholders, to resolve the revenue requirement issues in Xcel Energy’s pending multi-year rate increase.  The MPUC appeared to struggle with accepting the settlement in lieu of the full evidentiary record it is used to on financial issues.  Nonetheless, it…

Yesterday, Governor Mark Dayton announced his appointment of Minnesota State Senator Katie Sieben to a six-year term on the Minnesota Public Utilities Commission (MPUC). He also appointed current MPUC commissioner Nancy Lange as chair of the MPUC, filling the vacancy left by outgoing chair Beverly Jones Heydinger. Both Sieben and Lange will begin their terms…

Minnesota Power released a Request for Proposals (RFP) yesterday for up to 300 MW of wind generation, with proposals due by September 7, 2016. A copy of the RFP and additional details are available at http://www.mnpower.com/Company/PowerSupplyRFP. Minnesota Power also filed its press release with the Minnesota Public Utilities Commission (MPUC).

Minnesota Power will also…

The Minnesota Public Utilities Commission (MPUC) approved several major changes to Xcel Energy’s Community Solar Garden (CSG) program yesterday, while also voting to maintain other aspects of the CSG program. Mike Hughlett of the Star Tribune has this report. The MPUC’s decisions are summarized below:

Bill Credit Rate

  • Declined to modify the Applicable Retail

…

Today, the Eighth Circuit determined that the Next Generation Energy Act (“NGEA”), a Minnesota law that established power sector standards for carbon dioxide emissions, was unconstitutional (decision available here). In so doing, the Court affirmed the decision of District Court Judge Susan Nelson, whose 2014 decision we covered in “Court Declares Minnesota…

The Minnesota Court of Appeals filed its decision today affirming the Public Utilities Commission’s August 6, 2015 Order in the community solar garden proceeding, which adopted the partial settlement agreement between certain solar developers and Xcel Energy and decided several crucial aspects of Xcel’s community solar program, including the 5 MW cap on co-located gardens. …

Minnesota solar developer SolarStone Partners, LLC filed a Motion for Clarification of the Minnesota Public Utilities Commission’s September 2014 Order Approving Solar-Garden Plan with Modifications. Specifically, SolarStone is requesting clarification of the Commission’s interpretation of the requirement in the Community Solar Garden Statute that a project must be located within the utility’s service territory. One…

Xcel Energy filed its monthly report for the Community Solar Garden program with the Public Utilities Commission last week, revealing that 24 projects are moving to the beginning stages of construction.

Xcel also reports that, “after receiving over 600 applications in the surge to submit co-located projects, the pace has slowed considerably.” There are currently…