Clean Heat Minnesota’s fight to end outdated gas utility line extension policies through public comments.
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Minnesota is currently reconsidering a decades-old policy under which gas utility ratepayers subsidize the growth of the gas system. The Clean Heat Minnesota coalition is urging Minnesota to eliminate them. In doing so, our coalition is actively building towards a future where every Minnesotan can live, work, and play in buildings heated with clean, safe, and affordable energy.
Find out more about the Future of Gas docket and Line Extension Allowances below.
A broad and diverse range of clean energy advocates, consumer advocates, environmental justice advocates, energy efficiency advocates, local governments, community organizations, and public health organizations, architects and builders, and professionals, filed comments in the docket, creating a clear, robust, and decisive record in support of ending gas utility line extension allowances.
Each time a new customer joins the gas system, there are costs for the construction of additional infrastructure needed to connect the new building to the gas system. This can include extension of gas distribution mains, service lines (which connect the main pipeline to the new customer meter), and the new meter itself.
Line extension policies say who pays the cost of installing these new pipelines and meters, and how much.
For decades, Minnesota gas utilities have shifted a majority of these costs to existing ratepayers using Line Extension Allowances (LEAs).
LEAs allow new customers to have a certain amount of new pipeline for free, with all other customers paying those costs instead. These costs amount to tens of millions of dollars each year paid for by gas utility customers. Since customers pay those costs as part of gas rates, the utility and its shareholders earn a return on these investments.
Minnesota has goals to reduce carbon emissions, and electric alternatives are becoming more available and economic for home heating needs. Now there are more reasons than not to eliminate LEAs for Minnesota’s gas utilities.
You can learn more about Line Extension Allowances and why Minnesota should eliminate them by reading our factsheet in both English and Spanish.
September 9, 2025, was the final comment deadline in the Future of Gas docket pertaining to gas utility line extension policies at the Minnesota Public Utilities Commission (PUC). This was the first comment period for this docket on regulatory or policy changes that could put Minnesota’s gas utilities on a path towards our state’s emission reduction goals.
We can make our voices heard at the PUC through a “docket process.” A docket is how public information is organized on official cases and rulemaking proceedings underway at a state agency or commission, such as the PUC.
Throughout the docket, member organizations of the Clean Heat Minnesota coalition filed comments urging Minnesota regulators to end gas utility line extension allowances for new customers, a decades-old policy under which existing ratepayers pay the costs for the construction of additional infrastructure to connect new buildings to the gas system.
The PUC is tasked with evaluating changes to natural gas utility regulatory and policy structures needed to meet or exceed Minnesota’s greenhouse gas emissions reduction goals in the Future of Gas docket, which was initiated in 2021. This is the first substantive comment period in the docket on regulatory or policy changes that could put Minnesota on a path towards those emission reduction goals.
During this process, a total of 15 member organizations also highlighted the serious health and climate impacts of natural gas use in homes, as well as the risk of rate increases by continuing to invest in a declining natural gas system. These organizations included: Ayada Leads, City of Saint Paul, COPAL, CUB Minnesota, CURE, Fresh Energy, Health Professionals for a Healthy Climate (HPHC), Local Climate Solutions, MCEA, Midwest Building Decarbonization Coalition, MN350 Action, Native Sun Community Power Development, Resilient Cities and Communities, Rewiring America, and Sierra Club.
Additionally, more than 30 coalition members, groups, and state agencies, including the Minnesota Department of Commerce, the Minnesota Housing Finance Agency, and the Minnesota Pollution Control Agency, signed on to a joint letter filed at the Commission supporting an end to line extension allowances — further bolstering the public record.
In August and September, Clean Heat Minnesota hosted both in-person and virtual public comment writing and public education workshops where coalition members and individuals across the state heard from regulatory experts, resulting in more community-member voices being added to the record, urging the PUC to consider how Minnesota gas utilities can reach net-zero emissions in a way that is equitable, healthy, and affordable for all.
I see with great concern the use of gas in homes and its impact on health, the economy, and climate change. I consider it necessary to modernize energy consumption with a clean energy system.
Elena in Coon Rapids
“I’m a single mom and a software engineer. I’m writing about the line extension allowance. I do what I can to fight climate change. I drive a used Chevy Bolt EV, compost, etc. I’m fortunate to be able to make these changes. If we’re going to meet net-zero greenhouse gas emissions by 2050, we need to shrink the gas system, not expand it. One way to begin shrinking is to make the customer pay for the line allowance. The reality is right now, existing customers pay for it.”
Gail
“My husband and I live in a 92-year old home. We have installed combination mini-split heat pump/air conditioning units. We have been able to use the heat pumps in the spring as temperatures rise, thus eliminating use of our gas-powered boiler earlier in the spring season. We also use the heat pumps in the fall to delay use of our boiler by a month or more. As our gas-powered appliances age, we will be replacing them with appliances that do not rely on fossil fuels. I plan to replace my gas-powered stove soon because I am concerned about its impact on indoor air quality and its release of greenhouse gases. Eliminating LEAs will provide a more level playing field for homeowners to more seriously consider purchasing heating systems and appliances that are not powered by fossil fuels. Investments by homeowners will make a real difference in Minnesota’s transition to eliminating greenhouse gases.”
Sherri
Collectively, we are making our voices heard in the decision-making process. Together, there is immense good we can do to realize a future where all Minnesotans have access to clean, affordable energy to power their heating, cooking, and appliances.
In the coming months, the PUC will meet to determine what to do about Line Extension Allowances and what topic to explore in the Future of Gas docket next.
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Clean Heat Minnesota’s fight to end outdated gas utility line extension policies through public comments. Welcome to the Clean Heat Minnesota blog! Minnesota is currently
Press Releases FOR IMMEDIATE RELEASE Press Contact: Jo Olson, Chief Communications Officer, Fresh Energyon behalf of the Clean Heat Minnesota coalition218.290.6247, olson@fresh-energy.org Minnesota PUC
