FOR IMMEDIATE RELEASE
Press Contact:
Jo Olson, Chief Communications Officer, Fresh Energy
on behalf of the Clean Heat Minnesota coalition
218.290.6247, olson@fresh-energy.org
Minnesota PUC Issues Notice of Comment Period within Future of Gas Docket, Input Could Move the Needle Towards Clean Heat
This Comment Period Kicks Off the Next Phase of the Future of Gas Docket, Which Will Examine Changes Needed to Meet the State’s Climate Goals
ST. PAUL, MINN. (May 7, 2025) — On Monday, May 5, 2025, the Minnesota Public Utilities Commission (PUC) issued a notice of public comment period in the Future of Gas docket regarding what actions the PUC should take to modify existing gas line extension policies for rate-regulated gas utilities. The comment period opened on May 5 and will conclude on September 9, 2025.
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 reductions goals in the Future of Gas docket, which was initiated in 2021. This is the first comment period in the docket on regulatory or policy changes that could put Minnesota on a path towards those emission reduction goals.
This docket marks an important opportunity for the public to urge the PUC to consider how Minnesota gas utilities can reach net-zero emissions in a way that is equitable and affordable for all. The PUC will have the opportunity to review the impacts of different pathways towards decarbonization and their potential costs to energy-burdened customers. The docket will analyze the speed of decarbonization, potential workforce development opportunities, and the broader impacts to Minnesota communities — especially impacts based on factors like income, home ownership status, and race and ethnicity. Additionally, with a modern and clean electric grid powering homes and appliances, current gas line extension policies in place at gas utilities are out of step with Minnesota’s goal of achieving net-zero emissions as rapidly as possible.
“Many Minnesotans are rethinking the use of natural gas in their homes and buildings. Gas is harmful to our health and incompatible with a net-zero future. Current line extension policies are explicitly designed to expand the gas system — this makes achieving emission reduction targets more difficult. It’s time to rethink this policy so that Minnesota can instead focus on providing affordable, clean heat for those who live here. The Future of Gas docket is a critical opportunity for the PUC to consider how the gas distribution utilities can contribute to Minnesota’s net-zero goals and develop business models for the future that aid the transition from gas to clean heat, support ratepayers and Minnesota communities, create workforce opportunities, and more,” said the Clean Heat Minnesota coalition in response to the comment period notice.
Line extension policies encompass a utility’s construction of gas mains, service lines, and meters to serve a new customer. It enables gas systems to grow, and is based on the gas utility’s assumption that the benefits of adding a new customer to the system outweigh the costs. Under this rationale, it is assumed that the new customer will pay enough in rates over time to make up for the cost to connect that customer — but that is no longer the case. With Minnesota’s adoption of the Climate Action Framework and accompanying legislation, the PUC will need to reevaluate current line extension policies to meet net-zero emissions. Any new pipe that is installed today also runs the risk of becoming a “stranded asset” in the future, leaving customers to foot the bill for its financial recovery. The more we invest in new gas infrastructure today, the higher that bill for customers could one day be and the farther we stray from our emission targets and goals of delivering safe, affordable, clean energy for all Minnesotans.
About Clean Heat Minnesota: Clean Heat Minnesota is a multi-racial, statewide coalition of more than 30 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.
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