Press Releases
FOR IMMEDIATE RELEASE
Press Contact:
Lincoln Le
lincoln.le@sunstonestrategies.com, 954.701.1363
Utility regulator delays action to cut $34 million in gas utility charges for Minnesota customers
Advocates called on the Minnesota Public Utilities Commission to follow the lead of states ending costly line extension allowances, opening the door to a more affordable clean-energy future
ST. PAUL, MINN (June 4, 2026) — State utility regulator – the Minnesota Public Utilities Commission (PUC) – today moved to maintain the line extension allowance policy for gas utilities. The policy allows utilities to profit by charging existing Minnesota customers an estimated $34 million every year to extend gas pipes to add new customers while also delivering a return to shareholders.
The mission of the Minnesota PUC is to improve the lives of all Minnesotans by ensuring safe, reliable and sustainable utility services at just and reasonable rates. Through its Future of Gas proceedings, the PUC chose to consider the line extension allowance policy at a time when Minnesotans continue to face mounting utility bills and growing energy debt. Across 2024 and 2025, nearly 60,000 Minnesota households were disconnected from gas service for unpaid bills, and Minnesotans currently owe more than $150 million in overdue utility bills.
Throughout the proceeding, Clean Heat Minnesota coalition member organizations hosted educational events and filed dozens of comments urging Minnesota regulators to slow the expansion of the gas system amid declining residential gas use and end the outdated policy of gas utility line extension allowances for new customers.
Members of the Clean Heat Minnesota coalition were not asked to speak at today’s hearing, and issued the following statements in response to the decision:
Natalie Cook, coalition manager, Clean Heat Minnesota:
“The Future of Gas proceeding is a critical opportunity to reimagine and build an affordable, clean energy system, which is why I’m disappointed the Commission chose not to end the unfair policy of line extension allowances. A future continuing to invest in both a gas and electric system is an expensive future and keeps communities hooked on the volatile cost of fossil fuels and growing utility charges.
“Regulators and stakeholders will now have to devote time and resources to continue to debate this policy rate case by rate case, all while utilities continue to profit and customers continue to pay millions in unnecessary costs and hold the financial risks of an expanding gas system. The Clean Heat Minnesota coalition and its members spent countless hours over the past year advocating for an end to line extension allowance policies. We have everything we need today to achieve the affordable, clean energy future we all deserve, and today’s decision by the Minnesota PUC is a failure to deliver on this opportunity.”
Monse Perez Barrios, environmental justice community outreach specialist, Communities Organizing Latine Power and Action (COPAL):
“COPAL has seen firsthand the crushing impact of rising energy costs. Recently, our hotlines have been overwhelmed by families who can’t afford their utilities, rent, food, or medication. It’s a dangerous domino effect that is pushing families into the streets. The decision of the PUC to maintain line extension allowances and defer the issue back to utility rate cases delays the relief our communities need. While we are incredibly proud of the dozens of grassroots members who showed up to demand an end to line extension allowances, it is deeply disappointing that the PUC chose to ignore these lived experiences of health, inequality, and affordability. Our communities spoke clearly; it is time for the Commission to listen and build a more just system.”
Dr. Curtis Nordgaard, a local pediatrician and researcher:
“As a health professional, I see every day how air pollution and energy insecurity impact the well-being of Minnesota families. Households struggling with high gas utility bills are unsure if they’ll have enough food to eat and are foregoing medical care, while pollution from burning gas in our homes degrades our air quality and risks asthma attacks. The Minnesota Public Utilities Commission’s decision to maintain line extension allowance policies is a missed opportunity for regulators to provide cost relief for struggling families and to stop the expansion of a polluting and expensive gas system that is incompatible with a sustainable future for our children. Minnesota must prioritize cleaner, more affordable energy solutions that protect public health and build healthier communities for future generations.”
Ayan Derie, policy coordinator, Ayada Leads:
“Minnesota has an opportunity to refocus on energy investments that not only lower costs over time, but also reduce emissions and improve the air our communities breathe. For Ayada Leads, this work is deeply connected to the health and well-being of the people we serve, especially as we see how air quality and environmental conditions directly impact community health outcomes. At a time when affordability and public health challenges are growing, the Minnesota Public Utilities Commission should prioritize decisions that provide real relief to ratepayers and advance a cleaner, healthier energy system for all communities.”
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About Clean Heat Minnesota
Clean Heat Minnesota is a multi-racial, statewide coalition of more than 40 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.
FOR IMMEDIATE RELEASE
Press Contact:
Allison MacMunn, Clean Heat Minnesota
312.622.4004, info@cleanheatmn.org
Clean Heat Minnesota coalition urges the Minnesota Public Utilities Commission to end outdated practice costing gas utility customers $34 million annually
Minnesota has the opportunity to join other states in ending the outdated, costly practice of “line extension allowances” that allow gas utilities to charge existing customers for the cost of adding pipes to serve new customers.
ST. PAUL, MINN (May 20, 2026) — On June 4, 2026, the Minnesota Public Utilities Commission will convene to make a decision on the future of gas utility line extension policies (Docket No. G999/CI-21-565). This matter will be the first issue taken up by the Commission in its directive from the Minnesota Legislature to evaluate changes to gas utility regulatory and policy structures needed to meet or exceed Minnesota’s greenhouse gas emissions reduction goals.
As Minnesotans struggle with gas bills, utility costs continue to rise. Across 2024 and 2025, nearly 60,000 households were disconnected from gas service for unpaid bills. As of April 2026, Minnesotans are behind on their gas and electric bills by more than $150 million. While households struggle to pay bills, gas utilities are making record profits through building and replacing gas pipes. One way utilities generate those profits is through line extension allowances (LEAs), a policy that allows gas utilities to charge existing customers for the cost of adding pipes to serve new customers.
When utilities build gas lines for new developments, the costs are spread across all customers through monthly delivery charges. As a result, Minnesotans are effectively subsidizing the cost of expanding the gas system, making it easier and more profitable for utilities to grow their customer base. These costs are built into delivery charges on customer bills and collected over the course of many years. This means the costs accumulate over time, and, according to a report from the Future of Heat Initiative, can lead to increasing customer bills even when gas use decreases.
The Future of Gas docket was initiated in 2021, but the discussion around utility line extension policies began last summer. Throughout much of the proceeding, Clean Heat Minnesota coalition member organizations have hosted educational events and filed comments urging Minnesota regulators to slow the expansion of the gas system and end the outdated policy of gas utility line extension allowances for new customers.
“The Minnesota Public Utilities Commission should act now to slow gas system expansion, reduce these excessive utility profits, and prioritize energy affordability — all of which can be addressed by eliminating line extension allowances,” said Natalie Cook, Clean Heat Minnesota Coalition Manager. “A recent study from RMI shows that ending line extension allowances could save CenterPoint, Minnesota Energy Resources, and Xcel Energy customers an estimated $34 million every year.”
Minnesota wouldn’t be the first to address LEAs across the country. Colorado, New York, and California have already eliminated LEAs statewide, and other states like Maryland, Massachusetts, Oregon, and Washington are in the process of implementing similar changes. Additionally, polling conducted by Embold Research across nine states and the District of Columbia show 72% of voters are against the practice.
With Minnesota’s adoption of the Climate Action Framework and accompanying legislation, the PUC must reevaluate current line extension policies to meet or exceed the state’s 2050 net-zero emissions goal. 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.
The Clean Heat Minnesota coalition looks forward to working with the Commission on this critical policy change.
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About Clean Heat Minnesota: Clean Heat Minnesota is a multi-racial, statewide coalition of more than 40 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.
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
Clean Heat Minnesota coalition drives unprecedented engagement in Future of Gas docket at the Minnesota Public Utilities Commission
15 member organizations file expert comments urging Minnesota regulators to end outdated gas line extension incentives for natural gas utilities.
ST. PAUL, MINN (September 9, 2025) — Today, September 9, 2025, was the final comment deadline in the Future of Gas docket pertaining to gas utility line extension policies (Docket No. G999/CI-21-565) at the Minnesota Public Utilities Commission (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.
Since the start of this comment period in May, a broad and diverse range of clean energy advocates, consumer advocates, environmental justice advocates, energy efficiency advocates, local governments, community organizations, architects and builders, and public health organizations and professionals, filed comments in the docket, creating a clear, robust, and decisive record in support of ending gas utility line extension allowances.
Through the work of the Clean Heat Minnesota coalition, a total of 15 member organizations filed seven technical comments on the docket, highlighting 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. Filing member 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, RMI, 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.
Leading up to this supplemental comment period, Clean Heat Minnesota also hosted two public comment writing workshops, 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.
“Clean Heat Minnesota and its member organizations have driven public education and seen Minnesotans respond with interest in this docket across the state. Everyday people want clean, healthy options that don’t rely on only natural gas,” said Natalie Cook, Campaign Manager at Clean Heat Minnesota. “It’s inspiring to see so many diverse voices speaking up for ending this outdated practice of line extension policies that lead to harm to our climate, public health, and pocketbooks. It’s clear that the time to change this policy is now.”
With Minnesota’s adoption of the Climate Action Framework and accompanying legislation, the PUC must 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.
The Clean Heat Minnesota coalition looks forward to working with the Commission on this critical policy change.
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About Clean Heat Minnesota: Clean Heat Minnesota is a multi-racial, statewide coalition of more than 40 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.
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.