Energy Efficiency Resource Standard (Minnesota)
Last modified on February 12, 2015.
Rules Regulations Policies Program
|Name||Energy Efficiency Resource Standard|
|Incentive Type||Energy Efficiency Resource Standard|
|Applicable Sector||Investor-Owned Utility, Retail Supplier|
|Eligible Technologies||Custom/Others pending approval, Heat recovery, CHP/Cogeneration, Unspecified technologies, Biomethane|
|Energy Category||Energy Efficiency Incentive Programs, Renewable Energy Incentive Programs|
|Electric Sales Reduction||1.5% reduction of average retail sales beginning in 2010|
|Natural Gas Sales Reduction||1.5% reduction of average retail sales beginning in 2010|
|Date added to DSIRE||2010-12-15|
|Last DSIRE Review||2012-11-07|
| Last Substantive Modification
to Summary by DSIRE
In 2007, the Minnesota legislature passed the Next Generation Energy Act (NGEA), which requires both electric and natural gas investor-owned utilities to reduce energy sales by 1.5% of average sales. Average sales are calculated based on the most recent three-year weather-normalized average. The NGEA requires investor-owned utilities to invest the following amounts of their revenue in energy conservation improvements (including waste heat recovery but not utility infrastructure projects):
- Natural gas utilities: 0.5% of gross operating revenues (GOR) from service provided in the state
- Electric utilities: 1.5% of GOR from service provided in the state
- Electricity utilities that operate nuclear plants: 2% of GOR from service provided in the state
For all utilities, the following spending requirements apply:
- At least 0.2% of GOR must go toward programs for low-income customers
- A maximum of 10% of the minimum spending requirement may be spent on research and development projects
- A maximum of 10% of the minimum spending requirement may be spent on solar energy projects
- A maximum of 5% of the minimum spending requirement may be spent on other renewable and distributed generation projects
- All electric utilities must include programs that encourage customer use of efficient lighting
Each utility must develop a Conservation Improvement Plan (CIP) every three years and file it with the Energy Division of the Department of Commerce. Actual spending and energy savings must be reported on an annual basis. Waste heat recovery (converted into electricity) and utility infrastructure projects may count toward the energy savings goal. S.F. 550 allows for natural gas utilities' purchases of biomethane to count toward the energy savings goal. Energy savings in excess of 1.5% may be carried forward for up to 3 years, except in the case of savings from infrastructure projects, which may carry over for 5 years. NGEA allows for electric utilities and natural gas utilities to apply to the Commissioner of Commerce for a lower spending requirement. Certain large facilities may petition to have their revenues excluded from calculations determining investment and expenditure requirements.
The Office of Energy Security must provide reports on the annual energy savings achieved through the CIPs. The 2012 Energy and Carbon Dioxide Savings Report covers 2009-2010.
|Contact Name||Information - Conservation Improvement Program|
|Department||Minnesota Department of Commerce|
|Address||85 Seventh Place East, Suite 600|
|Place||St. Paul, Minnesota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||Minn. Stat. § 216B.241|
- Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.