The bill amends Minnesota Statutes 2022, section 216B.164, subdivision 4, to modify the provisions governing cogeneration and the purchase of energy from qualifying facilities. It specifies that utilities must purchase all energy and capacity from qualifying facilities with a capacity of 40 kilowatts or more, as well as those defined in subdivision 3 and net metered facilities. Notably, for qualifying facilities with a capacity between 1,000 and 5,000 kilowatts that are interconnected with a public utility, the purchase price is set at 60 percent of the public utility's current average residential retail rate plus 100 percent of the energy/fuel adjustment charge. For facilities with a capacity over 5,000 kilowatts, the utility must pay the full avoided capacity and energy costs, which are determined through negotiations, commission setting, or competitive bidding.

Additionally, the bill allows for wheeling or exchange agreements for qualifying facilities with a capacity of 30 kilowatts or more, enabling them to sell their output to other Minnesota utilities. The commission is tasked with establishing methods and procedures to ensure that these facilities receive the full avoided energy and capacity costs, minus reasonable wheeling charges and line losses. The bill also mandates that the commission set rates for electricity generated by renewable energy, further promoting the use of renewable resources in the state.

Statutes affected:
Introduction: 216B.164