This bill aims to enhance energy management in Minnesota by requiring public utilities to provide additional information in their resource plans and to establish a virtual power plant tariff and program. Specifically, it mandates that utilities include estimates of peak demand reductions and associated costs from implementing a virtual power plant program in their resource plan filings. The bill also introduces a new section in Minnesota Statutes that outlines the definitions, objectives, and operational requirements for the virtual power plant program, which is designed to aggregate electricity from distributed energy resources and activate demand response measures during grid events.

Furthermore, the bill sets forth specific goals for the virtual power plant program, including reducing demand during system peaks, optimizing the use of renewable energy, and lowering greenhouse gas emissions. It establishes a framework for the commission to approve, modify, or reject the proposed tariffs and programs, while also allowing for cost recovery for utilities implementing these programs. Additionally, starting in 2028, public utilities are required to meet system peak reduction targets and report annually on their progress and contributions to grid services. The effective date for these provisions is the day following final enactment.

Statutes affected:
Introduction: 216B.2422