This bill aims to enhance the resource planning and operational efficiency of public utilities in Minnesota by requiring them to include additional information in their resource plans and to establish a virtual power plant tariff and program. Specifically, public utilities must now estimate the reduction in their winter and summer system peaks due to the implementation of a virtual power plant program, as well as the associated costs. The bill amends Minnesota Statutes 2024, section 216B.2422, to incorporate these requirements and introduces new provisions under section 216B.2429, which outlines the definitions, objectives, and operational requirements for the virtual power plant program.

The virtual power plant program is designed to aggregate electricity from distributed energy resources and activate demand response measures to address grid events. Public utilities are required to file a virtual power plant tariff by 2026, which must include provisions for participant enrollment, performance-based compensation, and operational parameters. Additionally, the bill mandates that public utilities achieve a minimum ten percent reduction in their system peak energy demand by 2028, with the possibility of cost recovery for investments made to implement the program. Annual reports detailing the program's capacity, peak reductions, and contributions to grid services will also be required starting in 2028.

Statutes affected:
Introduction: 216B.2422