HF4829

Purpose

• The bill aims to advance the deployment of energy storage and related distributed generation by mandating actions from the Public Utilities Commission (PUC) and utilities, including orders, tariffs, plans, and an incentive program, plus updates to how distributed generation capacity is measured and managed.

Main Provisions

• Directs the PUC to issue an order that requires utilities to install an energy storage system under specified conditions.
• Requires utilities to file a tariff with the PUC.
• Requires the PUC to issue orders mandating the installation of energy storage systems.
• Requires utilities to file a plan to install energy storage systems.
• Establishes an incentive program to promote the installation of energy storage systems.
• Appropriate money to support energy storage deployment.
• Amends Minnesota Statutes 2024 § 216B.1611 by adding a new subdivision (Subd. 5) focused on how distributed generation capacity is measured and treated.
• Adds a definition and rules around on-site, customer-owned distributed generation facilities, including how their capacity is calculated and managed.

Significant Changes to Existing Law

• Capacity measurement change: For interconnecting on-site customer-owned distributed generation facilities, the capacity must be measured and expressed as export capacity (not nameplate capacity) and in terms of alternating current capacity.
• Export capacity definition: Export capacity is the facility’s nameplate capacity minus any limitations on how much power it can export to the utility’s distribution system, including limitations due to equipment such as inverters, relays, or energy storage systems, as reported to the utility by the facility owner.
• Capacity upkeep rule: The owner cannot increase export capacity beyond the initial interconnection level unless the utility provides written approval.
• Utility response requirement: If an owner submits a request to increase export capacity, the utility must respond in writing within 90 days and may only reject the request if the approval would reduce safety or the reliability of electric service.
• Implementation timeline: The PUC must issue the order clarifying the export-capacity measurement by November 1, 2026.

Implementation Details

• The above changes require coordination between customers with distributed generation, utilities, and the PUC to ensure interconnections reflect export capacity and that safety and reliability are maintained.
• The incentive program and plan requirements are intended to accelerate deployment of energy storage alongside distributed generation.

Potential Impacts (high level)

• Storage deployment could increase due to the new incentives, plans, and required installations.
• Interconnection processes and how capacity is accounted for may shift toward considering export capacity, potentially affecting project sizing and approval timelines.
• Utility planning and safety/reliability considerations become more explicit in interconnection decisions.

Relevant Terms energy storage, energy storage system, Public Utilities Commission (PUC), interconnecting, onsite distributed generation facility, distributed generation, export capacity, nameplate capacity, alternating current capacity, inverter, relay, interconnection agreement, capacity, safety, reliability, tariff, incentive program, appropriation, plan to install, memorandum or order.