Thermal Energy Network Deployment Work Group

The PUC established the Thermal Energy Network Deployment Work Group to examine the potential regulatory opportunities for regulated natural gas utilities to deploy thermal energy networks. Also, the work group will look at the potential barriers to development while taking into consideration the public benefits, costs, impact of deployment of thermal energy networks, and rate design options.

Thermal Energy Network (or “TEN” for short) is as a project that provides heating and cooling to multiple buildings connected via underground piping containing fluids that, in concert with heat pumps, exchange thermal energy from the earth, underground or surface waters, wastewater, or other heat sources.

The TEN deployment work group will prepare a report to the legislature by December 31, 2025, detailing the work group’s findings and recommendations regarding how to deploy TENs within a regulated context in a manner that protects the public interest and considers reliability, affordability, environmental impacts, and socioeconomic impacts. The legislative report will be filed in Docket G-999/CI-21-565 to allow parties an opportunity to comment on the report’s findings. The work group will then terminate one day after its report has been submitted.

Commission staff will reach out to relevant stakeholders to finalize a work group roster. Staff anticipates filing the finalized work group roster in a separate notice in this docket by October 4, 2024.

Any organization interested in joining the work group roster or otherwise participating in the process should reach out to Trey Harsch (trey.harsch@state.mn.us) at the Public Utilities Commission.

The Commission currently plans to host four workshops intended to educate the work group on various aspects of TEN development and deployment. These workshops will include presentations from individuals with expertise relevant to each discussion and dedicated time for Q&A. The workshops will discuss the following broad topics: 

• National review of thermal energy network technology 

• Impacts of TEN deployment on communities, the workforce, and the electric grid 

• Necessary policy and regulatory innovation for TEN implementation 

• Costs and rate design options 

Between workshops, the Commission may hold roundtable discussions and additional meetings to further discussions on regulatory opportunities and barriers associated with TEN implementation, and/or formulating recommendations on how to deploy TENs within a regulated context. Prior to each of these meetings, parties will be invited to provide written comments to help guide discussion. 

Additional information about each meeting, including the schedule, location, timing, and content will be provided in this docket prior to each meeting.