Grid Modernization

The Minnesota PUC, in its July 2009 Order in Docket No. E999/CI-08-948, defined smart grid as follows: A smart grid encompasses information and control technology to improve the reliability, security, and efficiency of the electric grid. 

A smart grid allows deployment and integration of distributed and renewable resources, “smart” consumer devices, automated systems, and electricity storage and peak shaving technologies.

The MPUC first opened an investigation into smart grid in 2008 and asked for input from utilities, stakeholders, and the public. After receiving comments, the MPUC issued an Order in June 2009 doing the following: 

1. requiring utilities to submit yearly reports on current and planned smart grid projects; 
2. encouraging utilities to petition for cost recovery of reasonable costs related to smart grid; 
3. stated that it may require enhanced information on pricing to purchasers of electricity service; and 
4. stated its intention to continue gathering information on smart grid through public meetings. The Commission has continued to gather information on smart grid

The Commission has authorized cost recovery for any type of equipment where the cost is incurred reasonably and prudently, whether or not it is smart grid-related. Utilities have already submitted proposals for projects that could be considered to include smart grid equipment and would be granted cost recovery on a case-by-case basis. There is no single decision where the Commission has stated it will automatically grant cost recovery for smart grid equipment, because the Commission first would review the specific project to ensure costs are reasonable.

Rate-regulated utilities are required to file informational reports by April 1 of every year (starting in 2010) listing their current and planned smart grid projects in Docket No. E999/CI-08-948, the Commission’s generic docket on smart grid. 

Smart grid reports were discontinued in 2015 per Commission Order.

What happened in 2015?

Over the past five years, the annual smart-grid reports and stakeholder workshops have kept the Commission informed of current developments in smart-grid technology and the status of smart-grid implementation in Minnesota. While these tools have served their informational purpose well, the Commission believes that the time has come to close this docket and to consider, in a more focused way, how the Commission can most effectively facilitate the development of an integrated, dynamic grid. 

Although utilities will not, for the time being, be required to file annual reports, the Commission fully intends to continue engaging with utilities and stakeholders to ensure that Minnesota is well positioned to move forward with the modernization of its electric grid

Order Closing Docket 08-948