Renewable and Environmental Dockets
The Commission ensures utility compliance with renewable energy obligations, determines the future cost of carbon and other externality values, and oversees utility green pricing programs.
Renewable Energy Obligations
The Commission ensures that electric utilities are in compliance with four different clean energy standards outlined in Minn. Stat. § 216B.1691: the Eligible Energy Technology Standard (formerly the Renewable Energy Standard), the Solar Energy Standard, the Distributed Solar Energy Standard, and the Carbon-Free Standard. Obligated utilities submit annual reports demonstrating that they have met or will meet the standard obligations prescribed in statute. Utility compliance is measured through the retirement of credits, most commonly Renewable Energy Credits (RECs). A singular credit represents one megawatt-hour of energy generation and can only be retired once, ensuring that no double-counting of clean energy occurs. Utilities may generate their own credits or purchase credits to comply with the standards. Credit activities are tracked and measured by CleanCounts, formerly the Midwest Renewable Energy Tracking System (M-RETS).
-
Formerly called the Renewable Energy Standard, the Eligible Energy Technology Standard (EETS) was originally established in 2007 and requires certain utilities to serve 55 percent of their load with eligible technologies by 2035. These technologies include: solar, wind, small hydroelectric, green hydrogen, and certain types of biomass. In 2023, the statutory definition of “electric utility” was amended, and the Commission consequently expanded the number of utilities subject to the EETS in its December 6, 2023 Order in Docket 23-151. The Commission set standards for RES (now EETS) compliance and reporting in Docket 03-869 and utilities report compliance in annual dockets ending in “-12” (e.g., 26-12 for the reporting year 2026).
-
The Solar Energy Standard (SES) was established in 2013 and requires Minnesota’s three investor-owned electric utilities (Minnesota Power, Otter Tail Power, and Xcel Energy) to obtain at least 1.5% of their energy from solar energy, beginning in 2020. Ten percent of each utility’s solar obligation must be from small solar facilities, commonly referred to as the “small scale carve-out.” The Commission set standards for SES compliance and reporting in Docket 13-542 and utilities report compliance in annual dockets ending in “-12” (e.g., 26-12 for the reporting year 2026).
-
The Distributed Solar Energy Standard (DSES) was established in 2023 and requires Minnesota’s three investor-owned electric utilities (Minnesota Power, Otter Tail Power, and Xcel Energy) to serve between 1% and 3% of their electric load with small distributed solar systems, such as rooftop panels on homes or businesses, by the end of 2030. For utilities with fewer than 100,000 customers, at least 1% of sales must be from distributed solar; for utilities with more than 100,000 customers, at least 3% of their sales must be from distributed solar. This standard is separate and distinct from the small scale carve-out in the SES. The Commission set standards for the DSES in Docket 23-403. Although compliance reporting for the DSES will not begin until 2031 (for compliance year 2030), the Commission’s June 26, 2024 Order in that docket specified that utilities must begin reporting preparedness for meeting the DSES in annual dockets ending in “-12” (e.g., 26-12 for the reporting year 2026).
-
The Carbon-Free Standard (CFS) was established in 2023 and requires certain electric utilities to procure 100% of their electricity from carbon-free resources by 2040. The CFS is unique among standards in that it permits for partial compliance from partially carbon-free facilities as well as from net market purchases, but only for the portion that is considered carbon-free. The Commission is currently in proceedings to establish criteria, parameters, and guidelines for utilities required to meet the CFS. These activities are in Dockets 23-151 and 24-352. As part of these proceedings, the Commission’s December 6, 2023 Order in Docket 23-151 specified which utilities are subject to the CFS. Further, although compliance reporting for the CFS will not begin until 2031 (for compliance year 2030), the Commission’s September 16, 2025 Order in that docket specified that utilities must begin reporting preparedness for meeting the CFS in annual dockets ending in “-12” (e.g., 26-12 for the reporting year 2026).
Externalities and Cost of Carbon
The Commission reviews the Integrated Resource Plans (IRPs) of Minnesota’s generation-owning electric utilities on a periodic basis, and more recently has begun a gas resource planning process. As part of these processes, the Commission reviews a utility’s planned builds and expected costs for serving customers, both real-life costs and the unrealized “costs” of carbon dioxide and other environmental pollutants. These carbon and pollutant costs are often collectively referred to as “externalities.” The Commission’s most recent action on carbon and externality values for electric IRPs was its December 19, 2023 Order in Dockets 07-1199, 22-236, and 14-643. The Commission’s most recent action on carbon and externality values for gas IRPs was its April 29, 2026 Order in Dockets 21-565 and 07-1199.
Green Pricing Programs
Per Minn. Stat. § 216B.169, electric customers may choose to pay a premium to receive 100% of their electricity from renewable resources. These programs are referred to as “green pricing” programs. To serve green pricing customers, the utilities build additional green generation, above and beyond their standard obligations. Utilities report green pricing generation in annual dockets ending in “-12” (e.g., 26-12 for the reporting year 2026).
