Distributed Energy Resources
Model Rules Governing the Interconnection of Cogeneration and Small Power Production Facilities
(Updated March 2022)
The Reason for the Rules
These model rules may be "personalized" for each Minnesota municipal electric utility and adopted by its governing body using, if desired, the model resolution included with the rules. The rules implement Minnesota Statutes Section 216B.164 and lay out the general rights and responsibilities of the utility and its customers regarding customer energy generation (solar panels, etc.). One of the most important of these responsibilities is the duty of the utility to make filings with its governing body showing the utility's annually re-calculated "Average Retail Utility Energy Rate" for each customer class and its "avoided cost" rate. These rates allow customers to approximate the payback period for investments they might make in self-generation or energy storage.
March 2022 Revision Summary
The primary changes in the March 2022 version of the model rules are as follows. Instead of requiring the Cogeneration and Small Power Production Tariff to be comprised of four schedules, the rules require three schedules, re-ordered and simplified. Only schedules 1 and 2 must be updated annually. They contain the rates referred to above and, going forward, may be filed with the utility's governing body anytime during the first quarter of the year. The definition of Average Retail Utility Energy Rate clarifies that the utility may exclude revenue from demand rates from ARUER calculations. Schedule 3 incorporates the Minnesota Municipal Interconnection Process by reference to replace the utility's individualized DER Interconnection Process. Where "qualifying facility" had been used to refer to a customer with a qualifying facility, "customer," or "customer with a qualifying facility" is used instead. And the definition of "customer" is clarified to mean a person or entity. A new Part G states the utility's intent to enforce its statutory right to refuse interconnection for third parties who would sell electricity in the utility's exclusive service area. The Uniform Contract incorporates the state's definition of "customer" to require that a party to the contract be an electric service recipient named on a utility account.
(Typographical edits were made March 28, 2022 to replace "schedule 4" with "schedule 2" in four places.)
Model Cogeneration and Small Power Production Tariff
(Updated March 2022)
The Reason for the Tariff
This tariff template can be completed and filed by municipal electric utilities with their governing bodies to meet the state's requirements for publishing the rates referred to above (through schedules 1 and 2 in the template) and to fulfill the state's requirement to have a comprehensive process in place that lays out the means for obtaining the utility's approval to operate solar, wind, storage and certain other types of facilities on the customer's premise (through schedule 3).
March 2022 Revision Summary
The primary changes in the March 2022 version of the model tariff reflect the changes incorporated in the March 2022 rules and also the incorporation of the 2022 version of Minnesota Municipal Interconnection Process, or "M-MIP" as the interconnection process to be followed by the utility and its customers. The 2022 M-MIP incorporates the state's definition of a "customer" (a person or entity named on the utility bill for the premise) into its definition of "Interconnection Customer" to clarify that the interconnection rights recognized are those of the utility's customers (not third parties).
MMUA contact: Bill Black
Related Documents
Minnesota Municipal Interconnection Process (M-MIP) 2022
Guidance Document for Model Solar Ordinance
Model Resolution for Adopting Solar Ordinance
Additional Resources
Ten Tips for Hiring a Qualified Installer (MN Dept. of Commerce)