News of the week

Lawmakers push for final direct pay rules for clean energy that will benefit municipal utilities 

US Representative Judy Chu (D-CA) and other House Democrats are urging the Department of Treasury and the Internal Revenue Service (IRS) to finalize rules allowing community-owned utilities to benefit from clean energy tax credits established by the Inflation Reduction Act (IRA). The IRA provides enhanced tax credits—also known as direct pay or elective pay—for clean energy projects that meet domestic content thresholds, supporting American manufacturing. Previously, not-for-profit entities like community-owned utilities couldn't claim federal energy tax credits, placing them at a disadvantage as compared to investor-owned utilities. 

Thirty percent of retail customers get power from community-owned utilities such as municipals and cooperatives, both of which can now claim tax credits for their projects and pass savings to ratepayers. Lawmakers stress that clarity on domestic content regulations is essential for these utilities to make informed investments. Finalizing these rules will enable community-owned utilities to plan and execute clean energy projects, contributing to a carbon-free electricity grid while keeping costs affordable.

To learn more, click here.

Two month deadline extension for 2023 ECO results reporting

On May 14, the Department of Commerce Division of Energy Resources emailed municipal and cooperative utilities to announce a two-month deadline extension for filing 2023 results and 2025 plans under the state Energy Conservation Optimization (ECO) program (formerly the Conservation Improvement Program known as CIP). 

Due to a delay in rolling out a new online reporting platform, utilities have until August 1 this year. The Department hopes the platform will be live for data reporting sometime in June or July. It will hold a training webinar for the new platform on June 13 from 2:00 to 4:00 which will be recorded for later viewing as well. For further information or to receive the platform training manual, contact Adam Zoet at the Department of Commerce.

MMUA hosting free June 27 webinar on Pregnancy Workers Fairness Act

MMUA invites all members to participate in a free webinar on Thursday, June 27 from 10:00 am to 11:30 am. The webinar will cover the final regulations set by Equal Employment Opportunity Commission (EEOC) on required accommodations for employees with limitations affected by pregnancy, childbirth, or other related medical conditions, presented by Organization Development and Human Resources Manager Shelly Dau.

Following the human resources portion of the meeting, we will take time to demonstrate elements of the new MMUA member portal and website that will be released in mid-June. Learn how to save time, enhance your benefits, and get the most out of the dynamic new system.

For questions about the webinar, reach out to events@mmua.org. To access the meeting, click here.

US electric demand to increase by 2.7 percent this summer, driven by data centers and economic growth

US electric demand is projected to rise by 2.7 percent this summer, reaching 1,487 terawatt-hours (TWh), according to the Federal Energy Regulatory Commission’s (FERC) annual summer energy market and reliability report. This increase is attributed to warmer weather, economic growth, and the expansion of data centers. Data center load is expected to grow to nearly 21 gigawatts (GW) this year, up from 19 GW in 2023. It is anticipated to reach 35 GW by the end of the decade.

Despite the rise in power demand, wholesale electricity prices are expected to remain stable or lower than last year outside of New England. Natural gas prices, a significant factor in power pricing, are forecast to be lower this summer. The Henry Hub futures contract price for this summer is averaging $2.25 per million British thermal units (MMBtu), a 9 percent decrease from last summer.

Total US summer capacity is expected to increase by 3.4 percent to 1,207 GW, with significant growth in battery storage capacity, projected to rise by 12.2 GW from last year. The National Oceanic and Atmospheric Administration predicts a hotter-than-normal summer for most of the US, particularly in the Northeast and interior West, with a one-in-three chance of setting a global heat record.

To read more, click here.

Call for MMUA award nominations

We remind you that MMUA's Nominations and Awards Committee is accepting nominations for MMUA's 2024 industry awards. This is a great way to recognize a municipal utility colleague, a public official, or a municipal utility system for showing leadership, innovation and providing an example for others to follow.

Nomination forms for the various awards can be downloaded from our website by clicking here. All nominations will be considered. The deadline for 2024 submissions is June 30. The awards will be presented at the MMUA Summer Conference in Fargo/Moorhead on August 21

Funding opportunities

Solar for Schools Grant Program

The Minnesota Department of Commerce Division of Energy Resources requests proposals from qualified schools throughout Minnesota for the Solar for Schools Grant Program (reference number: COMM_SFS05_20240110). The program, created by the State Legislature (Minn. Stat. 216C.375), is designed to provide grants to stimulate the installation of solar energy systems while using the opportunity to integrate renewable energy use into the school’s curriculum. Public schools, K-12 as well as Minnesota State Colleges and Universities, Tribal Contract and Cooperative Districts are eligible for funding based on financial need.

The full application is due Wednesday, June 7, 2024. For more information, click here.

Looking ahead

Interacting on the Issues

Last year, we had excellent meetings with commissioners and utility leaders about the outcome of the 2023 legislative session and its impact on local utilities. We also discussed regulatory issues, MMUA efforts to support municipal efforts, and we sought feedback on priorities for the coming year.



By popular demand, we are going back on the road this June. Join us for a session at one of four locations around the state.

The MMUA government relations team and peers from your region will discuss the implications of new laws, explore opportunities, and network with others committed to protecting, promoting, and strengthening hometown utilities.

There is no cost to attend, however registration is required for planning purposes. Encourage your whole council and commission to join us, learn how MMUA is advocating for your utility, and give us your perspective so we can continue to evolve how MMUA represents and supports you. We are especially eager to discuss ways MMUA can help commissioners champion hometown utilities. Learn more and register by clicking on the links below.

June 6—Hutchinson

June 13—Brainerd

June 26—Blue Earth

June 27—Alexandria

As always, thank you for your association with MMUA and your commitment to delivering excellent service through locally owned utility assets in your community. Have a great week!

Christian Glanville

Marketing and Member Relations Manager

Direct: 763.746.0727 / Cell: 612.655.0598

Fax: 763.551.0459

cglanville@mmua.org | www.mmua.org

To download a copy of this email, click here.

Hometown services. Hometown strengths. Hometown solutions.