News of the week

Legislative session ends in chaos, still nets victories for MMUA

When the turmoil ceased at the stroke of midnight on Sunday, May 19, what emerged was a 1,400-page omnibus bill comprised of the tax bill and eight other pieces of legislation that had been tabled. In all, the bill that passed contains 73 separate articles.

Included in HF 5247 are updates to the Energy Conservation and Optimization Act of 2021 (ECO). Two of these provisions implement changes sought by MMUA. The first change exempts the sales of electricity to certain data-mining operations from the sales used to calculate a utility’s Conservation Improvement Goal. The second provision treats municipal gas utilities in the same manner as investor-owned gas utilities by setting a uniform Conservation Improvement Program (CIP) target of one percent of sales. MMUA was also successful in helping prevent most new mandates from becoming law or at least from applying to municipal utilities. A complete summary of the 2024 legislative session will be available in the June issue of The Resource. We will also be reviewing the legislation and its implications for municipal utilities in greater depth at our upcoming regional meetings (see below for more information).

Unfortunately, not everything turned out rosy. The heightened animosity between parties made it impossible to secure the required super-majority vote to pass a true bonding bill, and a last ditch effort to secure approximately $90 million in cash for a narrowed list of projects failed when the Senate was unable to complete its roll-call vote on the measure before the midnight deadline. This legislative inaction puts numerous infrastructure projects, including roads, health centers, and public works, at risk.

Bradley Peterson, executive director of the Coalition of Greater Minnesota Cities, expressed concern over the potential delays or cancellations of these essential projects, particularly in rural areas. Without state funding, many communities face significant financial burdens to comply with state and federal regulations, impacting ratepayers and property-tax payers. Although some projects have federal funding, state support remains crucial for large-scale water and wastewater projects. The failure to pass the bonding bill this session follows a similar shortfall in 2022, and legislative leaders have already dismissed the possibility of a special session, deferring any potential solutions to next year's legislative agenda.

To learn more, click here.

Last chance to complete the 2024 salary survey

Annually, MMUA conducts a survey of salaries being paid within the municipal utilities space in Minnesota. Both members and nonmembers are encouraged to respond. Once the data has been gathered, all participating communities will have access to the results. Thank you in advance for providing information on your town's salary practices!

Click here to complete the survey. If you have any questions, please contact MMUA Organizational Development and Human Resources Manager Shelly Dau. The deadline to complete the survey is this Friday, May 24.

Advocates call for utility shutoff moratorium in Minnesota

Energy equity advocates are urging Minnesota regulators to reinstate a utility shutoff moratorium after a recent University of Minnesota study found racial disparities in disconnections by Xcel Energy. The analysis claims Xcel customers in communities of color were over three times more likely to face electricity disconnections than those in predominantly white areas, even after accounting for income and other factors.

Xcel Energy attributes these disparities to broader economic and social issues, not the energy system itself. Nevertheless, the findings led groups such as the Environmental Law & Policy Center and Sierra Club to call on the Minnesota Public Utilities Commission (PUC) to conduct a study on the costs and benefits of reinstating the state’s pandemic-era moratorium on utility shutoffs. Advocates recommend proactive investments in grid reliability and energy efficiency programs in disadvantaged areas to address these inequities. The PUC is set to discuss the study’s findings and potential policy actions in July.

While the PUC cannot order a municipal utility to impose a moratorium on shutoffs, municipal utilities may recall the pressure put upon municipal utilities to voluntarily impose a moratorium on shutoffs during the pandemic. Thus, MMUA will continue to track this issue. To help MMUA prepare to respond, if necessary, to the call for a moratorium on shutoffs, it would be helpful to learn more about the impact the voluntary pandemic moratorium had upon hometown utilities. Please send this information to Kent Sulem.

To read more, click here.

APPA awarded $4 million DOE grant to enhance cybersecurity

The American Public Power Association (APPA) has received a $4 million grant from the Department of Energy (DOE) to strengthen cybersecurity defenses among its member utilities. The grant, part of the Rural and Municipal Utility Cybersecurity (RMUC) Program established by the Infrastructure Investment and Jobs Act of 2021, will help protect public power utilities from cyber threats.

APPA President and CEO Scott Corwin highlighted the importance of this collaboration in bolstering member cybersecurity, especially for small utilities with limited resources. The initiative focuses on assessments, training, and improving incident response capabilities. APPA aims to enhance member participation in information sharing and develop new resources such as guidebooks and training courses. The four-year program will evaluate cybersecurity maturity, support communities of practice, and build capacity within the public power sector. The grant addresses critical needs as smaller utilities face ongoing cyber threats without adequate funding or internal resources.

To read more, click here.

Call for MMUA Board nominations

MMUA has seats on the Board of Directors to be filled at the annual membership meeting in August, and our Nominations and Awards Committee is accepting nominations for these positions.

We want to hear from you! Nominations can be sent via email to our CEO, Karleen Kos. All nominations will be considered, though note we are seeking experienced leaders who are committed to MMUA’s mission of unifying, supporting, and serving as a common voice for hometown utilities. The deadline for submissions is June 30.

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.