Press Release

July 09, 2024

Minnesota PUC Paves the Way for Equity Improvements in Accepting Xcel’s Integrated Distribution Plan

St. Paul – The Minnesota Public Utilities Commission (MPUC) accepted Xcel Energy’s Integrated Distribution Plan (IDP) during its deliberative meeting on July 2. The IDP provides a long-term roadmap for Xcel’s distribution system planning and strategy, and to some degree provides guidance for the Commission’s decisions on specific cost recovery requests from the utility in its rate cases.

The Commission’s order includes several significant decisions aimed at improving efficiency, reliability, and equity in Minnesota’s electricity grid, including:

• Requiring Xcel to re-evaluate integrated volt/var optimization (IVVO) to enhance grid efficiency, focusing on targeted, cost-effective deployment and potential benefits, including for under-resourced communities.
• Mandating Xcel to continue to improve its integration of distributed energy resources (DERs) through flexible interconnection, DERMS, and dynamic hosting capacity, in a more transparent manner with stakeholder input.
• Directing Xcel to work with stakeholders to refine its Planned Net Load (PNL) methodology, including reevaluating its dependability factor, which would help more appropriately value and enhance the integration of local solar power within the grid.
• Establishing a stakeholder process to develop a framework for cost allocation and proactive upgrades for Xcel Energy, ensuring investments prioritize value for ratepayers before Commission approval.

The MPUC also discussed the importance of the demonstrated disparities in disconnections and reliability for low-wealth and BIPOC customers, and the potential for addressing these inequities in future IDPs. Xcel and stakeholders discussed these disparities and potential solutions further at a MPUC Staff-led meeting on July 9. There will be a forthcoming written comment opportunity in Xcel’s Safety, Reliability, and Service Quality proceeding, to inform potential future commission action on these issues.

Erica McConnell, ELPC Staff Attorney, said:

“Xcel’s IDP is a big step forward for Minnesota, reflecting the Commission’s commitment to enhancing grid efficiency and reliability through the further evaluation of tools like IVVO and improved integration of distributed energy resources. By ensuring the grid is increasingly able to optimize the use of rooftop solar, energy storage, and other DERs, the Commission is not only prioritizing affordable, reliable power but also encouraging community and customer empowerment. While there is still much to do in future IDPs and elsewhere, especially to ensure the benefits of DERs reach disadvantaged communities, we are pleased the Commission recognized this opportunity and is taking proactive steps to ensure system-wide access to clean energy and its benefits.”