Plain English Breakdown
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SF4591 • 2026
Establish standards for distributed energy resource aggregators
Establish standards for distributed energy resource aggregators
Energy
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-03-18
House
Introduction and first reading
Official Summary Text
Establish standards for distributed energy resource aggregators
Current Bill Text
Read the full stored bill text
A bill for an act relating to energy; establishing standards for distributed energy resource aggregators; authorizing certain fees; appropriating money; proposing coding for new law in Minnesota Statutes, chapter 216B. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. new text begin [216B.1616] DISTRIBUTED ENERGY RESOURCE AGGREGATORS. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Distributed energy resources" means: new text end new text begin (1) distributed generation, as defined in section 216B.164, subdivision 2a; new text end new text begin (2) energy efficiency, as defined in section 216B.2402, subdivision 7; new text end new text begin (3) load management, as defined in section 216B.2402, subdivision 15; new text end new text begin (4) energy storage systems, as defined in section 216B.2422, subdivision 1; and new text end new text begin (5) other distributed resources located on the distribution system, at a distribution substation, or behind a retail customer meter. new text end new text begin (c) "Distributed energy resource aggregator" or "DER aggregator" means an entity that aggregates one or more distributed energy resources of retail customers for participation in wholesale markets administered by a regional transmission organization. A DER aggregator is not a public utility under section 216B.02, subdivision 4. new text end new text begin Subd. 2. new text end new text begin Commission authority. new text end new text begin (a) The commission may regulate the operations of DER aggregators to the extent consistent with federal regulation, including: new text end new text begin (1) regulating the operations of DER aggregators as needed to ensure the safety and reliability of utility distribution systems; new text end new text begin (2) protecting the interests of retail customers against subsidizing the wholesale market operations of DER aggregators; and new text end new text begin (3) resolving disputes regarding DER aggregator operations. new text end new text begin (b) Nothing in this section regulates wholesale market rules or participation requirements established under federal jurisdiction. new text end new text begin (c) A DER aggregator is prohibited from operating in the service area of an electric utility, as defined in section 216B.38, subdivision 5, with retail electric sales of less than four million megawatt hours during the prior calendar year unless the electric utility submits a request to and receives permission from the electric utility's cooperative board, a municipal utility board, or the commission to allow DER aggregators to operate in the electric utility's service area. new text end new text begin Subd. 3. new text end new text begin Retail rate integrity. new text end new text begin (a) A distributed energy resource enrolled in a utility program must not receive compensation for the same service provided during the same interval or for the same performance obligation in a wholesale market. new text end new text begin (b) The commission may by order establish verification and accounting standards to prevent double counting of capacity, energy, or ancillary services. new text end new text begin (c) Nothing in this subdivision prohibits a DER aggregator from simultaneously participating in retail and wholesale programs if the services provided are distinct and not duplicative. new text end new text begin Subd. 4. new text end new text begin Dispute resolution. new text end new text begin (a) The commission has jurisdiction to resolve disputes between (1) a DER aggregator and a public utility, or (2) a DER aggregator and a retail customer. new text end new text begin (b) The commission may resolve disputes regarding: new text end new text begin (1) the interpretation of distribution tariffs; new text end new text begin (2) retail contract terms; and new text end new text begin (3) the application of interconnection and distribution-level technical standards. new text end new text begin Subd. 5. new text end new text begin Utility DER aggregation tariffs. new text end new text begin (a) As directed by the commission, a public utility and electric utility with retail electric sales in excess of four million megawatt hours during the previous calendar year and that has opted for rate regulation under section 216B.026 must file with the commission for commission approval a tariff governing the terms and conditions for DER aggregators to operate within the electric utility's service territory. new text end new text begin (b) The tariffs under paragraph (a) must include provisions related to: new text end new text begin (1) protocols for communication and coordination between the utility and the DER aggregator to ensure the safety and reliability of the distribution system; new text end new text begin (2) accounting mechanisms to ensure that a DER aggregator or the DER's customers do not receive compensation from both wholesale markets and retail utility programs for the same service or benefit; and new text end new text begin (3) the exchange of customer usage data and system data between the utility and the DER aggregator. new text end new text begin Subd. 6. new text end new text begin Fees. new text end new text begin (a) The commission may assess fees on DER aggregators for the administrative costs incurred to implement this section. new text end new text begin (b) The money received from the assessment must be deposited into an account in the special revenue fund. All money deposited in the account is appropriated to the commission for the purposes specified under this section. An assessment made under this subdivision is not subject to the cap on assessments provided under section 216B.62 or any other law. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end