MN HF1174

Public Utilities Commission must initiate a proceeding within 30 days of July 1, 2014, to establish generic standards for utility tariffs for interconnection of distributed generation projects up to 10 megawatts fueled by natural gas, renewable fuel, or similarly clean fuel.

Tariff standards must include low-cost standardized interconnection procedures, standard interconnection agreements, standard applications, and terms ensuring safe and reliable operation while expediting application evaluation.

Tariff standards must reflect utility savings from avoided demand charges and transmission costs, include payments for ancillary services, and address coordination with the Midcontinent Independent System Operator when power flows into transmission facilities.

Commission shall develop financial incentives for utilities based on their performance in reducing barriers to distributed generation and analyzing optimal locations on their distribution systems for siting future projects.

All public utilities must file distributed generation tariffs within 90 days of the commission's order, and must maintain records and file annual reports on interconnection applications, existing facilities, and optimal interconnection locations.