MN SF4281

Expands the definition of "public utility" and "service" in Minnesota law to include thermal energy networks (TENs), while exempting retail sellers of TEN service that were operating before January 1, 2026

Requires public utilities to submit TEN service plans to the Public Utilities Commission for approval before constructing thermal energy networks, with plans including project costs, construction schedules, customer transition plans, and efforts to offset costs through federal, state, or local incentives

Mandates customer transition plans when converting gas customers to TEN service, including technical assistance, communication about projected costs, and protections for low-income customers from inequitable retrofitting or operational costs

Establishes priority zones for TEN projects in areas with aging or leak-prone gas infrastructure, no existing piped gas, communities expressing desire for TENs, or areas identified in state environmental justice definitions under section 116.065

Allows utilities to recover reasonable and prudent TEN implementation costs through general rate cases, but prohibits cost recovery for gas infrastructure in areas approved for TEN service except for safety-related decommissioning costs