Clean Energy Organizations applaud Commission for supporting zero-carbon technologies

On February 6, 2025, the Minnesota Public Utilities Commission supported zero-carbon technologies by ordering additional energy efficiency and electrification measures in Xcel Energy’s Natural Gas Innovation Act (NGIA) portfolio (Docket #23-518).

After considering an extensive written record and stakeholder testimony, the Commission’s decision expanded key electrification and energy efficiency measures. These include a deep energy retrofit plus strategic electrification pilot targeting Xcel’s low-income customers and a commercial air-source heat pump plus thermal energy storage pilot.

Fresh Energy, Minnesota Center for Environmental Advocacy, and Sierra Club applaud the Commission for its forward-looking approach, which was also supported by the Minnesota Department of Commerce, in ensuring the utility’s NGIA plan prioritizes solutions to meet Minnesota’s greenhouse gas emissions reduction targets, improves public health, helps the most energy-burdened communities, and supports economic benefits for customers.
By highlighting the value of utilities’ investments in electrification and energy efficiency, the Commission is aligning regulatory expectations with Minnesota’s broader decarbonization efforts and providing a clear path forward for gas and dual-fuel utilities to explore opportunities to shift from fossil fuels onto zero-carbon energy sources.

The Commission also ordered upcoming discussions amongst Xcel, the Minnesota Department of Commerce, and stakeholders regarding further investments in electrification and energy efficiency in Xcel’s current and upcoming Energy Conservation and Optimization (ECO) Triennial plans. Notably, stakeholders will discuss the suitability of an all-electric new construction program modeled after Xcel’s initiative in Colorado.

“Fresh Energy is pleased with the Commission’s forward-looking decision to invest in scalable, climate-friendly technology like electrification and energy efficiency to meet Minnesota’s heating needs and decarbonization targets,” said Caitlin Eichten, director, building energy transition at Fresh Energy. “We look forward to upcoming conversations with Xcel Energy, the Minnesota Department of Commerce, and other stakeholders about including electrification and energy efficiency measures in ECO plans.”

“The Commission’s decision today ensures Minnesota is investing in key decarbonization solutions, especially those that will reduce energy burdens on some of the most impacted communities,” said Amelia Vohs, Climate Program Director at MCEA. “We applaud the Commission’s decision and look forward to these pilot projects and the resulting benefits they will provide.”

“The best path to meet Minnesota’s climate goals is also the path that will protect our communities’ health, create good jobs, and save Xcel ratepayers money. We appreciate Xcel Energy and the Commission for saying yes to a decarbonization plan by prioritizing deep weatherization and energy efficiency, storage projects, and critical industrial electrification that will benefit Minnesotans for years to come. This approach will allow Minnesota families and businesses – especially for those most impacted by energy burden – to more affordably meet their energy needs and become more climate resilient,” said Margaret Levin, Sierra Club Minnesota chapter director.

Passed by the Minnesota Legislature in 2021, the bipartisan Natural Gas Innovation Act provides a pathway for gas utilities to explore alternatives to fossil-based fuels toward lower- or carbon-free resources at the Minnesota Public Utilities Commission. This is the first NGIA plan Xcel Energy has filed with the Minnesota Public Utilities Commission.