Commission approves hydrogen pilot budget increase, elevates equitable electrification
During the April 23, 2026 hearing of the Minnesota Public Utilities Commission (Commission), commissioners deliberated on CenterPoint Energy’s request to increase the budget for its hydrogen blending pilot in Mankato, Minnesota, as part of its initial Natural Gas Innovation Act (NGIA) plan. Fresh Energy recommended the Commission deny this request in favor of an alternative proposal we put forward in detailed comments on the record. The Commission approved CenterPoint’s budget increase request in full but signaled strong interest in our proposal and directed CenterPoint and stakeholders to work to move it forward in the next NGIA plan.
Our proposal sought to establish a targeted electrification pilot in Mankato focused on deploying cold-climate heat pumps for low- and moderate income residents, including collaboration with community-based organizations and a focus on equitable program design.
Fresh Energy made this recommendation due to concerns about the rising lifetime costs and declining cost-effectiveness of the hydrogen blending pilot and the growing body of research documenting the limitations of hydrogen blending into the gas distribution system as a viable strategy for reducing emissions from the buildings sector, especially given the need to prioritize hydrogen production for industries with end uses that are hard to electrify. The intent of our proposal was to provide a more cost-effective and scalable way to reduce emissions from building heating in this community.
Fresh Energy appreciates the Commission’s strong interest in advancing our proposed pilot in future NGIA plans and their emphasis on the need to prioritize electric air-source heat pump deployment for under-resourced households and communities as Minnesota transitions to cleaner building heating.
The Commission instructed CenterPoint to work with Fresh Energy and other interested stakeholders to further develop our equitable electrification proposal for inclusion in CenterPoint’s next NGIA plan filing. We look forward to working with CenterPoint and stakeholders to refine and advance our proposal ahead of the plan filing. Fresh Energy will continue to scrutinize CenterPoint’s NGIA investments through review of annual status reports, the next of which will be filed by June 1, 2026.