Committee advances bill allowing utilities to offer thermal energy networks with PUC oversight

The House Energy, Finance and Policy Committee considered House file 41 22, a bill that would authorize public utilities to construct thermal energy networks (district-scale heating and cooling systems) and seek cost recovery under Public Utilities Commission oversight.

Representative Collins, the bill’s sponsor, said the measure is the result of the Thermal Energy Network Deployment Workgroup and months of negotiation with stakeholders. She told the committee the bill allows utilities the option to build thermal energy networks and ‘‘is subject to the same PUC oversight as electric and natural gas services, ensuring that consumer protection remains strong.’’

Supporters said the bill establishes a pathway for pilots and deployment. A legislative director from the group 100% Campaign described the bill as the next step in Minnesota’s leadership on thermal energy networks. Jamie Fit Ski, director of government affairs for CenterPoint Energy, said CenterPoint supports the revised bill’s approach to pilots and safeguards but noted these systems are complex and first-of-a-kind deployments in a cold climate will require careful planning.

Kevin Prentice, representing construction labor, said the measure could open local jobs in drilling and piping trades, while acknowledging cost and siting uncertainties for geothermal wells and network deployment.

Committee members expressed broad interest in continued work and authorized the bill to be laid over for possible inclusion.

The bill was laid over for further consideration in the session.