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The Energy Conservation and OptimizationAct of 2021 wassigned into law by Governor <br />Walz on May 26, 2021. After almost two years of bipartisan work, the CIP will receive a <br />few major updates. Under the new law electric utilities will be able to spend up to 0.55% <br />of their annual gross operating revenue on “fuel switching,” movingfrom propane, <br />natural gas, fuel oil, and gasoline to electric. This was the major obstacle to be <br />overcome. There are stilldetails to be determined on how savings will be calculated for <br />switching space and water heat, as well as switching transportation fuels to electric. The <br />MN DOC and a select work group will focus on those details in the coming months. <br />There were no changes to the kWh savings requirements nor the low-income spending <br />requirement for consumer-owned utilities. Investor-owned utilities will need to increase <br />their energy savings by 0.25% and had their low-income spending increased from 0.2% <br />of gross operating revenue to 0.4%. <br /> <br />______________________________________________________________________________ <br />Page 2 of 2 <br />92 <br />