Minnesota Renewable Energy Standard: Utility Compliance 5
to provide its retail customers in Minnesota or the retail customers of a distribution utility to which
the electric utility provides wholesale electric service so that at least the following percentages of the
electric utility’s total retail electric sales to retail customers in Minnesota is generated by eligible
energy technologies by the end of the year indicated:
1) 2010 15 percent
2) 22012 18 percent
3) 32016 25 percent
4) 2020 30 percent
Of the 30 percent in 2020, at least 25 percent must be generated by wind energy conversion systems
and the remaining five percent by other eligible energy technologies.
In its March 19, 2010 Order, the Commission clarified the percentages of total retail sales that utilities must
generate or procure from renewable energy apply for every year forward until the next step in percentages
identified by the statute. Consequently, for 2017 Xcel Energy’s RES requirement remained at 25 percent, and all
other utilities remained at 17 percent.
In 2010, the RES Statute definition of total retail electric sales was amended to exclude “the sale of
hydroelectricity supplied by a federal power marketing administration or other federal agency, regardless of
whether the sales are directly to a distribution utility or are made to a generation and transmission utility and
pooled for further allocation to a distribution utility.” The amendment results in the exclusion of power
provided by the Western Area Power Administration from total retail sales.
Changes to the Definition of an Eligible Energy Technology
Minnesota Statute section 216B.1691, subdivision 1 defines an eligible energy technology as one that:
Generates electricity from the following renewable energy sources: (1) solar; (2) wind; (3)
hydroelectric with a capacity of less than 100 megawatts; (4) hydrogen provided that after January
1, 2010, the hydrogen must be generated from the resources listed in this clause; or (5) biomass,
which includes, without limitation, landfill gas; an anaerobic digester system; the predominantly
organic components of wastewater effluent, sludge, or related by-products from publicly owned
treatment works, but not including incineration of wastewater sludge to produce electricity; and an
energy recovery facility used to capture the heat value of mixed municipal solid waste or refuse-
derived fuel from mixed municipal solid waste as a primary fuel.
This definition of an eligible energy technology reflects a number of changes made by the Legislature since
eligible technologies were originally defined under the REO Statute. Specifically, the capacity of hydroelectric
facilities eligible for RES compliance was increased from 60 to 100 megawatts, and the definition of biomass was
clarified to include landfill gas and anaerobic digester systems. Finally, the restriction was lifted on Xcel Energy’s
ability to count biomass and wind generation from its Prairie Island legislative mandates