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Electric utilities

Minnesota Public Utilities Commission Receives Update on Sales Tax Exemption for Gas Utilities

Strategic Insights

— 2 min read

The Minnesota Public Utilities Commission has been updated on the efforts of four gas utilities - CenterPoint Energy, Xcel Energy, Minnesota Energy Resources Corporation, and Great Plains Natural Gas Co. - to pursue a sales tax exemption for the February 2021 market event surcharge. The utilities began advocating for the exemption through the legislature in September 2021, and by April 2022, they had successfully gotten language included in the final compromise of the tax bill. However, the bill was not sent to the Senate or House Floors for final passage, leaving the possibility of a special session to revisit the tax bill.

Key Takeaways:

  • Four gas utilities - CenterPoint Energy, Xcel Energy, Minnesota Energy Resources Corporation, and Great Plains Natural Gas Co. - have been working to pursue a sales tax exemption for the February 2021 market event surcharge.
  • The utilities began their efforts in September 2021, advocating for the exemption through the legislature.
  • By April 2022, they had successfully gotten language included in the final compromise of the tax bill, H.F. 3669.
  • However, the bill was not sent to the Senate or House Floors for final passage, raising the possibility of a special session to revisit the tax bill.
  • The utilities committed to continue working with the legislature to pursue the bill's passage and proposed making an additional compliance filing once the legislative session was complete to update the Commission on the status of the legislation.
  • The utilities were required to provide a status update in a compliance filing within 30 days of the Commission's Order and, if necessary, before April 15, 2022.

Statistics:

  • The four gas utilities - CenterPoint Energy, Xcel Energy, Minnesota Energy Resources Corporation, and Great Plains Natural Gas Co. - are collectively pursuing the sales tax exemption.
  • The utilities estimate that the exemption will have a significant impact on residential heating customers.
  • The legislative session was complete at the end of May 2022.
  • The utilities proposed to make their additional filing on or before June 24, 2022.

Sources:

  • June 24, 2022 VIA ELECTRONIC FILING Will Seuffert Executive Secretary Minnesota Public Utilities Commission 121 7th Place East, Suite 350 St. Paul, MN 55101 Re: In the Matter of a Commission Investigation into the Impact of Severe Weather in February 2021 on Impacted Minnesota Natural Gas Utilities and Customers Docket No. G-999/CI-21-135
  • Order Point 15 of the August 30, 2021, the Minnesota Public Utilities Commission ("Commission") Order Granting Variances and Authorizing Modified Cost Recovery Subject to Prudence Review, and Notice of and Order for Hearing in the above-referenced docket.

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