The Sierra Club North Star Chapter is a member of Clean Heat Minnesota, which issued this press release in response to the Public Utilities Commission decision on June 4:
Advocates called on the Minnesota Public Utilities Commission to follow the lead of states ending costly line extension allowances, opening the door to a more affordable clean-energy future
ST. PAUL, Minn. — State utility regulator - the Minnesota Public Utilities Commission (PUC) - today moved to maintain the line extension allowance policy for gas utilities. The policy allows utilities to profit by charging existing Minnesota customers an estimated $34 million every year to extend gas pipes to add new customers while also delivering a return to shareholders.
The mission of the Minnesota PUC is to improve the lives of all Minnesotans by ensuring safe, reliable and sustainable utility services at just and reasonable rates. Through its Future of Gas proceedings, the PUC chose to consider the line extension allowance policy at a time when Minnesotans continue to face mounting utility bills and growing energy debt. Across 2024 and 2025, nearly 60,000 Minnesota households were disconnected from gas service for unpaid bills, and Minnesotans currently owe more than $150 million in overdue utility bills.
Throughout the proceeding, Clean Heat Minnesota coalition member organizations hosted educational events and filed dozens of comments urging Minnesota regulators to slow the expansion of the gas system amid declining residential gas use and end the outdated policy of gas utility line extension allowances for new customers.
Members of the Clean Heat Minnesota coalition were not asked to speak at today’s hearing, and issued the following statements in response to the decision:
Natalie Cook, coalition manager, Clean Heat Minnesota:
“The Future of Gas proceeding is a critical opportunity to reimagine and build an affordable, clean energy system, which is why I’m disappointed the Commission chose not to end the unfair policy of line extension allowances. A future continuing to invest in both a gas and electric system is an expensive future and keeps communities hooked on the volatile cost of fossil fuels and growing utility charges.
“Regulators and stakeholders will now have to devote time and resources to continue to debate this policy rate case by rate case, all while utilities continue to profit and customers continue to pay millions in unnecessary costs and hold the financial risks of an expanding gas system. The Clean Heat Minnesota coalition and its members spent countless hours over the past year advocating for an end to line extension allowance policies. We have everything we need today to achieve the affordable, clean energy future we all deserve, and today’s decision by the Minnesota PUC is a failure to deliver on this opportunity.”
Monse Perez Barrios, environmental justice community outreach specialist, Communities Organizing Latine Power and Action (COPAL):
“COPAL has seen firsthand the crushing impact of rising energy costs. Recently, our hotlines have been overwhelmed by families who can’t afford their utilities, rent, food, or medication. It’s a dangerous domino effect that is pushing families into the streets. The decision of the PUC to maintain line extension allowances and defer the issue back to utility rate cases delays the relief our communities need. While we are incredibly proud of the dozens of grassroots members who showed up to demand an end to line extension allowances, it is deeply disappointing that the PUC chose to ignore these lived experiences of health, inequality, and affordability. Our communities spoke clearly; it is time for the Commission to listen and build a more just system.”
Dr. Curtis Nordgaard, a local pediatrician and researcher:
“As a health professional, I see every day how air pollution and energy insecurity impact the well-being of Minnesota families. Households struggling with high gas utility bills are unsure if they'll have enough food to eat and are foregoing medical care, while pollution from burning gas in our homes degrades our air quality and risks asthma attacks. The Minnesota Public Utilities Commission’s decision to maintain line extension allowance policies is a missed opportunity for regulators to provide cost relief for struggling families and to stop the expansion of a polluting and expensive gas system that is incompatible with a sustainable future for our children. Minnesota must prioritize cleaner, more affordable energy solutions that protect public health and build healthier communities for future generations.”
Ayan Derie, policy coordinator, Ayada Leads:
"Minnesota has an opportunity to refocus on energy investments that not only lower costs over time, but also reduce emissions and improve the air our communities breathe. For Ayada Leads, this work is deeply connected to the health and well-being of the people we serve, especially as we see how air quality and environmental conditions directly impact community health outcomes. At a time when affordability and public health challenges are growing, the Minnesota Public Utilities Commission should prioritize decisions that provide real relief to ratepayers and advance a cleaner, healthier energy system for all communities.”
About Clean Heat Minnesota
Clean Heat Minnesota is a multi-racial, statewide coalition of more than 40 partners representing Minnesotans who want clean, affordable energy to power heating, cooking, and appliances. Learn more at cleanheatmn.org.