Bill would let utilities run thermal energy networks and seek rate recovery; utilities and labor back compromise language

Senate File 4081 (listed in committee as 40-81) would authorize public utilities to build and operate thermal energy networks and create a mechanism for cost recovery.

Witnesses described the bill as the product of a months-long stakeholder workgroup. A legislative director for an advocacy group supporting the bill and Jamie Fitzy of CenterPoint Energy (identified in the transcript as director of government affairs) both testified. Fitzy said CenterPoint initially had concerns about original language but that the current draft incorporated substantial changes reached through negotiations. She emphasized that pilot projects will be important for learning and that thermal networks operate differently than traditional geothermal pilots; the bill preserves Public Utilities Commission oversight and cost-recovery review. Labor witnesses (represented in the transcript by the Minnesota Pipe Trades-affiliated speaker) said the measure provides job opportunities by allowing utilities to deploy the networks and that stakeholders reached consensus on the language.

Committee members noted the rate-recovery implications and directed the bill to the finance committee for that reason. Members also asked for assurances about consumer protections; witnesses pointed to PUC oversight and the rider process as structured review points. The committee laid the bill over for possible inclusion and for referral to finance.