News > CEO’s Message – February 2025

CEO’s Message – February 2025

2025 Legislative Session Underway

Legislative affairs are essential to the electric cooperative business model. In Minnesota, Stearns Electric works closely with our elected officials and the Minnesota Rural Electric Association (MREA) to ensure state policies support electric cooperatives and benefit our member-consumers. 

Stearns Electric and MREA are currently focused on three legislative priorities: 

PROPERTY TAX CLARIFICATION (SF 132)
Over the last few years, Stearns Electric has worked on proposed legislation which clarifies a 1939 statute exempting certain cooperative property in rural areas from being taxed. Since 2021, the Minnesota Department of Revenue (MN DOR) began reinterpreting the statute and stopped recognizing the full extent of the exemption. 

The work that has been done since 2021 has led to broad support of the clarifying language by electric cooperatives, MREA and the MN DOR. Unfortunately, in the final hour of the last three legislative sessions, the omnibus bills have not passed. With Sen. Aric Putnam as chief author and bi-partisan support, we hope that 2025 is the year that this legislation gets over the finish line. 

Why does this matter to Stearns Electric members? This reinterpretation has cost Stearns Electric over half a million dollars so far. Clarifying language will save us significant dollars on property taxes that we have been required to pay since the reinterpretation began. Minnesota must maintain its property tax exemption for utility distribution lines to help keep electric service in rural Minnesota affordable. 

LIFTING THE NUCLEAR MORATORIUM (SF 350 / SF 468)
Minnesota is the only state with a full ban on new nuclear reactor construction. MREA is co-leading the Minnesota Nuclear Energy Alliance, which advocates for lifting the moratorium. 

Why does this matter to Stearns Electric members? Lifting the moratorium can help maintain reliable and affordable energy throughout the state. As Minnesota works toward the mandated 100% Carbon Free Energy by 2040, utilities need to be able to explore all energy generation opportunities. Nuclear reactors can provide carbon-free baseload power around-the-clock. 

NET METERING REFORM
Minnesota requires co-ops like Stearns Electric to pay retail rates for excess member-generated electricity (i.e., solar panels) beyond a member’s own use. This legislative priority would lower the price co-ops are required to pay for excess energy generation and implement a size to load requirement. 

Why does this matter to Stearns Electric members? Proposed legislation still allows members who are interested in installing their own solar to pursue that for themselves but benefits all other members by removing the Co-op’s financial responsibility to pay for excess energy charges. This ultimately saves non-solar-generating members money through our overall energy rates. 

By the time this issue arrives in your mailbox, four of your Board members and I will have spent a full day at the Capitol meeting with our area legislators to discuss these priorities and make sure our Cooperative voices are being heard at the state level. You can see photos from the meetings on our Cooperative Facebook page. 

Sincerely,

Matt O’Shea
Chief Executive Officer