News > CEO’s Message – July 2025

CEO’s Message – July 2025

2025 Legislative Session Recap; Property Tax Issue Resolved

The 2025 Minnesota legislative session officially wrapped up on June 9 following a one-day special session to finalize the state budget. Throughout the session, the Minnesota Rural Electric Association (MREA) worked on behalf of Stearns Electric and all Minnesota electric cooperatives to advocate for policies that support reliable, affordable and sustainable energy for member-owners across the state. 

PROPERTY TAX CLARIFICATION
After years of negotiations, MREA, on behalf of Minnesota cooperatives, and the Minnesota Department of Revenue (MN DOR) came to an agreement about the property tax clarification bill, which recently passed in the legislative session. For the last several years the MN DOR failed to recognize the full extent of a 1939 statute exempting cooperative infrastructure in rural areas from being taxed. This reform corrects how electric cooperative infrastructure is taxed, saving our member-consumers thousands of dollars each year. The bill had broad bipartisan support and was ultimately prioritized by key legislative leaders in both chambers. This victory protects our ability to invest in rural infrastructure without unfair tax burdens. 

Stearns Electric worked alongside several other cooperatives with legal counsel Felhaber Larson to appeal property tax valuations over the last couple of years. After the above legislation passed, the MN DOR and Stearns Electric entered into settlement agreements favorably resolving those pending actions. 

LIFTING THE NUCLEAR MORATORIUM
MREA also led efforts to lift Minnesota’s moratorium on new nuclear energy. MREA helped form and lead the Minnesota Nuclear Energy Alliance — a coalition of nearly 40 stakeholders representing utilities, labor, business, agriculture and the environment — to push for access to next-generation nuclear power. These new technologies offer safe, carbon-free, around-the-clock power that could help meet Minnesota’s carbon-free electricity goals. While no legislative action occurred and the moratorium remains in place, support grew across the state this year. We are hopeful our strong coalition will end Minnesota’s outdated nuclear moratorium in the next session. 

NET METERING REFORM
Reforming Minnesota’s net metering law was a large MREA priority this year. Though legislation did not pass, we will continue to support net metering reform in future legislative sessions. The current law requires cooperatives to pay above-market retail rates for excess electricity from small scale solar systems. This policy results in increased energy costs for cooperatives, which unfortunately results in a cost shift where co-op members without solar panels end up subsidizing those who choose to install them. 

For additional information on how these ongoing legislative priorities impact Stearns Electric’s member-consumers, please revisit the February 2025 CEO Column. 

As a local electric cooperative owned by the members we serve, we will continue working with MREA to represent your best interests on these, and other, Minnesota legislative priorities into the future. 

Sincerely,

Matt O’Shea
Chief Executive Officer