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ST. PAUL — Minnesota Public Utilities Commissioners decided they do not have jurisdiction to hear the complaint filed by Larry Rauenhorst against the Renville-Sibley Cooperative Power Association .
Commission members said Thursday that they see the complaint as a rate dispute. State statute does not allow the commission to set rates for rural electric cooperatives when they are governed by an elected board of directors, and have adopted a dispute resolution process.
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“This legislation puts the onus on the customer and cooperative to work out rate disputes related to net metering,” said Commissioner Audrey Partridge. She made the motion at the May 21 hearing, stating the PUC does not have jurisdiction to hear the complaint.
Commissioners Katie Sieben, as chair, and John Tuma voted in support. Commissioner Joseph Sullivan recused himself, stating he did not believe he had a conflict of interest but noted he had worked as an attorney on legislation pertinent to the discussions. Commissioner Wikwon Ham was not present.
The vote came after attorney Zachary Alter, representing the Danube -based cooperative, assured the commissioners that Larry Rauenhorst can bring his dispute to mediation. “Correct, mediation is our proposed next step,” he said in a response to a question from Partridge.
Larry Rauenhorst filed the complaint over the cooperative’s refusal to purchase electricity produced by a solar array at the average retail price. He claims the state’s net metering law requires utilities to pay the retail rate, and that the cooperative’s own policy states the same.
Larry and his brother, Rolly Rauenhorst, installed solar panels capable of producing 36 kilowatts of electricity on towers over a corn and soybean field south of Olivia. They are working with the University of Minnesota to research the feasibility of agrivoltaics — the practice of using land simultaneously for agriculture and solar power.
The brothers’ goal is to produce electricity to power an electric tractor and other equipment and continue farming under the panels. It’s also possible that the energy could be used in the production of fertilizer, in which case very little of the electricity would be sold to the cooperative, Rolly Rauenhorst told the commissioners.
The cooperative has agreed to provide an electrical connection to the field and its system. The location did not have a service connection prior to the solar array’s installation. The cooperative has agreed to pay what is called the “avoided cost” for the electricity, which reflects its wholesale cost to the cooperative, according to information provided at the meeting and in filings.
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The commissioners praised the Rauenhorst brothers for what they described as an “innovative” and important effort to research the feasibility of agrivoltaics. “It is a fabulous project,” Commissioner Tuma said during discussions.
But Tuma said he saw this as a dispute over the rate to be paid, and not the service, in which case the commissioners would have jurisdiction. He said in that respect, it is unlike the complaint filed by the Upper Sioux Community against the Minnesota Valley Light and Power Cooperative Association over the behind-the-meter solar system to help power the Prairie’s Edge Casino Resort.
The Montevideo -based cooperative has threatened to discontinue service if the array is activated, which makes it a service issue, according to Tuma.
Attorney Bobby King, with the CLEAR Energy Coalition, argued that the Rauenhorst complaint was also a service issue because the cooperative adopted a binding arbitration requirement in 2025. This contradicts a customer’s right to bring issues to an elected board.
The cooperative also adopted a rule preventing two generation facilities from being within two miles of each other, which is a violation of the state’s net meter law, according to King.
Larry Rauenenhorst has the option of mediation with the cooperative, in which case he would pay 10% of the costs for it, according to Alter, the cooperative’s attorney. Rauenhorst has also filed a civil complaint in district court.
“I hope that you can all come together on an agreement on an appropriate rate,” said Commissioner Partridge. “And, if you cannot, I am sure the district court will solve it for you.”
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