Judge says rural electric utility cannot cut tribal nation’s power over solar array 

A state administrative law judge ruled Monday that a rural electric cooperative cannot cut power to a tribal casino in western Minnesota over the tribe’s decision to build a large solar array. The finding could reshape how electric cooperatives across Minnesota treat customers who want to generate their own electricity.

Administrative Law Judge Joseph Meyer found that Minnesota Valley Cooperative Light and Power Association's own board policy does not prohibit behind-the-meter solar systems, or systems designed to keep all generated power on-site, without exporting to the grid.

Any disconnection imposed as a punishment for operating such a system, Meyer wrote, "would unlawfully violate [Minnesota Valley Cooperative Light and Power Association’s] obligation to provide service."

Attorneys for the Upper Sioux Community have not responded to a request for comment.

The ruling is the latest development in a nearly two-year dispute between the Upper Sioux Community and its electric cooperative. In 2024, the tribe built a 2.5-megawatt solar array next to Prairie's Edge Casino Resort outside Granite Falls to offset about 30 percent of the casino's electricity costs.

The casino is the tribe's primary source of revenue, funding housing, health care, schools and tribal police.

An ongoing dispute

In November 2024, Minnesota Valley Cooperative Light and Power Association sent the tribe a letter threatening to cut off the casino's power if the tribe turned the system on. The cooperative argued its board policy limits members to solar projects smaller than 40 kilowatts and that the tribe's array — more than 60 times that size — violated that rule.

The tribe filed a formal complaint with the Public Utilities Commission in May 2025. In August, the Commission found the threat alarming enough to refer the case to the Court of Administrative Hearings.

The judge’s ruling did not strike down the cooperative's board policy. The decision was more straightforward: that the policy never prohibited behind-the-meter solar projects and that the cooperative had no legal authority to use disconnection as a punishment regardless.

Minnesota Valley Cooperative Light and Power Association argued throughout the proceedings that its board policy was consistent with state law and applied equally to all its roughly 5,200 members — and that it had tried to work with the tribe to find a resolution.

The attorney for Minnesota Valley Cooperative Light and Power Association did not respond to a request for comment.

Meyer did impose one condition before the tribe could turn on the array.

Meyer recommended that an independent engineer conduct a new study based on the project's design. If the tribe carries out that study's recommendations, Meyer concluded, "any disconnection of electric service whatsoever based on the existence or generating capacity of the Project would be unlawful, so long as the Project remains a not-for-export system."

Under state rules, large solar projects must undergo a safety review called a system impact study before they can be connected to a utility's system. Minnesota Valley Cooperative Light and Power Association hired its own engineering firm to conduct that study. But Meyer found the study unreliable.

Documents showed the cooperative had directed the firm to rewrite it, removing all references to the system's zero-export design and replacing them with language that assumed the array would push all its power to the grid, something it was never designed to do.

Going beyond 40 kilowatts

Fifty rural electric cooperatives operate across the state, and most limit member-owned energy generation to 40 kilowatts.

Meyer found that cooperatives cannot block or penalize customers for building behind-the-meter energy systems, no matter how large they are. The decision could affect rural cooperative members across Minnesota who want to build larger, self-contained energy projects.

CURE, a ratepayer advocacy organization based in Montevideo, filed comments in support of the tribe’s position during the public comment period last year.

Legal Director Hudson Kingston argued that Minnesota's own climate and energy conservation goals favor projects like the Upper Sioux Community's solar array. Hudson applauded Monday’s ruling in the case.

"This is a very clear, very clear decision that co-ops cannot have policies that limit behind-the-meter solar systems," Kingston said. "That's great news for other co-op members, great news for other tribal governments who are thinking about making really big solar investments, and it's great news for the continued evolution of the electrical grid towards cleaner sources of energy."

Kingston said the ruling also has direct implications for everyday Minnesotans.

"If the Public Utilities Commission agrees with the ALJ, this will be a clear signal to those of us in rural Minnesota that we can install solar consistent with Minnesota law and consistent with what people in other parts of the state have already taken advantage of doing," Kingston said. "It's going to help drive people's bills down, and it's going to make a better electric grid for all of us."

The recommendation now goes to the full Public Utilities Commission, which will make the final decision. Minnesota Valley has the right to file exceptions before the commission acts.

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