On September 17, 2026, the Minnesota Public Utilities Commission (PUC) found that Minnesota Valley Cooperative Light & Power Association acted unlawfully and unreasonably. The co-op had threatened to disconnect the Upper Sioux Community over a behind-the-meter solar and battery project at Prairie’s Edge Casino Resort near Granite Falls. The co-op says it will likely appeal.
The co-op’s position against the findings
| Issue | Co-op’s side | What regulators found |
|---|---|---|
| Size limit | Board policy limits member generation to 40 kilowatts | In June, the ALJ found the policy does not restrict metered projects |
| Motive | Threatened disconnection over the project | The PUC found the actions were driven by lost-sales concerns, not legitimate safety concerns |
| Service | Threatened to disconnect the Upper Sioux Community | The co-op must keep serving the tribe as long as the project runs behind the meter and safely |
| Tribal sovereignty | Not covered in the sources | The ALJ made a sovereignty finding; commissioners did not adopt it and said the question belongs to another court |
What the Commission decided
The PUC says its order agrees with the administrative law judge (ALJ), the Department of Commerce, and all other parties that the co-op’s attempt to block a non-export project violates state law. An independent engineer will study the system. If the Community follows that engineer’s recommendations, the co-op may not disconnect service because of the project. The order also directs the Attorney General’s office to investigate whether the co-op violated this or other orders or state law. MPR News reports possible penalties of $100 to $1,000 per violation.
MPR News describes a 2.5-megawatt solar system with battery storage that would cover about 30% of the casino’s energy use. The ALJ also found the tribe could decline the co-op’s service and generate its own power or seek it elsewhere. Commissioner Audrey Partridge said the co-op had “acted unethically and unlawfully.” Commissioner Joseph Sullivan said: “You’re treating them like captured people who have to buy power from you.”
Regulators ruled on state utility law and the co-op’s conduct, not on tribal sovereignty, so read the headline with that in mind.
What happens next
The tribe plans to power up the system once safety issues are resolved. The co-op’s attorney, Matthew Haugen, said the co-op will not disconnect the tribe but will likely appeal. He also said it might impose demand or standby charges later. The case is PUC Docket 25-219.
Who Benefits and How
The Upper Sioux Community benefits first: the order protects its service while it builds a behind-the-meter system. Other co-op members with non-export solar may find the PUC’s view useful, though the order addresses one dispute. Nothing is switched on yet, and an appeal is likely.
Where it falls short
The 2.5 MW size and the 30% share of casino energy use come from MPR News, and the PUC release doesn’t state them. The ruling is about a non-export, behind-the-meter system, and it doesn’t clearly protect systems that send power to the grid. Nothing in the sources shows what the casino will save in dollars. The ruling isn’t final if the co-op appeals, and standby or demand charges could still change the economics. Reports don’t show that other co-ops must change their rules, though more than two dozen Minnesota co-ops filed comments supporting the ALJ’s findings.
Quick answers
Is the solar array running now?
Not yet, as of the reports we reviewed. The tribe plans to switch it on once an independent engineer’s safety review is resolved.
Did regulators rule on tribal sovereignty?
No. Commissioners declined to adopt the ALJ’s sovereignty finding and said it was for another court.
Can the co-op still cut off the casino?
Not because of the project, as long as it runs behind the meter and safely. The co-op’s attorney said it will not disconnect the tribe.
What does this mean for other co-op members?
The order addresses one dispute. It signals how the PUC views non-export systems, but check your own co-op’s written interconnection policy before buying.
Sources
- Minnesota Public Utilities Commission: PUC directs Minnesota Valley to stop unlawful disconnection threats to Upper Sioux (Sep 17, 2026)
- MPR News: Upper Sioux Community wins solar array fight, utility says it will likely appeal (Sep 21, 2026)