Minn. Stat. » CHAPTER 216B. PUBLIC UTILITIES
Minnesota Statutes

Minn. Stat. § 216B.40 (2026)

Exclusive Service Right; Service Extension

✓ current as of May 2026
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Except as provided in sections 216B.42, 216B.421, and 216B.422, each electric utility shall have the exclusive right to provide electric service at retail to each and every present and future customer in its assigned service area and no electric utility shall render or extend electric service at retail within the assigned service area of another electric utility unless the electric utility consents thereto in writing; provided that any electric utility may extend its facilities through the assigned service area of another electric utility if the extension is necessary to facilitate the electric utility connecting its facilities or customers within its own assigned service area.

Notes of Decisions
Cited in 13 cases, 1989–2018 · leading case: In Re the City of Redwood Falls, 756 N.W.2d 133 (Minn. Ct. App. 2008).
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In Re the City of Redwood Falls, 756 N.W.2d 133 (Minn. Ct. App. 2008). · cites it 10× “” Minn.Stat. § 216B.40. Notwithstanding these limitations, however, a utility owned by a municipality that extends its corporate boundaries through annexation or consolidation may coextensively extend its service territory by purchasing the facilities of another utility.”
LSP Transmission Holdings, LLC v. Lange, 329 F. Supp. 3d 695 (D. Me. 2017). “" Minn. Stat. § 216B.40. In Minnesota, the PUC sets "just and reasonable" retail rates for public utilities.”
City of Rochester v. People's Coop. Power Ass'n, 483 N.W.2d 477 (Minn. 1992). · cites it 2× “” Minn.Stat. § 216B.40. However, the right is not without limitation, for the legislature anticipated the possibility that municipalities experiencing a population growth might expand their geographical boundaries.”
In Re City of Rochester for an Adjustment of Its Serv. Area Boundaries With People's Coop. Power Ass'n, 556 N.W.2d 611 (Minn. Ct. App. 1996). · cites it 4× “Minn.Stat. § 216B.40 (1996). A municipality that owns an electric utility may acquire another utility’s service areas upon municipal annexation of the areas.”
City of Moorhead v. Red River Valley Coop. Power Ass'n, 811 N.W.2d 151 (Minn. Ct. App. 2012). · cites it 2× “Minn.Stat. § 216B.40 (2010). The electric service area at issue is a residential subdivision called Americana Estates that provided service to 63 customers.”
City of Willmar Mun. Utils. Comm'n v. Kandiyohi Coop. Elec. Power Ass'n, 452 N.W.2d 699 (Minn. Ct. App. 1990). · cites it 2× “” Minn.Stat. § 216B.40 (1988). The legislature has prohibited an electric utility from extending service into the assigned service area of another utility without its consent, unless such extension is necessary to connect to another assigned service area.”
In Re Complaint of People's Coop. Power Ass'n, 447 N.W.2d 11 (Minn. Ct. App. 1989). · cites it 2× “Minn.Stat. § 216B.40 (1988). A municipality’s annexation of a part of another utility’s assigned service area will not impair or affect that utility’s rights unless the municipality elects to purchase the facilities and property of the electric utility.”
In re the Complaint by Kandiyohi Coop. Elec. Power Ass'n, 455 N.W.2d 102 (Minn. Ct. App. 1990). · cites it 4× “Minn.Stat. § 216B.40 provides for exclusive service rights within an assigned area, and Minn.”
Matter of Kandiyohi Co-Op. Elec. Power, 455 N.W.2d 102 (Minn. Ct. App. 1990). · cites it 4× “Minn.Stat. § 216B.40 provides for exclusive service rights within an assigned area, and Minn.”
In Re Petition by the City of Rochester, 478 N.W.2d 329 (Minn. Ct. App. 1991). · cites it 4× “Minn.Stat. § 216B.40 (1990). The legislature has, however, provided an exception to the assigned service area requirements: [A]ny electric utility may extend electric lines for electric service to its own utility property and facilities.”
City of Rochester v. People's Coop. Power Ass'n, 466 N.W.2d 753 (Minn. Ct. App. 1991). · cites it 2× “Minn.Stat. § 216B.40 (1988). Where a municipality elects to annex a part of an assigned area of another utility, as in this case, such annexation shall not in any respect impair or affect the rights of the electric utility to continue and extend electric service at retail…”
LSP Transmission Holdings, LLC v. Lange (D. Minnesota 2018). · cites it 2× “” Minn. Stat. § 216B.40. In Minnesota, the PUC sets “just and reasonable” retail rates for public utilities.”
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