The 1970s' energy squeeze left Minnesotans feeling vulnerable at the far end of the energy pipeline. In downtown St. Paul, this concern over energy was amplified by the deterioration of the City’s old and inefficient steam district heating system.

In 1978, the City of St. Paul was selected by the U.S. Department of Energy and the Minnesota Energy Agency for a study to determine the feasibility of a modern hot water district heating system in a major northern U.S. city.

The favorable results of this study led to the incorporation of the District Heating Development Company (DHDC) in July 1979. The final feasibility studies and successful marketing were completed in 1982, and financing was arranged in December of the same year.

The initial project cost, including construction, financing and other expenses (not including building conversions) was $45.8 million in 1982 dollars. System construction was completed one year ahead of schedule and $1.3 million under budget.

DHDC’s first customers received hot water service in fall 1983. Service was subsequently extended to a public housing complex in 1985 and a nearby industrial park in 1986.

In 1987, DHDC changed its name to District Energy St. Paul, Inc. With over 400 customers, the company was well beyond the development stage.

District Energy installed an 860-kilowatt backpressure turbine-generator in 1990 to generate electricity for in-house use. Also in that year, the company began studying the feasibility of a district cooling system. The district cooling system was financed in 1991, constructed in 1992 and began serving its first customers in spring 1993.

A 2.5-million-gallon chilled water storage tank was constructed in 1994 to store chilled water produced at night, using off-peak electricity, for daytime distribution to district cooling customers. Another chilled water storage tank, holding 4 million gallons of water, began operating in spring 2003, at a second district cooling plant located in the northeast section of downtown St. Paul.

An affiliate, Ever-Green Energy, LLC (formerly Market Street Energy Company, LLC), was formed in 1998 to undertake the investment in and operation of a biomass-based combined heat and power (CHP) plant adjacent to District Energy’s downtown facility. Completed in April 2003, it is the largest biomass-based CHP plant serving a district energy system in the U.S. District Energy's investment in renewable energy has resulted in low, stable customer rates and cleaner air for the community.

In 2001, President George W. Bush toured District Energy before delivering his first major energy policy address to the nation. In that address, the President called the company a model of energy efficiency, diversity and affordability.

Mission: Be the preferred provider of community energy services that benefit our customers, the community, and the environment.