If it doesn’t act soon, Minnesota could end up a snowy California – complete with power outages and energy rate increases.

Friday, March 16, 2001

If it doesn’t act soon, Minnesota could end up a snowy California – complete with power outages and energy rate increases.

But one group hopes a combination of clean energy, power plant upgrades and efficiency programs can make up the expected 2,000 to 3,000 megawatt gap between the electricity the state has and what it will need.

A bill sponsored by two Twin Cities legislators would double the surcharge on electric bills and use the proceeds to pay for energy efficiency programs and energy assistance for low-income consumers. It would also require utilities to use an increasing amount of renewable energy, adding 1.5 percent or more to their production annually through 2010.

&uot;How can you not be concerned about this?&uot; said Sarah Welch, a member of the POWER coalition, which crafted the bill. &uot;We just need to have a policy, and look to the future instead of reacting when something went wrong.&uot;

The POWER campaign includes labor, environmental and low-income advocacy groups who want to see the state’s energy problems solved in a clean and consumer-friendly way, Welch said.

Two other major bills aim to solve the energy shortage this year. One, backed by the Minnesota Chamber of Commerce, focuses on deregulation. Another, backed by the Ventura administration, is more in line with the POWER bill, relying more on conservation programs, Welch said.

POWER estimates that energy efficiency programs could make up half the energy shortage alone. The surcharge on utility bills now collects $67 million per year; it would raise $135 million under the POWER plan. That translates into an average 63 cent increase on electric bills and 45 cent increase on gas bills for a residential customer, the group estimates.

That surcharge would also help ensure low-income residents don’t have their power shut off. &uot;Minnesotans have indicated a willingness to pay a small amount to ensure that all people can maintain essential energy services,&uot; said Pam Marshall, director of the Energy CENTS Coalition. &uot;This bill makes energy affordable for all Minnesotans.&uot;

About one fourth of the needed energy could come from renewable energy generation like wind and biomass, and the other quarter from upgrades – called &uot;repowering&uot; – in existing power plants, Welch said.

Some older power plants could produce more than 50 percent more electricity, and do so more cleanly, if companies invest in technological upgrades, Welch said. The bill offers incentives for utility companies to modernize their generation.