Minn. needs to lift coal moratorium

Published 9:59 am Thursday, April 21, 2011

This letter is in response to a recent editorial published April 13, 2011, by the Tribune Editorial Board titled “Don’t move Minnesota backward on energy policy” related to the Next Generation Act, which was passed into law during the 2007 legislative session. One of the provisions of this law bans the construction of new coal-fired power plants in Minnesota, and even bans the importation of electricity from such plants built in other states. The editorial goes on to state that the governor and the Legislature should “thwart” efforts to weaken Minnesota’s clean energy policy.

The effort being made by the state’s utilities, specifically electric cooperatives, does not undermine or stop our commitment to clean energy. Minnesota’s electric cooperatives are ahead of the curve in meeting the state’s requirement of 25 percent renewable energy by the year 2025, and they will continue to meet those requirements. By repealing the current language in the law, it ensures that we will be able to meet our consumer’s energy demands when the sun is not shining and the wind is not blowing.

Failure to act on the coal moratorium this year will have a significant impact on Minnesota rate payers. The power plant most immediately impacted is the Spiritwood plant located in North Dakota, which is a highly efficient combined heat and power plant. When commissioned in 2012, this coal plant will have about the same CO2 emission levels as a natural gas fired power plant.

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Already under construction by Great River Energy (a generation and transmission cooperative located in Maple Grove) at the time of the change in law, the Next Generation Energy Act will cost Great River Energy consumers about $20 million annually in added expense. The added expense will come from the requirement to purchase “carbon offsets” in order to import the electricity across the border into Minnesota. The carbon offsets will likely be purchased from regional markets in either California or the Northeast, sending Minnesota consumer dollars to energy speculators on the east and west coasts. Energy prices are already high enough — we do not need state laws that intentionally raise energy costs with no benefit to Minnesota ratepayers.

The editorial goes on to state that greed is the only reason these repeals are lobbied for. This repeal has nothing to do with greed. Cooperatives are not-for-profit utilities. Our mission is to serve our members with a focus on reliability, affordability and balance. Repealing this provision of state law is about having affordable, reliable base load energy for the people of Minnesota.

Jim Krueger

president/CEO

Freeborn-Mower Cooperative Services

Albert Lea