the problem
DESCRIPTION
THE PROBLEM. • Minnesota electricity prices are high and rising. • Green energy is a substantial factor in rising prices. • High prices eliminate MN jobs. • High prices hit low-income households hardest. • Benefits do not justify higher prices. ELECTRICITY PRICES - PowerPoint PPT PresentationTRANSCRIPT
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THE PROBLEM• Minnesota electricity prices are high and rising
• Green energy is a substantial factor in rising prices
• High prices eliminate MN jobs
• High prices hit low-income households hardest
• Benefits do not justify higher prices
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ELECTRICITY PRICESARE HIGH AND RISING
MNRANK19
MNRANK35
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ELECTRICITY PRICESARE HIGH AND RISING
MNRANK21
MNRANK34
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ELECTRICITY PRICESARE HIGH AND RISING
MNRANK21
MNRANK34
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GREEN ENERGY IS A SUBSTANTIAL FACTOR INRISING PRICES• After going green, Minnesota prices begin breaking away.
• Energy efficiency programs alone accounts for 5 percent of a residential bill.
• Investor owned utilities (IOUs) fault renewable mandates in requests to raise rates.
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GREEN ENERGY IS A SUBSTANTIAL FACTOR INRISING PRICES• Cooperatives report renewable mandates cost customers millions.
• Xcel settles with North Dakota, admits spreading cost of Minnesota policy across states.
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HIGH PRICES ELIMINATE MINNESOTA JOBSEach penny per kilowatt in increased electricity pricestranslates to a loss of 15,700 jobs in the Minnesota manufacturing sector alone.
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LOW–INCOME HOUSEHOLDS HIT THE HARDEST
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LOW–INCOME HOUSEHOLDS HIT THE HARDEST
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BENEFITS DO NOT JUSTIFYHIGHER PRICES• No reliable way to measure benefits
• Claimed benefits are oversold (e.g., green jobs, energy efficiency, effect on climate change).
• Minnesota is too small to impact global carbon emissions.
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• Even higher prices
LIKELY CONSEQUENCESOF NOT ACTING
• Fewer jobs
• Strained budgets
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WHAT NEEDS TO BE DONE• Set a state goal to reduce consumer electricity prices by 10 percent relative to U.S. prices and direct the PUC to meet the goal.
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WHAT NEEDS TO BE DONE• Start to move toward the goal of more affordable, competitive rates by repealing certain green energy policies.
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WHAT NEEDS TO BE DONE• Give the PUC the power to suspend current mandates to meet the affordability/ competitiveness goal.
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WHAT NEEDS TO BE DONE• Cap the cost of Minnesota’s green energy policies.
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WHAT NEEDS TO BE DONE• Hire a nationally recognized accounting firm to audit the costs associated with Minnesota's green energy policies.
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WHAT NEEDS TO BE DONE• Annually report on the total cost of Minnesota’s green energy policies and programs.
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WHAT NEEDS TO BE DONE• The Minnesota Legislature should estimate the cost to consumers of all new energy legislation before passage.
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