Journalism Project | Stories | Contributors | Journalism Links

Minnesota risks serious consequences if it continues its "business as usual" approach to electricity production, distribution and use, according to a report from a nonprofit public-affairs group.

The state's electric power industry is organized and regulated based on federal laws enacted in the 1930s, the report from a 34-member energy committee of the Citizens League says. However, federal laws are changing.

"Through our inaction, we are setting ourselves up to be overtaken by events," the report says. "We are intent on maintaining our relatively low electrical energy prices, but we appear indifferent to the restructuring and regionalization of electric power markets, which will limit our ability to control price fluctuations and ensure reliable supplies.

"At the same time, we are forfeiting our position as a leader in environmental protection as we rely on federal environmental laws to protect our air quality."

The committee began studying the electricity supply about 18 months ago out of concern over the state's ability to meet future demands. While the study relieves worries about supply, it raises an alarm that Minnesota is facing serious economic and environmental problems if it fails to reduce its reliance on coal-fired energy plants and to embrace new technologies, the report says.

About 75 percent of the state's energy comes from coal-fired plants, which pollute the environment and give rise to smog, crop damage and health problems and contribute to global warming, the report says. Another 17 percent of its energy comes from nuclear-powered plants, 3 percent from hydroelectric and 5 percent from all other sources, such as wood and wind.

Because power plants have a life expectancy of 40 years or more, it is realistic to meet new energy policy goals in 2040 if the state begins working toward these goals immediately, the report says.

"A power generating plant installed today will still be in service in 2040," the report says. "In the next 10 years, generating capacity representing about 25 percent of Minnesota's power supply will be installed, either to replace old capacity or to add new capacity. Clearly, our success or failure in 2040 will be largely determined by what we do in the next decade."

League makes recommendations

The Citizen's League is an independent, nonpartisan group formed 50 years ago in the Twin Cities area. It is active in public affairs research and education. Its report, "Powering Up Minnesota's Energy Future: Act Now on a Long-Term Vision," lists the following conclusions and recommendations:

* Neither the state nor the electric power industry has been aggressive enough in using power sources that provide reliable supplies without cumulative and unacceptable damage to the environment.

* Emphasis on low prices ignores health care and environmental cleanup costs related to power plant emissions, which Minnesotans pay for in other ways. However, changing federal policies -- particularly efforts to introduce competition into wholesale electricity markets -- are likely to prompt the industry to take into account all costs associated with electric power generation and use.

Additionally, because electricity moves over longer and longer distances and much of the state's electricity comes from elsewhere, regional competitive market considerations increasingly will determine prices.

* Regulating energy and environmental issues separately prevents a needed balance between the two. Minnesota lags behind other states in conserving and efficiently using electricity; California, Michigan, New Hampshire, Ohio, Oregon and Texas all are tightening regulatory links between energy and the environment, forcing shifts away from fossil fuels, and funding research, development and education programs to position themselves as leaders.

* The state should neither plan for nor expect an increase in the role of nuclear energy. At the same time, nuclear fuel will and should continue to provide a significant fraction of the state's electricity.

* Companies selling electrical energy on the retail market should operate under a permit system that limits and gradually reduces power plant carbon emissions, which contribute to global warming. Permits should regulate emissions of other pollutants as well.

* The electric transmission grid needs greater capacity and flexibility to make it easier for independent power producers to plug into the system. This would allow the state to take maximum advantage of renewable resources, such as wind, solar and biomass energy.

Clean energy

By nature, wind and solar power sometimes goes to waste because these methods produce energy when no one needs it. At other times, energy is unavailable when needed. New developments in fuel cell technology may overcome these problems by allowing electrical energy storage in the form of hydrogen, the report says. However, state investment in research and development in this area is negligible.

State legislators missed an opportunity to advance renewable energy efforts when they failed in 2001 to enact a renewable energy standard into law, according to a report from Minnesotan's for an Energy-Efficient Economy (ME3), a nonprofit group that advocates clean, efficient and fair energy systems.

State law asks for "good faith efforts" from utilities to attain 10 percent of their energy from renewable sources by 2015. Meanwhile, California law requires utilities to purchased 20 percent of their electricity from renewable sources by 2017. Texas requires the installation of 2,000 megawatts of new renewable energy sources by 2009. Iowa and 10 other states also mandate renewable energy standards by law, the report says.

"Minnesota is dependent on coal-fired plants for 75 percent of the electricity we consume, putting us about 50 percent above the national average in our dependence on coal," the report says. "Reducing this dependence by cleaning up and switching from coal-fired generation, with a phased-in replacement by cleaner technologies, will benefit the health of our citizens and the environment of our state."

Source: Minnesota Energy Planning Report 2001, Minnesota Department of Commerce

Data from this chart is included in the text version of this story. Click here to link to an Excel version of this chart.