Letter to the Editor: Minnesota Renewable Energy Standard (RES) Does Not Increase Electric Bills for Most in MN

Response to:

http://www.redlakenationnews.com/story/2013/03/22/news/beltrami-electric-legislative-call-to-action/10151.html

Boujou! In a recent letter to the Red Lake Nation News, Ms. Nieuwsma of Beltrami Electric Co-Operative asserts that renewable energy has caused electricity prices to rise. As a member of the Board of Directors of Wind On the Wires (WOW), based in St. Paul, I know that the Minnesota Renewable Energy Standard (RES) has largely kept current energy prices down, and is likely to keep prices relatively stable for many years, if not decades, into the future. A review of the Minnesota RES Utility Compliance Reports submitted to the MN PUC shows that most utilities found that complying with the RES had little or no negative impact on consumer electric rates.

An important point missing from Ms. Nieuwsma’s article is that renewable energy, and wind power in particular, actually saves consumers money, now and in the long run, because renewables like wind have zero fuel costs. Electricity prices are largely a function of the cost of the generators (coal or gas burning power plants, wind turbines, or solar panels), the cost of fuel ( coal, gas, oil, wind or sunshine) and regulations reducing pollution (carbon dioxide, sulfur, mercury, etc.), along with administrative, maintenance and other lesser costs.

Wind and solar have only the one-time cost of the generator, with some maintenance costs over the years, but with ZERO fuel and pollution regulatory costs. Conventional fossil fuels, however, have to pay all three costs, with little control over fuel costs and regulatory uncertainties into the future. Wind and solar energy, however, protect both utilities AND their ratepayers (that’s you) as a smart and steady hedge against wildly fluctuating fossil fuel costs of carbon-based commodities which are increasingly traded on world markets. The likelihood of rising fuel regulation and carbon taxes to help avoid drastic weather extremes like last summer's drought brings another layer of future price uncertainty.

Wind will actually lower wholesale power prices, according to a recent Synapse Energy study (May 22, 2012), because of increased competition, which can ultimately reduce consumer electricity bills. The study finds that “making substantial investments in wind power (and the necessary transmission lines to bring that wind to market) could save the average Midwestern residential consumer as much as $200 per year in 2020.” It seems surprising that rural electric co-operatives, historically committed to lower cost power, would not be in favor of rural economic development that will assure lower power prices over the long term.

I would urge Red Lakers to contact your tribal and state representatives and the general managers at Beltrami Electric Cooperative and the Minnesota Rural Electric Cooperative and tell them that you are in favor of renewable energy because of its potential for more local economic development, especially for reservation communities seeking economic and employment opportunities through renewable projects of their own, the potential for reduced or more stable electricity prices for reservation ratepayers in the coming years, and the environmental and public health benefits of an overall cleaner energy system.

Renewables also offer tribal communities options for greater energy sovereignty and self-sufficiency, as many tribes in the Great Lakes, Great Plains and throughout Indian country are learning.

Chi-miigwetch for the opportunity to share these thoughts.

Bob Gough, Secretary

Intertribal Council On Utility Policy (COUP)

P.O 25. Rosebud, SD 57570

605 441 8316

Gough.Bob@gmail.com