Minnesota 's Next Generation Energy Act of 2007 thoughtfully addresses climate change and impending shortage of electricity
When Gov. Tim Pawlenty signed the Next Generation Energy Act of 2007 into law, he put in place a thoughtful program that balances our need for environmental protection with our need for more electricity.
After lengthy and thoughtful debate, he and legislators developed a balanced program that should put Minnesota at the forefront of efforts to protect the environment and prepare for our future energy needs. The common-sense compromise between the Governor and legislators promises to address global warming in a significant way without undercutting the ability of Minnesota 's electric utilities to address a foreseeable energy shortage.
The Governor and many legislators recognized that we must take steps to address global warming, but they also understood that the solution had to be more extensive than simply trading one problem for another. With the Next Generation Energy Act of 2007, Minnesota will be able to make significant progress in addressing the problem of climate change and the impending shortage of electricity.
While the legislation allows Big Stone II and other pending energy resources already engaged in the Minnesota Public Utilities Commission's regulatory process or similar processes in other states to proceed, it also provides for speedy development of a climate-change action plan for Minnesota . The law mandates that state or federal regulations directly limiting electric-sector carbon dioxide emissions must be implemented statewide by August 2009 or Minnesota will prohibit certain carbon-emitting developments. It also establishes goals for reducing the state's greenhouse gas emissions: 15 percent by 2015, 30 percent by 2025, and 80 percent by 2050.
At the same time, however, the new law gives the PUC the authority to suspend provisions of the greenhouse gas program if the PUC determines that the state's electricity supply exhibits significant reliability or financial risks for Minnesota customers.
The new law also expands the state's commitment to develop locally owned renewable energy projects and requires utilities to begin achieving annual energy efficiency savings equal to 1.5 percent of their total kilowatt-hour sales. Ultimately, the new focus will double the amount of energy conservation that is achieved in Minnesota .
In addition, a nation-leading Minnesota renewable energy standard signed into law in February will require utilities to produce 25 percent of their electric power from renewable energy sources by 2025.
Clearly, Minnesota is aggressively addressing climate change and an approaching shortage of electricity, and Big Stone II has an important role to play in solving those two problems.
Our plan to expand the Big Stone Plant near Milbank , S.D. , to generate an additional 630 megawatts of power with Big Stone II will significantly add to Minnesota 's supply of dependable electricity. Big Stone II will be 20 percent more fuel-efficient than the current fleet of coal-fired plants in the region, which means that it will produce 20 percent less carbon dioxide. The project will install a common scrubber on the new plant and the existing plant, resulting in lower plant site emissions of sulfur dioxide, nitrogen oxides, and particulates than the existing plant emits today--all while more than doubling the electricity produced. The transmission line that we plan to construct from Milbank to Granite Falls as part of the Big Stone II project will be super-sized to stimulate the development of wind energy and other renewable energy resources.
Clearly, the Big Stone II project is in harmony with the energy initiatives passed by the Legislature and signed into law by the Governor last session. The seven utilities involved in Big Stone II--Otter Tail Power Company, Missouri River Energy Services, Great River Energy, Montana-Dakota Utilities Co., Central Minnesota Municipal Power Agency, Southern Minnesota Municipal Power Agency, and Heartland Consumers Power District--have developed a plan to increase Minnesota 's supply of electric power in a clean and responsible manner. We need more renewable energy, more energy conservation, and Big Stone II for the future of our customers.
The Next Generation Energy Act of 2007 allows us to complete our Big Stone II project--subject to approvals by the MPUC that are now pending--and shows that Minnesota is continuing its leadership role of sound environmental stewardship. It sets the direction for future energy decisions in Minnesota in a way that meaningfully addresses environmental concerns and enables us to responsibly provide for the needs of our customers.
Ward Uggerud
Senior Vice President
Otter Tail Power Company
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