Sorting Out the Cost Factors of the Carbon Free Energy Bill

(KNSI) — Minnesota Governor Tim Walz signed a law last month mandating 100% of the energy used in the state to come from renewable sources by 2040, but that has triggered some questions about required investments.

Annie Levenson-Falk, of the Citizens Utility Board of Minnesota, notes that utilities are already transitioning. She admits no matter the source, overall energy investments will be in the billions, but adding renewable-energy replacements for aging fossil-fuel infrastructure is the best way to go.

“There’s no cheaper alternative. Renewables are generally the lowest-cost way to generate electricity.”

The Center of the American Experiment says that Minnesota customers will see their electricity expenses increase by an average of nearly $3,900 a year under the plan. Republicans nicknamed the measure the “blackout bill.” They say it will ensure the lights go out during winter cold snaps and sweltering summer heat waves. The GOP has also warned about the cost. But Levenson-Falk says there are a lot of estimates being floated that should be met with skepticism.

At the Legislature, House Majority Leader Jamie Long authored the plan. He predicts whatever costs are passed on to consumers will be more manageable than the impact of volatile fossil-fuel markets. “A significant part of the recent increases that we’ve seen in electricity prices have been from the skyrocketing natural gas prices.”

Xcel Energy says inflation has caused prices to rise on solar projects by 25% since the start of 2021 alone, including by 8% in the second quarter of 2022.

The Public Utilities Commission approved a solar farm to replace the Xcel Sherco Generating Plant in September but refused to say how much it would cost.

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MNC Reporter Mike Moen contributed to this story.

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