REP FABIAN: DEMS’ ENERGY BILL WILL GREATLY INCREASE RURAL ELECTRIC RATES

ST. PAUL—May 7, 2013—After a long night of waiting and finally debating, State Representative Dan Fabian, R-Roseau, said that House Democrats eventually convinced enough of their members to vote on a controversial Energy Policy omnibus bill that will cause rural electric rates to increase on hardworking Minnesotans. The bill passed with bipartisan opposition, with four rural Democrats voting against it.

“This is another example of a bad omnibus bill that picks winners and losers to the detriment of rural Minnesota. In fact, Iron Range DFLers only agreed to vote for it once their districts were exempted from the bill’s job-killing, rate-increasing mandates,” Fabian stated. “Here, the winners are politically connected ‘green’ energy groups that are being given a government guaranteed market, while rural electric co-ops, municipals and rural ratepayers pay the price.”

Fabian explained that the legislation by Rep. Melissa Hortman (Dem-Brooklyn Park, HF956) increases aggressive, unfunded renewable and solar mandates up to 40 percent (from 25 percent) on utility companies, which will greatly increase rural electric rates and decrease the reliability of their energy sources.

“The Democrats' energy policy bill contains too many new mandates and unknown costs, and will only serve to substantially increase electrics rates on hardworking rural ratepayers,” Fabian explained. “Rural electric ratepayers already have seen an increase of over 70 percent, and this bill will only serve to exacerbate those costs.”

Over the last two years, Fabian has worked with rural cooperatives to understand energy transmission, distribution and the electric energy needs specific to Northwestern Minnesota. He explained that even though rural co-ops and municipal utilities were exempted from some of the provisions in the bill, rural electric rates will still increase.

“The fact of the matter is all energy providers are connected in the electric grid, and when rates increase in one area, they permeate throughout the market, causing rates to go up for rural co-ops and municipalities, and ultimately, hardworking rural ratepayers,” Fabian said.

Fabian continued: “If we want to consider real solutions for reliable, sustainable electric generation, we need to look at hydropower, natural gas and clean coal technology. Instead, this bill only benefits a handful of special interest groups by relying on more expensive, less reliable energy sources that require more intrusive technologies and policies that will ultimately be paid for by hardworking rural Minnesotans.”

The Energy Policy bill awaits a hearing in conference committee.

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