Energy policy debate laid over

When crafting a new energy ratemaking model for Minnesota, should stakeholders work off a clean slate or from a decades-old model focused on capital gain and amended dozens of times to include renewable energy and conservation policies that push reduction rather than production?

That’s the policy question facing the House Energy Finance and Policy Division, which laid HF3415 over April 20 for further discussion. Sponsored by Rep. Jeremy Kalin (DFL-North Branch), the bill is referred to as the Ratepayer Protection Act.

The bill tweaks policy language and would provide for a two-year study to determine if utility regulations can be brought in line with the state’s energy policies. Public utilities would be assessed up to $1 million for the cost of the study.

Division members on both sides of the aisle agreed that a comprehensive discussion about how to meet the state’s future energy needs has to happen, but the scope of the conversation is not yet defined. Rep. Mike Beard (R-Shakopee) called the bill a “catalyst” for laying all the options on the table, including lifting the ban on nuclear power plants.

Referencing a 2005 legislative audit report that assessed the cost effectiveness of the Energy Conservation Improvement Program, Kalin said the proposed study should consider the lowest long-term options for producing energy; the reliability of each type of energy source; and what a sustainable business model should look like.

A companion, SF3182, sponsored by Sen. D. Scott Dibble (DFL-Mpls), awaits action by the Senate Energy, Utilities, Technology and Communications Committee.