5.5 ERMUSR 04-12-2011 - Laserfiche WebLink

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Position Statement Coal and Nuclear Ban Repeal Background Electric utilities will need a full range of energy supply options if they are to affordably and reliably meet the needs of Minnesota's economy as it recovers from the recent recession. Each electric generation technology has advantages and disadvantages. The best approach will be a balanced portfolio that avoids over-reliance on a few resource options. Clean coal and nuclear power may prove to be an important part of the resource mix that will power Minnesota's economy into the next generation. One of the provisions of "The Next Generation Energy Act," passed by the Minnesota Legislature in 2007, effectively prevents Minnesota electric utilities from constructing new coal-fired plants or importing electricity from such plants in other states unless they either reduce emissions of carbon dioxide (COZ) at a different plant, or find some other way to compensate for the increased COa emissions. The current language for emissions and offsets severely limits the options available to utility planners in meeting Minnesota's future energy needs. As new technologies emerge, we need to be able to consider all available options, including clean coal technology. Minnesota also has had a ban on new nuclear power plants since 1994, when a moratorium on new nuclear power plants was included in the legislative package that provided authority for storing nuclear waste above ground at the Prairie Island plant. Despite the severe problems that have occurred at nuclear power plants in Japan following the recent earthquake and tsunami, the next generation of nuclear technology will be required to be safe, reliable, and areasonably-priced source of power. As new technologies emerge, we believe that it is unwise to artificially circumscribe the range of options available to utility planners. Each technology should be allowed to compete for a place in our energy future. The best will earn their place in our portfolio. Legislative Action HF 72 (Rep. Mike Beard, R-Shakopee) and SF 86 (Sen. Julie Rosen, RrFairmont), which would eliminate the moratorium on new coal construction, has been introduced and passed by committees in both houses. Specifically, the bill would remove the coal prohibition from the 2007 Next Generation Energy Act and allow the importation of newer, cleaner and more efficient coal- generated electric power and the replacement of older, leas efficient electric generation facilities. HF 9 (Rep. Joyce Peppin, R-Red Wing) and SF 4 (Sen. Amy Koch, R-Buffalo), which would eliminate the moratorium on the construction of new nucleaz power plants, has been passed by committees in both houses and is currently in conference committee. The Governor has stated that he will not support the legislation unless it contains provisions that protect future ratepayers against up-front coats and later cost overruns, provide a cleaz plan for radioactive waste storage, and prevent the production of weapons grade plutonium. We should also point out that removing the ban on new coal or nuclear plants will not mean that the regulatory skids will be greased for new projects using these fuel sources. All of the existing regulatory mechanisms that govern the development of new electric generation resources will remain in effect. Power suppliers will still have to develop integrated resource plans, and those plane will have to demonstrate that any proposed project is the leasbcost option. Proponents of a project will still have to obtain a site permit and certificate of need. MMUA Position MMUA supports the passage of HF 72/SF 86, repealing the ban on new coal-fired generation, and HF9 /SF4, repealing the ban on new nuclear generation. Support for this legislation should not be interpreted as a retreat from our commitment to renewable energy and conservation. Municipal utilities will need the ability to use all energy options to protect Minnesota's economy and quality of life. 2071 State Position Statements / 7 Eliminating the ban will not put new coal or nuclear projects at an advantage over other technologies; it will merely put them on an equal regulatory footing with other technologies.