ERMUSR MISC ISSUES 03-09-2004 - Laserfiche WebLink

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: WITIVi 4'NNESOTA MUNICIPAL UnUrES ASSOC IA n0N 12805 Hignvay 55 • Suite 212 • Plymouth. MN 55441-3859 • 763.55.'230 • 800 422 0119 MN • Fax 763.551.0459 Renewable Energy Minnesota's public policy encourages the inclusion of renewable resources in the generation mix. The 2001 omnibus energy bill expanded on that policy by calling upon power suppliers to make a "good faith effort" to secure 10% of their total electric sales from renewable sources by the year 2015, and by requiring utilities to provide customers with power from renewable sources when requested. We believe that Minnesota's renewable energy policy should recognize the following principles: • State policy should recognize that all existing domestic hydroelectricity is a renewable form of energy. • Minnesota should adopt state policy that creates uniformity in defining renewable energy sources that encompass renewable initiatives at the federal level. Specifically, the definition of renewable resources should be expanded to include landfill gas. • Minnesota should avoid policies that would require utilities to provide a fixed percentage of all the electricity they generate or a fixed percentage of their generating capacity from renewable sources. Instead, utilities should be allowed to offer customers "green pricing" options. • Any change in Minnesota law concerning renewable energy should continue to recognize the need for communities to be able to maintain local control over decisions regarding the selection of renewable energy sources that best fit their local situation. • Minnesota should continue to support renewable energy development with the Minnesota Renewable Energy Production Incentive (REPI) program. However, because this program is reaching the limit of its funding, the state should adopt a tradable tax credit for electricity produced by renewable sources. This proposal would give community-owned utilities the ability to sell their tax credit (at less than face value) to private entities seeking a lower tax burden, and then use the proceeds to buy down the cost of the project. • Minnesota should not embark upon an experiment in retail competition under the guise of encouraging development of renewables. Electricity generated from renewable sources should be subject to the same retail market rules as electricity generated from all other sources. Minnesota Municipal Utilities Association February 2004