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March 31, 2021 <br />MMPA Member Communities to See No Rate Impact from February Cold Weather Event <br />The cold weather events of mid-February caused disruptions in electric and natural gas markets <br />throughout many parts of the central United States. Prices for both electricity and natural gas set new <br />all-time highs in many markets. Many electric customers lost power for an extended period of time. <br />MMPA because of the mid-February events. For more than a decade, MMPA has maintained a rate <br />stabilization fund to cover unexpected, short-term price spikes such as this. The MMPA Board of <br />Directors elected to use some of its rate stabilization fund to offset the higher than budgeted costs <br />rather than passing a rate increase through to members. <br />No MMPA member community had an interruption in power during this event. We have been asked <br />to comment as to why Minnesota did not experience power outages like those seen in Texas. Below <br />are several differences between the electric power markets in Minnesota and Texas. <br /> <br />withstand colder temperatures than those in most other parts of the country. <br /> Minnesota has natural gas supply from both the North (Canada) and the South <br />(Louisiana/Oklahoma/Texas). These multiple supply routes provide some backup in case one <br />is unavailable. <br /> <br />In addition to these Minnesota market characteristics, MMPA has backup fuels on-site at two of our <br />Shakopee Energy Park. These backup fuels allow our generators to run for some period of time even <br />if gas is not available. <br /> <br />MMPA continues to work diligently with our member communities and other utility partners to help <br />ensure reliable electric service to all of the 160,000-plus Minnesotans we serve. <br />502 <br />