5.2. ERMUSR 01-13-2009 - Laserfiche WebLink

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Supporters of the concept have indicated that they may be content for now with forcing utilities to participate in a climate registry similar to the one being proposed on the federal level by Minnesota Senator Amy Klobuchaz. Feed-In Tariff. The Feed-In Tariff concept would require all electric utilities to purchase locally generated renewable energy at premium rates to support the development of emerging technologies. Until recently, it appeared likely that legislation imposing aFeed-In Tariff would be seriously considered during the 2009 session. However, support for this concept has also diminished, partly because lazge wind generators would not be included in the program and partly because of concerns about the cost of the tariff to consumers. The concept will likely receive considerable attention and discussion even if no action is taken. Energy lobbyists, including MMUA's, have agreed to watch carefully for any action on the issue and work together to oppose such artificially raised costs to utilities for renewable energy. Solar Carve Out. A proposal that would require generating utilities to meet a portion of their renewable energy standard from electricity generated by solaz energy was rejected in the Senate Energy Committee in 2008. The Committee Chair, State Senator Yvonne Prettner-Solon (D- Duluth), may be willing to consider the bill this year, and Xcel Energy's opposition to the concept is softening, so the proposal could again become an issue in 2009. Most electric utilities consider the proposal a very poor idea. Conservation Improvement Program. The only known effort to change the state conservation improvement program (CIP) may come from Xcel Energy, which would like to receive credit toward their CIP requirement for some (as yet, undetermined) portion of the energy generated by new solar resources. Off Site Renewable Distributed Generation. We have received reports that counties, school districts and even the University of Minnesota would like the right to wheel power generated by renewable energy facilities over the existing transmission and distribution system to their facilities across the state. These entities either do not recognize or are unconcerned about the similarity of this proposal to retail competition. Our task will be to communicate our concerns about this proposal to them and, if they choose to pursue legislation, oppose it. Service Territories. After several months of meetings between representatives of the Minnesota Rural Electric Association (MREA) and the Minnesota Municipal Utilities Association (MMUA), which very nearly resulted in an agreement on new legislation concerning service territory compensation, the MREA Board decided to suspend the negotiations. MMUA had been preparing to lead the effort to introduce new compromise legislation on compensation during the 20091egislative session or a subsequent one, as appropriate. MMUA staff has been working on draft legislation that would modify the service temtory law to incorporate the tentative agreement, so that we will be ready to proceed on short notice if necessary. We will also be ready to resist any attempt by the co-ops to limit our access to the eminent domain process in service territory cases. Nuclear Energy. The Minnesota Legislature enacted a moratorium on the construction of new nuclear power plants in 1994. The growing support for nuclear power as an important base-load 2