Latest Posts

Home

Facebook

Twitter

Search
About

Xcel Energy Commits to 100 Percent Increase in Electricity Rates (And Then Some)

Yesterday, Xcel Energy announced it is committing to go 100 percent “carbon free” by the year 2050 across the eight Western and Midwestern states where the monopoly utility operates. Unfortunately, Xcel’s ratepayers will see a 100 percent increase in electricity rates, and then some.

American Experiment has detailed how spending $15 billion on wind has caused Minnesota families to see their electricity bill increase 58 percent since our state started building wind turbines in 2005. The graph below shows major spikes occurring after politicians passed a law mandating the state generate 25 percent of its electricity from renewable sources by 2025.

Despite the state’s massive investment in wind and solar farms, at the behest of Xcel Energy, carbon dioxide emissions haven’t fallen very much. In fact, the 25 percent reduction in CO2 emissions from 2005 levels would have been much higher if our state had built more natural gas and nuclear plants, rather than squander money on intermittent, unreliable sources of electricity like wind and solar that require coal or natural gas back-up to generate electricity when the weather does not cooperate.

The graphic below is a screenshot from the app electricityMap, which shows what sources of power generation are currently providing us with the electricity we rely upon, and the carbon dioxide emissions associated with that electricity. What a surprise! The largest portion of low-carbon electricity is good old nuclear power, and the wind is hardly blowing.

In Xcel’s defense, they said this was a “carbon free” goal, not a renewable energy goal, and the company has mentioned they see nuclear power and carbon capture and sequestration as possible avenues for reaching zero CO2 emissions by 2050.

But let’s not be too generous to Xcel, after all, the utility has a long history of greenplating the grid with investments in wind and solar, and actively lobbied for the highest-possible social cost of carbon cost in Minnesota in utility planning. All of these moves have resulted in enormous profits for their shareholders at the expense of everyone else.

Some people may be inclined to think “Well, Xcel is a private company and they can do what they want,” and I would be amenable to this argument if it were actually true, but Xcel is not really a private company, it is a government-mandated monopoly utility company.

Customers cannot simply choose another provider if they are unhappy with the service, they are stuck with Xcel. But maybe it is time to change Xcel’s monopoly status and introduce competitive markets in Minnesota.

Xcel’s commitment to boosting it’s bottom line, erm, I mean, boosting carbon free energy, may curry favor with the environmental community and its shareholders, but it will impose serious hardships on low-income families, seniors, farmers, manufacturers, and miners who will see at least a 100 percent increase in their electric rates.

Comments

Subscribe

Categories

Upcoming Events

  • YLC Curling Event

    Location: Chaska Curling Center 3210 Chaska Blvd, Chaska, MN 55318

    Grab your broom and stone and join the Young Leadership Council for an evening of Curling at the Chaska Curling Center! $40 registration includes: Instruction Ice time and equipment Appetizers (Curling Center Bar will be available to purchase drinks) The event will begin with 15-20 minutes of classroom instruction on curling rules and basics followed by 20-30 minutes on the ice for practice and drills. Instructors will be on hand the whole evening to guide your games. Dress Code: Bring a pair of clean-on-the-bottom shoes to change into. No leather soles or metal lace hooks Loose fitting or strechy clothes…

    Register Now
  • The Diversity Delusion

    Location: Hilton Minneapolis 1001 South Marquette Avenue Minneapolis, MN 55403

    Please join Center of the American Experiment on Wednesday, April 24th at the Hilton Hotel for a lunch forum with Heather Mac Donald as she discusses her new book, The Diversity Delusion: How Race and Gender Pandering Corrupt the University and Undermine Our Culture.  Heather Mac Donald is the Thomas W. Smith Fellow at the Manhattan Institute, a contributing editor of City Journal, and a New York Times bestselling author. She is a recipient of the 2005 Bradley Prize. Mac Donald’s work at City Journal has covered a range of topics, including higher education, immigration, policing, homelessness and homeless advocacy, criminal-justice reform, and race…

    Register Now
  • 2019 Annual Dinner Featuring Nigel Farage

    Location: Hilton Minneapolis 1001 South Marquette Avenue Minneapolis, MN 55403

    Purchase Tickets Here

    Register Now