Electricity inflation is misery in Minnesota

Source: The Misery Index on Amazon Prime

Center of the American Experiment has just released a new index clearly showing the miserable trajectory for electricity inflation in the Twin Cities.

This is the Minnesota Electricity Misery Index. Or MEMI for short. But pronounced ME-oh-MI.

It is simply calculated as electricity inflation minus overall inflation, using official statistics from BLS regarding the consumer price index (CPI).

Although this is only for the Minneapolis St Paul (MSP) metro area, as BLS does not generate state-level CPI, it is a bellwether for all of Minnesota.

MEMI is good when it is negative and decreasing. MEMI is bad when it is positive and increasing. The former means relief from electricity inflation misery. The latter, more pain.

As can be seen in the chart above, MEMI drops 10.0 index points between 1978 to 1981, and a further 10.9 from 1990 to 1991.

It then, from 1995 to 2002, plunges 29.2 points from 2002 to 2018, MEMI ‘sky rockets’ 67.2 index points. This is 165% worth of electricity inflation, on top of overall inflation. ME-oh-MI.

The primary force in the 21st century inflating this electricity misery is unreliable and expensive renewable energy. This was and is state policy.

What is needed is far less renewables, and far more reliables, like cheap nuclear, natural gas and clean coal. This can and should be state policy.

Note: For much more on MEMI or ME-oh-MI, please see the original in-depth article entitled CPI + Xcel: The new electricity Misery Index.