Recommendations for Promoting Affordable and Competitive Energy Rates in Minnesota

Energy affordability is vital to Minnesota’s ability to compete both nationally and globally. For nearly three decades, comparably low energy prices have given Minnesota a competitive advantage, one of the few cost advantages that Minnesota offers.  Lose that advantage and Minnesota will be an even tougher sell for business development.  Unfortunately, this report reveals that Minnesota is, in fact, losing this competitive advantage. The evidence shows that Minnesota energy prices are rising due, in large part, to policies that promote green energy.  While green energy is certainly a worthy goal, the uncertainty over its benefits do not justify the clear cost that rising energy prices are imposing on Minnesota.

This report offers a set of recommendations to reintroduce energy affordability as a key priority.  Many of these recommendations offer straightforward repeals of the most costly and unjustifiable green energy policies.  Repealing certain policies will be politically difficult in the short term. Therefore, short of repeal, this report also recommends additional policy options to mitigate the harm caused by Minnesota’s green energy policies.

Not long ago, Minnesota promoted green energy through a flexible approach that gave sensible consideration to the state’s need for affordable energy.  Minnesota would regain that flexibility by adopting the following recommendations.