Archive | Xcel Energy RSS feed for this section

Xcel Energy–the most abusive special interest in Minnesota?

Action Alert:  Oppose Xcel Energy ripoff legislation

Is Xcel really the worst?  It’s hard to say–there are so many candidates.  The Minnesota Chamber of Commerce?  3M?  The shadowy interests behind PolyMet and Twin Metals?

From where I write, in Red Wing, which is some sort of ultimate Xcel “company town,” there’s just no contest.  And for someone with a history of working on waste and energy issues, living in a community (nice as it is in many other ways) rendered so bereft of dignity and integrity by it’s servile relationship with Xcel can be painful.  (Of course, the locals don’t seen it that way–they are so used to being told what to do and what to think that they don’t notice.)

Info on Xcel’s latest foray is below, Senate File 3504 /House File 3708 (they are identical).

To see the abuses of Xcel on a larger playing field, one needs to visit the MN Public Utilities Commission and/or the state Legislature.  A puppet show on a different scale entirely.

A few things I’ve written here in the past might be useful or at least entertaining background:

https://alanmuller.com/minnesota-a-wholly-owned-subsidiary-of-xcel-energy-1-in-a-series/

https://alanmuller.com/action-alert-another-inexcusable-giveaway-to-xcel-energy/

https://alanmuller.com/areva-nuclear-scandal-casts-doubt-on-the-safety-of-the-prairie-island-i-and-ii-reactors/

https://alanmuller.com/integrated-resource-planning-and-why-doesnt-minnesota-have-it/

https://alanmuller.com/do-nuclear-waste-dumps-again-threaten-minnesota/

https://alanmuller.com/another-utility-only-public-gagged-energy-commission-meeting-march-3rd/

So, Xcel Energy has three nuclear power units, the only ones in Minnesota.  They were all built in the 1960s/1970s and are old, rickety, dangerous, and expensive.  The are not much needed for the electricity they produce but are highly efficient and effective for separating Xcel’s ratepayers from their money.

Over the last decade or so hundreds of millions of dollars have been poured into these units, for “uprates” (running them at higher output than originally designed for, but cancelled in the case of the two Prairie Island reactors) and license extensions (running them 20 years longer than originally promised).  Xcel is allowed to charge ratepayers a high and guaranteed rate of return on these investments, often above ten percent, so has an incentive to spend as much as possible.

Now it’s time for another big reach into our pockets to feed the nukes.  Behold Senate File 3504/House File 3708 (they are identical) introduced on March 15th and 12th 2018.  These bills rename the nukes “carbon reduction facilities” and would create a whole new bill category called a “carbon reduction rider” to pay for them.  Ratepayers and their advocates would have very limited rights to effectively object.

These bills are such gross ripoffs that some Minnesota NGOs, often comfortably snuggled up with Xcel, are objecting.  These include “Fresh Energy,” AARP, “Citizens Utility Board” (CUB), Energy Cents Coalition, and Citizens Federation–Northeast.

The problem is that they, like the Star Tribune, seem to be accepting the basic argument that the nukes deserve a giant infusion of our cash to keep them going.  They are only complaining about the oppressive details.  For instance, Fresh Energy says:

“While Fresh Energy believes it is potentially economically and environmentally beneficial to keep Xcel Energy’s nuclear plants open until the end of their federal license, a blank check is not the way to do it. The bill provides no guardrails to ensure these investments are prudent. We support pursuing a comprehensive analysis at the Minnesota Public Utilities Commission of what it may take to keep these plants operating another 15 years.”

A joint letter from several orgs, likely written by CUB, raises various objections to the bills as they stand, but doesn’t object to the basically problematic concept of “special processes for cost recovery of nuclear facilities.”  This suggests that in advocating on this issue and these bills, people should be wary of dealmaking and sellouts.  It’s happened before.  For a disgraceful example, CUB rolled over on Xcel legislation allowing it to build a fossil-fuel plant in Becker without the usual regulatory review.  Likewise, “Fresh Energy” rep J. Drake Hamilton has been going around giving “how great they are” presentations about Xcel.  Can objections from “Fresh Energy” be taken seriously?

In spite of all this, the news on future energy sources is basically good.  Wind is cheapest and getting cheaper.  Cost of solar is dropping rapidly.  “Storage” of various kinds, such as giant batteries, can deal with the intermittency of wind and solar.  There is no reason why carbon emissions and electric bills can’t go down together.  But it obviously won’t happen if Xcel and other utilities are allowed to keep on driving the train.  From an industry source, January 8, 2018

  • An Xcel Energy resource solicitation received more than 400 individual proposals, the utility reported last month, including what may be record-low prices for renewable energy paired with energy storage. 
  • The median price bid for wind-plus-storage projects in Xcel’s all-source solicitation was $21/MWh, GTM Research’s Shayle Kann noted on Twitter, and the median bid for solar-plus storage was $36/MWh. Previously, the lowest known bid for similar solar resources was $45/MWh in Arizona.

This is much cheaper than even old-nuke power and illustrates the foolishness of dumping more money into them.  Note also that these are for “power purchase agreements” and do not involve any rate-base-inflating capital investment by Xcel.

(Aside, we can note that since around 2010, while the actual wholesale cost of fuels and electricity has dropped, Xcel has received multiple large, unjustified rate increases and Minnesota now has above-average electricity rates. Right-wing policy shops like the Center of the American Experiment blame this on investment in “renewable energy.”  This is not the case.  The cause is the chokehold that Xcel and other utilities have on regulators, legislators, and NGOs.  So far as I have seen, only Attorney General Lori Swanson has offered much opposition, and that has been rather low-key.)

So yes, these two bills are horrible.  They probably have some throwaway aspects Xcel is prepared to give up to encourage rollovers.

The bigger picture is that Minnesota needs to start regulating its utilities in the public interest, not allowing the utilities to twist and distort policies to the benefit of their management and stockholders but at high cost to the public.  We need a PUC and a Legislature with backbone and integrity.

SF 3504 was to be heard March 22nd, but many concerned citizens showed up and the hearing was postponed to March 27th (Tuesday), scheduled for 01:00 PM in Room 1150 Minnesota Senate Bldg.  Energy and Utilities Finance and Policy Committee

If you would like to speak, contact Committee Administrator Darrin Lee at 651-293-2962 or darrin.lee@senate.mn.

Three of the 10 committee members, including the Chair (Osmek)  are bill sponsors and one (Goggin) is an Xcel employee.  Don’t assume you will be treated respectfully or that the meeting time and place won’t be moved around to frustrate citizens.

HF3708 has been referred to the House Job Growth and Energy Affordability Policy and Finance committee but as far as I know no hearing has been scheduled.

“A kakistocracy (/ˌkækɪsˈtɒkrəsi, –ˈstɒk-/) is a system of government which is run by the worst, least qualified, or most unscrupulous citizens.”

Alan Muller

 

 

 

 

Comments { 1 }

Minnesota: A wholly owned subsidiary of Xcel Energy? #1 in a series.

Utilities do it everywhere….

It’s in the nature of electric utilities to accumulate too much economic and political power.  They provide essential services, they have almost unlimited resources compared to potential opponents, and they send hundreds of thousands of mailings to all the households in their service areas.  Most are corporations whose management works for stockholders, not customers, but they often get people to forget that.  They almost always have undue influence on the commissions that are supposed to regulate them.

But “NSP” is something special

The chokehold that Xcel Energy (Northern States Power Company) has on the state of Minnesota feels unusual even by utility standards.  The obedience that Xcel seems able to extract from most of our public and private institutions in Minnesota–including the media–is extraordinary, and ramping up very aggressively from this already excessive level. Continue Reading →

Comments { 7 }

Action Alert: Minnesota Public Utilities Commission: Withdraw funding for increased garbage incineration!

If you want, skip the gory details and go directly to the action items lower down!

As someone with a longstanding interest in energy and environmental issues, Minnesota can be a little strange.  The state, or at least the central part of it, often seems like a wholly owned subsidiary of Xcel Energy (Northern States Power Company).  I’m appalled by the ease with which Xcel seems able to impose its will, and the lack of dignity and self-respect with which officials and self-proclaimed energy/environmental advocates kowtow, grin and shuffle, for Xcel.  Worse, I’m living in Red Wing, blessed with two Xcel nuclear reactors, Prairie Island 1 and 2, two Xcel garbage incinerators ( an old convertedcoal plant) and an Xcel nuclear waste parking lot, all within the city limits.  As far as what Xcel has to offer, Red Wing has it all!

There are so many interlocking scams going on, involving so many entities and so many moral and intellectual failures, that it can look and feel overwhelming.  I’m going to focus on one here and ask for your help: Continue Reading →

Comments { 0 }

Five of Minnesotas eight Congresscritters voted to weaken/block EPA regulation of coal ash:

Congress makes the wrong move on coal ash rules

H.R. 1734 and Senate companion bill S. 1803 are intended to prevent EPA’s (weak) coal ash regulation rule from going into effect.  165 Democrats voted against 1734 and only 19 voted for it.  239 Republicans vote for it and only ONE against.  Stats here. Continue Reading →

Comments { 0 }

Why the Minnesota Legislature does not care (much) what you think

Devil[1]This is NOT a photo of Senator Tom Bakk

The title is from press coverage of a paper by Professors Martin Gilens of Princeton University and Benjamin Page of Northwestern University.  It’s written in dense political science lingo but the bottom line from the abstract is clear:

“…economic elites and organized groups representing business interests have substantial independent impacts on U.S. government policy, while average citizens and mass-based interest groups have little or no independent influence.”

Is the picture different in Minnesota and other states and localities?  Doubtful.

The current session of the MN Legislature is supposed to wind up Monday, May 18th, at midnight.  At least from an environmental perspective, this has been one of the most miserable sessions one can imagine.  Environmental protections are being rolled back left and right, with relatively little public awareness.  Do Minnesotans *want* more pollution in their air and water, and the resulting death and disease?  Do they *want* accelerating climate change?  Not likely, but nobody is asking the people, and only a few are informing the people.

Still, negotiations continue, and will continue at least up to midnight on Monday.  The time is now to call Governor Dayton (651-201-3400), your Senator, and your Representative.  Find their contact info here.   It could be that the best way to reach the Governor is his Facebook page:  https://www.facebook.com/GovMarkDayton?fref=ts .   Also, contact one of his policy advisors at molly.pederson@state.mn.us, or call, (651-201-3400), or use this email contact form.

Corporate media minimizing public awareness

Example from this weekend:  It is announced that mining interests on the Iron Range are getting one of their key objectives — legislative blocking of enforcement of the Clean Water Act.  Both sides have reason to cover their tracks by calling it a “compromise.”  But it’s not a compromise.  It is a rollover.  Minnesota Public Radio reports it this way “Iron Range legislators, Dayton reach compromise over sulfate standards for wild rice.”  But this is a lie.  An honest lead would say something like “Iron Range legislators prevail, Dayton rolls, Clean Water Act not to be enforced….”  How much does this matter?  By itself, maybe not so much.  The Clean Water Act is rarely enforced in Minnesota.  But considering that MPR misrepresents events as a matter of course, and many people likely regard MPR as a reliable source, the cumulative damage has got to be substantial.   Why?  Darkside interests have worked for a long time to reduce public funding for “public” broadcasting, to make it more dependent on industrial funding.  There are probably few bad actors interests who don’t throw a little money at the “public” broadcasting system in order to buy favorable coverage.

For another take on this, see “Establishment Journalists Pride Themselves on Staying on the Official Rails.”

Now, what about reporting on the Legislature?  People and orgs who lobby, and reporters who depend on sources being cooperative, tend to be economical with truth that might piss people off.  If one lobbies legislators–and I’ve done my share of that–naturally one doesn’t want to annoy them, or to give the impression, however true it might be, that the Legislature is a pay-to-play setup where citizens voices mean little much of the time.   People, likely starting out with the best of intentions, get drawn into the system.  (This is not to say that lobbying isn’t useful.  It is.  But not usually for informing the public.)

Bad examples close to home

“My” two legislators, Rep. Mike Kelly and Sen. Matt Schmit, get dishonorable mention here, because they treat me with disregard and contempt anyway, so what-do-I-have-to-lose?  Neither, to my recollection, have ever responded to an email, a letter, or a phone call.  Kelly got into office, defeating an incumbent, by bombarding the district with “independent” mailings saying different versions of “She voted to raise your taxes!!!!”  That was bullshit, but he got in with it, and incumbents have so many advantages they are hard to get rid of.  Matt Schmit, Senator, moved into the district to run and got in by defeating another incumbent, John Howe.  Howe was likely one of the few reasonable Republicans left in office.  Neither Schmit nor Kelly are the worst members.

In this session, Kelly, Chair of the House Transportation Committee, has distinguished himself by blocking action to protect Minnesotans from the dangers posed by unit crude oil trains (“bomb trains”) that run through Red Wing, through his district.  Schmidt has been one of the few DFL senators to vote for “dirty water” bills and amendments.  Both have been involved in promoting the City of Red Wing’s garbage incineration scams.  Schmit, in his emails, has been promoting SF 2101, a bill intended to promote more ethanol production and more forest incineration.  It’s the single worst bill I’ve ever seen in Minnesota.  Pathetically, mainstream “enviro” interests are also supporting it. Why?  Do they really think Minnesota needs more ethanol plants?  More polluting “biomass” burners.  Are they insane?

But the most telling thing was to see Kelly and Schmidt appearing side by side at a Town Hall Meeting a few weeks ago.  Dodging, weaving, and bullshitting, Schmidt gabbing and Kelly mostly silent, they didn’t tell the audience anything accurate or useful, and gave observers the impression that the Republicans and the DFL present a united front against the people.  These two, like so many, are political operatives, not representatives.  Of course, not all members of the Legislature are like this, many of both parties do try to represent the best interests of their constituents, and are responsive to communications.

Did you vote for higher utility bills? Most of “your” legislators did.

There are bills to gut regulation of electric utilities–SF 1735 (Marty) and HF 843 (Garofolo).  Attorney General Lori Swanson writes (read the whole letter here):

I am a proponent of strong regulatory oversight for public utilities.  This Office has testified against this bill (as well as telephone deregulation initiatives) in multiple committee hearings in both the state Senate and the House this year. … While my Office can testify in opposition to legislation–as we have repeatedly done here–I do not get to vote on such initiatives….I strongly encourage you to share your views with members of the state legislature.”

I heard three people testify against this: Utility regulatory attorney Carol A. Overland (Legalectric), James Canaday from the AG’s office, and myself.  Most of the funded, lobbying, “environmental” and “energy advocacy” orgs were present, and they were silent.  SILENT!

Only four senators voted against this obscenity:  Bruce D. Anderson, David M. Brown, Julianne E. Ortman, and Dave Thompson.

In the House, HF 843 passed 73 to 56.  The vote is here.

Closing with this action alert from Land Stewardship Project (lightly edited):

We need Governor Mark Dayton to ready his veto pen to stop backroom deals adopted late Saturday night.

The Minnesota Legislature decided that instead of weakening the Minnesota Pollution Control Agency (MPCA) Citizens’ Board, it will outright ELIMINATE it. This outrageous idea, which was not introduced as a bill or heard previously in any legislative committee, was unveiled late Saturday night and promptly adopted in conference committee in a backroom deal. The Citizens’ Board was established in 1967 with the creation of the MPCA, to ensure the agency serves the public interest and to establish an open and transparent decision making process. It has worked well and is a model the state should be proud of. [Not so.  The Citizens’ Board is 90 percent rubber stamp, but that doesn’t justify getting rid of it.  That ten percent is worth something.]

This effort to eliminate the Citizens’ Board is driven by corporate interests who want to make it more difficult for citizens to have their voices heard. This language is included in the Agriculture and Environment Budget Bill, along with many other bad provisions, including a sham buffer strip proposal that puts off addressing the serious issue of agricultural runoff polluting our water. […]

Calls are needed to Governor Dayton at 651-201-3400 or 800-657-3717. The legislative session is scheduled to adjourn at midnight on Monday, May 18, so calls must be made immediately. Negotiations are ongoing and around the clock, so make this call after you read this e-mail.

SUGGESTED MESSAGE: “The Agriculture and Environment Budget bill ELIMINATES the MPCA Citizens’ Board. […] This entirely new outrageous proposal was adopted late at night in conference committee. I know officials from the MPCA have made it clear to the Legislature that they oppose this provision, yet the Legislature persisted. The Legislature was fairly warned, and for the good of Minnesota you should veto this bill.”

OK, so it’s noon on Monday and the Legislature has 12 hours to go.  Time to get on the horn…..especially to the Governor.  With the Leg gone to Hell, Dayton’s veto powers are the main hope.  Bills especially needing veto:  SF 2101 (“bioeconomy”), and SF 1735/HF 843 (electric deregulation).

Comments { 0 }

Promised updates on details of mega-horrible bills….

This is the promised further detail on the “mega-horrible” bills being heard in a Senate committee at 4:00 pm this afternoon (Thursday, March 19th.

For the utility “deregulation” bills

see Carol Overland’s Legalectric.org post, “the problems with SF 1735″ .  Overland has been practicing utility regulatory law for a long time and knows the history behind the present scams.  This is complicated stuff that just can’t be reduced to sound bites, but here are two anyway:  (1) Utilities, expecially Xcel Energy, can pretty much afford to buy off everybody, and (2) Nobody in Minnesota government or politics seems to be publicly standing up for ratepayers, the environment, or the public interest.

Attorney General Lori Swanson has the authority to act on behalf of the public.  Ask her to do so:  (651) 296-3353 or 1-800-657-3787, Attorney.General@ag.state.mn.us.

[Note:  There is a “delete-all” amendment to S. F. 1431 which we received at 10:30 pm.  This new version does not seem to correct any of the problems people are objecting to.  It has new sections, some of which seem to raise new concerns.]

[Update:  The AG’s office DID appear at the hearing and oppose both the original bill and the delete-all amendment.  Kudos to Lori Swanson.]

For the “Energy Omnibus Bill, S.F. 1431,” see below

Continue Reading →

Comments { 1 }

[Wash Post] “Utilities wage campaign against rooftop solar”

http://www.washingtonpost.com/national/health-science/utilities-sensing-threat-put-squeeze-on-booming-solar-roof-industry/2015/03/07/2d916f88-c1c9-11e4-ad5c-3b8ce89f1b89_story.html

This, folks, is what is REALLY going on.  The good news is that the cost of solar has dropped and it’s really happening.  The bad news is that it will happen slowly and expensively if the utilities keep a chokehold on it.  Utilities have long since mastered the art of pretending to promote what they are actually blocking.  Perhaps no utility in the world is cleverer at this than Xcel Energy (Northern States Power Company).  The breadth and depth of NPS’s current efforts to gut the utility regulatory process and impose its will on Minnesota energy policy is breathtaking.  Stand by for more details on this.  And: expect some really horrible legislation to sneaked through the Minnesota Legislature.

Alan Muller Continue Reading →

Comments { 3 }

Minnesota’s “Legislative Energy Commission” vs public participation

The Minnesota Legislature has a “Legislative Energy Commission” (LEC) made up of Senators and Representatives. The law establishing it says:  “The commission shall continuously evaluate the energy policies of this state and the degree to which they promote an environmentally and economically sustainable energy future.” Continue Reading →

Comments { 0 }

Comments I sent in on the current funding cycle of the Xcel “Renewable Development Account”

I’ve been looking a the Xcel Renewable Development Account (commonly called the Renewable Development Fund“) and it has a pretty sad history.   Very little good has come of it and much money has been wasted that could productively have been invested in conservation/efficiency projects.

Examples: Ten million or so went to the promoters of a new coal burner on the Range–because of the machinations of the politically connected Tom Micheletti.  Not only was this money totally wasted, but people had  to devote lots of time and energy to fighting permits for the scheme (Excelsior Energy/Mesaba Project.  Carol Overland is the expert on this.  I seem to recall a hearing in Hoyt Lakes, in an unheated hockey rink in January, and not being allowed to finish my questioning of the technical witnesses…..) Continue Reading →

Comments { 0 }

Permanent shutdown of Vermont Yankee nuke plant announced–Monticello should be next

Xcel’s Monticello nuke plant deserves the same fate, ASAP

This is significant to Minnesota as Vermont Yankee is similar in age and design to the Monticello nuke and also to the four destroyed Fukushima-Daiichi reactors that seem to pose an expanding threat with the passing of time.  (VT Yankee is a couple of years older, slightly smaller and has had more high-publicity scandals.) “Fukushima radiation leaks reach deadly new highExposure to emissions would be fatal within hours, say Japanese authorities, as race to build frozen wall begins. Continue Reading →

Comments { 0 }