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Charting Minnesota’s Energy Future:Where are we at?

Pahoua Hoffman, Policy Director Adam Arling, Project Coordinator

Eric Jensen, Senior Energy Associate, Izaak Walton League

Presentation to Job Growth and Energy Affordability Policy and Finance Committee

January 12, 2015

About the Citizens League

• Nonpartisan nonprofit for 60 years• Vision is to create the common ground

where “we the People” can achieve the common good

• Develop capacity of citizens to solve public problems.

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Pop Quiz!

1) According to the US Energy Information Administration (EIA), in 2014, where did Minnesota rank nationally in average retail price of electricity

in all sectors? (1st = most affordable state)

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1. 3rd

2. 14th

3. 26th

4. 48th

(30th in 2012)

2014 Average Retail Price of Electricity to Ultimate Customers by End-Use (cents/kWh)

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Residential Commercial Industrial All Sectors

12.47

9.4

6.89

9.41

12.58

10.87

6.95

10.35

MN US Average

Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report

2) In 2014, what was the most expensive state for residential electricity?

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1. California2. Massachusetts3. Connecticut4. Hawaii

Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report

(18.02 cents/kWh)(16.87 cents/kWh)(19.74 cents/kWh)(38.12 cents/kWh)

3) In 2014, what state had the most affordable residential electricity?

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1. Washington2. North Dakota3. Texas4. Alaska

Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report

(8.95 cents/kWh)(10.96 cents/kWh)(11.99 cents/kWh)(19.62 cents/kWh)

Rankings: Average Retail Price of Electricity to Residential Sector, September 2014

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Rank State Cents/kWh

1 Hawaii 38.12

2 Connecticut 19.74

3 Alaska 19.624 New York 19.40

5 California 18.02

6 Vermont 17.79

7 New Hampshire 17.37

8 Rhode Island 17.23

9 Massachusetts 16.87

10 New Jersey 15.85

Rank State Cents/kWh

42 Missouri 10.96

43 North Dakota 10.96

44 Oregon 10.7245 Arkansas 10.17

46 Tennessee 10.07

47 Kentucky 10.06

48 Idaho 10.02

49 Louisiana 9.74

50 West Virginia 9.51

51 Washington 8.95

18 Minnesota 12.77

Rankings: Average Retail Price of Electricity to Residential Sector,

September 2014

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Midwest Commercial & Industrial Prices in 2014 (cents/kWh)

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State Commercial Price

Michigan 10.91Wisconsin 10.65Ohio 9.96Minnesota 9.40Illinois 8.91South Dakota 8.80North Dakota 8.53Iowa 8.41

State Industrial Price

North Dakota 8.02Michigan 7.64Wisconsin 7.48South Dakota 7.03Minnesota 6.89Ohio 6.50Illinois 6.40Iowa 5.24

4) According to MN Department of Commerce, Division of Energy Resources, in 2013, what was

the lowest cost energy resource for MN?

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1. Solar2. Coal3. Wind4. Natural Gas5. Energy Efficiency/Conservation

Programs

Energy efficiency as a low cost resource

12Source: ACEE “The Best Value for America’s Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs”. March 2014.

5) According to US Energy Information Administration (EIA), in 2014, what was the

largest source of electricity generation in MN?

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1. Coal2. Nuclear3. Natural Gas4. Hydro5. Wind and Solar

(43.5%)

6) According to the US EIA, in 2012, which of the following most accurately reflects the order of MN’s total electric

industry generation mix from greatest to least?

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1. Coal, Nuclear, Wind, Natural Gas, Other

2. Coal, Nuclear, Solar, Wind, Others

3. Coal, Natural Gas, Wind, Solar, Others

4. Coal, Natural Gas, Nuclear, Wind, Others

MN Electric Power Industry Generation by Primary Energy Source (2012)

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Coal43.91%

Hydro1%Natural Gas

13.70%

Nuclear23.08%

Biomass2%

Wind14.72%

Other1.52%

Source: US EIA.Minnesota Electricity Profile 2012, Table 5. Electric power industry generation by primary energy source, 1990-2012 (http://www.eia.gov/electricity/state/Minnesota/).

7) According to National Renewable Energy Laboratory (NREL), in 2012, what was the average

capacity factor for utility-scale generation from photovoltaics in Minnesota?

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1. 50%2. 18%3. 45%4. 12%

Capacity factor is a measure of how often an electric generator runs for a specific period of time. It indicates how much electricity a generator actually produces relative to the maximum it could produce at continuous full power operation during the same period.

Source: National Renewable Energy Laboratory, “U.S. Renewable Energy Technical Potentials: A GIS-Based Analysis”. Anthony Lopez, Billy Roberts, Donna Heimiller, Nate Blair, and Gian Porro. July 2012.

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Source: National Renewable Energy Laboratory, “U.S. Renewable Energy TechnicalPotentials: A GIS-Based Analysis”. Anthony Lopez, Billy Roberts, Donna Heimiller,Nate Blair, and Gian Porro. July 2012.

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8) According to US EIA, in 2011, Minnesota ranked ___ nationally in total CO2 Emissions.

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1. 12th

2. 23rd

3. 32nd

4. 48th

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Our current energy work

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Thank You!

Pahoua HoffmanPolicy Directorphoffman@citizensleague.org

Adam ArlingPolicy Coordinatoraarling@citizensleague.org

Eric JensenContract Staff, Izaak Walton Leagueejensen@iwla.org

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