A lot of folks came to a hearing at Minneapolis City Hall eight days ago to oppose a ballot measure authorizing the city to form a municipal utility. Mostly they argued that the status quo is sufficient.
I'd like to ask if they understand the question.
Electricity service in Minneapolis is akin to living in a town where there's only one restaurant and it's the only place you've ever eaten. Mostly you are satisfied. Occasionally the food is lousy; sometimes the service is, too. But you've never eaten anywhere else. That's Minneapolis. One hundred years of the same electric utility.
In discussing this ballot measure, the City Council is exploring the only legal alternative to service from Xcel Energy. The city is not saying — contrary to Xcel's letter to customers — that Minneapolis is going to buy the electric system tomorrow. Instead, the City Council is asking whether we could get cleaner, more affordable and more reliable local energy. There's plenty of evidence that we can.
The city's sources of electricity are getting cleaner, slowly, thanks to the Legislature. Starting with a wind-power mandate in 1994 and then a renewable-energy standard in 2007, the Legislature has required Xcel to provide 30 percent of its electricity from renewable sources by 2020. But about 20 percent of our energy still comes from nuclear power, and we still have no plan for storing the radioactive spent fuel. An awful lot still comes from coal, which puts soot and carbon in the air and mercury in our lakes.
The Denton, Texas, municipal utility already gets 40 percent of its electricity from renewable energy. The Sacramento, Calif., utility is dedicated to reducing greenhouse gas emissions by 90 percent by 2050. We can do better on clean energy.
When it comes to lowering energy bills through efficiency and conservation, Xcel is meeting its state requirements to reduce the growth of electricity demand by 1 to 1.5 percent per year — but a 2011 study by Ceres shows that there are at least 10 large utilities with higher savings rates. We can do better on affordability.
When it comes to cost, electricity rates have risen by 40 percent in the past decade. They leapt another 10 percent in January, and with massive cost overruns at Xcel's Monticello nuclear plant, they're going up again next year, too. We, again, can do better on affordability.