MRES joins North Dakota suit against Minnesota over its energy policy

Attorney General Wayne Stenehjem announced this morning that North Dakota has filed a lawsuit against Minnesota over its Next Generation Energy Act of 2007 (NGEA), which imposes restrictions on carbon dioxide emissions from the generation of electricity imported from outside of Minnesota and consumed in Minnesota.

Missouri River Energy Services (MRES) CEO Tom Heller announced that MRES has joined the State of North Dakota and others in this suit. “NGEA restricts MRES from considering all options when choosing the least-cost resources for our 24 municipal electric utility members in Minnesota as well as for our 36 other municipal electric utility members in the states of Iowa, North Dakota, and South Dakota,” Heller said.

Heller noted that two other electric utilities (Basin Electric Power Cooperative and Minnkota Power Cooperative, Inc.), two coal companies (The North American Coal Corporation and Great Northern Properties Limited Partnership) as well as the Lignite Energy Council have joined the suit as well.                                                                                     

“Minnesota’s Next Generation Energy Act has direct and serious consequences for North Dakota,” said Attorney General Stenehjem.

North Dakota has become a vital and essential source of electricity for consumers in Minnesota. Power stations in Minnesota generate approximately 60 percent of their electricity from coal, all of which is imported. North Dakota’s power plants export the vast majority of the electricity they produce to consumers in other states, including Minnesota. In this way, North Dakota and Minnesota have collaborated to develop a mutually beneficial energy and economic partnership.

The NGEA purportedly relates to “global warming” and “Greenhouse Gas Emissions.” It imposes restrictions on carbon dioxide emissions from out-of-state energy sources as a purely symbolic gesture that could only have negligible impact toward actually achieving the purpose of reducing greenhouse gases on a global scale.

In its lawsuit, North Dakota alleges that the NGEA violates the Commerce Clause of the United States Constitution, unconstitutionally interfering with North Dakota’s energy production. The NGEA imposes prohibitions on energy imported from North Dakota while providing four exemptions from the prohibitions. All of these exemptions favor Minnesota projects or businesses. The complaint alleges that the NGEA favors new large energy projects in Minnesota or Minnesota-based businesses with new large energy projects to the detriment of North Dakota and other out-of-state interests and entities.

“It is unfortunate it has come to this. As Minnesota seeks to rebuild its economy, it will need energy. Much of that energy will need to come from sources outside Minnesota.

Over the last four years, we in North Dakota have made every effort to convince Minnesota officials to rescind this Act,” said Stenehjem. “Earlier this year, the Minnesota Legislature, in a bipartisan move, voted to repeal the law, but the Governor of Minnesota vetoed the legislation. But for the veto of the law by their Governor, we would not have had to take this step.”

For more information, contact Bill Radio at Missouri River Energy Services, phone: 605-338-4042; e-mail: bradio@mrenergy.com.