CCP 10-28-2002 - Laserfiche WebLink

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1 Adequate Supply and Demand 2 3 The state's current generation and transmission capacity is inadequate to meet 4 projected future needs. No new significant capacity has been built since the 19808 (Sherco 5 3). In the past, regnlatory and other governmental policies served as a disincentive to meet 6 customer demand. The Minnesota Energy Security and Reliability Act enacted by the 2001 7 Legislature took significant steps to reduce these disincentives. The experience of other 8 states would strongly suggest that deregulation prior to the development and maintenance 9 of adequate reserve capacity can lead to price spikes and compromise service reliability. 10 The state should continue to review and amend these policies as necessary to encourage 11 further development and maintenance of adequate capaCity and reliability. 12 13 Consumer Protection 14 15 Consumer interests must continue to be protected, especially for the most 16 vulnerable populations. Reliable service must be universally available and programs such 17 as cold-weather shut-off rules should be continued either as requirements for all market 18 participants or as separate state programs. 19 20 Environmental Concerns 21 22 The environment must be adequately protected, with conservation and renewable 23 energy efforts maintained. The federal government must review the appropriateness of 24 current environmental regulations and their effect in a deregulated market; for example, 25 exemptions from the Clean Air Act for some generation facilities. 26 27 Fair Market Competition 28 29 To ensure fair market competition, the federal and state governments must have the 30 authority to review mergers to prevent abuse of market power. 31 32 Cities must remain viable competitors in the electric market. Municipal utilities 33 must be granted exemptions from rules like the open meeting law and data practices 34 requirements where they hamper the ability to effectively compete with private companies. 35 To ensure adequate service to every citizen, cities, and other local governments must 36 maintain their ability to issue tax-exempt bonds for construction of electric infrastructure, 37 and be given explicit authority to aggregate or municipalize provision of electricity. 38 39 Local Authority 40 41 Cities must maintain their traditional authority over land use, zoning, rights-of-way 42 management, and cost recovery, as well as the ability to franchise providers and to receive 43 payments-in-lieu of taxes from municipal utilities. Cities' authority to negotiate siting fees 44 and agreements for proposed generating facilities should be enhanced. 45 46 To avoid unnecessary demand for the limited space in public rights-of-way, open 47 access to transmission and distribution facilities should be maintained through regulation. 40 . . .