Minnesota Taxpayers Stuck Footing The Bill For Wind They Can’t Use or Sell
- Posted on April 19, 2012 at 4:08pm by
Becket Adams
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Taxpayers in Minnesota ended up paying $70 million more than they needed to for electricity in 2011 because of “green” energy mandates, according to the Minnesota Rural Electric Association (MREA).
“Taxpayers already pay a high price to subsidize wind energy through billions in federal grants, loan guarantees and tax credits that prop up the ‘windustry,’” Tom Steward writes for the Minnesota State News.
“Now the bill for state renewable energy mandates is coming due with hundreds of thousands of Minnesota electric co-op and utility customers picking up the tab,” he adds.
A $70 million dollar tab, that is.
Related: Gov’t-Subsidized Wind Farms Told NOT to Produce Energy
“It’s an enormous subsidy. You have to add wind power, whether you need it or not,” said Mark Glaess, MREA executive director. “Right now we’re paying for wind we don’t need, we can’t use and can’t sell.”
So how did this happen?
The Renewable Energy Standard (RES) passed by the 2007 Minnesota State Legislature directs electric utilities to ramp up their percentage of renewable energy sales to 25 percent by 2025. Put another way, one of every four kilowatt hours must come from renewable energy by 2025. Unlike many other states, Minnesota does not exempt co-ops and municipal utilities from complying with renewable energy standards. To meet the state’s escalating demands, rural electric co-ops and utilities locked in long-term “take or pay” contracts to purchase power from wind farms.
However, a drop in demand due to the lagging economy and competition from natural gas pushed the price of energy down significantly.
“The RES exists in a sort of price vacuum. No matter that coal-generated power costs considerably less than wind. Dozens of Minnesota co-ops are stuck with higher, pre-recession prices for surplus wind power which must be bought and distributed,” Steward writes.
“The difference between what the wind power costs and what it resells for now adds up to tens of millions of dollars a year statewide with rural residents caught in the middle,” he adds.
Which means Minnesota taxpayers are stuck paying for “green” energy regardless of whether they can sell it.
“It’s a well-intentioned law that did not contemplate the inexplicable law of unintended consequences because it never considered resource planning to meet energy load and demand. What happens when the load goes down? Our members still have to buy it,” Glaess said.
“And we’re going to have to increase rates to pay for our incumbent coal generation, which is getting smacked by the EPA (Environmental Protection Agency),” he adds.
Hot Air’s Ed Morrissey is not particularly pleased with the situation:
Spare us, please, from “well-intentioned” laws. The legislature attempted to dictate market supply and demand, and it produced the failure that this kind of central planning always produces. As a result, Minnesotans have to pay energy costs above current market levels at a time when their disposable income has become more and more restricted, thanks to price increases in gasoline and food. It’s yet another demonstration of the folly of central planning.
Co-ops and utilities in Greater Minnesota say some customers already have a difficult enough time paying their utility bills without the mandate. Considering the fact that the MREA is only halfway through implementing the mandate, it’s probably going to a lot worse.
“What’s awful is the percentage of customers who are late in paying their electric bills,” said Glaess.
“The average percentage that poor people are spending on energy has increased by a great deal and then they’re throwing more of this on us? It’s regressive energy economics,” he adds.
This article has been updated.
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Comments (193)
christos
Posted on April 19, 2012 at 5:09pmThese Fake people are working with the Communists,,,New World Order,,,they sold our Country along time ago,,we just won’t acknowledge it,,,the land is either owned by the Federal Government,Foreign entity’s/China or the Freddy and Fanny fraud,,,what Sovereign Country would sell land to our enemy.China—Answer No Sane Country,,,Treason at the very minimum,,,you will wake up and there will be China’s tanks rolling down your paved streets paid for by China,,,glad the Church won’t be here for the Tribulation +JESUS+GOD+ will Rapture the believers out—FOOLS.
Report Post »1947
Posted on April 19, 2012 at 9:54pmWho are these Communists you talk about……? Anyone we KNOW……?
Report Post »Wolf
Posted on April 20, 2012 at 12:04am@ 1947… there’s a whole list of 536 of them in the rolls call list for the Senate and Congress and White House in D.C.
Report Post »INOGAWD
Posted on April 20, 2012 at 12:13amYou know how much I love these bird killing eyesores…….this is a big OOOOP’s, I think
Report Post »some politician was figuring how much kickback money he was going to get and didn’t
think the whole process out….what is going to happen to this fiasco when the Gov.
subsidies run their course, HMMMMM ???? we need to bring back HANGING, and string
up these DOE and Green Energy charlatans, starting with that fat ass Gore.. well anyway
the folks in Minnesota are already getting porked… Bend over America, You’re Next !!!
db321
Posted on April 20, 2012 at 1:28amGet use to Green Energy – we still have about 45 or so more States that need to loose a few 100 Billion of Tax payers money before they say they have had enough! I wish I would had figured out how to get tax payers money for projects – you can waste, abuse, tax payers money in excessive amounts and no body cares – no body gets mad! What a County!
Report Post »TexasHunter
Posted on April 20, 2012 at 5:45amMINNESOTAINS Please use this “Your” tax dollars and do one of two things. Place a blind in one of the near forest line with one of these being your new tree.. It can be done. Second go and pick up all the dead birds and drop half of them on the POTUS ans half on PETA.. See what they have to say.. DO it and you will make history my friends.. Please. Someone needs to step UP
Report Post »TexasHunter
Posted on April 20, 2012 at 6:00amHey I have a question.. When are we going to say enough? The true Americans? Let me guess when they are at your door.. We are talking about MILLIONS OF DOLLARS EVERY DAY!!! ANOTHER STORY!! Are you tired of GOV WAIST ?? I AM,, IT IS TIME AMERICA. GROW our founding fathers Balls and take a stand! AMERICANS, Clean Congress OUT Why? Because We kicked them all out for not doing there damn jobs! You want to show us why you deserve the position then prove it.. Clean the white house out Why? Well secret service .. do we really need to go there? OMG 2012
Report Post »TexasHunter
Posted on April 20, 2012 at 6:17am@ BLAZE I appreciate your concern for me but please post my whole blog. I will deal with the secret service myself. I have some “fine wine” if needed a glass. So three secret service walk into a bar, The bartender asks what will it be? They reply 3 shots and a break from this DICKtaorship.
Report Post »jcizarter
Posted on April 20, 2012 at 9:11amThe people of Minnesota who have good minds, Constitution oriented minds, should come on down to Texas, NOW!
Report Post »My cousin’s relatives moved from somewhere up there, I forget, and they are having a hard time adjusting to Texas. They hate the crime rate here in this town, they should have been here when Bill Clinton sent tanks and helicopters to kill innocent women and children because of a reason I never understood.
They are NOT making $20.00 an hour for working in an entry level job at an insurance company here. They hate Texas so far. Sorry, but we have no state income tax and we are a “right to work” state.
Wolf
Posted on April 20, 2012 at 9:26amA Texas Hunter…. if you want to step off the porch, you go right ahead, no one’s stopping you. Don’t expect others to follow you: you need a better plan than you’re projecting to be followed.
Report Post »As for me, I‘ll defend my home and won’t ask you for help. Not that I expect anyone to come to my defense even if I asked them. Too many want to talk big on line w/out the cajones to back it.
PFNW
Posted on April 20, 2012 at 10:18am@1947
Report Post »You are!
old white guy
Posted on April 20, 2012 at 10:54amonly really stupid people trust any government to do what is right or even works.
Report Post »old white guy
Posted on April 20, 2012 at 10:55am1947, how about damn near everyone currently in government or on a university campus or a union executive.
Report Post »Ruler4You
Posted on April 20, 2012 at 11:05amJust read an article where Arizona Power refuses to buy any more power generated from wind power because it’s “too expensive.”
And you know where that leads… another “alternative energy” company going bankrupt.
I predict we see a LOT more of this. The ROI on alternative energy “IS” atrociously miniscule. And “IS” unpredictable, to say the least.
Demand based energy infrastructure “IS” the ONLY real solution to affordable energy needs. Period.
Report Post »turkey13
Posted on April 20, 2012 at 12:02pmIn the panhandle of Texas and Oklahoma these farms are all over the place. The problem is that when they break and there is no grant money the scrap them for parts. When you drive by and see a shell and not running thats the case. When the wife and self drove into one to take pictures we saw a guy fixing to go into one that wasn,t runniong and talked to him. In that farm they scrap 2 to keep one running. If motor is burned up it will cost more to replace than the unit can produce electricity in 2 years. He also told us Obama had cut grant money.
Report Post »johnjamison
Posted on April 20, 2012 at 12:34pmOWG,wrote only really stupid people trust any government to do what is right or even works.
Report Post »Thoams Paine put it best society in all forms is a blessing and government in it’s most limited form is but a necessary evil.
Thevoice
Posted on April 20, 2012 at 1:54pmRead both stories today the one on the Solyndra waste of money building being sold and this one …Then realize how deep this Obamacommienations mess goes ..Check out this link.. Good grief if the average American wanted 5 acres of BLM land to do something would never happen ..But this is.. Commie Sell outs …http://www.vegasinc.com/news/2012/feb/17/chinese-company-expected-develop-solar-plant-near-/
Report Post »RightPolitically
Posted on April 19, 2012 at 5:07pmNo more green energy subsidies. Let the utopian leftists fund their own hair-brained schemes from here on out!
Report Post »roostercogburn
Posted on April 19, 2012 at 8:03pmThe best part of this scam is that even if it worked, which it does not, it will never pay for itself, I pay about 7.5 cents a kilowatt hour normally, when you take all the free tax money out of the green energy scam it works out to close to $26.00, not matter how you run the numbers this will never ever work..
Report Post »DownWithDems
Posted on April 19, 2012 at 10:44pm“The Renewable Energy Standard (RES) passed by the 2007 Minnesota State Legislature ”
Hey Minnesota, are you going to keep voting for DemoRats?
Report Post »I hope you learned your lesson.
INOGAWD
Posted on April 20, 2012 at 12:07amThese Liberal Obamatards are inlock step with Greenies..
Report Post »They will Never give up their Blue Status.. Brain-Freeze..
lukerw
Posted on April 20, 2012 at 7:00amI would like to think that the people of Minnesota are STUPID… but Michigan is still trying to Duplicate their PROGRESS!
Report Post »Hiswill
Posted on April 19, 2012 at 5:05pmWashington State has the same issue. Government money helped pay for the windmills. We have an overabundance of Hydro Power here especially during spring runoff. The grid can’t handle the electricity from both. We now have to reimburse the windmill corporations because they have to turn off the windmills so the grid doesn’t overload. Apparently Hydro Power is not considered Green Energy, who knew? Thank you Obama for flushing all this green energy money down the toilet.
Report Post »RightPolitically
Posted on April 19, 2012 at 5:05pmLiberalism on display.
Report Post »rawmilker
Posted on April 20, 2012 at 1:54amAgenda 21 in progress, the takeover of america by the foreign eco facists. If Maurice Strong, Al Gore & their eco-nazis get thier way, Private property ownership will be long gone. They wan’t to force us into the cities, ban single family homes, calorie & water rations, tax public land use IF they allow families to partake in the green belt nature areas. They’re sick & need to be stopped…
Don’t miss this video & pass it on to everyone
http://my.brainshark.com/Agenda-21-for-Public-Officials-472185383?mid=5560
Report Post »Bluebonnet
Posted on April 20, 2012 at 1:50pmHey, I’ve got a good idea. Let’s not vote for that man who keeps trying to bail out everyone with our money, keeps putting our money into stupid solar panels that go bankrupt after they get our money,
Report Post »does shovel ready jobs that don’t do anything. Did I hear some of that shovel ready money went to other causes?
He’s already putting US into the poor house and the uninformed people are foolish dreamers.
Cavy from VA
Posted on April 20, 2012 at 9:08pmRAWMILKER is right … I hate to be this sinister but, folks,… do you really believe all this sheet is just an accident … Obama is just a spark plug in the engine designed to enslave us all … progressivism is the evil.
TEA!!!
Report Post »RebelYell1862
Posted on April 19, 2012 at 5:00pmWhat do you expect from a northern, liberal/progressive state? Idiocracy.
Report Post »txgrsmnky
Posted on April 20, 2012 at 3:51amDuane Alesandro Komacho 2012. Scrote.
Report Post »dmerwin
Posted on April 19, 2012 at 4:55pmThank you all knowing and all seeing federal government. No “well intended” liberal policies ever factor in “unintended consequences” . Who made money on this one?
Report Post »christos
Posted on April 19, 2012 at 4:55pm…Remember these are the people who know better than you,,,if you make financial mistakes you go out of business,if they make a 70 million dollar mistake the tax slaves pay for it,,they can not Fail,,,they are gods/Caesar…also they have College Degrees,,,that paid off didn’t it,,,professional thieves.
Report Post »Its Gonna Getcha
Posted on April 19, 2012 at 4:54pmSo disgusting how much of our tax dollars have been put down the drain since this dumb *&^%$#D! administration has graced us with their knowledge.
Report Post »Eric_The_Red_State
Posted on April 19, 2012 at 4:54pmTHE ONLY thing we should be talking about is ending the GOVERNMENT SPENDING
Greece – here we come
Report Post »chuck_in_st_paul
Posted on April 19, 2012 at 4:53pmDon’t forget that Teh Peoples Republic of Minnesota also passed a law forbidding the construction of any new nuclear power plants. There was also a lawsuit to force the Dakotas to shut down and not build a new coal fired power plant. I can’t wait to see the brown-outs. Maybe…. just maybe, then these idiots will wake up.
This state is so totally stupid. I can’t wait to get out of here.
Report Post »snoopy
Posted on April 20, 2012 at 1:13amChuck,
Report Post »I totally agree, I can’t wait to move either. I drive by one of these turbines in North St. Paul.
On windy days it’s not turning and on still days it is spinning away. It does not turn at all
in the winter! Just another liberal scam for the land of 10,000 taxes. I hate it here.
Freedom from liberals
Posted on April 20, 2012 at 1:20pmI’m from Anoka. Anoka county bought a small used windmill from Cali a couple years back with mostly federal subsidy money. It was supposed to power the high school. It sat idle for almost a year and then we found out they discovered it wouldn’t operate in the winter due to hydraulics freezing up. They had to retool it. Adding up all of the costs it will never pay for itself
Report Post »I can’t wait to get out of this bleeping liberal POS state.
phrogdriver
Posted on April 19, 2012 at 4:49pmGosh, socialism failed AGAIN?
How can this be?
It worked so well in the French revolu . . .uh, Germany in 1938 . . .no, scratch that. Uh, the Soviet Uni . . .wait, um, Greece? Spain? Portugual?
Hmmm, now that I think about it, can anyone explain to me why we keep doing the same things that never, ever work?
The only socialist model that “works” is China – which survives by selling capitalists the only natural resource they have in abundance: slave labor.
And that ship of state will sink eventually, too.
Report Post »Jstarusa
Posted on April 20, 2012 at 5:31pmHmmm, I’ll try to comment in accordance with the rules here. Seems it borders on censor, naw, surely not! Anyway, you are right on target with your post phrogdriver. Sure is funny that all those big college grads havent figured it out yet, but I guess cause they do not have any common sense classes that I know of. Then also where would they find a teacher for the classes…
Report Post »auhunter
Posted on April 20, 2012 at 9:15pmEinstein’s definition of Insanity – Doing the same thing over and over again, expecting different results.
Report Post »gemologist
Posted on April 19, 2012 at 4:43pmI see parts of the turbines going down the freeway every week, it makes me mad that our money and future is wasted so easily and sad that nobody seems willing to organize and prevent it from happening in the future RP 2012
Report Post »IMCHRISTIAN
Posted on April 19, 2012 at 4:43pmOh, don’t they make such a beautiful picture (tongue in cheek) while killing birds.
Report Post »MAMMY_NUNN
Posted on April 19, 2012 at 6:42pmYes those solar farms are beautiful also.
Report Post »ZAP
Posted on April 19, 2012 at 4:42pmShut them wind mills down.They kill thousands of birds yearly
Report Post »LIBERTY 4 LIFE
Posted on April 19, 2012 at 4:40pmThis bill was signed by Tim Pawlenty….a guy who claims to be a staunch Conservative.
Report Post »IMCHRISTIAN
Posted on April 19, 2012 at 4:49pmI am sure he will be reminded at his next election.
Report Post »Wu Ming Ren
Posted on April 20, 2012 at 11:01pmI was very pleased to see Pawlenty (RINO-MN) drop out of the race. I am, however, harboring a suspicion that he may have cut a deal with Romney to run as VP. This crap can’t get over soon enough. I lived overseas for 20 years and returned to the U.S. in 1990 to discover I was a stranger in a strange land. Now, 20 years later, it is all the more strange. If Obama prevails in November, I may just go back overseas for a while. It might be a good idea to get out of town — while it is still possible to travel — before communist Bill Ayers starts killing the 25 million die-hard capitalists he says must die in order to thwart a counter revolution.
Report Post »stockpicker
Posted on April 19, 2012 at 4:34pmWe are drowning in idiocy.
Report Post »aChameleon
Posted on April 19, 2012 at 4:31pmThe law of unintended consequences: When something costs more to produce than something else, it costs more.
Report Post »IMCHRISTIAN
Posted on April 19, 2012 at 4:30pmWell, that is what happens when government thinks they know more then the individuals who have dealt with business and smaller windmills in their time. People who invest in this sort of technology are usually ones who want someone else to pay the bills while they invest. If government would have let life run as it had been people who see and know what was needed in their communities and would use their own expertise to carry on with their own resources and things would be a lot different and not so stressfull these past years.
Report Post »IndyGuy
Posted on April 19, 2012 at 4:28pm“Minnesota Taxpayers Stuck Paying For Wind They Can’t Use or Sell”………..That’s funny because they are also stuck with a windbag that is useless………Al Franken…
Report Post »RightUnite
Posted on April 19, 2012 at 4:46pmAmen! He is one classless azzbag.
Report Post »drbage
Posted on April 20, 2012 at 8:23amAnd to think that VP Biden recently called Sen. Franken a “leading legal scholar.”
Report Post »The hypocrisy(perhaps idiocy would be a better word) of the “oh, so smarter than us” members of Congress is displayed on a daily basis. Defrocked Pope Pelosi wants to re-write the first amendment so Congress can better control the country’s speech..really! This from the same woman who led the charge to pass a law taking over 1/6th of the economy without having ever read the bill. Her Senate colleague, “don’t call me anything but senator“ Boxer was leading the charge for ”green” energy yet at every turn worked behind the scenes to get project after project blocked to protect some fish or insect. What would you expect from people representing a state where you need parental consent to go to a tanning salon, if you are under the age of 18, but don’t need consent for an abortion!
Tigress1
Posted on April 19, 2012 at 4:22pmWell this just blows…
Report Post »DownWithLibs
Posted on April 19, 2012 at 4:21pmIsn’t it funny how liberals never learn the lesson that the road to hell is paved with good intentions. Their good intentions are creating a hell on earth for us.
Report Post »lukerw
Posted on April 19, 2012 at 7:59pmNo ever mentions the Total Failure & AfterMath of “Prohibition”… where it’s like they are a Protected Bird Species… that flys in… Poops… and moves on to another site!
Report Post »lukerw
Posted on April 19, 2012 at 4:21pmThe Wind blows Free… so here’s the Charge from the Socialists for their great job!
Report Post »SpankDaMonkey
Posted on April 19, 2012 at 4:19pm.
Report Post »FYI there is no such thing as “Green Energy”, it’s kinda like “Man Made Global Warming”. It Ain’t Real…..
MAMMY_NUNN
Posted on April 19, 2012 at 6:47pmThere isn‘t anything that’s free if they say it‘s free there’s always a catch.
Report Post »pscully17
Posted on April 19, 2012 at 4:16pmThat is what you get for electing communists…..please.reference the book ANIMAL FARM. THE riling pooh used the promise of a windmill, to solidify his.power and control…wake up people!
Report Post »Mark0331
Posted on April 19, 2012 at 4:15pmIf any of you ever travel to Atlantic City,NJ, you will see a couple of giant wind turbines…they make only enough energy to spin themselves and do not feed one watt into the grid..they are a giant joke that cost 100′s of millions…..most people think they help run the casinos or something…not true at all.
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