PSC protects North Dakotans’ pocketbooks

The North Dakota Public Service Commission has protected North Dakotans from being forced to pay for Minnesota’s love of costly so-called “green” energy projects.

Late last week, the PSC approved a reduced rate increase request from Xcel Energy, the Minnesota-based electric utility which serves some major North Dakota cities, including parts of Fargo, West Fargo, Grand Forks, and Minot.

It was a compromise, of sorts, as Xcel had originally asked for a much larger increase in rates, spurred by the high cost of such electric generation projects as wind and solar (so political are Minnesota regulators that they will not allow utilities to even count hydroelectric power as part of their required “renewable” energy portfolio — and what could be more “renewable” than water continuously pouring over a dam?).

Of course, because it is domiciled in Minnesota, Excel has had to follow the state’s rules, which has led to public utilities ignoring, failing to build, or even shutting down some reliable baseload power, like coal-fired and natural gas power plants, and focus instead upon the more expensive power sources left-wing politicians and regulators insist upon.

Companies like Xcel Energy have no choice but to attempt to pass its resulting increased costs on to its customers. After all, that’s what power companies are supposed to do and what the federal government tells them to do.

That’s why holding the line on the exorbitant price increases proposed was such a dilemma for Public Service Commissioners. On one hand, they knew that the increase in costs the utility incurred probably justified its huge rate increase request. On the other, they understood the unfairness of forcing North Dakotans to pay the cost of regulations in their neighboring state whose politics couldn’t be more different than their own.

When the PSC balked at the size of the rate increase request and pushed back, Xcel eventually came back with a reduced rate increase request, which the Commission approved. While still a large increase (more than 12%), it’s a far cry from the 24% residential rate increase originally requested and, in addition to inflationary cost increases, it will cover expenses for equipment, a substation and a Grand Forks service center.

The final agreement — roughly half as large as Xcel’s original rate increase request — was the result, in large part, of the PSC’s refusal to allow North Dakota customers to be forced to pay for 23 objectionable Minnesota projects.

ND PSC Chairman Randy Christmann believes that it was a “good resolution,” noting that the costs of “Green New Deal” projects were excluded from the increase the PSC granted Xcel. The increase is also Xcel’s first general rate increase in four years. 

North Dakota, Christmann emphasized, still has “the best electric rates in the nation”, but he said he has an “ongoing concern” about Minnesota regulators’ “green leanings”.

Fighting Back

Fighting back against environmental extremists in that land to our east is nothing new for North Dakota. Several years ago, the state had to sue Minnesota because it attempted to prevent energy generated by North Dakota’s coal-fired power plants from even being transmitted through Minnesota to markets to its east, where it is consumed.

Apparently, their regulators were standing at the border, peering at power lines, and asking “are you a ‘brown electron’ or a ‘green electron’?”! Of course, electricity doesn’t care how it was generated, it just wants to flow down the transmission line to eventually heat a home or illuminate a light bulb somewhere.

It was a ridiculous attempt because interstate commerce is regulated federally, not by the states involved, and North Dakota easily won the case.

The PSC deserves kudos for holding the line. Many North Dakotans will see their electric rates increase, like so many costs have in recent inflationary times. But, because of their Public Service Commissioners’ courage and wise stewardship, at least our citizens won’t be forced to pay for their neighbor’s ideologically driven government overreach.