Posted 2/28/01 Attorney General Mike Hatch calls for investigation into skyrocketing natural gas prices this winter By Howard Lestrud ECM Online Managing Editor Skyrocketing natural gas price increases in Minnesota this winter have forced Attorney General Mike Hatch to ask why and to call for an investigation. Hatch, maybe the most visible of Minnesotaís executive officers next to Gov. Jesse Ventura, took time on a recent Friday afternoon to visit with members of the ECM Editorial Board. The session was dominated by Hatch but he showed a willingness to talk at length on any issue. He talked energy issues, which he says take a third of his time, and he also shared views on wholesale deregulation, talked about privacy issues, gave his views on healthcare issues and even talked about his political future. Giving the cue to press secretary Leslie Sandberg to distribute a letter he sent the day before to Gov. Ventura, Hatch opened with a concern for Minnesotans faced with high heating bills. He said because his office receives ìlots of callsî about high heating bills and because other states are asking for an investigation of rapid increases in natural gas prices, he thought it imperative that Minnesota follow suit. 300 percent increase In his letter to Gov. Ventura, Hatch says while the demand for natural gas increased by 20 percent since January of 2000, the well head price of natural gas increased by 300 percent. ìThe rapid increase in price does not appear to be rational,î Hatch said. The price spike of natural gas this winter was more than double of what was predicted in August of 2000. ìThat troubles me,î said Hatch, ìand there ought to be explanations.î Hatch expressed concerns for many citizens, nursing homes, churches, schools and businesses that operate on a fixed income. He said because of the unexpected rate increases, Minnesotans were unable to budget appropriately to plan for these costs, with the result being that activities, employment and purchases being curtailed or suspended in order to pay for natural gas. Several governors are investigating what actions state government can take to address the issue and Hatch wishes to follow. Outlines steps to be taken He asked for the following steps to be taken: ï Request the Department of Commerce to conduct an investigation and issue a report on the wide fluctuation of natural gas prices. The investigation should identify the causes for the high price of natural gas this winter. ï Request the Minnesota Public Utilities Commission to conduct hearings on the various issues tied to price increases. ï Form an energy subcabinet to coordinate and address key energy-related issues. Hatch is asking the energy subcabinet to study whether the energy industry, knowingly or not, contributed to this winterís heating cost spike. He is also asking for any suggested changes to energy policy as it relates to hedging practices of local distribution companies. Recommendations are sought with regard to conservation, alternative energy or other actions to enhance the stateís energy efficiency. Each member of the cabinet is also asked to prepare an inventory as to actions being taken by their counterparts in other states to address the energy issue. Illinoisí cabinet includes commissioners from the following departments: Department of Natural Resources, Department of Commerce and Community Affairs, Environmental Protection Agency, Department of Agricul-ture, and the chairman of the Illinois Commerce Commission. Hatch said maybe there is an explanation for the higher natural gas costs. ìMaybe they were wrongî in making their projections, he said. Attorney General Hatch said he was hopeful that the governor would support his proposal. Talks about deregulation Speaking about deregulation on a larger scale, Hatch said he believes trucking deregulation works but he has second thoughts about it in regards to the airline industry and he is ìabsolutely opposedî to it in respect to electrical energy. Shifting gears from energy to privacy, Hatch said he is pushing three bills where permission would be needed to obtain personal data regarding information held by banks, telephones and state health institutions. Each bill has strong advocates for and against, Hatch pointed out. His intent is ìto put in some firewallsî in respect to these privacy issues. Asked if the governor was backing his bills, Hatch said he did not know. Attorney General Hatch talked openly about healthcare, saying he hoped to ìlevel the playing field in this areaî supported patient rights. He circulated The Fairness in Health Care Act for 2001 which he said proposes solutions for many healthcare problems. Talking about his political future and speculation that Hatch could be a DFL candidate for governor in 2002, he said, ìI want to run for Attorney General for another term; I ran for governor before (1994) and that didn't work.î ©Post Review