Posted 3/28/01 Response from Jennings To the editor: Mark Obergís letter to the editor that appeared in last weekís paper raises some important issues regarding the ìEnergy Security and Reliability Actî which I am sponsoring. First, and most important, I have always and continue to oppose deregulation. I believe the system we have works and works well for our state and the district I represent. However, the federal government is forcing us to act because deregulation is going to become the law of the land. It is important to address the factual errors in Mr. Obergís letter. 1. The ìEnergy Security and Reliability Actî is not a deregulation bill. a. Public utility companies will continue to require a Certificate of Need from the Public Utilities Commission (PUC) before construction of electrical generation plants or transmission lines. b. Public utility companies will continue to need approval from the Environmental Quality Board (EQB) before siting of any plants or transmission lines. c. Electrical rates of public utility companies will continue to require the approval of the PUC. 2. Under the legislation, there is a regional planning board where there is equal representation between the electrical generation producers and local units of government. Any request for a Certificate of Need must first obtain the approval of this planning group before an application is submitted to the PUC. The legislation allows for proactive involvement by local units of government, as opposed to reactive under current law. 3. Minnesota is not a net exporter of electrical power, but is a net importer. Although electricity produced in Minnesota is sold to out-of-state users, electricity produced out-of-state is purchased by Minnesota users. The amount of electricity sold to out-of-state users is less that the amount of electricity purchased by Minnesota users from out-of-state producers. How does the bill change current law? Significant changes, as they would pertain to Mr. Obergís letter include: 1. Currently a public utility must prove need before both the Public Utilities Commission and the Environmental Quality Board. At the request of the EQB, that would be changed and the issue of need would only be addressed by the PUC. EQB would address the issue of where the construction should be located and whether the construction has a net negative effective on the environment. 2. Private companies that wish to build electrical plants in Minnesota will not require a Certificate of Need from the PUC. Any proposed construction must go through the other governing bodies involved in the siting and environmental issues. 3. Current law allows EQB 12 months to review a request. The legislation would reduce that review period to six months for those construction proposals that have a proven history, as opposed to untested construction proposals. In conclusion, let me explain why I am sponsoring this legislation. It is expected that within seven to 10 years, there will be a 2000-3000 megawatt deficit in Minnesota - which is equivalent to two to three large power stations. That deficit cannot be entirely addressed through conservation methods, but requires a combination of new diverse energy generation and conservation. The legislation is based on the recommendations of the Department of Commerce and the Environmental Quality Board. These two agencies came to me with the idea for the legislation, I did no go to them. Currently California is presenting our nation with an example of what happens when public policies are enacted and electrical demand outstrips supply. The energy problems in California will occur elsewhere in our nation, including Minnesota, and steps must now be taken. it is not a question of if, it is a question of when. The legislation I am proposing recognizes the economic impact of our state if there is a shortage of energy generation and recognizes the need to protect residential users from facing unmanageable rate increases and shortages like they have in California. I again emphasize, that we must now act in a responsible and proactive manner so we do not face the consequences that are being shown in California. Contact me at 651-296-0518, or write me at 237 State Office Bldg. St. Paul, MN 55155, or e-mail me at rep.loren.jennings@house.leg.state.mn.us with your questions or comments. Loren Jennings State Representative, District 18B ©Post Review