1. M R E A Cost of Climate Change Climate Change Symposium Carolyn Sampson Minnesota Rural Electric Association Climate Change Symposium Carolyn Sampson Minnesota Rural Electric Association

2. M R E A Minnesota Rural Electric Assoc. Our members 44 electric distribution and 6 generation and transmission cooperatives throughout rural and suburban Minnesota 1.8 million people Consumer members from across the political spectrum Our members 44 electric distribution and 6 generation and transmission cooperatives throughout rural and suburban Minnesota 1.8 million people Consumer members from across the political spectrum

3. M R E A Proposed Climate Change Solution “Cap” amount of CO 2 produced (power plants = 40% CO 2 produced) Lower cap annually with a goal of 80% CO 2 reduction by 2050 (2005 baseline) “Cap” amount of CO 2 produced (power plants = 40% CO 2 produced) Lower cap annually with a goal of 80% CO 2 reduction by 2050 (2005 baseline)

4. M R E A Economic Impact by income Who is affected Low Middle High ( $88k) $612 – 6.2% Impact$1,100-2.4 % Impact $2,091 – 1.4% Impact “Average” MN electric co-op consumer: 20% below state per capita income *According to the Tax Foundation Who is affected Low Middle High ( $88k) $612 – 6.2% Impact$1,100-2.4 % Impact $2,091 – 1.4% Impact “Average” MN electric co-op consumer: 20% below state per capita income *According to the Tax Foundation

5. M R E A Meanwhile—EPA is acting Massachusetts v. EPA (2007) “Endangerment Finding” -- leads to CO 2 regulation Massachusetts v. EPA (2007) “Endangerment Finding” -- leads to CO 2 regulation

6. M R E A Projected Cost to Minnesotans Minnesota #2 in CO 2 intensity 1 kWh of electricity produces 2.21 pounds of CO 2 (avg. household consumes 600 kWh per month) $20 per metric ton of CO 2 (conservative estimate) $22 electric bill increase (24%) per month per household Economic impact per household $1066-$3455* (by 2020) *National Association of Manufacturers (EIA data – DOE division) Jobs lost 22,000 – 34,000 (by 2020) Minnesota #2 in CO 2 intensity 1 kWh of electricity produces 2.21 pounds of CO 2 (avg. household consumes 600 kWh per month) $20 per metric ton of CO 2 (conservative estimate) $22 electric bill increase (24%) per month per household Economic impact per household $1066-$3455* (by 2020) *National Association of Manufacturers (EIA data – DOE division) Jobs lost 22,000 – 34,000 (by 2020)

7. M R E A Global Results: Complete reduction of emissions in Minnesota would be eclipsed within 6 weeks by global emission Said another way – Next Generation Act (80% reduction by 2050 on 2005 baseline) would have absolutely no effect on global climate Yet a state-imposed carbon tax would raise cost on almost all consumable goods Complete reduction of emissions in Minnesota would be eclipsed within 6 weeks by global emission Said another way – Next Generation Act (80% reduction by 2050 on 2005 baseline) would have absolutely no effect on global climate Yet a state-imposed carbon tax would raise cost on almost all consumable goods

8. M R E A Governance Indicators 3 (country’s percentile rank) GovernmentRegulatoryRule ofControl of Effectiveness Quality LawCorruption U.S. 90-100 th 90-100 th 90-100 th 75-90 th China 50-75 th 25- 75 th 75 - 80 th 25-50 th EuroUnion 75-80 th 75- 80 th 75 - 80 th 75-80 th Russia 25-30 th 0 - 25 th 0 - 25 th 0 -25 th India 50-75 th 25 - 50 th 50 - 75 th 50-75 th Governance Indicators 3 (country’s percentile rank) GovernmentRegulatoryRule ofControl of Effectiveness Quality LawCorruption U.S. 90-100 th 90-100 th 90-100 th 75-90 th China 50-75 th 25- 75 th 75 - 80 th 25-50 th EuroUnion 75-80 th 75- 80 th 75 - 80 th 75-80 th Russia 25-30 th 0 - 25 th 0 - 25 th 0 -25 th India 50-75 th 25 - 50 th 50 - 75 th 50-75 th Prospect of Global Gaming * According to World Bank

9. M R E A www.OurEnergyMN.coop Join the Campaign