1. 1 Charting Minnesota’s Energy Future: Where are we at? Pahoua Hoffman, Policy Director Adam Arling, Project Coordinator Eric Jensen, Senior Energy Associate, Izaak Walton League Presentation to Job Growth and Energy Affordability Policy and Finance Committee January 12, 2015

2. About the Citizens League Nonpartisan nonprofit for 60 years Vision is to create the common ground where “we the People” can achieve the common good Develop capacity of citizens to solve public problems. 2

3. 3 Pop Quiz!

4. 1) According to the US Energy Information Administration (EIA), in 2014, where did Minnesota rank nationally in average retail price of electricity in all sectors? (1 st = most affordable state) 4 1.3 rd 2.14 th 3.26 th 4.48 th (30 th in 2012)

5. 2014 Average Retail Price of Electricity to Ultimate Customers by End-Use (cents/kWh) 5 Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report

6. 2) In 2014, what was the most expensive state for residential electricity? 6 1.California 2.Massachusetts 3.Connecticut 4.Hawaii Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report (18.02 cents/kWh) (16.87 cents/kWh) (19.74 cents/kWh) (38.12 cents/kWh)

7. 3) In 2014, what state had the most affordable residential electricity? 7 1.Washington 2.North Dakota 3.Texas 4.Alaska Source: U.S. Energy Information Administration, Form EIA-826, Monthly Electric Sales and Revenue Report with State Distributions Report (8.95 cents/kWh) (10.96 cents/kWh) (11.99 cents/kWh) (19.62 cents/kWh)

8. Rankings: Average Retail Price of Electricity to Residential Sector, September 2014 8 RankStateCents/kWh 1Hawaii38.12 2Connecticut19.74 3Alaska19.62 4New York19.40 5California18.02 6Vermont17.79 7New Hampshire17.37 8Rhode Island17.23 9Massachusetts16.87 10New Jersey15.85 RankStateCents/kWh 42Missouri10.96 43North Dakota10.96 44Oregon10.72 45Arkansas10.17 46Tennessee10.07 47Kentucky10.06 48Idaho10.02 49Louisiana9.74 50West Virginia9.51 51Washington8.95 18Minnesota12.77

9. Rankings: Average Retail Price of Electricity to Residential Sector, September 2014 9

10. Midwest Commercial & Industrial Prices in 2014 (cents/kWh) 10 StateCommercial Price Michigan10.91 Wisconsin10.65 Ohio9.96 Minnesota9.40 Illinois8.91 South Dakota8.80 North Dakota8.53 Iowa8.41 StateIndustrial Price North Dakota8.02 Michigan7.64 Wisconsin7.48 South Dakota7.03 Minnesota6.89 Ohio6.50 Illinois6.40 Iowa5.24

11. 4) According to MN Department of Commerce, Division of Energy Resources, in 2013, what was the lowest cost energy resource for MN? 11 1.Solar 2.Coal 3.Wind 4.Natural Gas 5.Energy Efficiency/Conservation Programs

12. Energy efficiency as a low cost resource 12 Source: ACEE “The Best Value for America’s Energy Dollar: A National Review of the Cost of Utility Energy Efficiency Programs”. March 2014.

13. 5) According to US Energy Information Administration (EIA), in 2014, what was the largest source of electricity generation in MN? 13 1.Coal 2.Nuclear 3.Natural Gas 4.Hydro 5.Wind and Solar (43.5%)

14. 6) According to the US EIA, in 2012, which of the following most accurately reflects the order of MN’s total electric industry generation mix from greatest to least? 14 1.Coal, Nuclear, Wind, Natural Gas, Other 2.Coal, Nuclear, Solar, Wind, Others 3.Coal, Natural Gas, Wind, Solar, Others 4.Coal, Natural Gas, Nuclear, Wind, Others

15. MN Electric Power Industry Generation by Primary Energy Source (2012) 15 Source: US EIA.Minnesota Electricity Profile 2012, Table 5. Electric power industry generation by primary energy source, 1990-2012 (http://www.eia.gov/electricity/state/Minnesota/).

16. 7) According to National Renewable Energy Laboratory (NREL), in 2012, what was the average capacity factor for utility-scale generation from photovoltaics in Minnesota? 16 1.50% 2.18% 3.45% 4.12% Capacity factor is a measure of how often an electric generator runs for a specific period of time. It indicates how much electricity a generator actually produces relative to the maximum it could produce at continuous full power operation during the same period. Source: National Renewable Energy Laboratory, “U.S. Renewable Energy Technical Potentials: A GIS-Based Analysis”. Anthony Lopez, Billy Roberts, Donna Heimiller, Nate Blair, and Gian Porro. July 2012.

17. 17 Source: National Renewable Energy Laboratory, “U.S. Renewable Energy Technical Potentials: A GIS-Based Analysis”. Anthony Lopez, Billy Roberts, Donna Heimiller, Nate Blair, and Gian Porro. July 2012.

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19. 8) According to US EIA, in 2011, Minnesota ranked ___ nationally in total CO2 Emissions. 19 1.12 th 2.23 rd 3.32 nd 4.48 th

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22. Our current energy work 22

23. Thank You! Pahoua Hoffman Policy Director phoffman@citizensleague.org Adam Arling Policy Coordinator aarling@citizensleague.org Eric Jensen Contract Staff, Izaak Walton League ejensen@iwla.org 23