Sioux Valley Energy
General Manager/
Chief Executive Officer
Rules, regulations, policies, and laws implemented on the local, state, and national level impact your electric cooperative, and in turn you. Historically, electric co-ops have been involved in politics and today it is no different. It is more important than ever to be engaged in what is happening in our state and national capitols.
On the state level, Sioux Valley Energy, along with its state associations (the Minnesota and South Dakota Rural Electric Associations) are monitoring several issues that impact electric cooperatives and its members. Nationally, as a new Administration and new Congress begin their work, we plan to continue being actively engaged through our national advocacy association, the National Rural Electric Cooperative Association.
There are a few legislative issues in Minnesota I want to let you know about. The first being the lifting of the nuclear moratorium. In 2023, Minnesota passed the 100% carbon-free by 2040 legislation without a real plan on how to achieve it. The reality is, there is no carbon-free resource that can provide baseload power, available 24-7, other than nuclear power. Minnesota is the only state in the nation that has an outright ban on new reactor construction. We need to start having conversations about nuclear energy as an option for baseload power.
The second issue we are hoping will be addressed by the Minnesota legislature is net metering reform. Minnesota’s net metering policy was designed when solar technology was in its infancy and fails to address the modern energy landscape, including the carbon-free by 2040 requirements.
As a co-op we are forced to pay retail rates for energy in Minnesota that we could purchase at wholesale prices. This is not a sustainable business model and increases costs for most members. It costs about twice as much to get the same amount of electricity from small distributed solar systems as it does from larger utility connected solar systems--half the carbon reduction at the same price.
Finally, net metering shifts costs to those who can least afford it by subsidizing the cost for solar panels installed on homes of those who have more financial resources. We hope the Minnesota state legislature will consider a more balanced approach and work to reform current net metering laws.
In South Dakota, legislation regarding automated meters (sometimes referred to as smart meters) was introduced but did not advance out of committee. Sioux Valley Energy has been using various forms of automated metering for decades.
Prior to when automated meters were installed, members were required to either read their own analog meter and report their monthly usage for billing purposes, or a co-op employee would physically travel to every home, farm or business in our large service territory to read usage data. Automated meters are the most cost-effective and efficient technology for our members.
We will continue monitoring legislative and regulatory proposals, working to advocate on issues that are important to electric cooperatives-- speaking up for solutions that benefit our membership as a whole.
We hope to see you at our upcoming district meetings which will be held from now through April. You can find a full schedule on our website at siouxvalleyenergy.com.
