Co-op Monitors Legislative Issues

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.