Two precedents are about to be set for Minnesota: one a threat and the other an opportunity.
RATE HIKE IN A PANDEMIC - Centerpoint (with customers in many parts of the metro area) seeks a rate increase of 6.8% for residential gas customers in Minnesota including a 26% bump-up in the "fixed charge." Regardless of whether or not you receive gas from Centerpoint - this is a dangerous precedent to set for several reasons. The "fixed charge," proposed to increase from $9.50/month to $12.00/month is the flat charge for service that cannot be lowered by changing behavior OR installing efficiency measures. A peer utility set an example in Duluth when it course corrected by refunded a significant portion of a rate increase citing the economic stress of the pandemic, but Centerpoint is among the utilities who have not moved on their rate hike. Centerpoint was recently embattled in their Houston service territory when the local government and constituents fought the company's rate hike and won a massive cut to the rate increase and a reduction in ongoing rate of return. In the settlement, Centerpoint was obliged to cover the Citys' legal fees.
LOWER ENERGY BILLS WITHOUT USING DEBT OR SAVINGS - The City of Minneapolis submitted yesterday, July 15th, a proposal for Centerpoint to adopt a program called Inclusive Financing (see p. 7) to lower energy bills long-term that removes the need for loans or upfront cash. This tool has seen incredible success including in "areas of persistent poverty" in some cases multiplying energy efficiency upgrade investments by a factor of 10. This is of particular importance to equity and climate goals and declaration on racism as a public health issue - there long legacy of racism in the financing/banking sector, which then makes home efficiency and health measures functionally unavailable the residents and geographies of the city with the highest pollution rates, most undermined resilience to climate change, and lowest incomes. The City's process has been guided by numerous organizations and community stakeholders.
Stakeholder comments are incredibly important to show the Public Utilities Commission the need and the gap. Typically on rate cases, Judges only hear from between 0-8 people at public hearings Your perspective on both the rate hike and the opportunities of a no-debt, immediate savings options to take part in climate solutions are invaluable and needed- either from your personal experience or extended community expertise and experience. While this pilot program would begin with just Minneapolis the intention is to set a precedent that would benefit ALL of Minnesota from any utility territory whose customers want it as a choice.
WHAT YOU CAN DO on both Inclusive Financing and the Centerpoint Rate Hike
Most important (**now through July 30th 12p**):
Before July 30th @ 12pm - Sign up to receive talking points to your email, day-of reminder, and link to submit 3-minute testimony
(if you are ready to submit now you can easily record and send your 3-minute verbal testimony using the talking points if you want)
Invite 1-2 people who have a stake in this to comment (via facebook, email, text)! This is a huge opportunity to change the public hearings if it can be shown that more participation comes through allowing pre-recorded testimony (so folks don't have to wait in a 30 minute - 3 hour phone queue)
Optional: you can attend the live hearings at the below times by following these instructions
July 28th, 1pm + 6pm
July 29th, 5pm
July 30th, 6pm (recorded testimony will be viewed by the Judge at this hearing)
you can also attend any of the hearings live
Next most important (**before August 21st, 4:30pm**): Submit longer written testimony if you have comments that don't fit into 3 minutes, you want to submit organizational comments, and/or you want to cite or reference research, articles, etc.
Deadline for Written Comments for Rate Hike + Inclusive Financing (submit written comments here): August 21st, 4:30pm
be sure to mention - Docket #19-524 in the subject line of your comment