North Dakota Sues Minnesota Over Coal Power Restrictions

North Dakota has filed suit against Minnesota in the US District Court for the District of Minnesota, claiming Minnesota's Next Generation Energy Act of 2007, which bars utilities from buying power from new plants that would raise carbon dioxide emissions, violates the U.S. Constitution by restricting trade between states and encroaching on Congress' power to regulate interstate power sales and carbon dioxide emissions.

The law bans Minnesota utilities from importing power from new coal plants outside the state, and raises the cost of future purchases of coal power by assigning environmental costs to use of the fuel. Minnesota utilities are exempted from the coal restrictions.

The plaintiffs include the state of North Dakota and a number of utility-related entities. Basin Electric Power Cooperative, of Bismarck; Minnkota Power Cooperative Inc., of Grand Forks, N.D.; and Missouri River Energy Services, of Sioux Falls, S.D. supply power to Minnesota utilities. The North American Coal Corp., of Plano, Texas; operates North Dakota coal mines that supply the state's power plants, while Great Northern Properties LP, of Houston owns vast coal reserves in western North Dakota. The Lignite Energy Council, of Bismarck is a trade group that represents coal producers and electric utilities.

The utilities and coal groups have signed separate agreements with North Dakota Attorney General Wayne Stenehjem's office promising to contribute money toward the state's legal expenses. Basin Electric Power Cooperative, Minnkota Power Cooperative Inc., Great Northern Properties LP and North American Coal Corp. have agreed pay up to $100,000 each in legal expenses for the lawsuit. Missouri River Energy Services and the Lignite Energy Council have agreed to contribute up to $50,000 apiece.

Minnesota Attorney General Lori Swanson has asked the case's presiding judge, U.S. District Judge Susan Richard Nelson, to dismiss most of the lawsuit. Judge Nelson has scheduled a hearing on the motion to dismiss for April 12, 2012.

This post was authored by GLLF staff attorney Emily Kelchen.