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| Date: | June 2, 2011 | | Contact Name: | Susan Closmore | | Contact Phone: | 651-296-5712 | | Contact Email: | susan.closmore@senate.mn | | For Immediate Release | |
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| ATTORNEY GENERAL JOINS SENATOR MICHELLE BENSON IN DEMAND FOR END OF HARMFUL INVERTED BLOCK RATES PRICING SCHEME |
ST. PAUL, MN -- Minnesota Attorney General Lori Swanson has joined the chorus of legislative voices led by State Senator Michelle Benson demanding an end to inverted block rate natural gas pricing. Attorney General Swanson called on the Public Utilities Commission to end Centerpoint Energy’s inverted block pilot program Wednesday, June 1. The Energy Omnibus bill (S.F. 1197), recently signed by Governor Mark Dayton, contained a provision authored by Senator Benson that would prohibit future use of the controversial inverted block rate natural gas pricing scheme.
“I’ve heard from numerous constituents who were concerned about social engineering through natural gas pricing. I made sure that measures prohibiting its future use were included in our Omnibus Energy package,” said Senator Benson. “I’m thrilled that Attorney General Swanson has taken the logical next step to advocate against the program, and I urge the Public Utilities Commission to complete the work started by the legislature.”
Originally intended to be a low income subsidy and a conservation initiative, inverted block rates caused natural gas bills to skyrocket for many while not delivering on the original promises. As a customer used more gas in a given month, the cost for successive 'blocks' of gas purchased increased. In Minnesota, a particularly hard winter increased heating demand and homeowners with large families, those who lived in poorly weatherized homes and others who's health, lifestyle or careers demanded more stay at home activities incurred great costs through no fault of their own.
"We all know that if you increase costs for a good or service, consumers will respond by using less. We don't need a pilot program to prove this," added Senator Benson. "Energy costs are expensive enough as it is, and we shouldn't be further punishing homeowners who are already struggling with skyrocketing gas prices, grocery prices and a decline in home values.”
A final end to the program requires Public Utilities Commission action that would reset rates to more accurately reflect the cost of natural gas delivered to residential customers.
Senator Michelle Benson (R- Ham Lake) was elected to her first term in November 2010 and serves on three committees including Agriculture and Rural Economies, Energy, Utilities and Telecommunications, and Health and Human Services in the Minnesota Senate. Senator Benson can be reached at: 651-296-3219 (office) or sen.michelle.benson@senate.mn.
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