Minnesota Law Aims to Phase Out Natural Gas Use, Sparking Concerns Over Cost
American Experiment podcast host Kathryn Johnson recently interviewed Darren Nelson, an economist and Energy Policy Fellow at American Experiment. The discussion centered around Minnesota's 2021 Natural Gas Innovation Act (NGIA), which Nelson described as 'not about innovation' but rather 'exnovation,' the process of terminating a practice or technology.
Nelson explained that the NGIA aims to phase out natural gas for residential and commercial use, with exemptions for large industrial users. He noted that CenterPoint Energy and Xcel, both major utilities in Minnesota, are backing the bill, which Nelson believes is motivated by their desire to shift customers to electricity-based solutions.
Nelson also pointed out that replacing natural gas with heat pumps and other electric technologies could lead to significant price increases for consumers. He presented data showing that electricity prices have risen dramatically over time, and that transitioning to all-electric heating could triple the cost of electricity.