What Green Energy Costs: Temporary Rate Increase Granted to MDU

MDU's utility rates will go up almost 8% -- at least temporarily -- to pay for a) Big Stone II, a coal-fired power plant that Minnesota decided "not to accept"; and, b) MDU's wind farms.

It's a very complicated story but we're starting to see how much "green energy" will cost.

Expect higher costs if Congress passes "cap and trade."

Meanwhile, here in Boston, where I am, folks are still complaining about the cost of wind energy, and the turbines aren't even up yet. Cape Wind is the wind farm project off Teddy Kennedy's (RIP) coastline -- you know, the kind of wind project that "everyone" wants until they find out the cost. 

In today's Boston Globe, there are two stories, one on the front page below the fold and one on the front page of the business section.

Front page: Wal-Mart says Cape Wind will increase their utility costs. Fact: the starting price for Cape Wind electricity is more than double the current basic residential rate for conventional power.  The project is not expect to come on-line until 2013.

Business page: at a public hearing in local area, opponents and supporters of Cape Wind voiced their concern and/or support. Bottom line: rates will go up significantly, and their will be turbines off Teddy Kennedy's (RIP) coastline. Teddy was a true environmentalist. He would be proud.

The local utility company, National Grid, signed a contract for half the power generated from Cape Wind; the $3 billion was needed by the project to start construction. National Grid also signed a contract for the other half of the power generated by Cape Wind but will "assign" those rights to other buyers. Good luck.

National Grid could get stuck with the entire bill.