6.1a1 ERMUSR 04-13-2021March 31, 2021
MMPA Member Communities to See No Rate Impact from February Cold Weather Event
The cold weather events of mid-February caused disruptions in electric and natural gas markets
throughout many parts of the central United States. Prices for both electricity and natural gas set new
all-time highs in many markets. Many electric customers lost power for an extended period of time.
MMPA because of the mid-February events. For more than a decade, MMPA has maintained a rate
stabilization fund to cover unexpected, short-term price spikes such as this. The MMPA Board of
Directors elected to use some of its rate stabilization fund to offset the higher than budgeted costs
rather than passing a rate increase through to members.
No MMPA member community had an interruption in power during this event. We have been asked
to comment as to why Minnesota did not experience power outages like those seen in Texas. Below
are several differences between the electric power markets in Minnesota and Texas.
withstand colder temperatures than those in most other parts of the country.
Minnesota has natural gas supply from both the North (Canada) and the South
(Louisiana/Oklahoma/Texas). These multiple supply routes provide some backup in case one
is unavailable.
In addition to these Minnesota market characteristics, MMPA has backup fuels on-site at two of our
Shakopee Energy Park. These backup fuels allow our generators to run for some period of time even
if gas is not available.
MMPA continues to work diligently with our member communities and other utility partners to help
ensure reliable electric service to all of the 160,000-plus Minnesotans we serve.
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