A Minnesota ratepayer advocate is raising alarms over the anticipated effects of the “One Big Beautiful Bill Act” on the cost of energy. According to analysis conducted by the non-partisan think tank Energy Innovation, by 2035, the bill will cause Minnesotans’ home electricity costs to rise by 28% and Minnesota industrial electricity costs to rise by 46%.
The legislation, narrowly passed by the U.S. Senate, repeals multiple federal policies, funding programs, and tax credits that drive American energy manufacturing and deployment. It eliminates clean energy tax credits that reduce the cost of electricity to ratepayers and have generated billions of dollars in investment in Minnesota. The bill also claws back unobligated funding, expands new oil and gas leasing, and changes and eliminates existing energy and manufacturing tax credits.
“More than 91,000 Minnesota households had their utility service shut off for nonpayment last year,” said Annie Levenson-Falk, executive director of the Citizens Utility Board of Minnesota, a non-profit advocate for the state’s energy consumers. “At a time when we need to focus on making energy more affordable, this bill is a huge step in the wrong direction.” Utility disconnections in 2024 far exceeded any year in at least a decade, as far back as the Citizens Utility Board has compiled records.
“America’s grid is facing the fastest electricity growth in 20 years, and Minnesotans are struggling to pay the bills in the face of rising inflation,” said Robbie Orvis, Senior Director of Modeling and Analysis for Energy Innovation. “Congress has decided to kneecap utilities’ ability to build new generation to meet demand and impose billions in new energy costs on households and businesses. The country is teetering on a recession, and this bill will cost jobs and cancel manufacturing—it couldn’t come at a worse time for our communities.”
Energy Innovation’s analysis found the bill will:
· Increase Minnesota household electricity bills by $240 million in 2030, swelling to more than $750 million 2035. Between 2025-2034, the bill will add a cumulative $2.7 billion to Minnesotans’ household energy costs.
· Reduce Minnesota’s GDP by $2.3 billion in 2030 and $4.3 billion in 2035. Between 2025-2034, cumulative state GDP would shrink by $22 billion.
· Cut Minnesota employment, costing over 14,400 jobs in 2030 and nearly 22,900 jobs in 2035.
· Slow the deployment of electricity generation in Minnesotaby more than 25% (nearly 4 gigawatts of power) by 2035 – at a time when electricity demand growth is projected to increase dramatically.
Energy Innovation’s analysis can be found here, and the Minnesota-specific analysis here. The figures in this release have been updated to account for recent changes made by the Senate.
About the Citizens Utility Board of Minnesota
The Citizens Utility Board of Minnesota (CUB) is a nonprofit advocate for our state’s residential utility consumers. We provide Minnesotans with free, unbiased information about their energy rights and obligations. We champion affordable, reliable, safe, and clean home energy for all Minnesotans. For more information, visit www.cubminnesota.org.
About Energy Innovation
Energy Innovation Policy & Technology is a non-partisan energy and climate policy think tank. We provide customized research and policy analysis to decision-makers to support policy design that reduces emissions at the speed and scale required for a safe climate future. For more information, visit https://energyinnovation.org.