A Minnesota law that prohibits utilities from meeting state electricity demand with power from new plants that contribute to statewide carbon dioxide (CO2) emissions was found in violation of the Constitution’s dormant Commerce Clause because the law places an undue burden on interstate commerce.
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In the case, the U.S. Court of Appeals for the 8th Circuit affirmed a district court ruling against the Minnesota Public Utilities Commission (MPUC) and the Minnesota Department of Commerce (MDOC), which were brought to court by three electric cooperatives operating in North Dakota and South Dakota. Those entities argued that a provision in Minnesota’s Next Generation Energy Act (NGEA) inhibited their ability to make investment decisions about new coal-fired generating capacity because they might be found in violation of the NGEA. The 8th Circuit found that the Minnesota law unfairly discriminates against out-of-state utilities, which feed power into a regional transmission grid managed by Midcontinent Independent Transmission System Operator (MISO) and have no control over which state is served by the electricity they generate.