In South Dakota we have the lowest wages in the nation. South Dakota also has tremendous alternative energy potential.  Our wind and solar resources have the capacity to provide us with clean energy to light our homes while driving our economic growth. 

In fact, according to the Department of Energy, South Dakota has the potential to generate 556,000 megawatts of wind energy.  Currently, we produce less than 15% of that.  Instead of watching Wyoming and North Dakota reap tremendous benefits from the production of traditional energy sources while electric ratepayers face ridiculous rate hikes, we should be leading the nation in renewable energy production.  It’s time to make energy development a priority in South Dakota.

How can we make this happen?  We should enact a renewable energy standard.  Requiring that a certain percentage of electricity used in South Dakota comes from renewable sources will spur the development of generation and transmission capacity.  Opponents of this will say renewable energy is too expensive.  Based on the rate increase Black Hills Power customers are facing in Lawrence County, I would say Wyoming coal is too expensive.

The state should enact conservation and efficiency mandates.  Incandescent light bulbs should be banned.  All new state and school buildings should be constructed in a manner so that they are LEED certified.  This means they meet standards for efficiency.  So doing will not only decrease the demand for energy in South Dakota, but will also reduced the utility costs of schools and state agencies thereby saving the taxpayers money.

Utility laws should be changed so that utilities that operate in South Dakota are not able to recoup construction costs for non-renewable generation capacity through rate increases.  If I own a restaurant and I want to put in a new oven, I can’t expect my customers to pay more for each entrée.  They would just go somewhere else. If I want to expand or upgrade, I have to invest my profits. Yet, utilities can build new coal-fired power plants and pass the cost on to customers, who have no choice as to their power provider, and maintain annual profits in excess of $100 million.  Coal will always have a place in our energy future.  However, financing expanded dirty power at the expense of South Dakotans is short-sighted and inappropriate.

South Dakota should adopt true net metering.  If install wind or solar generating capacity on my property, my meter should run backwards as it does in other states.  Currently, utilities are required only to buy back excess power at their rate of production not the retail rate.  Changing this will increase the installation of small scale renewable energy projects.  These will reduce the need for more power plants and their associated rate increases and generate economic development.

Economic development in South Dakota is tied to the development of alternative energy.  Utilizing our abundant wind, solar, fuel oil, and biomass resources to the fullest extent must be a priority.  It’s time to quit watching our neighbors benefit from the exploitation of energy resources and to be proactive in the development of clean energy right here in South Dakota