Phillips explores energy co-op idea

by Abdel Shakur
Hoping to give consumers a more active role in the production and consumption of their energy, the Green Institute is looking into creating an energy cooperative in Minneapolis’ Phillips neighborhood. Energy coops are nothing new to Minnesota; officials at the Green Institute estimate 50 such operations in rural portions of the state. Instead of buying power on an individual basis, consumers pool their resources and buy in bulk.
“One person with one light bulb is going to get one rate,” said Gary Cerkvenik, project staff with the Green Institute. “But if you get a bunch of people together, then they have a lot more clout and can probably get a much better price.”Cerkvenik said that the urban energy cooperative model has been successful in other parts of the country, most prominently in New York and Chicago. According to Cerkvenik, the Phillips Neighborhood Energy Cooperative Initiative would allow energy consumers in the neighborhood to exert more control over not only the price of power, but also production and conservation methods.
“We want to get citizens and residents involved in energy related issues,” he said. “We want to help give people a voice.” Council member-elect Dean Zimmermann, who sits on the Green Institute's board, supports the proposal. “This is going to be part of a greater plan to bring safe, renewable energy to Minneapolis,” said Zimmermann. Zimmermann said that the state's reliance on both coal and nuclear energy will “kill us all.” He thinks the political and economic clout of an energy coop would allow for a more environmentally friendly approach to energy production and consumption. “NSP is a for profit company,” he said. “They are there to make money. The coop would be strictly there to produce reliable and healthy energy.” He said the Phillips cooperative would be willing to work within the current framework to change energy policy, but that the proposal could offer an important alternative. Zimmermann said the city’s energy policy will be high on his agenda in next year’s council session.
“I will be in a very good position to clear any potential stumbling blocks to the project,” he said. The Phillips proposal has also received support from the current energy supplier, Xcel energy. Kevin Lawless, managing director of retail sales at Xcel, said the Phillips proposal may present an opportunity for Xcel to more effectively serve the needs of the Phillips neighborhood. “An energy cooperative could be a very important tool for helping us market our conservation efforts,” he said. Besides its expertise in conservation techniques, Xcel may also be able to help study the feasibility of a biomass co-generation facility within Phillips. That's a fancy way of saying they're looking into methods of producing energy in the neighborhood itself. Like most officials involved in the project, Lawless is quick to point out that the proposal is still in the planning stages and that nothing has been written in stone. “We’re in learning mode right now,” said Lawless. “We're trying to find out what people want to do and then we'll work from that point on.”