It is no secret that prices are going up all around the country – in ALL industries. From groceries to gas to utilities – many individuals probably think the rates will never stop rising. One specific area in the U.S. that has seen a skyrocket in fees is the energy industry. It seems like more and more people every day believe renewables such as solar, wind, and hydropower are the future – but soon their checkbooks will begin to disagree. The bottom line is the future of energy in North Dakota still lies within lignite coal and other fossil fuels. This is because of the low energy rates coal provides and the countless jobs the industry has to offer as well. In North Dakota, where 4 coal mines produce over 20 million tons of lignite each year, residents enjoyed a minimal 9.72 cents per kilowatt-hour rate for electricity in March 2023.
Meanwhile, in the month of March in 2023 Californians were paying a mind-boggling 28.12 cents per kilowatt hour for their electricity! ‘Why is that?’ people may ask. One simple term answers that question: mine-mouth operation. North Dakota doesn’t have to pay any transportation for the shipping of lignite to its power plants. In fact, each mine is located to at least one power-generation facility 8 miles or less away! Hence, the term mine-mouth, in that the mine feeds the powerplant directly with virtually no transportation hassle. In the meantime, states that have decided to shut down most of their own coal plants and mines they previously had, like California, are experiencing drastic rises in energy prices. So, for these states to get their power, they pay other states (like ND) enormous amounts of money AND charge their own residents high fees to make up for it.
Thanks to the coal mines and plants in North Dakota, which provide over 12,000 jobs and generate $5.75 billion in gross business volume, citizens will never have to experience rolling brownouts and blackouts as long as these operations stay afloat – unlike other states in our nation right now. Over the past year, the Freedom Mine north of Beulah (the largest lignite mine in the country) produced and sold 11.3 million tons of coal! In addition, the Falkirk Mine near Underwood sold 6.6 million tons of lignite and the Center Mine produced 3.9 million tons. Finally, the Coyote Creek Mine, which just became operational in 2016, produced 2.1 million tons – a 300,000 increase from the year prior. Overall, North Dakota’s coal mines remain steadfast in their production – and because of the mine mouth operations our industry has created – residents of the roughrider state are enjoying the lowest electricity prices in the country. Now isn’t that something to cheer about?