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Associated Press, Published December 29 2009

ND eyes suit against Minnesota over carbon tax

BISMARCK, N.D. — North Dakota Attorney General Wayne Stenehjem said he expects the state to file a lawsuit against Minnesota over its plan to tax carbon dioxide created by electrical generation.

The Minnesota Public Utilities Commission wants to add a fee of $4 to $34 per ton of carbon dioxide to the cost of electrical generation starting in 2012. The majority of electricity in North Dakota is generated by coal-fired power plants, which emit carbon dioxide.

North Dakota officials consider it an unfair tax on electricity produced in the state and say it would discourage its use by Minnesota utilities.

Stenehjem said other efforts at a resolution have been unsuccessful.

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