Regulators Approve Natural Gas Plant Proposal for Superior

SEATTLE (Oil Monster): Minnesota is one step closer to having a new natural gas plant as part of its energy future.

The Minnesota Public Utilities Commission voted 3-2 Monday to approve a proposal for a natural gas plant that would be built across the border from Duluth in Superior, Wisc., despite objections from clean energy and ratepayer groups, as well as some large industrial customers that would receive power from the new facility.

The Nemadji Trail Energy Center would be a joint venture between Minnesota Power and the Dairyland Power Cooperative in Wisconsin.

If Wisconsin regulators approve the plan, the new power plant would produce at least 525 megawatts of electricity. Minnesota Power and its ratepayers would be on the hook for half the $700 million cost.

Minnesota Power covers roughly a third of the state, mostly in the northeastern quadrant of Minnesota, from Little Falls in the south to International Falls in the north and over to Duluth and up to Canada. Its customers include large taconite mines and power plants.

PUC regulators heard final arguments in the case earlier this month. Commissioners also decided Monday that the plan did not need to undergo additional environmental analysis, a decision that paved the way for its approval vote.

Minnesota Power has been rapidly adding wind, solar and hydro power to its system. In 2005, the utility generated 95 percent of its electricity from coal. Now, 30 percent of the electricity it produces comes from renewable sources, mainly wind, with a goal to hit 44 percent by 2025.

But like many utilities, Minnesota Power has argued that reliability is important and that renewable energy needs backup.

Minnesota Power's Rutledge said the utility would study and analyze its entire fleet, including the two major coal generators at Boswell, as part of its next integrated resource plan. The commission voted to extend the deadline of that plan one year to Oct., 2020.

Courtesy: www.mprnews.org