Xcel's coal plant retirement plan gets regulatory approval
A combination of factors are making it possible for Xcel Energy to reduce carbon emissions 60 percent by 2030, utility officials said Friday.
The Minnesota Public Utilities Commission signed off Thursday on a plan that would retire two giant coal-fired units at the Sherco plant in Becker in 2023 and 2026. The plan would also double Xcel's renewable energy capacity in the next 15 years.
Xcel Senior Vice President Laura McCarten said the two Sherco units will be getting old, and federal regulations are targeting coal-fired power.
"What's the chance that the cost of operating those plants might increase?" she said.
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McCarten said Xcel officials also listened to customers and environmental advocates.
"We looked at what are customers are asking for. They're asking for cleaner energy," she said.
In addition, Xcel saw opportunity in a federal wind production tax credit that could go away.
McCarten says Xcel wants to replace some of the power being retired at Sherco with a new natural gas plant in Becker, but state regulators are giving that plan more scrutiny.
Some GOP lawmakers have expressed concerns about the PUC's decision not to approve the plant, saying it creates more uncertainty for local leaders as they plan for job transitions and other changes ahead of the Sherco partial retirement. The third unit at the plant will keep operating.
But clean energy advocates are applauding Xcel's efforts to address climate change while meeting customers' needs for reliable, affordable electricity.
J. Drake Hamilton, science policy director at Fresh Energy, said the plan is significant because the Minnesota Public Utilities Commission found that the best option for Minnesota consumers was a plan that also cuts carbon emissions by 60 percent.
"We think these are nation-leading numbers, and we're sure Xcel will be at the forefront of what will happen in the rest of the industry," she said.
The price of coal-fired electricity has gone up while natural gas, wind and solar energy have dropped in cost.