Monticello nuclear plant gets federal approval to keep operating until 2050

The federal government has given Xcel Energy permission to continue operating its nuclear power plant in Monticello for another two decades.

On Dec. 30, the U.S. Nuclear Regulatory Commission renewed the 53-year-old plant’s operating license, allowing it to keep generating power through Sept. 8, 2050. The plant is located about 40 miles northwest of Minneapolis, on the Mississippi River.

Xcel has said continuing to operate its two Minnesota nuclear plants, at Prairie Island and Monticello, is critical to its transition to carbon-free electricity. The Monticello plant produces enough energy to power more than half a million homes in the Upper Midwest.

“As the only 24/7 carbon-free energy source we have, nuclear energy will be key to accelerating our journey to a clean energy future while ensuring we also meet the unprecedented growth in our customers’ demand for electricity,” Bob Frenzel, Xcel’s president and CEO, said in a news release.

Xcel also touts the plant’s economic impact, as Monticello’s largest employer and its biggest property taxpayer.

Lloyd Hilgart, who has been Monticello’s mayor since 2021, called the renewal decision “good news” for his city. The plant employs about 600 people, plus several hundred temporary workers during refueling outages every other year, which benefits the local economy, he said.

Also, having a baseload source of power is “a big deal” as the state moves away from coal toward more renewable energy, Hilgart said.

Most clean energy advocacy groups also support extending the life of the state’s nuclear plants.

Allen Gleckner, executive lead for policy and programs at the nonprofit Fresh Energy, said nuclear power plants are an important part of the energy transition from fossil fuels such as coal to energy sources that don’t emit greenhouse gases.

“They are a carbon-free source that isn't weather dependent,” Gleckner said.

But some critics have raised safety concerns about the aging nuclear plant. In late 2022, a broken pipe leaked hundreds of thousands of gallons of water containing radioactive tritium. State and Xcel officials said there was no threat to the public.

Nevertheless, Xcel and the Minnesota Pollution Control Agency came under criticism for not notifying the public until months later.

Hilgart said despite the risk inherent with nuclear energy, he is comfortable with the federal and state oversight of the plant.

“I think that that situation definitely was not ideal,” he said. “I think everyone learned a lot, mostly about transparency. I’m not concerned for the safety of Monticello. I don’t think that’s ever been something that was an issue.”

The Atomic Energy Act authorizes the NRC to issue licenses for commercial power reactors to operate for up to 40 years, and renew the licenses for an additional 20 years at a time. The Monticello plant’s license was set to expire in 2030.

Nearly every U.S. nuclear plant has received one 20-year extension, and many — including Monticello — have applied for a second extension to keep operating until they’re 80 years old.

Edwin Lyman, director of nuclear power safety for the Union of Concerned Scientists, a watchdog group based in Washington, D.C., said older plants can have safety issues.

“There are things that you can fix and replace in nuclear plants, and there are things that are just too expensive or not feasible to replace or fix,” Lyman said. “Those are the things that are causing problems with the aging fleet.” Issues can include corrosion, faulty electronics and reactor vessels that become brittle and susceptible to cracking, he said.

Xcel has spent millions of dollars upgrading the Monticello plant since its license was last extended.

The utility first applied to renew the plant’s license in January 2023. The lengthy review process included an environmental impact statement and a safety evaluation.

The state Public Utilities Commission already agreed to allow the Monticello plant to keep operating through 2040. The PUC will now decide whether to grant the additional 10 years through 2050.

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