A bill allowing Xcel Energy to build a natural gas power plant in Becker is closer to becoming law.
The Senate passed the bill Thursday on a 39-25 vote, with Senate Minority Leader Tom Bakk and several other DFLers joining Republicans in supporting the bill. Gov. Mark Dayton has said he would sign the Senate version, which contains more protections for Xcel ratepayers than the version that passed the House earlier.
The bill is aimed at replacing part of the capacity of the Sherco coal plant within the next 10 years. Xcel plans to retire the plant’s two older units by 2026.
Supporters say the natural gas plant will help preserve Becker and surrounding communities, which rely heavily on property tax revenue from Xcel.
“Thank you for doing this for our kids, for our grandkids, for our future generations,” Sen. Andrew Mathews, R-Milaca, said during the floor debate. “(Sherco has) been a huge driver that has helped fund the roads, the schools, the law enforcement.”
Sen. John Marty, DFL-Roseville, also cited future generations as he gave his reasons for opposing the bill. Marty says Xcel’s ratepayers will lose if it turns out cleaner energy options would also have been cheaper and said evaluating those costs is the job of the Public Utilities Commission.
“I’m just very concerned we’re making decisions now that will last for 50 years. We are robbing our children of some of their choices,” he said.
Xcel estimates building the plant will cost about $800 million, but opponents of the bill say the costs of a natural gas pipeline plus the natural gas itself could add hundreds of millions of dollars to that figure.
From CBS/AP
ST. PAUL, Minn. (AP) — The Legislature moved Thursday to sidestep utility regulators and approve a new Xcel Energy power plant in central Minnesota.
The natural gas-fired plant in Becker is meant to offset losses from two coal-fired generators when they close in 2023 and 2026. The Minnesota Public Utilities Commission sidelined Xcel’s proposal in October. However, bills passed in both chambers of the Legislature mean the plant can move forward without fulfilling the regulator’s request to research renewable energy options.
Republican Sen. Andrew Mathews of Milaca, the bill’s author, said the plant will solve long-standing power concerns that have been one of his community’s top concerns. Xcel will still be subject to oversight throughout the project, he said, which will include measures to make sure that ratepayers aren’t overcharged.
But Democratic lawmakers pushed back against the bill, saying they didn’t believe the cost control protections were adequate.
Roseville Democratic Sen. John Marty said Xcel is pursuing a speedy timeline for the project to please its shareholders, not Minnesota residents.
“This is a monopoly utility,” he said. “Because it is a monopoly, someone is supposed to be weighing all of the evidence.”
The House approved a similar bill last week and Gov. Mark Dayton said he will sign the Senate version of the bill.
