Wisconsin Public Service Commission approves new Minnesota Power, Dairyland Power Cooperative natural gas plant

Though some local and federal permits remain necessary, plans for a natural gas power plant in Superior, Wis., cleared a major hurdle last week when Minnesota Power and Dairyland Power Cooperative gained the approval of state regulators.

In approving the Nemadji Trail Energy Center (NTEC), the Public Service Commission of Wisconsin (PSCW) opened the possibility for a 525-625 megawatt combined-cycle facility split down the middle between its two corporate owners. The project had already gained the approval of the Minnesota Public Utilities Commission (MPUC) in 2018. It still requires approval from the city of Superior, the Wisconsin Department of Natural Resources and the U.S. Army Corps of Engineers.

“We’re pleased with the PSCW decision after a fair, thorough, and transparent process affirmed the location of the natural gas plant site and plans for the facility. The approval helps us advance our EnergyForward strategy that will move Minnesota Power to 50 percent renewable energy next year and continue to transition to cleaner energy sources,” Julie Pierce, Minnesota Power vice president of strategy and planning, said. “The flexibility of natural gas will provide a superior secondary source of energy when renewable capacity is not fully available. With NTEC, we are on track to provide increasingly cleaner energy while also maintaining the reliability that supports the security, comfort, and quality of life of our customers. We look forward to working with our partner, Dairyland, and regulators to secure the remaining permits needed to break ground.”

The move to expand natural gas in the region is, according to Minnesota Power, part of the company’s larger plan to shift away from coal and bolster their portfolio with more renewable power sources. As for the specific site, the project partners expect the plant to cost around $700 million and employ between 22-25 people upon completion in 2025. Along the way, it could create as many as 260 construction jobs and 130 indirect jobs and, more long term, provide more than $1 billion in regional economic benefits over 20 years. For Douglas County and Superior, Wisconsin alone, the companies expect as much as $1 million in revenue to be generated each year.

Efforts are also underway to speed the project along. Minnesota Power intends to ask the Minnesota Supreme Court to consider if an MPUC-stipulated Environmental Assessment Worksheet were necessary. Mandating that worksheet, the company argued, would require the application of Minnesota environmental law to other states and impact Minnesota companies likewise working with facilities in other states.