Minnesota PUC approves shifting two Xcel Energy coal plants to seasonal operations

A cost-saving request from Xcel Energy to operate two of its coal-fired plants seasonally was approved by the Minnesota Public Utilities Commission (PUC) this week.

The plans, operating on the Midcontinent Independent System Operator (MISO) market, would be idled for six months each year. Xcel says this would help cut customer costs by as much as $1.453 million this year, reduce carbon emissions and, as a result, get Minnesota closer to meeting its greenhouse gas emission reduction goal. That goal calls for emissions to be 30 percent below 2005 emission levels by 2025.

The stations in question are the Allen S. King Generating Station and unit 2 of the Sherburne County Station. They would run from June to August and December to February, though they could also be brought back into service to meet any reliability needs that might arise.

“This is an important proposal and I appreciate Xcel Energy bringing it forward,” PUC Commissioner Matt Schuerger said. “I think this highlights Xcel’s focus on saving their customers money, on meeting Minnesota’s environmental policies, and in being responsive to the investigation the Commission opened.”

Savings from the seasonal switch could reach as high as $3.484 million by 2023, according to Xcel estimates. Beyond this, greenhouse gas emissions could be cut by up to 4.1 million tons and continue to fall to 7.3 million tons over the same period. For reference, this would be between one-fifth to one-quarter of the 23 million tons per year the state needs to cut to meet its own reduction goals.