Minnesota Power Advances EnergyForward: Less Coal, More Natural Gas and Solar Power, and Additional Energy Efficiency Savings
July 09 2015 - 12:00PM
Business Wire
Minnesota Power, a division of ALLETE, Inc. (NYSE: ALE) today
laid out the next steps in its EnergyForward plan, which
will reduce carbon emissions, increase the use of renewable
resources and add natural gas to meet customer electric service
needs in a balanced, reliable and cost-effective way over the next
15 years and beyond.
EnergyForward, introduced in 2013, is Minnesota Power’s
roadmap for achieving a diversified energy supply of one-third
renewable resources, one-third coal, and one-third natural gas. The
next steps in the plan include:
- Economic idling of the company’s
Taconite Harbor Energy Center in the fall of 2016 and ceasing coal
operations there in 2020.
- Adding 200-300 megawatts (MW) of
cleaner and flexible natural gas generation to the company’s
portfolio within the next decade.
- Building both large and small scale
solar generation.
- Expanding the potential for additional
energy efficiency savings.
“Minnesota’s energy landscape continues to evolve, and
EnergyForward is helping our region adapt to changing policy
in ways that protect affordability and uphold reliability for our
customers,” said ALLETE Chairman, President and CEO Alan R. Hodnik.
“This is Minnesota Power’s way of answering the nation’s call to
reduce carbon and mitigate climate change. The cost of building and
fueling natural gas generation has dropped significantly in recent
years and along with other key steps in our plan, we can reduce
cost risks for customers by adding this least-cost resource.”
Following careful study and analysis, the company plans to cease
coal operations at Taconite Harbor Units 1 and 2 in Schroeder,
Minn., by the end of 2020. As part of this transition and taking
advantage of trends in lower cost replacement energy supplies from
wholesale markets, the company will idle Taconite Harbor in the
fall of 2016.
The decision to idle the plant rather than close it completely
in the near-term will give the company more flexibility during a
period of time when considerable change is occurring in energy
supply and policy. If necessary, with appropriate notice, the idled
units can be restarted and produce electric power to maintain grid
reliability. The company also plans to further reduce emissions and
continue operating two smaller units at its largest generating
station, the Boswell Energy Center.
“Planning for a smooth evolution away from our smaller coal
units is an important part of EnergyForward,” said Minnesota
Power Vice President of Strategy and Planning Al Rudeck. “We will
assist the 42 Taconite Harbor employees in finding new positions
within the company. We will also work with the North Shore
community through this transition, exploring future options for the
plant that may include refueling, re-missioning or retirement.
There is valuable port, rail and other associated infrastructure at
the facility site that may catalyze future economic development and
business growth opportunities.”
EnergyForward is already meeting or exceeding state
standards for renewable power, energy conservation and carbon
emission reduction. The company’s actions are estimated to reduce
carbon emissions across its system 20 percent by 2020 and 30
percent by 2025.
Minnesota Power has taken significant steps toward a more
balanced energy supply, including:
- Renewable resources: Built and
secured almost 625MW of wind capacity; upgraded existing hydro
stations in Minnesota and signed a contract with Manitoba Hydro to
purchase renewable hydropower starting in 2020.
- Transmission: Certificate of
Need approved by state regulators for the Great Northern
Transmission Line. The 500-kilovolt line will deliver more than
350MW of carbon-free hydropower from Manitoba Hydro to Minnesota
Power customers.
- Solar power: Announced plans to
partner with Camp Ripley on a 10MW large-scale solar array; began
offering electric residential and business customers free solar
energy analysis; developing a community solar garden pilot
program.
- Cleaner power plants: Making
significant investments to reduce emissions and increase
efficiency, including a project now underway to reduce 90 percent
of mercury emissions at Boswell 4, the largest unit in Minnesota
Power’s fleet. Converted the company’s 110MW Laskin Energy Center
in Hoyt Lakes, Minn., from coal to cleaner-burning natural gas. In
addition, one of three coal units at Taconite Harbor Energy Center
was retired in May of this year.
- Energy efficiency and
conservation: Regularly meet and exceed the state’s annual 1.5
percent energy savings goal through the Power of One program to
help customers reduce energy use and manage their energy
bills.
- Customer service and infrastructure
upgrades: Deployed smart meters for about 25 percent of
customers, improving system communications and efficiencies in
outage management; plans to deploy these meters system-wide over
the next few years, also enabling new program options to meet the
ongoing needs of customers.
“We are creating a successful roadmap to a cleaner energy
future,” Hodnik said. “Our significant actions to date have shifted
Minnesota Power’s portfolio from 95 percent coal-based to a 75
percent coal and 25 percent renewable energy mix, moving toward a
supply that has one-third of our power coming from coal, one-third
from natural gas and one-third from renewable resources. Each year,
our customers are served by electricity which comes from a more
diverse set of clean power sources, and we are meeting our goals in
a way that protects our customers, the communities we serve and the
quality of life in our region.”
Minnesota Power intends to outline its final recommendations for
the next phase of its EnergyForward plan in an Integrated
Resource Plan, to be filed with the Minnesota Public Utilities
Commission by Sept. 1. More information about EnergyForward
can be found at www.mnpower.com/EnergyForward.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 144,000 customers, 16
municipalities and some of the largest industrial customers in the
United States.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20150709005790/en/
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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