[USA] Minnesota Appeals Court upholds Minnesota Power’s proposed natural gas power plant

On August 23, 2021, the Minnesota Court of Appeals upheld a 2018 Minnesota Public Utilities Commission (PUC) approval of Minnesota Power’s plans to jointly build a $700 million natural gas plant in Superior, Wisconsin.[1] Minnesota Power and Dairyland Power Cooperative first proposed the 625 MW Nemadji Trail Energy Center (NTEC) project in 2017, with a planned construction date in 2025. The companies said they would jointly operate the plant to ensure reliability while transitioning away from coal towards renewables. However, environmental groups, including the Minnesota Center for Environmental Advocacy, Union of Concerned Scientists, and Sierra Club, have challenged the PUC’s approval of Minnesota Power’s plans to buy a stake in the project.  They argue that there is substantial evidence that does not support the commission’s determination that the power plan is necessary and in the public interest.

The appeals court, which reviewed the case on remand from the Minnesota Supreme Court, said the NTEC is a “more reliable and lower cost source” of energy than equivalent-sized wind or solar power projects. The court ruled that Minnesota Power and the MPUC “offered extensive evidence and analysis showing that the transition away from coal and toward intermittent renewable resources impairs reliability and could cause a reliance on more expensive energy markets.” The NTEC is facing another legal challenge in Wisconsin where two environmental groups, Clean Wisconsin and the Sierra Club, petitioned an administrative law judge to review a prior approval by the Wisconsin Public Service Commission.[2]

[1] https://dailyenergyinsider.com/news/31668-minnesota-powers-proposed-natural-gas-power-plant-wins-minn-appeals-court-approval/?amp

[2] https://www.sierraclub.org/press-releases/2020/03/clean-wisconsin-sierra-club-challenge-gas-plant-approval