Xcel Energy Drops Plans to Build Gas Plant and Pipeline in Becker

Decision a major victory for the climate and Xcel energy ratepayers
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ST. PAUL -- Earlier today, Xcel Energy announced that it will drop its plans to construct a new 800 MW fossil gas plant, known as the Sherco combined cycle gas plant. Xcel included the gas plant in their most recent proposed integrated resource plan (IRP), filed in June 2020. It is estimated that the proposed gas plant would have emitted more than 2 million tons of carbon dioxide annually on average, or more than 4 million tons of greenhouse gases annually when upstream emissions from fracking and transportation are included.

The decision comes after thousands of Xcel customers demanded a stop to the planned gas plant. In February, the Sierra Club submitted an alternate IRP to the Minnesota Public Service Commission that outlined how Xcel can save customers billions of dollars on a plan that instead invests in renewable energy, battery storage, and distributed solar rather than a massive new fossil fuel generation plant like Sherco. Sierra Club’s analysis showed that the gas plant alone was $200 million more expensive than not building it, and also risked leaving customers footing the bill for paying off the plant’s debt for decades after becoming obsolete.

Sierra Club released the following statements in response to the news: 

“I’m elated to see news of Xcel’s plans to drop their planned fossil gas plant. Our communities have been overburdened with pollution for far too long and we’re ready for change. We now look forward to a just transition to clean energy in Central Minnesota and welcome Xcel’s support in that process.” - Rose Thelen, Central Minnesota resident

“In the midst of a record-setting heatwave in Minnesota, Xcel's decision to forgo their proposed fossil gas plant could not have come at a better time. Climate change is happening now. This announcement is the product of thousands of Xcel customers who pushed back against the utility’s desire to build more fossil fuel infrastructure in our state. Their voices were heard loud and clear.” - Patty O’Keefe, Organizer with the Beyond Coal Campaign
 

“While today we are celebrating Xcel cancelling the big new fossil gas plant in Becker -- a massive victory for Minnesota residents -- we will also be closely evaluating other elements of Xcel's new proposal. In particular, we are concerned that Xcel may be proposing other ill-advised and unnecessary new fossil gas plants. Xcel’s new plan also still doesn’t account for the reality of community solar or the opportunity of distributed generation to support a reliable system and to create wealth through ownership opportunities and job creation.” - Margaret Levin, Executive Director, Sierra Club North Star Chapter 

 

About the Sierra Club

The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3.5 million members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.