Jessica Tritsch, jessica.tritsch@sierraclub.org, 612-963-9642
St Paul -- Yesterday, Sierra Club filed formal comments opposing Xcel Energy’s request that customers foot the bill for a $650 million gas-fired power plant in Mankato, MN, citing significant flaws in Xcel’s claims that the plant would reduce greenhouse gas emissions and benefit customers. Xcel’s proposal to own the 760 MW Mankato Energy Center shifts the risk to customers to pay for additional fossil fuel power plants at a time when clean energy opportunity is soaring in Minnesota.
Sierra Club’s analysis concludes that:
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Xcel’s claimed greenhouse gas reductions from the acquisition are not proven
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Xcel should have considered cleaner alternatives
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This gas plant is a risky bet for customers
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Even Xcel does not expect the investment to result in economic benefits until 2045, a point so far in the future that those benefits are purely speculative and may never be realized
Xcel Energy currently purchases energy from the Mankato plant, with the contracts set to expire in 2026 and 2039. Sierra Club’s comments point out that the proposal to acquire the gas plant now, on the eve of the Company’s integrated resource planning process, is an attempt to lock into rates a new fossil fuel resource without first looking at whether there are cleaner alternatives, and without first committing to a faster phase-out of Xcel’s coal plants.
In addition to Mankato Energy Center, Xcel has announced plans for a 786 MW gas plant in Becker, Minnesota Power plans to build a 525 MW gas plant in Superior, Wisconsin (shared with Dairyland Power), and Otter Tail is adding a 250 MW gas plant in South Dakota. Xcel’s addition of two gas plants slated to operate to the late 2040s and beyond 2050 contradicts the company’s broad goal of achieving 100% carbon-free energy by 2050.
Initial comments were filed by March 5th. Reply comments are due March 15th.
“Fracked gas is risky for customers and bad for our climate,” said Jessica Tritsch, Senior Campaign Representative for Sierra Club. “This proposal would lock customers into a $650 million long term commitment to gas while clean energy is cheaper, storage options are increasing and energy efficiency is advancing. As renewable energy becomes cheaper, customers could be left on the hook for millions of dollars for an unnecessary gas plant. We can’t stop the worst impacts of climate change by investing in fossil fuels like fracked gas. Minnesota utilities need to put the brakes on a rush to gas. Gas is not clean, it is not safe, and it is not the direction Minnesotans are demanding we go.”
Xcel’s plan to purchase Mankato Energy Center is the fourth gas plant announced by Minnesota’s utilities, signaling a gas rush in Minnesota that threatens Minnesota’s ability to achieve its greenhouse gas goals, and stands in stark contrast to Governor Walz’s Monday announcement outlining a 100% clean energy vision for Minnesota.
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.