Edward Smith, edward.smith@sierraclub.org
Maple Grove, MN -- Great Rivers Energy (GRE) was successful in its sale of the Coal Creek power plant to Rainbow Energy in a process that lacked transparency and engagement. Instead of receiving clarity from Great River Energy, member-owners have been forced to hunt for details in public reporting about the potential sale. Individual customers didn’t even know this deal was happening.
Sierra Club and allies raised concerns about the financial harm this decision would have on Minnesota ratepayers. GRE notes that Coal Creek lost $170 million in energy sales in 2019 alone. A report submitted to the Environmental Protection Agency in May estimates the continued operation of Coal Creek would cost $35-$85 million more than if the plant retires in 2022. Additionally, Rocky Mountain Institute found replacing Coal Creek with wind, solar, and energy storage would save GRE customers $60 million annually. As part of the sale provision, GRE locked its ratepayers into a new long-term contract with Coal Creek. Rainbow Energy, the buyer, has proposed that it would install carbon capture at the plant, a proposal that could cost taxpayers nearly $5 billion.
Other concerns Sierra Club previously raised include the potential $500 million cost of complying with EPA’s regional haze rule, the increasing difficulty for coal to economically compete with clean energy, and pie-in-the-sky hopes for carbon capture and storage to save Coal Creek.
Statement from Margaret Levin, Senior Chapter Director for the North Star Chapter in Minnesota:
“The vote today sets the stage for an environmental and financial fiasco. The sale subsidizes an unprofitable coal plant with ratepayer and taxpayer money. GRE customers will bear the cost of keeping the dirty coal plant polluting our air and water -- while putting taxpayer dollars at risk to experiment with unproven carbon capture and sequestration. There is no reasonable scenario where this ends well for consumers and our shared environment. Instead we should be moving to clean, renewable energy development across the region.”
Statement from Todd Leake, Executive Committee Chair of the Sierra Club Dacotah Chapter:
“It’s unbelievable that the clean air and water that was going to occur as a result of this coal plant and lignite mine shutting down have been revived because of massive ratepayer and taxpayer subsidies. Lignite strip mining, which ruins farmland, clean water, and the places we in North Dakota call home, will unfortunately continue. It’s time we evolve and start exporting energy that doesn’t leave behind toxic waste for current and future generations."
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.