Republican lawmakers propose changes to Minnesota PUC operations

Dive Brief:

Republican lawmakers in Minnesota have proposed a half dozen bills that would change operations at the Public Utilities Commission, but local activists are alarmed the changes would remove the commission's authority and allow energy projects to move forward absent sufficient review.
Local news website MinnPost has details on several of the proposals, including one which would allow Xcel Energy to replace the coal units at its Sherco plant in Becker, Minn., with gas-fired generation. The bill would move approval of the project away from the PUC and over to the Legislature.
Last year, regulators approved plan to shutter almost 1,400 MW of coal generation and replace it with wind, solar and gas, but environmentalists want to see the utility shift away entirely from fossil-fuel generation.

Dive Insight:

Possible changes to Minnesota energy regulation also come at a time when the nation is facing a course change at the federal level, MinnPost points out. Each of those factors are possibly contributing to big changes in residential energy and rates. At the heart debate are community advocates worried the proposed laws would shift power away from the PUC.

The most controversial, HF 113, would authorize Xcel to replace Sherco with a power mix than includes a new combined cycle gas plant. Another measure, HF 6, would direct the governor to appoint nine members to the PUC —up from the current five—requiring one each from the state's eight congressional districts. That move could give rural areas more sway on the commission, which is often headed by representatives from urban areas.

Other bills would allow the PUC to delegate siting of solar facilities, and require pipeline permitting progress reports from the commission.

Last year, the PUC unanimously approved Xcel Energy’s 15-year integrated resource plan, including authorizing the utility to close two units of the state's largest coal-fired power plant. But the proposal includes a new gas-fired plant, which is drawing scrutiny.

Xcel outlined plans to replace the coal-fired capacity with as much as 1,800 MW of wind power and 1,400 MW of solar by 2030, and also proposed adding a 780 MW gas-fired combined cycle plant at the Sherco site by 2026 and a 230 MW gas-fired combustion turbine in Fargo, North Dakota in 2025.