On February 6, 2012, Minnesota Power (MP) filed a study with the Minnesota Public Utilities Commission (PUC) that explores future energy needs along with the potential impact of bringing three of Minnesota Power’s coal-fired plants into compliance with pending EPA regulations.
The study, called a Baseload Diversification Study, was ordered by the Minnesota PUC and required Minnesota Power to examine various scenarios including retrofitting the facilities to bring them into compliance with future regulations or shutting plants down completely. Minnesota Power Regional Development Director Nancy Aronson Norr told the Cook County News- Herald, “We are being asked to look at the potential of closing Taconite Harbor.”
Minnesota Power’s Taconite Harbor facility provides power to iron mines on the Range, and because of this, residents of Cook County have for many years been receiving a taconite credit that reduces the amount they pay in property taxes. If the plant ceased operation and the former taconite loading dock next to it continued to go unused, the taconite credit would go away.
According to a February 6 news release from Minnesota Power, “The intent of the study was to consider a range of planning scenarios and explore potential impacts, not to draw any hard conclusions on the future of the company’s plants.”
The study evaluated potential impacts to customers but not the impacts on jobs and local economies if plants closed entirely. The Taconite Harbor facility employs about 40 people. A report on the Baseload Diversification Study states, “The scope of this report did not examine socioeconomic impacts to the communities and areas around the generating facilities being evaluated. We recognized that these impacts are an important consideration and would recommend that such a study be conducted in conjunction with an actual plant shutdown analysis.”
Minnesota Power has taken the initiative to interact with leaders and community members in Cook and Lake counties by forming a Taconite Harbor Community Advisory Panel (CAP) that includes school, township, county government, and business sector representatives.
Consultant Randy Lasky of the Northspan Group is facilitating monthly CAP meetings. In notes for the panel after its first meeting in October, Laskin wrote, “Minnesota Power recognizes its role as a neighbor, employer and a facility that impacts the area both positively and at times negatively, and we are currently in an era of significant regulatory and environmental policy change. …A diverse panel of community representatives provides a way to be supportive of the community and help all of you understand the challenges Minnesota Power needs to address.”
Between 2006 and 2010, Minnesota Power voluntarily invested the necessary resources to reduce nitrogen oxides, sulfur dioxide, mercury, and particulate emissions by an average of 70 percent at its three biggest coal plants: Boswell in Cohasset, Laskin in Hoyt Lakes, and Taconite Harbor in Schroeder. This is expected to bring them into compliance with state and federal air quality standards that are expected to be in place in the future, but more reductions might need to be made.
The new Baseload Diversification Report states, “EPA rules in formation to further reduce air, water and waste emissions are projected to have two to three times the cost compared to MP environmental retrofit initiatives completed between 2006 and 2010…and only reduce emissions by about one-fifth the amount compared to reductions the company has achieved through environmental investments made between 2006-2010.”
Shutting down a plant would come with significant cost as well. According to the Minnesota Power news release, “Coal-based generation shutdowns would carry significant costs to customers, including those associated with transitioning to new energy supply options.” Other options include converting existing plants to other types of fuel or using them for purposes other than power generation.
In a phone interview with the Cook County News-Herald, Minnesota Power Manager of Corporate Communications Amy Rutledge commented on the upgrades at Taconite Harbor and the other two allcoal fueled plants. “Because we made significant investments,” she said, “we think these facilities are in a better position to meet proposed EPA regulations.” Regarding Taconite Harbor, which represents over 10 percent of the power generated by the company, she said, “It’s an important part of our fleet.”
Minnesota Power has historically used a variety of fuels and power sources. The company started out in the early 1900s with hydroelectric facilities on the St. Louis River near Duluth. It currently has three facilities that use biomass along with natural gas and/ or coal, a wind power facility, and numerous hydroelectric facilities. “Minnesota Power is developing a more diverse, flexible, and efficient energy supply through additional renewables such as wind and hydropower,” says the news release, “and is on course to achieve a more balanced coal/non-coal energy mix.”
In January, the Minnesota PUC approved a 15-year agreement for Minnesota Power to buy carbon-free hydroelectricity from Manitoba Hydro beginning in 2020.
The State of Minnesota has mandated that its electric utilities obtain at least 25 percent of their power from renewable resources by 2025.
The next Taconite Harbor Community Advisory Panel meeting will be at 5:30 p.m. Monday, February 20 at Lutsen Resort. In his notes for panel members following the October meeting, Randy Lasky wrote, “Minnesota Power intends to build upon existing community relationships and strengthen the communication channels. …Minnesota Power is making a long-term commitment to this group and wants to work with you on topics of interest and value to the community. …We are an open meeting and visitors are welcome to attend the meetings.” Visitors would need to be on the agenda ahead of time in order to address the panel. Lasky can be contacted at 1(800)232-0707 ext. 561, or rlasky@northspan.org.
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