SMMPA plans to be 80 percent carbon free by 2030

In its recent 2020 Annual Report, Southern Minnesota Municipal Power Agency (SMMPA) announced it would be 80 percent carbon free by 2030.

SMMPA serves 18 nonprofit member owned utilities of which Grand Marais is one.

SMMPA plans to add about 300 megawatts of wind and solar generation which will result in at least 80 percent of the company’s annual energy output coming from carbon-free sources.

In an effort to create a more diversified renewable generation portfolio, SMMPA plans to explore options for the rest of this decade and acquire blocks of utility-scale solar projects when the price and time are right.

Toward that end, Rochester Public Utilities will be installing a 10-megawatt solar project this year, and on a much smaller scale, Grand Marais PUC will install a second solar array next to their public works garage.

According to the report, despite the pandemic, SMMPA had a strong 2020. Financially, the company operating reserves remained high, ending the year at $96.3 million which was above the target of $53.2 to $65.1 million.

Because of that financial success, SMMPA’s board approved reducing operating revenue reserves by authorizing no 2021 increase in wholesale rates for power, transmission, and energy. The board also approved a $10 million refund to utilities, which is equivalent to about a one percent reduction in rates for the next five years.

With the recent uptick in sales of electric cars, SMMPA made a major investment in a public charging network, purchasing one DC fast charger and two dual-port level 2 chargers for every participating member community. The city of Grand Marais plans to place their chargers in the back of the city hall parking lot in the near future.