Minnesota Power's Long-term Energy Plan: the good, the bad & the ugly

May 11, 2021

Minnesota Power Integrated Resource Plan Scores Well on Coal Retirements, Poorly on Fossil Gas, Community & Rooftop Solar, and Equitable Energy

Minnesota Power filed its Integrated Resource Plan with the Minnesota Public Utilities Commission (PUC) in February 2021. This plan maps out how Minnesota Power intends to deliver energy to its Minnesota customers for the next 15 years.

Minnesotans have been calling for a plan for 100% clean energy to address the climate crisis, protect customers and prioritize investments in low-income communities, environmental justice communities and communities impacted by coal plant retirements.

Despite significant 100% carbon-free goals, Minnesota Power’s plan still goes big on fossil gas and doesn’t go far or fast enough to address environmental, racial, and economic justice. Minnesotans deserve better.

Climate advocates have created this “scorecard” to help you understand how Minnesota Power's resource plan will impact you directly and how it will impact all Minnesotans. Right now, Minnesota Power’s plan isn’t making the grade, with a ‘C’ average and Ds and Fs in too many key categories. Learn more about what the utility could do to raise their grades and protect our climate and communities.

Category: What Minnesotans are asking from Minnesota Power	Score: How does the IRP measure up?
100% Clean Energy We need Minnesota power to respond to the climate crisis with a 100% clean energy portfolio 100% clean energy commitment by 2035 Invest in more cost-effective clean energy like wind solar, and energy, including community-based energy generation	C- Here’s why: Minnesota Power announced a vision of 100% carbon-free energy by 2050. This is a positive step, but it does not move as fast as the climate crisis demands, or as fast as proposals by the Biden Administration (100% clean energy by 2035) or Walz Administration (100% by 2040). Minnesota Power’s proposed plan still includes investments in new fossil fuels, and does not include energy storage or the amount of clean energy needed to get to 100% clean energy. Here’s what MP can do: Minnesota Power could move up its 100% clean energy vision to 2035 and adjust its plan to match that by investing in more clean energy and energy storage and no new fossil fuels.
Move Beyond Coal We need Minnesota power to transition away from coal burning operations Retire Boswell 3&4 coal units by 2030 Economic dispatch of coal until retirement (ie run the plants only when they are cost-effective - saving customers money and reducing climate emissions and other pollution)	B Here’s why: Minnesota Power committed to retire its Boswell 3 coal plant in 2030 and cease coal operations at Boswell 4 by 2035. They are also planning to start “economic dispatch” for Boswell 3 which means it will operate less - reducing carbon emissions and costs for customers. Here’s what MP can do: Minnesota Power could move up retirement dates to by 2030, commit to Boswell 4 plant retirement, and plan for economic dispatch at Boswell 4.
No New Gas We need Minnesota power to avoid new fossil fuel burning power plants No new gas burning power plants, including proposed NTEC plant and replacing coal with gas at Boswell 4	F Here’s why: Minnesota Power still proposes to build the NTEC fossil gas power plant in Superior, costing customers at least $350 million and producing approximately two million tons per year of CO2 equivalent (not taking into account the additional upstream emissions from leakage during the extraction and transportation of fossil gas). They did not even look at alternatives in this IRP, despite recent reports finding 90% proposed new gas plants can’t compete with the costs of clean energy, and the climate, health, environmental and safety risks of fossil gas. They also leave the option open to replace coal at the Boswell 4 plant with gas. We can’t meet Minnesota’s climate goals by building new fossil gas plants. Here’s what MP can do: Minnesota Power can cancel its plans to build NTEC, commit to no new fossil gas plants moving forward, and change its plans to invest in clean energy & energy storage.
Community Transition We need Minnesota power to support community and worker transition for Boswell coal plant and other retiring plant host communities Support community transition planning & advocate for state and federal support Develop worker transition plan with unions Invest in clean energy in plant communities, as supported by community	B Here’s why: Minnesota Power describes its commitment to community and worker transition in its IRP and has a history of supporting workers during coal plant retirements. They worked with stakeholders to identify socioeconomic impacts of coal retirement and they are planning to develop 200 MW solar near Boswell. However, more details are needed on Minnesota Power’s role in the transition of their biggest coal plant. Here’s what MP can do: Minnesota Power can support community transition planning that engages community members and leaders, work with affected labor unions and their members to develop worker transition plans, look for more opportunities for clean energy investments in communities, including expanding access to energy efficiency, rooftop and community solar, and support federal and state support for community transition including securitization policy.
Community & Rooftop Solar We need Minnesota power to support community and customer owned solar Reinvest in solar rebates for rooftop solar Create new, public facing process for community solar proposals that guarantees rate for electricity produced Continue to expand low income solar program Incentivize solar paired with energy storage in rebates and community solar	D- Here’s why: Minnesota Power has a community solar program and a rooftop solar program available to customers and has recently developed an innovative solar program specifically for low-income customers. However, MP has very low amounts of community solar on its grid comparative to Xcel Energy, about 100 times less per customer. Minnesota Power has made big cuts to its rooftop solar program despite a full program and significant unmet demand, community solar projects are full despite community interest, and there is not a public facing process for developers or community groups to propose new community solar projects. Here’s what MP can do: Minnesota Power must do so much more to fully support community and rooftop solar, including increasing funding to rooftop solar program, adding more community solar projects by developing a public application process for 3rd party community solar development and allowing large customers, such as the City of Duluth, to purchase solar energy at competitive market rates.
Energy Efficiency We need Minnesota power to maximize energy efficiency and demand response. Expand energy efficiency programs for residential customers, especially lower income customers Increase demand response and load flexibility programs for industrial customers Develop time of use rates that incentivize customers to use power at times of low prices and high renewable energy generation	B- Here’s why: Minnesota Power regularly exceeds state minimum energy efficiency requirements and is developing new demand response programs and time of use rates.These programs help save customers money and reduce the need for building new energy generation. However, there is more the utility can do. Here’s what MP can do: Minnesota Power could do more to maximize energy savings and prioritize low-income customers with energy savings programs. Minnesota Power can also work with industrial customers to increase energy efficiency, on-site clean energy, and match load to periods of high renewable generation. Industrial customers make up nearly 70% of Minnesota Power’s sales. Efficiency and load flexibility projects with this customer group could make a big impact on lowering overall generation needs and costs for all customers.
Equitable Energy We need Minnesota power to prioritize equitable access to benefits of clean energy Expand access to energy efficiency and community and rooftop solar for low-income and environmental justice communities Support workforce training and development for low-income and environmental justice communities Set concrete goals for diversifying workforce and supply chain	C- Here’s why: Minnesota Power acknowledges in its plan the need to create a more diverse and equitable workplace,increase diversity within the company’s supply chain, and respond to community needs. They have developed an innovative low-income solar grant program, proposed new rate design that will help reduce costs for some low-income customers, and they have supported local, union hiring in recent solar projects. But there is so much more they can do to work towards a just transition from fossil fuels to clean energy in the Northland. Here’s what MP can do: Minnesota Power can work with low-income customers, environmental justice communities, and plant host communities to develop programs that meet community needs and expand access to energy efficiency, community and rooftop solar, and workforce training. They can also set concrete goals for workforce diversity and local hiring for clean energy development.

Category: What Minnesotans are asking from Minnesota Power

Score: How does the IRP measure up?

100% Clean Energy

We need Minnesota power to respond to the climate crisis with a 100% clean energy portfolio

100% clean energy commitment by 2035
Invest in more cost-effective clean energy like wind solar, and energy, including community-based energy generation

C-

Here’s why: Minnesota Power announced a vision of 100% carbon-free energy by 2050. This is a positive step, but it does not move as fast as the climate crisis demands, or as fast as proposals by the Biden Administration (100% clean energy by 2035) or Walz Administration (100% by 2040). Minnesota Power’s proposed plan still includes investments in new fossil fuels, and does not include energy storage or the amount of clean energy needed to get to 100% clean energy.

Here’s what MP can do: Minnesota Power could move up its 100% clean energy vision to 2035 and adjust its plan to match that by investing in more clean energy and energy storage and no new fossil fuels.

Move Beyond Coal

We need Minnesota power to transition away from coal burning operations

Retire Boswell 3&4 coal units by 2030
Economic dispatch of coal until retirement (ie run the plants only when they are cost-effective - saving customers money and reducing climate emissions and other pollution)

Here’s why: Minnesota Power committed to retire its Boswell 3 coal plant in 2030 and cease coal operations at Boswell 4 by 2035. They are also planning to start “economic dispatch” for Boswell 3 which means it will operate less - reducing carbon emissions and costs for customers.

Here’s what MP can do: Minnesota Power could move up retirement dates to by 2030, commit to Boswell 4 plant retirement, and plan for economic dispatch at Boswell 4.

No New Gas

We need Minnesota power to avoid new fossil fuel burning power plants

No new gas burning power plants, including proposed NTEC plant and replacing coal with gas at Boswell 4

Here’s why: Minnesota Power still proposes to build the NTEC fossil gas power plant in Superior, costing customers at least $350 million and producing approximately two million tons per year of CO2 equivalent (not taking into account the additional upstream emissions from leakage during the extraction and transportation of fossil gas). They did not even look at alternatives in this IRP, despite recent reports finding 90% proposed new gas plants can’t compete with the costs of clean energy, and the climate, health, environmental and safety risks of fossil gas. They also leave the option open to replace coal at the Boswell 4 plant with gas. We can’t meet Minnesota’s climate goals by building new fossil gas plants.

Here’s what MP can do: Minnesota Power can cancel its plans to build NTEC, commit to no new fossil gas plants moving forward, and change its plans to invest in clean energy & energy storage.

Community Transition

We need Minnesota power to support community and worker transition for Boswell coal plant and other retiring plant host communities

Support community transition planning & advocate for state and federal support
Develop worker transition plan with unions
Invest in clean energy in plant communities, as supported by community

Here’s why: Minnesota Power describes its commitment to community and worker transition in its IRP and has a history of supporting workers during coal plant retirements. They worked with stakeholders to identify socioeconomic impacts of coal retirement and they are planning to develop 200 MW solar near Boswell. However, more details are needed on Minnesota Power’s role in the transition of their biggest coal plant.

Here’s what MP can do: Minnesota Power can support community transition planning that engages community members and leaders, work with affected labor unions and their members to develop worker transition plans, look for more opportunities for clean energy investments in communities, including expanding access to energy efficiency, rooftop and community solar, and support federal and state support for community transition including securitization policy.

Community & Rooftop Solar

We need Minnesota power to support community and customer owned solar

Reinvest in solar rebates for rooftop solar
Create new, public facing process for community solar proposals that guarantees rate for electricity produced
Continue to expand low income solar program
Incentivize solar paired with energy storage in rebates and community solar

D-

Here’s why: Minnesota Power has a community solar program and a rooftop solar program available to customers and has recently developed an innovative solar program specifically for low-income customers. However, MP has very low amounts of community solar on its grid comparative to Xcel Energy, about 100 times less per customer. Minnesota Power has made big cuts to its rooftop solar program despite a full program and significant unmet demand, community solar projects are full despite community interest, and there is not a public facing process for developers or community groups to propose new community solar projects.

Here’s what MP can do: Minnesota Power must do so much more to fully support community and rooftop solar, including increasing funding to rooftop solar program, adding more community solar projects by developing a public application process for 3rd party community solar development and allowing large customers, such as the City of Duluth, to purchase solar energy at competitive market rates.

Energy Efficiency

We need Minnesota power to maximize energy efficiency and demand response.

Expand energy efficiency programs for residential customers, especially lower income customers
Increase demand response and load flexibility programs for industrial customers
Develop time of use rates that incentivize customers to use power at times of low prices and high renewable energy generation

B-

Here’s why: Minnesota Power regularly exceeds state minimum energy efficiency requirements and is developing new demand response programs and time of use rates.These programs help save customers money and reduce the need for building new energy generation. However, there is more the utility can do.

Here’s what MP can do: Minnesota Power could do more to maximize energy savings and prioritize low-income customers with energy savings programs. Minnesota Power can also work with industrial customers to increase energy efficiency, on-site clean energy, and match load to periods of high renewable generation. Industrial customers make up nearly 70% of Minnesota Power’s sales. Efficiency and load flexibility projects with this customer group could make a big impact on lowering overall generation needs and costs for all customers.

Equitable Energy

We need Minnesota power to prioritize equitable access to benefits of clean energy

Expand access to energy efficiency and community and rooftop solar for low-income and environmental justice communities
Support workforce training and development for low-income and environmental justice communities
Set concrete goals for diversifying workforce and supply chain

C-

Here’s why: Minnesota Power acknowledges in its plan the need to create a more diverse and equitable workplace,increase diversity within the company’s supply chain, and respond to community needs. They have developed an innovative low-income solar grant program, proposed new rate design that will help reduce costs for some low-income customers, and they have supported local, union hiring in recent solar projects. But there is so much more they can do to work towards a just transition from fossil fuels to clean energy in the Northland.

Here’s what MP can do: Minnesota Power can work with low-income customers, environmental justice communities, and plant host communities to develop programs that meet community needs and expand access to energy efficiency, community and rooftop solar, and workforce training. They can also set concrete goals for workforce diversity and local hiring for clean energy development.

Tell Minnesota Power to get its grades up for the sake of our climate and communities!

YOU can ask Minnesota Power and the MN PUC to strengthen Minnesota Power’s plan and create an energy future where everyone wins. Submit your public comments on Minnesota Power's resource plan here and sign up to attend a virtual public hearing on Monday, May 17th or Tuesday, May 18th. RSVP below to receive support such as hearing instructions, comment writing guidance, and talking points. Together, we can make a big impact on our energy future.

Monday, May 17, 2021 at 6:00pm - 9:15pm
RSVP here

Tuesday, May 18, 2021 at 10:00am - 1:30pm
RSVP here

Tuesday, May 18, 2021 at 6:00 - 9:15pm
RSVP here

Access needs: If you need support accessing public hearings, please contact the Office of Administrative Hearings at 651-361-7000 (voice) or 651-361-7878 at least one week before the meeting. Folks with hearing or speech impairment may call through their preferred Telecommunications Relay Service.

To find out more about how you can call on Minnesota Power to move towards 100% clean & equitable energy or get involved with Sierra Club’s Duluth Clean Energy Team, contact Jenna Yeakle at jenna.yeakle@sierraclub.org.

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