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Mesaba Halted?

Submitted by christopher on Thu, 2007-04-12 22:03

A super quick post - word has it that the Administrative Law Judge has released findings of fact, conclusion of law, and recommendation on the potential IGCC power plant in northern Minnesota. Conclusion: not so much.

The Administrative Law Judges conclude that it is not an "Innovative Energy Project" within the meaning of Minn. Stat. §216B.1694, subd. 1. Therefore, we also conclude that Excelsior Energy is not entitled to enter into a Power Purchase Agreement (PPA) to provide baseload capacity and energy to Xcel.

Additionally,

The Administrative Law Judges conclude that neither the technology nor the Project is or is likely to be a least-cost resource. Therefore, we also conclude that the Project is not entitled to supply Xcel with at least two percent of the electric energy Xcel Energy provides to its retail customers.

The Star Tribune covered this story, noting that the PUC will decide this plant's fate in the summer.

PUC response will be interesting

Submitted by mhenergyguy on Fri, 2007-04-13 10:52.

Thanks for providing the update.  I found the Strib article and point 9 of the recommendations particularly instructive. 

9. The Final PPA should not be approved, primarily because of its unreasonable cost to Xcel Energy and its ratepayers, the likelihood that its cost will increase, not decrease over time, and because of the  other deficienciesidentified in the Findings. While Excelsior Energy and its witnesses have claimed that the PPA cost will become more reasonable in the future, particularly in light of the Project’s environmental benefits, there is not sufficient evidence of that value to overcome the very significant cost difference that exists today.

This would seem to make it difficult for the PUC to decide in favor of the project, but the project's backers have built a lot of political support.  I haven't checked to see how the project has fared among the current set of commissioners, but this would be an interesting piece of information.  And, there will likely be at least one new commissioner by summer.  So, the real political play may be at the Governor's office. 

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