Minnesota Power’s Long-Range Plan Must Do More to Meet Minnesota’s 100% Law and Avoid Costly Fossil Fuel Investments

ST. PAUL, Minn. - Today, Clean Grid Alliance, Fresh Energy, Minnesota Center for Environmental Advocacy, and Sierra Club (collectively the Clean Energy Organizations or CEOs) filed comments at the Minnesota Public Utilities Commission regarding Minnesota Power's Integrated Resource Plan (IRP) (Docket No. 25-127). While Minnesota Power has taken some actions to make progress toward Minnesota's clean energy laws, the utility needs to do more to avoid costly new gas investments and plan for compliance with Minnesota's hard-fought law requiring 100% carbon-free electricity by 2040 in its Integrated Resource Plan.

In their comments, the CEOs present multiple alternative resource plan options, all of which avoid construction of a new 750 megawatt combined cycle (CC) gas plant, close the highly polluting Hibbard biomass-burning plant in West Duluth, and build more renewable energy to reduce greenhouse gas emissions and protect public health. The alternative plans are supported by extensive modeling, technical analysis, and evaluation from industry-leading expert consultants. The CEO's comments present portfolios that improve system reliability while substantially reducing greenhouse gas emissions.

"We've demonstrated that a portfolio that includes a range of clean energy resources increases reliability, affordability, and environmental benefits while meeting Minnesota Power's needs," said Emily Piontek, Regulatory Associate at Clean Grid Alliance."Wind, solar, and storage are tried-and-true resources the utility can depend on today, while advanced clean firm technologies on the immediate horizon provide further reliability assurances."

"Our analysis shows that Minnesota Power can provide reliable and affordable service to its customers without investing in a costly, emissions-intensive combined-cycle plant in this IRP,"said Will Mulhern, Director, Electricity at Fresh Energy."Avoiding this investment protects Minnesota Power's customers from stranded asset risks and preserves its ability to meet the 100% standard in the most cost-effective way."

"Building a new gas plant in 2035 is not how the community envisioned Minnesota Power would comply with the state's 100% Law," said Amelia Vohs, Climate Director at MCEA."Minnesotans want to see the benefit of real clean energy, not more fossil fuels coupled with carbon offsets. The CEOs have shown a strong path forward using clean energy and we hope this is the path adopted."

"Once again, Minnesota Power's plans fall short of what's needed to meaningfully reduce its climate pollution and protect the health of our Northland communities," said Jenna Yeakle, Campaign Manager, Beyond Coal Campaign at Sierra Club."Our coalition continues to demonstrate that the utility can close the dirty biomass-burning Hibbard plant in Duluth and replace it with cleaner options. The clock is ticking, and our communities deserve nothing less."

In their comments, the CEOs ask the Commission to reject Minnesota Power's proposed CC gas plant in its 2025 IRP. Modeling by the CEOs indicates Minnesota Power can address its capacity needs by building more renewables and storage and converting the Boswell coal plant to operate on gas until fully retiring it in 2040. This provides an alternative with lower emissions and allows for the utility to pursue a range of cleaner pathways for compliance with Minnesota's 100% by 2040 law without locking into a costly combined cycle gas plant.

The CEOs' comments recommend the addition of at least 200 megawatts of wind, 500 megawatts of solar, 200 megawatts of battery storage, and 200 megawatts of new demand response and customer programs. Furthermore, the CEOs believe Minnesota Power's modeling does not adequately take into consideration the value that energy markets can provide the utility and its customers in terms of access and reliability, something that must be addressed in future modeling by the utility. This limited approach to modeling MISO access overstates its need for gas capacity.

Additionally, the CEOs are recommending the Commission order the utility to retire Hibbard by 2030. Expert analysis shows that Minnesota Power can maintain reliability in the Duluth area with modest transmission upgrades. Retiring Hibbard, which is located near densely populated residential neighborhoods, would significantly reduce air pollution and harmful human health impacts.

The CEOs also ask the Commission to reject Minnesota Power's proposed "Growth Plan" which would double its proposed gas investment to serve highly uncertain large load growth in its service territory. To better support future resource planning, the CEOs are asking the Commission to order Minnesota Power to develop a large load forecast that adheres to load forecasting best practices by including only loads with a high certainty of interconnection and that is more transparent.

The CEOs will continue engaging in Minnesota Power's IRP over the next few months and anticipate the Commission will make a decision in August 2026.