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South Dakota and Minnesota Dispute Over Clean Energy and Coal Plant Closures

A South Dakota-Minnesota border conflict over tax policies, abortion, and pandemic response may impact renewable energy and coal plant futures.
South Dakota clashes with Minnesota on clean energy, coal plant closures

A political border war between South Dakota and Minnesota over tax policies, abortion, and pandemic response could soon extend to renewable energy and the future of coal plants.

The core issue is how quickly gas and electric companies can transition from fossil fuels without compromising reliability and affordability. South Dakota officials have expressed concerns about potential electricity outages, especially during extreme weather conditions.

The Minnesota Legislature passed a 2023 law mandating all state electric utilities to produce only carbon-free energy by 2040, including sources like solar, wind, hydroelectric, and nuclear power.

Xcel Energy, serving 3.7 million customers, including about 100,000 in South Dakota, is impacted by this law. The South Dakota Public Utilities Commission (PUC), comprising three elected Republicans, asked Xcel to reconsider closing several coal-fired power plants ahead of schedule, citing increased risks of electricity outages.

Xcel, however, is adhering to its schedule, replacing coal plants with solar projects, a plan approved by the Minnesota Public Utilities Commission (PUC).

‘Massively frustrating conversation’

Recently, Minnesota’s PUC clashed with Otter Tail Power over delaying the closure of coal plants, including Big Stone near Milbank, South Dakota, until at least 2040. Otter Tail’s plan, approved on May 30, includes concessions like ceasing to use North Dakota’s Coyote Station plant for Minnesota customers beyond 2031.

Otter Tail’s latest modeling projects a retirement date of 2046 for the Big Stone plant, which began operations in 1975 and burns coal from Wyoming’s Powder River Basin.

Otter Tail, serving about 130,000 customers in Minnesota, North Dakota, and South Dakota, emphasized the need for dispatchable gas resources for operational flexibility and reliability.

South Dakota Opposes New EPA Rules

Disputes over fossil fuels and clean energy urgency extend to the federal level. The EPA’s new rules, released on April 25, increase pollution controls on coal industries. South Dakota joined 22 states in asking a federal court to review these standards. South Dakota Attorney General Marty Jackley criticized the EPA’s directives, citing a recent Supreme Court ruling that limits federal agencies’ power to interpret laws.

SD 8th in Per Capita Energy Consumption

The Inflation Reduction Act, signed by President Biden in 2022, includes $370 billion in clean energy support. South Dakota has ramped up wind energy production to 55% of its net power generation, second only to Iowa. However, the state ranks eighth in energy consumption per capita, with 31% of households using electricity for heating.

PUC Chair Kristi Fiegen emphasized the importance of reliable, dispatchable electricity amid climate change discussions. Fiegen, who is up for re-election in 2024, highlighted the dependency on weather for wind and solar energy and the need for dependable power sources.

Winter Storms Tested the Power Grid

Fiegen, a Southwest Power Pool (SPP) leader, noted the grid’s strain during recent winter storms, which nearly caused rolling blackouts. The SPP and Midcontinent Independent System Operator (MISO) ensure energy distribution across states, crucial during extreme weather events like Winter Storm Gerri.

In December 2022, Winter Storm Elliot led MISO to declare a maximum generation event due to high electricity consumption and natural gas facility issues. These incidents prompted a focus on resource adequacy.

‘Life and Death Issue, Not Convenience’

Coal was overtaken by natural gas as the largest U.S. energy source in 2016. The North American Electric Reliability Corp. (NERC) warned that a rapid shift to solar and wind could compromise grid reliability. The South Dakota PUC echoed this in its letter to Xcel Energy, which aims for 100% carbon-free electricity by 2050.

PUC member Chris Nelson stressed the need for diverse power generation sources, including coal and natural gas, to ensure reliability during extreme weather. “When it’s 25 degrees below zero, you want your house to stay warm because it’s a life and death issue, not just a convenience,” said Nelson.

This story was produced by South Dakota News Watch, a nonpartisan, nonprofit news organization.

Original Story at www.argusleader.com

Trending News

Mississippi River Faces Persistent Saltwater Intrusion, Region Seeks Long-Term Solutions



For the third consecutive year, the Mississippi River is experiencing significant saltwater intrusion, prompting local communities and environmental experts to search for sustainable solutions. This recurring issue arises as the river’s flow decreases, allowing saltwater to move upstream and threaten drinking water supplies. The U.S. Army Corps of Engineers is actively involved in addressing this problem, employing temporary measures like saltwater barriers to mitigate the impact on affected areas.



Saltwater infiltration poses serious risks to public health and agriculture, as freshwater sources become compromised. The situation is exacerbated by prolonged periods of drought, which have reduced freshwater flow in the Mississippi River. According to the National Weather Service, drought conditions have worsened due to climate change, increasing the frequency and severity of saltwater intrusion events.



Local authorities are collaborating with federal agencies to explore permanent solutions. Among the proposed strategies are enhanced levee systems and improved water management techniques. The U.S. Army Corps of Engineers is evaluating the feasibility of long-term infrastructure projects to prevent further saltwater encroachment. Additionally, community leaders are advocating for increased funding to support these initiatives and safeguard the region’s water resources.



The impact of saltwater intrusion extends beyond drinking water concerns, affecting local ecosystems and agricultural productivity. Farmers in the region have reported crop damage due to elevated salinity levels in irrigation water. The Natural Resources Conservation Service is working with farmers to implement adaptive practices, such as planting salt-tolerant crops and improving soil management techniques.



As the Mississippi River continues to face challenges from saltwater intrusion, stakeholders emphasize the importance of collaborative efforts and innovative solutions. The ongoing threat underscores the need for comprehensive planning and investment to protect one of America’s most vital waterways from the impacts of climate change and environmental stressors.

November 19, 2024



Environmental activists have raised concerns over the fossil fuel sector’s significant impact on COP29, the latest United Nations Climate Change Conference. Activists argue that the industry’s presence diverts focus from critical climate actions.



The conference, designed to promote global climate agreements, faces criticism for allowing fossil fuel companies to participate extensively. Environmental groups claim these companies undermine efforts to reduce carbon emissions and transition to renewable energy sources.



According to Climate Action Network, fossil fuel representatives have increased their lobbying activities, aiming to weaken climate policies. These industries allegedly influence negotiations, leading to watered-down commitments that fail to address the urgency of climate change effectively.



Experts suggest that the influence of these companies stems from financial contributions and longstanding relationships with decision-makers. Critics argue that this affects the conference’s ability to enforce meaningful climate change regulations.



During the event, several protests highlighted the need for transparency and a stronger focus on sustainable energy solutions. Activists are calling for increased participation of renewable energy stakeholders in future conferences.



The controversy surrounding fossil fuel involvement at COP29 underscores the ongoing challenge of balancing industrial interests with the global imperative to combat climate change.



November 19, 2024