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