Railway firm supports Mobridge, S.D., as site for power plant
By Karen Ducheneaux, American News, Aberdeen, S.D. -- July 16
A top executive for Burlington Northern-Santa Fe Railway was in Aberdeen Thursday to support Mobridge as the site for a proposed coal-burning power plant.
About 30 people, including legislators, utility officials and concerned
citizens, were on hand for Kraemer's presentation on Thursday at the Ramkota
Hotel.
"You just happen to be in the backyard of a tremendous energy
source," Kraemer said, referring to Mobridge's proximity to coal reserves
in Montana and Wyoming.
He said these coal fields constitute half of the recoverable coal in the
nation. This coal is also much cheaper than any other coal being produced in the
country, according to Kraemer.
The proposed plant would generate 600 megawatts of electricity, he said. This
would require a trainload of coal delivered every other day.
BNSF operates freight trains throughout the Dakotas.
In January, five major power providers announced plans to build the power
plant and identified Mobridge as one of five potential sites for it. Other sites
under consideration are Yankton, Gascoyne, N.D., Stanton, N.D., and Modale,
Iowa.
The power providers involved in the project are Montana-Dakota Utilities,
Basin Electric Power Cooperative, Missouri River Energy Service, Minnkota Power
Cooperative and Heartland Consumers Power Plant.
They haven't released when the plant's location will be announced, but they
estimate the facility will be operating in about 10 years.
"Burlington Northern needs to be involved and be a key partner if we
want to be successful in attracting a power plant to the Mobridge area,"
said Curt Hohn, WEB Water director.
Hohn said if Mobridge got the plant it would create 1,000 jobs during the
three years of construction and 300 to 600 jobs during normal operation.
Hohn said this would benefit a huge chunk of the state. "We think it's a
great opportunity for Aberdeen," he said.
Jim Barringer, vice president of the Aberdeen Development Corp., agreed.
Barringer, part of the task force appointed to attract the project to
Mobridge, said the group needs to be working now to figure out how to sway
decisionmakers. Their goal is to prove it's feasible to run a power plant in
Mobridge.
"It's never too early to make a favorable impression," Barringer
said.
In order to do just that, South Dakota may have to create a favorable tax
situation for companies looking to locate in the state.
Rep. Larry Frost, R-Aberdeen, said South Dakota's tax structure is not as
good as North Dakota's. He said South Dakota needs to be working now to change
tax laws to attract projects like the power plant.
Mark Rolfes, director of the Minnesota-based Otter Tail power company,
agreed.
"The challenge for South Dakota is a taxing issue," he said.
Another challenge some see is the area's power transmission line capacity.
Although it has been questioned whether the power lines around Mobridge could
handle the extra electricity the plant would create, Hohn said he doesn't think
this will be a problem.
He said those lines are currently used in part to provide the area with
outside electricity. If the plant were located in Mobridge, there would be no
need to import electricity, Hohn said. "Instead of power coming in, it
would be going out."
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