Plan for coal-fired plant in South Dakota shelved
after 4 utilities drop out
The Big Stone II project has been at the center of an
environmental debate since it was announced in 2004.
By
TOM MEERSMAN,
Star Tribune
Last update: November 2, 2009 - 10:59 PM
A power plant ran out of steam Monday as developers announced that
they have decided not to build the $1.6 billion Big Stone II project
near South Dakota's border with Minnesota. The joint announcement by
four utilities brings to an end one of the larger environmental debates
in the state in recent years because of mounting public concerns about
global warming and energy policy.
Seven utilities were partners when the 500- to 600-megawatt coal-fired
plant was announced in 2004, but three dropped out.
The lead utility, Otter Tail Power Co., withdrew from the project in
September, citing uncertainty about future carbon dioxide costs and
regulations, and the poor economy.
The four remaining partners issued a statement Monday giving the main
reason for the cancellation: "The project required additional
participants to move forward; however, none have committed."
One of the remaining partners, Montana-Dakota Utilities Co., said that
it was disappointed with project's demise, but that it has enough
electricity for its customers for the near future.
"We have plans to expand our wind production by 30 megawatts in 2010 and
will review other generation options," said Montana-Dakota President and
CEO Dave Goodin.
Environmental groups opposed the project before South Dakota and
Minnesota regulators. The plant was proposed for Milbank, S.D., a few
miles from Minnesota, and included high-voltage power lines into western
Minnesota.
Beth Goodpaster, staff attorney for the Minnesota Center for
Environmental Advocacy, which fought the proposal for years, said she
wasn't surprised the utilities gave up. They may have thought originally
the project made economic sense, she said, but one by one they learned
that it does not.
"We're really glad that the Big Stone coal plant has stepped out of the
way of the renewables that do need to get to market and are cheaper,"
she said.
The three other utilities that abandoned the project on Monday were
Central Minnesota Municipal Power Agency, Heartland Consumers Power
District and Missouri River Energy Services.
Tom Meersman • 612-673-7388
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