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Big Stone partners, DOC agree
Published 12:00pm Friday, September 7, 2007The Minnesota Department of Commerce (DOC) and the seven owners partnering to build Big Stone II — including Fergus Falls-based Otter Tail Power Company — have reached an agreement settling issues related to high-voltage electric transmission facilities. Those lines are planned in Minnesota as part of the proposed project.
Otter Tail Power Company and its fellow owners plan to build a 630-megawatt coal-fired power plant adjacent to the existing Big Stone Plant near Big Stone City in northeastern South Dakota. The project also includes transmission facilities in Minnesota and South Dakota.
A major benefit from Big Stone II and new lines include delivery of wind generated electricity from southwestern Minnesota along the Buffalo Ridge. The plant and transmission is intended to serve customers’ needs beginning in 2012.
The agreement between the Department of Commerce and the Big Stone II owners resolves issues related to project costs, mercury emissions, water use, energy conservation, renewable energy and carbon dioxide emissions.
“This agreement is intended to help pave the way for a diverse, reliable energy resource plan for the participating utilities,” Otter Tail Power Company President Chuck MacFarlane said. “Included are additional renewables, energy conservation and efficiency and needed new electric generating facilities — including Big Stone II.”
Among other provisions, the settlement includes:
* Innovative provisions to offset 100 percent of the Big Stone II plant’s carbon dioxide emissions attributable to Minnesota customers
* Commitments by the project’s owners to build or procure at least 180 megawatts of locally owned renewables
* Commitments by the project’s owners to further improve and extend their energy conservation and efficiency efforts
* Provisions that confirm that the project’s owners will add equipment to both Big Stone II and the existing Big Stone I power plant that will remove at least 90 percent of the mercury emissions from both plants
* “This agreement supports the leadership of Minnesota Gov. Tim Pawlenty and the State Legislature on issues related to developing renewable energy,” Minnesota DOC Deputy Commissioner Edward Garvey said. “This includes projects owned by Minnesota citizens, conserving energy and using it more efficiently.”
On Aug. 15 two Administrative Law Judges who reviewed the case in detail recommended that the Minnesota Public Utilities Commission approve the Big Stone II owners’ requested certificate of need and related power line route permit.
The DOC’s conditions are related to renewable energy development and energy conservation and efficiency and are all addressed in the latest agreement. The Minnesota PUC is expected to decide this matter sometime in October.
