Dive Brief:
- Under orders from state regulators, Xcel Energy will study retiring or switching to natural gas two 750-MW coal-fired units at its Sherco power plant in Minnesota.
- Environmental groups wanted the Minnesota Public Utilities Commission to order Xcel to replace the two units with renewable generation by 2020. Instead, Xcel will consider a broad range of options, including keeping the units operating, in a long-range resource plan to be filed next summer.
Dive Insight:
Earlier this year, Xcel told the PUC in a report that it wanted to keep operating the Sherco units until environmental regulations become clearer. Xcel has converted several coal-fired power plants in Minnesota to burn natural gas and has retired and is converting coal plants in Colorado as well. The utility company has the most wind generation on its system among all utilities in the U.S. Don't be surprised if the company takes the same approach with the Sherco units; it just may take a few years for that to happen.
