DULUTH – Minnesota regulators need to take another look at the environmental effect of a natural gas plant Minnesota Power wants to build in Wisconsin, the state Court of Appeals ruled Monday in a setback for the $700 million project.
Though the plant would be built in Superior, Judge Louise Dovre Bjorkman held that Minnesota Power is subject to the jurisdiction of the Minnesota Public Utilities Commission and the state's environmental laws.
Last year the PUC narrowly approved Minnesota Power's stake in the project without requiring an environmental review. Environmental groups appealed the decision.
The judge ordered the PUC to determine whether the plant "may have the potential for significant environmental effects and, if so, to prepare [a review] before reassessing whether to approve the affiliated-interest agreements."
The Nemadji Trail Energy Center would generate 525 to 625 megawatts of power. Construction costs, and the power generated, would be split between Minnesota Power and Wisconsin's Dairyland Power Cooperative.
Monday's ruling was a victory for environmental activists who said investing in more fossil fuel infrastructure is unnecessary and unwise.
"This ruling sends the strong message that Minnesota utilities can't ignore or sidestep the environmental and public health risks of burning fossil fuels," said Jessica Tritsch with the Beyond Coal to Clean Energy Campaign. "We hope Minnesota Power will take this signal from the court and develop a new plan that meets our state's energy needs with clean, renewable energy rather than dirty, risky gas."
Minnesota Power said it has expanded its renewable-energy options in recent years and expects to get half of its energy from renewable sources by 2021. The Duluth-based utility, which has 145,000 customers across northeastern and central Minnesota, maintains it needs the natural gas plant to provide power when the sun isn't shining and the wind isn't blowing.