Gov. Mark Dayton signed a bill Tuesday allowing Xcel Energy to build a large natural gas-fired power plant in Sherburne County, without having to go the traditional route of gaining approval from Minnesota utilities regulators.
Minneapolis-based Xcel, the state's largest electricity provider, wants to build a 786-megawatt generator in Becker to partly replace power that will be lost when the company shutters its two big coal-fired plants there. A megawatt is a million watts.
In October, the Minnesota Public Utilities Commission (PUC) approved the closure of the two 680-megawatt coal generators, a landmark for reducing carbon emissions in Minnesota.
The PUC at the time did not seem averse to a gas plant of some sort as a replacement, but it asked for more study of cost-effective renewable energy alternatives.
In January, bills were submitted to the Legislature allowing Xcel to build the new generator. Proponents say the legislation is necessary to stabilize the Sherburne County economy, which will be hurt by the coal generators' demise.
Opponents say the legislation is an end-run around the PUC.
"This project is of critical importance for Becker and its surrounding area," Dayton said in a statement. "It requires an immediate certainty that the PUC review process cannot provide."
Xcel's coal plant is Sherburne County's largest taxpayer and employs about 300 people. The new gas plant would employ about 150. It would open in 2025, about midway between the planned 2023 and 2026 closure of Xcel's coal generators in Becker.