Today, the Minnesota Public Utilities Commission approved Xcel Energy’s dramatic proposal to shift away from coal generation toward renewable energy.   In authorizing the company’s 2016-2030 Integrated Resource Plan (RP-15-21), the Commission directed Xcel to retire two large coal units capable of generating approximately 680 MW each, procure at least 1,ooo MW of wind by 2019, procure at least 650 MW solar by 2020 , begin the process of procuring replacement generation for the coal units in mid-2020s, and acquire at least 400 MW of demand response resources by 2023.

Xcel has already started the wind procurement process with an RFP for up to 1,500 MW issued last month.  The required solar resources are likely to be procured through Xcel’s community solar garden program, but Xcel also is authorized to pursue other cost effective solar resources.   With respect to other replacement generation for the Sherco 1 and 2 coal units now slated to be shutdown, the Commission authorized Xcel to file a petition for a certificate of need to select replacement resources.  Xcel had proposed to build a 750 MW combined cycle gas facility to be located at the Sherco site in Becker, Minnesota, but the Commission determined that a final decision on that proposal and other alternatives (such as additional renewable energy and demand side options) should be made in a subsequent certificate of need proceeding.  Longer term, the Commission also directed Xcel to study options and scenarios for orderly and cost effective retirement of its other baseload resources, including two other large coal units and the company’s nuclear fleet.

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Photo of Sarah Johnson Phillips Sarah Johnson Phillips

Sarah Johnson Phillips is a partner in the firm’s Energy Development practice group, where she focuses on energy project development; buying, selling and financing energy projects; and energy regulatory matters. She advises large wind and solar project developers on permitting and real estate…

Sarah Johnson Phillips is a partner in the firm’s Energy Development practice group, where she focuses on energy project development; buying, selling and financing energy projects; and energy regulatory matters. She advises large wind and solar project developers on permitting and real estate matters, including obtaining major project permits, negotiating leases and easements, and title work.  She also has particular experience working on distributed solar and community-shared solar projects, including negotiating offtake agreements, leases, financing arrangements, M&A transactions, interconnection agreements, and regulatory matters. In addition, Sarah works with large energy consumers on a range of regulatory issues and proceedings affecting ratepayers and regularly appears before the Minnesota Public Utilities Commission.

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Photo of Emma Fazio Emma Fazio

Emma Fazio is an attorney in the Energy Development group. Emma assists clients with energy regulatory and transactional matters. Prior to joining the Firm, Emma was a judicial law clerk to the Honorable Matthew E. Johnson at the Minnesota Court of Appeals in…

Emma Fazio is an attorney in the Energy Development group. Emma assists clients with energy regulatory and transactional matters. Prior to joining the Firm, Emma was a judicial law clerk to the Honorable Matthew E. Johnson at the Minnesota Court of Appeals in St. Paul, Minnesota. She also clerked at the Minnesota Pollution Control Agency in St. Paul, Minnesota (2014) and the Department of Justice, Environmental and Natural Resources Division in Washington, D.C. (2013).