Elena Velkov, Media Relations Coordinator
651-726-7576 (w), 651-402-6193 (c), velkov@fresh-energy.org

Michael Noble, Executive Director
651-726-7563 (w), 612-963-1268 (c), noble@fresh-energy.org

Another Coal Project Falls in the Wake of Minnesota Judges’ Recommendation
Utilities across the country are cancelling coal projects

St. Paul – Shortly after two Minnesota judges recommended against building the proposed Big Stone II coal-fired power plant in South Dakota, Westmoreland Coal Co. signaled it was halting its Gascoyne plant in North Dakota. This marks the 64th coal plant to be halted or delayed since 2002. Last year, 31 planned coal plant projects were stopped.

Westmoreland will now return more than $560,000 in North Dakota subsidies and cannot guarantee the continuation of the project, according to the Associated Press. The company says there is too much uncertainty with pending federal and state legislation that would regulate carbon dioxide and raise the cost of coal-fired electricity.

“This plant at Gascoyne was mainly a matter of speculation,” said Terrence Kardong, treasurer for the Dakota Resource Council in Dickinson, N.D., and monk at the Assumption Abbey. “I can’t understand why they were even planning to do this. The market just wasn’t there.”

The Administrative Law Judge recommendations in Minnesota, coupled with the Gascoyne plant suspension in North Dakota leaves America’s coal-fired utilities questioning the economic viability of future investments in old-fashioned coal. Energy regulators in Florida, Kansas, North Carolina, Oklahoma and Oregon have also struck down coal plants.

“In the heart of coal country, the industry’s strongest proponents are now responding to market realities,” said Michael Noble, executive director of Fresh Energy. “Unless new coal plants can eliminate global warming emissions, new coal plant construction has no future.”

Minnesota Administrative Law Judges recommended May 9 that permits required by the proposed Big Stone II coal project be denied. The judges concluded that applicants had not met the requirements of state law, establishing that the power plant is needed. The judges also concluded that there was no proof that conventional coal was a cheaper option than energy efficiency or renewable energy, especially factoring unknown costs of CO2 regulations.

A final decision is expected by the Minnesota Public Utilities Commission the first week in June. If Big Stone II is formally denied by the Minnesota PUC, it will be the 65th coal plant stopped.

Part of the changing economic landscape for utilities includes new laws, such as Minnesota legislation in 2007 that will increase the state’s share of electricity from renewable sources to 25 percent by 2020. In addition, 2007 state law requires utilities to make energy efficiency investments that save 1.5 percent of electricity sold every year. Last, Minnesota legislature has set the goal of reducing carbon dioxide 80 percent by 2050, and Governors of five other Midwest states have joined Gov. Pawlenty in efforts to design a regional, market-based plan for capping and reducing CO2 emissions.

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Fresh Energy is a nonprofit organization leading the transition to a clean energy system-- one that supports the health of our economies, our people, and our environment while moving us toward energy independence. www.fresh-energy.org