Minnesota Power’s ‘Low-Cost’ North Dakota Wind Farm Receives Key Regulatory Approval
August 31 2011 - 7:30AM
Business Wire
The Minnesota Public Utilities Commission (MPUC) has unanimously
approved Minnesota Power’s request for approval of investments and
expenditures in its Bison 2 wind project for recovery through a
renewable resources rider.
Bison 2, a 105-megawatt wind farm located near New Salem, N.D,
is part of the company’s plan to cost-effectively meet the
Minnesota renewable energy mandate while reshaping the generation
portfolio of Minnesota Power, a division of ALLETE (NYSE: ALE).
The $157 million wind farm will be located adjacent to the
company’s Bison 1 project now under construction, and is expected
to produce emission-free electricity over a 35-year life.
“This project demonstrates that renewable energy can be a
low-cost generation option that will benefit our customers,” said
ALLETE Chairman, President and CEO Al Hodnik. “At the same time,
it’s a logical next step that advances ALLETE’s growth strategy to
meet the demands of an evolving energy industry.”
Minnesota Power’s MPUC filing documented the cost advantage from
adding the Bison 2 project in 2012, due in part to recent capital
cost reductions for wind turbines, a superior wind location, and
the federal Production Tax Credit available within the timing of
the project.
The energy produced at Bison 2 will reduce market purchases of
electricity and thermal generation production, resulting in annual
emission reductions of carbon by 90,000 tons, sulfur dioxide by 70
tons, nitrogen oxides by 60 tons and mercury by three pounds.
Given its cost effectiveness, Minnesota Power submitted plans to
the MPUC to construct its second North Dakota wind project in March
of this year. Bison 2, consisting of 35 Siemens direct-drive wind
turbines, will help move Minnesota Power closer to meeting
Minnesota’s Renewable Energy Standard of achieving 25 percent
renewable energy by 2025.
The renewable energy will be delivered to Minnesota Power
customers via the company’s Direct Current transmission line
linking Center, N.D. and Minnesota Power’s Arrowhead Substation
near Duluth. Bison 2 is expected to be online in 2012, while the
second phase of Bison 1 is scheduled for completion this year.
The company filed plans for a similar sized project, Bison 3,
with the MPUC in June. That project is scheduled to come online in
2012.
Minnesota Power provides retail electric service within a
26,000-square-mile area in northeastern Minnesota to 144,000
customers and wholesale electric service to 16 municipalities. More
information can be found at www.mnpower.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
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