SAINT PAUL, MN: The Minnesota Department of Commerce is pleased that the Minnesota Public Utilities Commission today accepted the settlement negotiated under Commerce’s leadership with Xcel Energy for its proposed 2024-2040 Upper Midwest Integrated Resource Plan. The plan will lead to dramatic progress in transitioning Minnesota to a clean energy future, with provisions for Xcel to invest in innovative new clean energy resources.

The Commerce Department advocates for the state’s energy goals and represents the interests of all Minnesotans before the PUC.  Commerce convened and led negotiations for the settlement with Xcel and other stakeholders. This settlement is the result of creative solutions and compromise across a diverse group of stakeholders, including the utility, labor unions, clean energy organizations, clean energy developers, and state government. 

“Commerce negotiated a settlement that will provide reliable, increasingly clean energy to meet the needs of our growing economy,” said Commerce Commissioner Grace Arnold. “This settlement ensures consumers and businesses will benefit from lower-cost, homegrown clean energy sources like wind and solar, while investing in innovative technologies.”

Commerce advocated for the following specific provisions because of their benefits to ratepayers:  

Significant investments in:  

• New wind and solar power; 
• Battery storage; 
• Industry leading coordination demand response and distributed generation through the electric grid; and 
• New clean firm technologies that help balance out higher levels of renewable energy on the grid and that are critical to meet the requirements of the state law for 100% carbon-free electricity by 2040. 

The “clean firm resources” that Xcel Energy has committed to include: 

• A proposal for a large utility-managed virtual power plant, which is a network of distributed solar energy and battery storage hubs linked through technology so they can operate together. The distributed network of solar/battery hubs is a stark contrast to traditional centralized power plants, such as a large coal plant;   
• A long-duration thermal battery, which will be the first of its kind for energy storage in Minnesota; and
• A plan to transition the 420 MW natural gas facility in Lyon County, MN, to reduce carbon emissions to zero or retire and close the facility by 2040. 

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Contact
Mo Schriner
Minnesota Department of Commerce
651-363-1227
mo.schriner@state.mn.us