St. Paul, Minnesota — Data from Minnesota’s largest utilities demonstrate that shifting to economic-based electric generation scheduling is bringing cost savings to consumers and decreases in greenhouse gas emissions. Minnesota Power, Otter Tail Power, and Xcel Energy all reported these results in filings accepted by the Minnesota Public Utilities Commission (Commission) on Thursday. 

“Our utilities have made meaningful improvements in their electricity generation practices over the past few years that have resulted in significant savings for consumers while also reducing greenhouse gas emissions” said Commissioner Matthew Schuerger. 

While Minnesota’s largest utilities are moving forward with their plans to reduce coal generation and increase renewable energy, some coal-fired power plants continue to operate. To ensure utilities use coal-generated electricity in the manner most economic for their customers, in 2019 the Commission opened an investigation into the self-commitment and self-scheduling practices of Minnesota Power, Otter Tail Power, and Xcel Energy. 

A utility owning a generator can specify required operation periods and cost minimums of a power plant to Midcontinent Independent Service Operator (MISO). The system operator will refrain from dispatching the resource until it is cost-effective. However, under some circumstances a participant might prefer to accept any market price (even if it is lower than its operating cost) rather than awaiting economic dispatch by MISO, leading to increased costs for ratepayers. The Commission’s oversight of these decisions has resulted in both cost savings and increased renewable generation, consistent with state goals. 

Minnesota is part of the MISO, a system providing transmission, and monitoring services to the United States’ Midwest and southern regions, as well as Canada’s province of Manitoba. MISO maximizes the efficient use of electric generation under fluctuating power demands by selecting generators for regional dispatch. 

About 

The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy; electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc Please contact Tricia DeBleeckere, 651-201-2254 or tricia.debleeckere@state.mn.us if you have any questions. 

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