DULUTH, Minn.--(BUSINESS WIRE)--
Minnesota Power today announced it will retire two small coal-fired
generators at its Boswell Energy Center in Cohasset, Minn., by the end
of 2018. It is the latest step in the company's EnergyForward
plan to meet customer electric-service needs in a balanced, reliable and
cost-effective way.
Boswell Energy Center is Minnesota Power's largest thermal generating
facility and consists of four generating units. The company will retire
Boswell Units 1 and 2, but continue to operate units 3 and 4, its
largest generators. Together, units 3 and 4 are capable of generating
nearly 1,000 megawatts and provide the reliable power that customers,
including large industrial users like mines and paper mills, need 24/7.
Units 1 and 2 are each capable of producing 65 megawatts.
Company officials were at Boswell this morning to make the announcement
to employees.
"The decision to retire units 1 and 2 at Boswell, though difficult for
our employees and host communities, is consistent with Minnesota Power's
EnergyForward strategy of diversifying its energy mix,
reducing its carbon footprint and evolving away from smaller, older coal
generators," said ALLETE Chairman, President and CEO Alan R. Hodnik.
Minnesota Power is an operating division of ALLETE Inc. (NYSE: ALE).
"Multimillion dollar investments in emissions reductions and new turbine
rotors at Boswell Units 3 and 4 in recent years have made them among the
cleanest-operating, most highly efficient electric generators in the
nation. These large, state-of-the-art units, along with the company's
investments in renewable energy and access to low cost power markets,
will ensure the continued availability of reliable and affordable
electricity to meet the needs of all our customers, including those who
compete in global markets."
Josh Skelton, vice president-Minnesota Power generation operations, said
the decision to retire units 1 and 2 directly affects 30 employees and
the company is working to avoid layoffs through attrition and
retirements.
"We recognize this news comes during a difficult time for the West Range
which has experienced job losses, delays and closures related to our
natural resource based industry in recent weeks," Skelton said. "Our
employees have done an excellent job of maintaining and operating
Boswell Units 1 and 2 and we thank them for their many years of
dedicated service," Skelton said. "We will assist them, as well as the
Cohasset community, to help mitigate impacts during this transition."
In its 2015 Integrated Resource Plan submitted to the Minnesota Public
Utilities Commission, Minnesota Power had proposed making improvements
to units 1 and 2 and keeping them operational through 2024. But
following months of analysis of projected customer needs and industry
trends, company officials determined that retiring the two small coal
units in 2018 was in the economic best interest of its customers.
Minnesota Power will be evaluating the need for replacement power as
part of its ongoing system planning activities.
Boswell Units 1 and 2 are the last of Minnesota Power's small coal-fired
units to be retired, idled or converted to cleaner-burning natural gas.
The company's systematic fleet transition of small older coal facilities
already has resulted in the removal of 335 megawatts of coal-fired
capacity from its generation system. At Taconite Harbor Energy Center in
Schroeder, Minn., one 75MW unit was retired in 2015 and the remaining
two 75MW units were economically idled in September, leaving them
available to be called back into service if needed to maintain power
grid reliability until coal operations cease there in 2020. The 110MW
Laskin Energy Center in Hoyt Lakes, Minn., was converted to natural gas
from coal in 2015.
Boswell Unit 3, at 355 megawatts, and Unit 4, at 585 megawatts, are the
backbone of Minnesota Power's system. Investments in state-of-the-art
technology have improved efficiencies and reduced emissions of mercury
by 90 percent, and sulfur dioxide and nitrogen oxides by 80 percent at
the two units while helping to preserve reliable and affordable power
for customers.
"Through EnergyForward, Minnesota Power is responsibly
answering the nation's call to transform its energy landscape," Hodnik
said. "We're serving customers with a more balanced set of power
sources, including more wind and solar while retaining critical baseload
power, and doing so in a way that protects customers, the communities we
serve and the quality of life in our region."
Minnesota Power already is meeting or exceeding state standards for
renewable power, energy conservation and carbon emission reduction. The
company has achieved a 25 percent renewable energy mix, well ahead of
Minnesota's renewable energy goal of 25 percent by 2025. Minnesota Power
expects to reduce carbon emissions on its system by about 20 percent by
2020 and 30 percent by 2025 compared with 2005 levels.
Originally conceived as one 65-megawatt generator in 1956, plans for
Boswell quickly turned into two 65-megawatt units as the demand for
electricity by natural resource based companies in Minnesota Power's
service territory increased. Boswell 1 and 2 were dedicated in 1960.
Plans to further expand the facility to meet the needs of a booming
mining industry were announced in 1968 and Unit 3 was dedicated in 1973.
The last and largest generator at Boswell, Unit 4, was dedicated in 1980.
Minnesota Power provides electric service within a 26,000-square-mile
area in northeastern Minnesota, supporting comfort, security and quality
of life for 145,000 customers, 16 municipalities and some of the largest
industrial customers in the United States. More information can be found
at www.mnpower.com.
ALE-ENRG
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.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161019005219/en/
Minnesota Power/ALLETE
Amy Rutledge, 218-723-7400
Manager -
Corporate Communications
arutledge@mnpower.com
Source: Minnesota Power
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