Elk River, Minn.-based electric cooperative takes on construction of new plant
By Tim Huber, Pioneer Press, St. Paul, Minn. -- July 10
Great River Energy is taking the do-it-yourself approach for its next power plant.
"They typically need a higher rate of return," Great Rivers
spokesman Stan Selander. "As a cooperative, we do things for cost. We're
nonprofit on purpose."
The proposed plant -- Great River still needs the OK from environmental
regulators and the Minnesota Public Utilities Commission -- would be capable of
producing approximately 150 megawatts. One megawatt powers roughly 1,000 homes.
It will be able to burn either fuel oil or natural gas, allowing Great River to
switch fuels based on availability and cost.
The plant will be a so-called peaking plant and thus will operate about 5
percent of the time -- say 500 hours a year -- and only when demand spikes.
Usually that occurs on the hottest days of summer and the coldest days of
winter.
"Those times of the year are when people want their electricity the
worst, and so heaven forbid that we should not be able to supply them,"
Selander said.
Great River Energy might not be a household name in the Twin Cities, but it
is the state's second-largest electric utility, serving 580,000 customers or 1.4
million people. The company provides power and services to 28 member
cooperatives in Minnesota and Wisconsin. Its service territory sprawls across
two-thirds of the land area of Minnesota, stretching from the Arrowhead to the
southwest. Minneapolis-based Xcel Energy, which serves 1.3 million customers, is
the state's largest utility.
Great River needs the new plant because its ability to generate enough power
for peak periods will be insufficient by 2006 or 2007, said Selander. Currently,
the cooperative has more than enough peaking capacity, but its service territory
is enjoying rapid growth, particularly among residential customers. Great River
gets the bulk of its power from coal-fired plants it owns in North Dakota.
Work on the project is expected to begin late this year or early next year
after Great River selects a site. The first step will be obtaining the necessary
permits. Construction is scheduled to begin in 2006 and be completed by June
2007, Selander said. The plant is expected to create a handful of permanent jobs
at most, he said.
Great River also is planning to build a renewable generation plant and
expects to have a short list of potential developers within four weeks.
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