Big Stone II shakened by partners withdrawing

Hutchinson Utilities remains committed to the planned construction of a coal-fire power plant near Big Stone, S.D., even as two of the project’s major investors announced last week they were reconsidering their involvement in the 630-megawatt plant.

Great River Energy, an Elk River-based provider of electricity to rural electric cooperatives, including McLeod Co-op Power Association, announced Sept. 17 it intended to withdraw from Big Stone II. It had been in line to get 120 megawatts of electricity from the plant.

Southern Minnesota Municipal Power Agency, which provides power to dozens of cities, also said it was unable to make a long-term commitment for 49 megawatts as long as it is involved in litigation with its largest member, Rochester Public Utilities. It may remain involved, but not as a direct owner.

All seven partners in the project had until Sept. 21 to confirm their commitment to the project.

Hutchinson Utilities has a contract with another Big Stone II partner, Missouri River Energy Services, to buy 42 megawatts of baseload power generated by the new plant.

“The rest of us need it, even if (Great River and Southern Minnesota) don’t,” Utilities’ general manager Mike Kumm said Friday. “We (Hutchinson) don’t have any baseload. There are only two forms — coal and nuclear.”

Hutchinson’s city-owned utility company has more than 100 megawatts of its own generating capacity, but it uses volatile-priced diesel fuel and natural gas. It is often much more expensive for Hutchinson to generate its own power than to buy power from lower-cost sources, such as coal-fired plants.

The generators are most often used when demand peaks, such as on hot, summer days. The city generally needs 30 to 40 megawatts of baseload electricity, but demand can spike up to 60 megawatts or more.

Hutchinson Utilities, Kumm said, had three integrated resource studies done, one by its own consultant and two by Missouri River, that looked at multiple sources of electricity.

“I think we have done our homework, not once, but three times. We know this is the best answer for us,” he said.

For more about Big Stone II, read the Sept. 25 print edition of the Hutchinson Leader.

(Terry Davis is a staff writer for the Hutchinson Leader. He can be reached at davis@hutchinsonleader.com.)