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Lights will go out on coal plant


By Nate Langworthy

Mon, Aug 13th, 2012
Posted in Rochester Features

Rochester’s distinctive part-time resident, the Canadian Honker, may need to find a new haunt as the source of Silver Lake’s artificially warm water will soon cease to provide a comfortable winter location for the geese.

The Rochester Public Utilities board voted unanimously to retire the Silver Lake coal plant by the end of 2015, halting the operation of Minnesota’s oldest coal generator, which was once Rochester’s only source of energy following its construction after the Second World War

The decommissioning of the facility follows a national trend away from coal-generated power, and makes Rochester the first site to stop coal generator operation in the state.

A number of factors, including the rising cost of coal and the availability of cheaper natural gas and renewable sources, have made coal generators a costly, unfavorable option in comparison to alternatives. While cheaper energy sources have provided the carrot for the conversion, enforcement of long-delayed air quality regulation by the Environmental Protection Agency, has also provided a stick, with the city being on the line for upgrades roughly estimated at $90 million to bring the plant into compliance with regulations. The city also faces possible litigation from the EPA if it continues to burn coal in violation of clean air laws.

“It’s a net gain for the community,” said RPU board and city council member Michael Wojcik. “No matter where we get our energy from, it will be cleaner than coal.”

The Silver Lake facility includes four units. The first, and smallest, was constructed in 1948. Three more units were constructed between 1953 and 1969.

The site has been partially converted to natural gas in the past few years. Production from the site has been supplemental during this time as RPU has moved to purchasing the majority of its energy from the Southern Minnesota Municipal Power Agency. The majority of locally-produced energy will come from investment in more natural gas facilities, like the one operated at Cascade Creek.

Analysis conducted by energy consulting firm Burns and McDonnell showed that the cost of continuing to run the Silver Lake plant was much higher than what energy can be purchased for from the regional energy market.

RPU is currently purchasing energy from the MISO energy market, which services most of the upper Midwest. Investment in new infrastructure to tap into the CAPX2020 line, will allow for expanded participation in the regional energy market.

“This is clearly an economic decision,” said RPU board president Jerry Williams. “We can go out on the open market and purchase electricity.”

In fact, energy production at the Silver Lake plant has dwindled down to a mere fraction of its former output. In 2011, the plant operated for just over 250 hours, dropping off from over 16,000 hours in 2005.

Rochester will save an estimated $5.5 million each year after 2015 by not having to operate the Silver Lake facility. Wojcik stated that RPU would seek to reassign the plant’s 54 workers to other positions within the organization and will likely be able to level off staffing through anticipated retirements.

While no plans have been made regarding what to do with the facility, the space just outside of downtown, on Silver Lake, and without zoning regulations allows for wide-ranging possibilities.

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