Minnesota Power to idle Tac Harbor plant in 2016

Minnesota Power, a division of ALLETE, Inc. today laid out the next steps in its Energy Forward plan, which will reduce carbon emissions, increase the use of renewable resources and add natural gas to meet customer electric service needs “in a balanced, reliable and cost-effective way over the next 15 years and beyond.”

One of the next steps include the economic idling of the company’s Taconite Harbor Energy Center in the fall of 2016 and ceasing coal operations of Units 1 and 2 in Schroeder in 2020.

As part of the transition and taking advantage of trends in lower cost replacement energy supplies from wholesale markets, MP will idle Taconite Harbor in the fall of 2016. According to MP, idling the plant rather than close it completely in the near-term “will give the company more flexibility during a period of time when considerable change is occurring in energy
supply and policy.”

If necessary and with appropriate notice, the idled units can be restarted and produce electric power to maintain grid reliability. The company also
plans to further reduce emissions and continue operating two smaller units
at its largest generating station, the Boswell Energy Center.

In a statement, MP Vice President of Strategy and Planning Al Rudeck said, “We will assist the 42 Taconite Harbor employees in finding new positions within the company. We will also work with the North Shore
community through this transition, exploring future options for the plant that
may include refueling, re-missioning or retirement. There is valuable port, rail and other associated infrastructure at the facility site that may catalyze
future economic development and business growth opportunities.”

Minnesota Power provides electric service within a 26,000 square-mile area in northeastern Minnesota for 144,000 customers, 16 municipalities and large industrial customers.