Minnesota Commission Rejects Gas Plant Addition in Minnesota Power’s Resource Plan

The Minnesota Public Utilities Commission approved a modified Integrated Resource Plan for Minnesota Power, authorizing a package of near-term investments through 2039 while rejecting the utility’s proposal to build a large new natural gas plant, according to a Sept. 14 press release. The regulator determined that Minnesota Power had not established a clear need for the project at this stage and concluded that approving it now could leave customers paying for a costly asset years before it would be necessary.

The commission approved a near-term portfolio designed to preserve reliability, limit customer costs, and keep future planning options open. The plan allows Minnesota Power to convert Boswell Unit 3 to natural gas by 2030, enabling the utility to maintain dependable service while extending the facility’s role in the regional power system. The regulator also postponed a decision on Boswell Unit 4 and ordered an independent assessment of future pathways for the plant before any long-term commitment is made.

The approved resource mix includes 600 megawatts of new generation and storage by 2030, with wind power and battery storage forming key parts of the expansion. The commission also directed the company to add 100 megawatts of demand response by 2028 and develop another 100-150 megawatts of customer-focused energy resources by 2030 through new programs intended to strengthen system flexibility.

The regulator highlighted Boswell’s importance to workers and nearby communities, concluding that converting Unit 3 supports both electric reliability and local employment while allowing additional time to evaluate the future of Unit 4. The order also requires Minnesota Power to complete transmission improvements near the Hibbard plant to strengthen grid resilience for Duluth and surrounding areas.

The decision reflects a broader effort to balance reliability, affordability, workforce considerations, and Minnesota’s clean energy transition by advancing projects that can meet near-term needs without locking customers into unnecessary long-term costs. As the next step, Minnesota Power must submit a more comprehensive integrated resource plan by Dec. 31, 2027, providing an updated assessment of future electricity demand, resource options, and long-term investment priorities.