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Minnesota and Xcel Energy agree on clean energy plan

By Nick Lentz

/ CBS Minnesota

The Minnesota Public Utilities Commission and Xcel Energy have settled on an energy plan aimed at lowering monthly bills for Minnesotans and protecting the environment. 

Both the state and the energy company announced the settlement of the 2024-2040 Upper Midwest Integrated Resource Plan in separate releases Friday. 

According to Xcel Energy, the plan includes adding 3,430 megawatts of wind energy by 2030, hooking it up to the Upper Midwest grid at the Sherco plant in Becker, Minnesota.

The company is also planning to add 550 megawatts of grid-scaled solar energy and 600 megawatts of battery energy storage by 2030. 

One megawatt of power provides electricity to around 1,100 homes, Xcel Energy says.

The plan also includes steps to close a natural gas facility in Lyon County by 2040, and build a hydrogen-capable natural gas-fired plant in the area, officials say. 

"Under the approved plan, carbon emissions reductions from 2005 levels are expected to exceed 80% by 2030, potentially reaching up to 88%," Xcel Energy said in its release. 

Under state law, utilities are required to offer customers 100% carbon-free electricity by 2040. 

The Minnesota Department of Commerce worked with Xcel Energy, clean energy organizations, labor unions and energy developers on the agreement

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