Otter Tail Power, the lead developer of Big Stone II, has just announced that it has withdrawn its support from the project. Activists in South Dakota and Minnesota have been fighting the 500-580MW coal plant for at least five years now, and let me tell you, it has been a rollercoaster ride.
Things were looking up earlier this year, when just days after Obama took office, the EPA revoked Big Stone II’s air permit. But months later, the developers turned in a revised air permit, which was later approved.
Then, this spring, the powerline that would carry the electricity from Big Stone II to Minnesota was approved by the Public Utility Commission on a 5-0 vote. This was after the PUC voted in 2008 3-2 to delay the powerline vote until more information on carbon costs and other variables was available. An independent report was commissioned that showed the estimated cost for the power plant was too low. This had led many to believe that the PUC might block the permit, but instead they decided to unanimously approve it.
This July, Elk River Municipal Utilities pulled their support from the project, citing cost and environmental issues. But a month later, the last environmental permits for the plant were approved, and the plant seemed headed to construction.
But earlier today, Otter Tail Power, the lead developer and project proposer, announced that it would no longer support Big Stone II. The press release notes that “the broad economic downturn coupled with a high level of uncertainty associated with proposed federal climate legislation and existing federal environmental regulation have resulted in challenging credit and equity markets that make proceeding with Big Stone II at this time untenable for Otter Tail’s customers and shareholders.”
The pullout of Otter Tail leaves only four developers, the Central Minnesota Municipal Power Agency, Heartland Consumers Power District, Missouri River Energy Services, and Montana-Dakota Utilities Co. Losing Otter Tail’s $400 million investment (of $1.6 billion) is no doubt hurting, but for now the four utilities are soldiering on. A responding press release noted that, “The remaining participants emphasized that Big Stone II will go forward if sufficient participants can be found to join the project.” I’d say that’s a pretty big if.
Moving forward with BS II would likely require a new certificate of need proceeding. It would also be interesting to see how BSII could be built attached and integrated with BSI which is owned by Otter Tail Power and others not investing in BSII.
This is the best news in a long time. Note it’s all about $$$, that they couldn’t get financing… errrrrr… it was too much of a risk for ratepayers and shareholders. FYI, two weeks ago, they were at the Minnesota PUC begging for special treatment, approval of a standstill agreement between OTP and Cascade Investments (Bill Gates), which would allow Cascade Investments, as a major shareholder, to act in ways otherwise prohibited under Minnesota law. Here’s the poop: http://legalectric.org/weblog/4021/ I would guess that exposure of Bill Gates’ investment and OTP’s preparations didn’t help matters!
Thank you so much for your great work Carol. My husband & I are still worried, will they still be able to build BSP 2 next to the existing BSP I, now that OTP has withdrawn & they being the lead developer got the permits & the EPA gave them there air permit based on the fact that there would be only one scrubber tying in the 2 plants together. My point is will the other companies have to get new permits to be able to build it by BSP I power plant if they decide to still go ahead. I pray they won’t be able to build this plant at all & are using S. Dak. to escape environmental laws. The REC’s are persistent on going ahead because of this reason. They should be made to start all over. Rumour was, was that at a meeting in Fargo about 2 weeks ago, there was a battle between Basin electric & OTP on what size the plant was to be. They where trying to get Basin involved & OTP wanted to remain lead developer because they had gotten the permits already & if Basin took over they would have to start all over again & they didn’t want this to happen. Like I said I pray the Good Lord stops the other plants in there tracks & makes it impossible for any one to get any more coal fired power plant permits. Please feel free to response to our E-Mail address
This is fantastic news. IF they can find sufficient participants! Sounds like we know who to pressure to keep this from moving forward – those companies who could make the difference. Like we’ve been doing asking the sponsors of Glenn Beck’s show to pull their support, this could be a great corporate accountability opportunity.
This is just despicable. Here are companies that are bending over backwards to comply to the ever-changing rules and regulations of the EPA and other “Green” agencies that have absolutely NO constitutional authority. And this site and supporters are cheering on the demise of a private company/organization that will better the lives of thousands, possibly millions, of Americans through cheaper, cleaner energy from coal. No it is not wind-power; no it is not derived from solar resources; no it is not the perfect way to economically convert energy. But it is a step in the right direction for countless numbers of people that are looking for more cost-effective measures to gain energy access. We do not need more cost-prohibitive energy conversions such as wind, solar, tidal, etc. We cannot afford these and they do not offer what is promised. They are expensive to build, expensive to maintain, and HIGHLY unreliable.
Have at me.