The driest summer in more than a decade prompted an Ohio watershed district this summer to take the unprecedented step of limiting the use of water for oil and gas fracking.

The restrictions applied only to Atwood Lake, a popular boating and fishing spot southeast of Canton that has experienced a foot and a half drop in water levels over the past few months of drought.

It’s a scenario some environmentalists anticipated years ago, saying that climate change will require state and local officials to more carefully regulate the use of water for oil and gas extraction.

“They’re not being proactive enough,” said Leatra Harper, director of the FreshWater Accountability Project, stressing that the lakes are public resources. “The obvious issue is there aren’t adequate protections.”

Hydraulic fracturing, as it’s more formally known, pumps millions of gallons of water mixed with sand and chemicals down into oil and gas wells. The process causes cracks in petroleum-bearing rock, and sand in the fluid props the cracks open. Oil and gas flows from the fractures into the well and up to the surface.

The process uses millions of gallons of water for each horizontally drilled well, and well pads built within the last 12 years often have six wells. The water can be recovered and recycled to some extent. Eventually, though, the water must be disposed of in underground injection wells. That step permanently removes it from the water cycle.

The Muskingum Watershed Conservancy District manages ten lakes and four dry dams in southeastern Ohio for purposes of flood control, recreation and conservation. One of its biggest customers for water sales is the oil and gas industry.

“We’re not in a crisis situation by any stretch of the imagination, but this was just our balancing act to make sure we protect, as much as we can, all of our missions,” said Craig Butler, chief executive of the district. He estimated less than one inch of Atwood Lake’s decline can be attributed to oil- and gas-related withdrawals.

On August 28, the district curtailed water withdrawals by 75% from Atwood Lake. The following week, it curtailed withdrawals from the lake completely.

Lots of water

Under Ohio law, oil and gas drilling operations are generally allowed to withdraw from state waters an average of up to 2 million gallons per day in any 30-day period. Sixty million gallons would fill nearly 91 Olympic-sized swimming pools. 

While the total number of gallons sold is huge, it’s relatively small compared to the billions of gallons in the district’s lakes. Butler compared it to two or three sheets in a notebook.

“We’re really comfortable when we say it’s a negligible impact based on the size of our reservoirs,” Butler said.

Oil and gas companies pay a price for the water — around $3 per 1,000 gallons, according to Ted Auch, Midwest program director for FracTracker. He and other critics think the price should be higher.

“We charge as much as we can,” Butler answered, but if the district’s price gets too high, oil and gas companies can “stick their straw in” elsewhere, such as where a stream crosses private property. Then they may be able to suck out even more without a formal agreement with the watershed organization.

And because some of those sources flow into the district’s lakes, the effect on the district’s water resources would be largely the same, without the district getting revenue from the sales. Some of the funds from the oil and gas industry have paid for efforts to improve water quality and minimize flooding to improve the area’s resilience to climate change, Butler added.

The situation reflects a shortcoming in state law, said Melinda Zemper, a spokesperson for Save Ohio Parks.

“It is clear our state legislators ignore the depletion and contamination of our precious fresh drinking water used in the fracking process,” she said. “And there will always be another landowner who wants oil and gas revenue from leasing mineral rights or selling water flowing through his or her property.”

Operators recycle a lot of the water that’s withdrawn, and the fracking process has gotten more efficient over the years, said Mike Chadsey, a spokesperson for the Ohio Oil and Gas Association.

Getting hard data on recycling is difficult, however. FracFocus, a data clearinghouse, has some data on the composition of fracking fluids, but reporting is voluntary.

According to the Ohio Department of Natural Resources, oil and gas ranks seventh out of its eight registered water use categories. The agency’s 2022 water withdrawals map shows those other categories include public water supplies, agriculture, utilities and other classifications.

Total water withdrawals for the oil and gas industry that year were about 5.17 billion gallons, according to data provided by Karina Cheung, an ODNR spokesperson. A 2024 U.S. Geological Survey report said peak withdrawals reached approximately 5.75 billion gallons in 2017.  

Looking ahead

Questions about future water use for fracking will remain after the current drought ends — possibly soon from the remnants of Hurricane Helene. 

The Muskingum Watershed Conservancy District does a careful review of any company’s request for water withdrawals before a contract is signed, Butler said. Contracts also say water withdrawals can be curtailed if the district deems it necessary, as it did at Atwood Lake, he added.

Critics like Auch contend various data gaps should be filled to ensure more complete reporting. They also want any pre-withdrawal reviews to be more conservative and forward-looking.

Consideration of potential impacts should focus more on possible water-deficit years like this one, Auch said. Otherwise, “you are rapidly altering the savings bank of your watershed by depleting the resource that it has to carry over from year to year.”

Planning also should cover a longer time horizon, said Julie Weatherington-Rice, a hydrogeologist with Bennett and Williams Environmental Consultants in Columbus. Ohio might generally expect warmer, wetter and wilder weather as climate change continues.

Among other things, Ohio is seeing some intense storms, as well as periods of heavy rainfall. Those heavy rains might bump up the total yearly precipitation, but they don’t soak into the ground the way milder, more sustained rains do, Weatherington-Rice said. That could affect groundwater supplies for local areas, causing them to look for backup supplies, she said. And droughts can still occur, as this year shows.  

Water planning also should account for likely migration into Ohio as climate change has more severe impacts elsewhere, Auch said. “We need to start looking at water resources out 10, 15, 30 years.”

CORRECTION: An earlier version of this story misstated the amount gas companies pay for water. It is around $3 per 1,000 gallons of water, not $3 per gallon.

Ohio drought renews worries about massive use of water for fracking is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Ensuring that traditionally disinvested Black and Brown communities are not left behind is essential for a just transition away from carbon-based energy sources. 

At the same time, many of these communities have vast stretches of vacant or underutilized properties, which could present opportunities for clean energy development. 

For instance, in Detroit, city officials are working with DTE Energy to build 33 MW of solar arrays on vacant property around the city. Detroit’s mayor has touted the project as a way to deal with blight while producing clean energy, but neighbors are divided.

Meanwhile, in the West Woodlawn neighborhood on Chicago’s South Side, a community-based geothermal project is intentionally bypassing vacant lots, focusing instead on placing the necessary loop fields in alleyways.

“Not every block in the neighborhood even has a vacant lot that could be leveraged,” said Andrew Barbeau, president of The Accelerate Group in Chicago, which is providing technical assistance for the geothermal pilot, in an email. “Further, communities often have other ambitions for that land, whether it is new housing development, parks, greenways, or other beneficial uses.” 

For Blacks in Green, the Chicago-based organization leading the geothermal project, recognition of the role of the project within a broader scope is central to an overall goal of generating economic development and a healthy environment within the community, said Nuri Madina, Sustainable Square Mile director, who serves as point person for the pilot.

“We know that the communities have been underserved. And underserved by definition means that we have not gotten our fair share of taxpayer investment in the communities. We know what our streets look like. And one of the major assets in the community, which is not really viewed as an asset, is our vacant lots,” Madina said.

The geothermal pilot 

Conventional geothermal systems require substantial plots of land to lay the subterranean loop fields that circulate both hot and cold water — land that is often scarce in densely populated urban areas. 

But while West Woodlawn has a number of vacant lots, they are not being utilized for the project. Instead, alleys provide a potential solution for constructing geothermal loop fields, along with allowing for connection points for houses and multifamily buildings within the pilot footprint, Barbeau said.

“The good news is that based on the system design, we have more than enough capacity in the alleys to serve the load of the blocks we have modeled. The modeling also so far is showing us that the shared network model would require 20-30%  less wells than if each home built their own system,” Barbeau said in an email.

Locating the bulk of the geothermal infrastructure in alleyways also sidesteps the underground congestion of existing gas, electric and water infrastructure on city streets, said Mark Nussbaum, owner and principal of Architectural Consulting Engineers in Oak Park, Illinois.

“There’s a lot of stuff happening out near the street. It doesn’t mean it’s not possible to coordinate it, but it’s just what’s nice about the alley concept is, it’s kind of unused for utilities typically,” Nussbaum said.

Blank slate versus bright future 

“White flight” and housing segregation have left many U.S. cities with sections of vacant or underinvested property, typically in communities populated by Black and Brown people. 

With roughly 60% of the land area of Chicago, Detroit nonetheless has a much larger proportion of vacant land — approximately 19 square miles. In some neighborhoods,  multiple blocks may only have a single structure remaining, if any at all.  

DTE Energy’s plan to build large-scale solar arrays on some of that land is supported by some residents and municipal officials as a means to reduce illegal dumping and other nuisance crimes while working toward meeting city climate goals — and reducing utility bills for residents. 

But there has also been pushback, largely focused on potential detrimental impact on property values in adjacent properties and limitations on future use of the sites themselves.

“Solar panels will disrupt and destroy entire neighborhoods. There will be no future affordable housing being built anywhere around a solar farm,” councilmember Angela Whitfield-Calloway said during a city council meeting in July, as reported by Planet Detroit. 

Whitfield-Calloway also questions why municipal buildings or sites outside the city limits had not been considered for the solar arrays.

In Chicago, a battery storage facility constructed as part of the Bronzeville Microgrid project administered by electric utility ComEd generated similar debate during an extended period of community input. ComEd officials said the location of the battery facility, in the middle of a stretch of vacant plots near the South Side Community Art Center, was strategic to the overall microgrid project. 

A 40-yard-long mural designed and created by local artists and mounted on the exposed long side of the battery storage facility not only serves to obscure the structure, but also to highlight prominent figures in Black history and culture. While reactions to the mural have been overwhelmingly positive, reception of the battery storage facility itself has been mixed. 

“There were thorough talks with the community and the art community in Bronzeville about what they wanted, what [ComEd] planned to do [with] that battery station, because they did not want it to be an eyesore … they did not want it to just be, you know, brick walls around infrastructure,” Jeremi Bryant, a resident of Bronzeville, told the Energy News Network in February 2021.

For Bruce Montgomery, founder of Bronzeville-based Entrepreneur Success Program and a member of the advisory council for the Community of the Future, the location of the battery storage facility precluded potentially more beneficial future development for the site.

“That lot in most communities probably would have ended up being invested in as more quality residential,” Montgomery told the Energy News Network in February 2021. “But now you’ve taken it up with this box car. … You’ve got big things sitting out in the middle of a vacant lot a couple of doors down from one of the most historic locations in Bronzeville.”

Creating ‘multiple benefits’

For Blacks in Green, what might appear to the casual observer as a vacant lot overtaken by weeds belies its ultimate potential — as an affordable, energy-efficient residential complex, small business owned by a community resident, a much needed basic amenity like a grocery stocking fresh produce — or a native plant garden to attract pollinators.

On June 17, 2023, Blacks in Green collaborated with the Delta Institute to hold a combined Juneteenth celebration and BioBlitz to identify potential sites for green infrastructure. Experts and community residents worked side-by-side to map and measure plant life, insect populations, drainage and other elements during a walking inventory of vacant lots in the area.

In the case of West Woodlawn, installation of geothermal loop fields in its alleys — versus locating them in vacant plots — presents an opportunity to promote climate resiliency through mitigation of persistent urban flooding, by utilizing permeable pavers to replace existing concrete or asphalt, said Madina.

“All of our programs are designed to create multiple benefits,” Madina said.

Projects like the West Woodlawn community geothermal project represent a drive to revive and reinvent Chicago’s Black Wall Street within what once constituted the redline-confined boundaries of the Black population drawn to the city during the Great Migration of the 20th Century.

“In most communities, the vacant lots are really indicative of a declining community. But what we have tried to do is take that negative and turn it into something positive. So if we can take those vacant lots with weeds and debris and turn them into beautiful gardens, that is a very significant improvement in the community,” Madina said.

“So [we] could improve the quality of life, improve the spirit of the people in the community… that vacant lot can provide more than just beauty. It can provide more than just comfort for the residents. It can also provide biodiversity, it can provide pollination, it can provide food for the residents.”

Correction: A 40-yard-long mural was mounted on the side of a ComEd battery storage facility to obscure the structure and highlight prominent figures in Black history and culture. An earlier version of this story misstated its size.

Vacant urban land poses complex questions for clean energy siting is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Even as North Carolina continues to weaken its building energy conservation codes, a new federal rule is poised to spur the construction of thousands of energy-efficient starter homes in the state each year. 

Adopted earlier this spring, the measure requires homes with certain federally-backed mortgages to meet the latest guidance for insulation thickness, window quality, and other energy-saving features — a major improvement over the state’s 2009-era floor for new residential construction. 

The rule is expected to impact more than 1 in 10 new home sales in North Carolina, mostly by lower-income and first-time homebuyers. Government studies show they will pay more for improved efficiency but reap immediate cash-flow benefits from lower monthly utility bills. 

“The requirements are essential for protecting low-income homebuyers and renters,” said Lowell Ungar, federal policy director of the American Council for an Energy-Efficient Economy, “lowering their energy bills, giving them more comfortable and healthier homes, and protecting them in the climate transition.”

The impact extends beyond North Carolina and will lift standards in several states where lawmakers and industry lobbyists have pushed back against energy-saving building code updates.   

Ungar and his colleagues are also working to extend the requirements to the independent regulator of Fannie Mae and Freddie Mac. If they succeed, a large majority of new homes in North Carolina could be built to modern energy-savings standards — even though a 2023 state law prevents any major code updates until the next decade. 

Rob Howard, who builds sustainable homes in the state’s foothills, fought against the law and now serves on the state’s Building Code Council. 

“It’s the first feeling of hope that I’ve had for North Carolina since last year,” he said.

Homebuilders block local improvements 

Reducing energy waste in buildings is a critical component of the clean energy transition. The most cost-effective way to do so is at the point of construction, especially in rapidly-growing North Carolina, where some 90,000 new homes are built each year, about two-thirds of them single-family units. 

Yet the powerful home construction lobby has long resisted stronger requirements for energy-saving features in residential construction, influencing the state legislature, where it is a major campaign donor, and until recently, the state’s Building Code Council, a citizen commission. 

Thus, while model codes are updated every three years, North Carolina’s rules remain outdated. Though the council was poised last year to bring the code in line with 2021 guidelines, lawmakers backed by developers intervened to circumvent the update, overriding a veto from Gov. Roy Cooper, a Democrat. 

This year, the Republican-led legislature relaxed insulation requirements and made other changes to the building code that many experts, including the state fire marshals’ association, argued would make homes less safe. Again, Cooper vetoed the measure, and in a vote last week, lawmakers overrode him.

“The General Assembly has let the homebuilding industry make a quick buck at the expense of North Carolina families who will pay more every month in home energy costs,” Drew Ball, Southeast campaigns director at Natural Resources Defense Council, said in a statement after the vote. “This law rolls back North Carolina’s energy building codes and passes the costs on to consumers.”

‘Let’s set the bar as high as possible’

But state building codes aren’t the only policies that can influence home construction.  

The federal government plays a huge role in promoting homeownership by guaranteeing loans for borrowers who can only make a small down payment or may otherwise risk default.  

In 2007, a sweeping energy law adopted under the George W. Bush administration required any new home purchased with backing from the Department of Housing and Urban Development or the Department of Agriculture to meet the latest model code for energy efficiency. 

It wasn’t until 2015 that the Obama administration tied the loans to the 2009 model energy efficiency code. The Trump administration took no action.

The Biden-Harris administration picked up the torch last year, beginning an examination to make sure the latest model codes would bring more benefits than costs. In May of this year, officials concluded that the 2021 standards wouldn’t negatively affect the affordability and availability of housing.

“As a result of the updated energy standards, energy efficiency improvements of 37% will cut energy costs by more than $950 per year, saving homeowners tens of thousands of dollars over the lifetime of the home,” a press release from the Department of Housing and Urban Development said.

Similarly, last year an independent government lab found that the more stringent standards will add about $5,000 to the cost of the average North Carolina home, but generate a positive monthly cash flow instantly in the form of lower utility bills. 

About 1 in 10 new single-family home loans per year are backed by the Department of Housing and Urban Development or the Department of Agriculture, according to the federal officials. 

The Department of Veterans Affairs must update its lending rules to match those of HUD and USDA, impacting another 3% to 5% of newly built homes, Ungar estimates.

Howard, who’s building a small collection of super-efficient homes in Granite Falls, says just one of the 11 cottages so far is being financed with a loan that would be affected by the new rule. 

“As a small builder who’s focused on attainable housing, I’m going to assume that a certain percentage of my buyers will qualify for the USDA loan programs,” he said. “And so of course, I want them to have the ability to participate in those. But I’ve already made the decision to build to zero-energy ready, which is currently based on the 2021 [model code]. I’m already there.” 

The bigger impact of the new rule will be on large, multi-state, multi-regional builders who focus on starter homes, Howard said. “Those kinds of builders don’t want two different levels that they’re building to. They would rather have one that simplifies their entire construction process.”

With the new rule, then, builders can either adhere to the latest energy efficiency standards so that potential buyers can qualify for federal backing on their loans — or not. 

“Let’s set the bar as high as possible,” said Howard, “and then builders get to choose.” 

If multi-state builders choose to build all of their homes to the 2021 model code, the rule’s impact could extend beyond the roughly 15% of new stock estimated by government officials and advocates.

‘A much broader impact’

If advocates succeed in getting the Federal Housing Finance Agency, the regulator of Fannie and Freddie, to adopt the same standards, the effect would be even greater: the two companies ultimately end up buying over half of mortgages in the country. 

“Now you’re talking about 70% of the loans in this country,” Howard said. “So that’s obviously a much broader impact.”

As they have in North Carolina, the national builder lobby claims the energy efficiency standards will add tens of thousands of dollars to construction costs. They oppose the rule that’s already finalized for the Departments of Agriculture, Housing and Urban Development, and Veterans Affairs, and they object to extending the requirements to Fannie and Freddie. 

“If Fannie and Freddie were forced to comply with the 2021… mandate,” Missouri builder Shawn Woods told Congress this spring, “this would become a de facto national standard and be a massive blow to housing affordability.” 

Unless Republican presidential nominee Donald Trump wins this November, the finalized rule is safe for now, advocates believe. As for the broader requirements on Fannie and Freddie, the director of the Federal Housing Finance Agency said it would study the matter and issue a decision by the end of June. 

“Obviously, they did not do that,” Ungar said.

Even with N.C.’s building code frozen, federal rule poised to boost energy-efficient housing in the state is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

A three-judge panel in North Carolina upheld Duke Energy’s reduced payments to rooftop solar owners on Tuesday, unanimously rejecting claims from climate justice advocates that the smaller credits run afoul of state law.

The ruling upholds for now a scheme that took effect last October after Duke, some of the state’s oldest solar installers, and multiple clean energy groups reached a complicated truce to avoid the bruising battles over net metering seen in other states.

NC WARN, Environmental Working Group, and others opposed to the compromise argued that regulators adopted it without conducting their own analysis of the costs and benefits of net metering, a requirement of a 2017 statute. Such studies typically show that rooftop solar offers net benefits to the grid, contrary to utility claims.

The appellants rested their argument in part on a statement from one of the 2017 law’s authors, John Szoka, a Fayetteville Republican who served in the state House of Representatives for a decade. An Energy News Network article quoted in the appeal describes Szoka as “adamant” that the Utilities Commission, not Duke, should conduct the study.

The appeals court panel agreed, based on the plain text of the law. 

“The commission erred in concluding that it was not required to perform an investigation of the costs and benefits of customer-sited generation,” Judge Hunter Murphy, a Republican, wrote. 

But in a disappointing twist for the challengers, he continued, “however, the record reveals that the commission de facto performed such an investigation when it opened an investigation docket in response to [Duke’s] proposed revised net energy metering rates; permitted all interested parties to intervene; and accepted, compiled, and reviewed over 1,000 pages of evidence.”

Joined by two Democrats, Judges John Arrowood and Toby Hampson, Murphy’s opinion also rejected arguments that the commission erred by failing to consider all of the benefits of rooftop solar and by forcing solar owners to migrate to time-variable rates instead of allowing flat rates to stand.

“The commission properly considered the evidence before it and made appropriate findings of fact and conclusions of law,” Murphy wrote.

Many solar installers saw a dip in sales and interest in the last quarter of 2023 when the lower net metering credits took effect. But they were also hopeful about a new Duke program that rolled out this spring, which offers solar customers incentives to pair their arrays with home batteries.

Jim Warren, NC WARN executive director and an outspoken Duke critic, said in a press release that he and his allies would weigh an appeal to the state’s Supreme Court. 

“This ruling directly harms our once-growing solar power industry and the communities constantly battered by climate change driven by polluters like Duke Energy,” he said.

North Carolina appeals court upholds Duke Energy’s lower net metering rates is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.

Correction: An earlier version of this story did not include that the advocacy groups’ modeling included one new natural gas plant. The story has been updated.

Xcel Energy’s latest long-range plan for meeting electricity demand in Minnesota includes six new natural gas peaker plants that critics warn could be obsolete before customers are done paying for them.

Comments filed last month by clean energy advocates and the state attorney general’s office push back on the utility’s plan to build a fleet of small fossil fuel plants as it otherwise ramps up clean energy investments. The facilities would operate sparingly, just a few hours at a time on days when the grid is strained and wind, solar and other clean power can’t keep up with demand.

More economical options exist, though, according to a coalition of clean energy groups that hired experts to model alternatives. The study commissioned by the groups concluded Xcel could save ratepayers as much as $3.5 billion by opting for a single new gas plant, and relying more on existing plants, energy storage, efficiency and demand response, and buying surplus power on the regional power grid.

The clean energy groups include Fresh Energy, which publishes the Energy News Network (Fresh Energy’s leadership and policy staff do not have access to ENN’s editorial process.)

The debate is over the utility’s latest integrated resource plan — the first submitted to state regulators since Minnesota Gov. Tim Walz signed legislation last year requiring electric utilities to use 100% clean energy by 2040. Xcel Energy supported the legislation and has proposed various scenarios for achieving the target, but disagreements remain among stakeholders about how to get there, particularly when it comes to cost and equity issues.

Different approaches to modeling

Allen Gleckner, executive lead for policy and programs at Fresh Energy, said Xcel’s gas plant proposal is similar to one in its last integrated resource plan that asked regulators to approve two new peaker plants that would provide as much as 800 megawatts of electricity. Xcel eventually agreed to an open, fuel-neutral bidding process allowing clean energy companies to propose alternatives. That process is still underway, with an administrative law judge expected to make recommendations.

The clean energy groups’ consultants used the same software program as Xcel to arrive at a plan to add a new 374 megawatt gas plant, 3,800-4,800 megawatts of wind, 400 megawatts of solar, and 800 to 1,200 megawatts of energy storage resources by 2030. Extending contracts at existing peaker plants could add 970 megawatts, and energy conservation initiatives could reduce use during high demand times. 

Gleckner said Xcel has taken an exceptionally conservative approach by mostly creating scenarios that did not consider electricity being available from neighboring systems or the MISO regional transmission grid. Gleckner said Xcel does not and has never operated as an island, with MISO delivering power to its customers through a shared resource pool.

“Xcel is using a sort of fiction of modeling because the reality is we’re part of a regional grid,” he said. 

The result is a plan to “build a bunch of new resources that we know are either not compatible with our state laws or are going to be costly and likely to retire early,” he said.

Amelia Vohs, climate program director for the Minnesota Center for Environmental Advocacy, praised Xcel for not asking regulators to extend the life of existing fossil plants, unlike its counterparts in other states. Unlike previous long-range plans, Xcel’s latest imagines a future in which large gas and coal power plants are not the backbone of the system. 

What that grid will look like remains challenging, Vohs said. Adding to the challenge is rising power demand from data centers, manufacturing, and the electrification of buildings and transportation. Even so, Vohs believes clean energy is ready for a leading role.

“It’s a much better solution that’s flexible in this time of uncertainty without making this big commitment to gas resources for the next 40 years,” Vohs said.

Patty O’Keefe, senior field strategist for the Minnesota Sierra Club, said proposed combustion turbine peaker plants pose “significant environmental and public health risks” because they potentially emit more carbon and nitrous oxide than larger, more common combined cycle gas plants. They also tend to be built in communities already suffering higher pollution levels.

The Sierra Club would like Xcel to focus more on energy efficiency than electricity generation in its planning. Efficiency reduces demand and makes “the transition to clean energy smoother and more cost-effective,” O’Keefe said.

Managing risk

Meanwhile, the office of Minnesota Attorney General Keith Ellison has also weighed in, warning that investments made now may become obsolete “stranded assets,” meaning the plants may become uneconomical or forced to retire before they have delivered projected benefits to customers. 

Xcel has acknowledged the risk of stranded assets generally in Securities and Exchange Commission filings, though not specifically in relation to its proposed gas peaker plants.

Utilities are incentivized to build power generation because investors earn a return on capital investment. The attorney general argues that if plants become obsolete or transition to other forms of energy, such as hydrogen, Xcel ratepayers should not have to pay for retrofits and other investments it might have to make to reduce emissions.

In its filings to state regulators, Xcel said it is concerned about having enough firm dispatchable power to meet rising demand quickly during certain times of the day. By 2030, the company will have ended its use of coal for energy generation after closing four coal-burning facilities this decade. The proposal suggests Xcel may need to add even more peaker plants between 2030 and 2040.

Xcel spokesperson Kevin Coss said the company will be “adding a significant amount of wind and solar power to our energy mix” and complementing that generation “with always-available generation — power we can supply any time it’s needed — to reinforce the reliability of the grid.”

Coss said Xcel identifies generation sources in a technology-neutral way so it can decide not to use natural gas combustion plants in the future. The current integrated resource plan calls for fewer firm dispatchable resources than the 2019 version, he said.

The conservative modeling “avoids overreliance on the energy market, which could expose our customers to excessive risk,” Coss said.

Residents, businesses and organizations have until Oct. 4 to send comments on the integrated resource plan to the Public Utilities Commission. The commission is expected to make a decision on the plan in February 2025. 

Minnesota advocates say their alternative to Xcel’s plan for new gas plants could save customers up to $3.5 billion is an article from Energy News Network, a nonprofit news service covering the clean energy transition. If you would like to support us please make a donation.