The New Ulm Journal has been reporting sporadically on a local controversy over converting a boiler in the local steam plant to coal.
Today, the New Ulm Public Utilities Commission (NUPUC) sided with economic common sense and the efforts of a local citizens group, New Ulm Citizens for Clean Energy, and voted no on the proposal.
In July, the newspaper reported that Boiler No. 4 project deemed no longer economically viable. According to the article:
The report showed that projected coal and natural gas prices no longer showed coal burning to be advantageous like it had been when proposed in 2006.
In addition, three factors made "status quo" burning of only natural gas more effective: fracking, the economic downturn and EPA regulations.
The economic downturn created a drop in energy demand that drove down market energy prices. It also caused large electrical output facilities to be generating a surplus because the high demand they were built to accommodate disappeared.
Increases in the practice of hydraulic fracturing, or fracking, generated increased natural gas production and lowered its price to extremely low levels.
Current and anticipate costs from environmental and greenhouse gas regulations also raised the project's cost. Current regulations alone would require an additional $1.5 million of work on non-project related smoke stacks in order for the Boiler No. 4 project to be in compliance. . . .
Following the report, the newpaper's editorial board urged a Cautious approach to Boiler No. 4 to the NUPUC. Letters to the editor tended to give a thumbs down for the project and were published under titles like No more spending on coal and A Major Mistake.
Unlike the Journal's board, Bluestem isn't happy about fracking, but the local citizens and environmentalists are happy, and they're right about the problems that still surround the use of coal for power generation. Pleased with the vote,the Sierra Club sent out the following statement:
New Ulm Says No to Coal
Facing pressure from community members and updated economic analysis, New Ulm Public Utilities Commission votes to suspend coal conversion project
New Ulm, MN – On Tuesday, the New Ulm Public Utilities Commission (NUPUC) voted to suspend project activities for a proposed conversion of Boiler #4 at its steam plant to coal. Concerned citizens cheered as commissioners voted not to move forward with a plan that would have increased air pollution and cost the city over $23 million.
Sue Kimmel of New Ulm Citizens for Clean Energy was very pleased with the decision. “Coal is our dirtiest form of energy; burning coal is a leading trigger of asthma attacks and the biggest source of mercury pollution. We thank the New Ulm Public Utilities Commission for today’s decision to keep New Ulm coal free.”
The NUPUC plan to convert Boiler #4 to burn coal was part of the long term energy plan developed in 2006. New Ulm Citizens for Clean Energy has been working with the Sierra Club and the Minnesota Center for Environmental Advocacy (MCEA) to stop the project from moving forward since NUPUC applied for an air permit for the project from the Minnesota Pollution Control Agency in 2009.
Said Kimmel “Investing in coal would have reduced our capacity to invest in long-term clean energy solutions that could benefit New Ulm’s environment and economy. We look forward to working with the NUPUC to identify opportunities to move towards a clean energy future.”
At the July NUPUC meeting, the NUPUC's consultants Sargent & Lundy presented an updated economic analysis of the project that concluded coal was no longer the most economic option for New Ulm, but recommended the NUPUC move forward with the air permit application to keep its options open. After revisiting the report and acquiring additional information on natural gas and coal pricing, the NUPUC staff recommended suspending work on the project, writing in the recommendation that the “project has lost its economic benefit to the City of New Ulm.”
"Today, New Ulm was faced with a decision: choose yesterday’s dirty coal energy or move towards a cleaner energy future. They chose a clean energy future," said Jessica Tatro, Sierra Club Organizing Representative. "This is a major victory for the people of Minnesota and part of a national movement of communities moving beyond coal.”
Comments