Xcel Energy to End All Coal Use in the Upper Midwest

Integrated plan calls for more than 80 percent reduction in carbon emissions with more renewables, carbon-free nuclear energy and cleaner natural gas

MINNEAPOLIS--()--Xcel Energy announced plans today to retire its last two coal plants in the Upper Midwest a decade earlier than scheduled. The acceleration of the coal closures is another milestone in the company’s clean energy transition that includes expanding wind and solar, using cleaner natural gas and operating its carbon-free Monticello nuclear plant until at least 2040.

The plan outlines a path to make the transition while ensuring reliability and keeping costs low for customers. As part of this plan, the company has reached an agreement with a coalition of environmental and labor organizations on key elements of the plan relating to its coal, solar and natural gas plans.

These plans are part of the proposed Upper Midwest Energy Plan, which the company will submit for approval to the Minnesota Public Utilities Commission in July. If approved, the plan would lead to a more than 80% reduction in carbon emissions in the region by 2030, compared to 2005, a key stepping stone toward the company achieving its vision to provide customers 100% carbon-free electricity by 2050.

Key milestones in the company’s industry-leading clean energy transition include:

  • 2022 – Completion of the company’s largest-ever wind expansion, adding 1,850 megawatts of wind. At that point, more than 30% of customers’ energy in the Upper Midwest will come from wind.
  • 2030 – More than 50% of our customers’ energy in the region will be from renewables, as the transition continues with:
    • Closure in 2030 of our final coal plant in the region, the Sherco 3 plant, following the closure of the Allen S. King coal plant in 2028.
    • A major expansion of solar energy, with more than 3,000 megawatts of new universal solar added by 2030.

“This is a significant step forward as we are on track to reduce carbon emissions more than 80% by 2030 and transform the way we deliver energy to our customers,” said Chris Clark, president, Xcel Energy – Minnesota, North Dakota, South Dakota. “Accelerating the closure of our coal plants and leading this clean energy transition would not be possible without the dedication and support of our key stakeholders. We thank them for their work to put us on a path to deliver 100% carbon-free electricity by 2050.”

Agreement with coalition of groups

While the company prepared its long-term plan, it also worked closely with a coalition of groups*, including environmental and labor organizations on an agreement to close its two remaining coal plants in the region. Additional elements of the agreement include increased commitment to solar energy, energy efficiency, consideration of local job impacts in connection with future renewable additions, and purchasing a natural gas plant, the Mankato Energy Center.

“Clean energy and economic vitality are critically important to our communities and we appreciate the leadership and collaboration from this coaltion of groups in reaching this agreement,” said Clark. “We look forward to continued partnership as this agreement is reviewed by the Minnesota Public Utilities Commission.”

Commitment to communities, customers and employees

Xcel Energy’s proposed plans come with a commitment to helping its employees and the communities that host its plants make a successful transition to cleaner energy. The company expects to manage the transition through attrition, retirements and retraining for employees who take other jobs within the company. It will also work closely with the Monticello community as it seeks to continue the use of the Monticello nuclear plant until at least 2040. That process requires approvals at state and federal levels.

“Our employees are the reason we are able to deliver reliable service to our customers,” said Clark. “Over the next decade, we will work closely with them and our plant host communities to ensure a successful transition. We have been on our clean energy journey for more than a decade and have a track record of making the transition with a strong focus on our employees and communities.”

The company’s plan is also designed to ensure that customers’ bills stay low. As Xcel Energy moves forward on its clean energy vision, it believes it can reach its carbon-reduction goals outlined in the plan while keeping customer bills at or below the rate of inflation. Retiring coal, adding renewables and extending the use of nuclear energy is the fastest way to deliver carbon reductions at the lowest cost.

Xcel Energy has worked collaboratively with stakeholders including business, community and environmental groups to shape its Upper Midwest Energy Plan over the past 18 months. That plan will be formally submitted to for consideration with the Minnesota Public Utilities Commission on July 1, 2019.

About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on Twitter and Facebook.

* Signees to the agreement to close coal plants, add solar, and purchase the Mankato Energy Center include Clean Grid Alliance, Center for Energy and Environment, Minnesota Center for Environmental Advocacy, Union of Concerned Scientists, Fresh Energy, Sierra Club, and LIUNA Minnesota and North Dakota. Xcel Energy is working closely with the Minnesota Department of Commerce as it reviews the agreement.


Xcel Energy Media Relations
(612) 215-5300


Xcel Energy Media Relations
(612) 215-5300