Minnesota Power outlines 15‑year plan to phase out coal; proposed buyout draws heavy public opposition in Duluth meeting

Minnesota Power told the Duluth City Council on Monday night that it has filed an updated 15‑year integrated resource plan (IRP) that would move the utility to roughly 90% renewable generation by 2035 and eliminate coal from its system, while the company’s pending sale to institutional investors prompted sustained public opposition at the meeting.

The IRP presentation was made by Jennifer Cady, vice president of regulatory and legislative affairs for Minnesota Power, who described the company’s next steps as a mix of renewables, storage, conservation and new natural‑gas capacity to back up intermittent resources. “The cheapest, the cleanest kilowatt hour is the one that we don't have to make,” Cady said in the presentation, emphasizing energy conservation and demand‑response with large industrial customers.

The plan calls for the company to add about 400 megawatts of new wind, roughly 100 megawatts of energy storage and other renewables in addition to the roughly 700 megawatts it proposed in the prior IRP. Cady said Boswell Energy Center’s Unit 3 is scheduled to cease coal operations in 2030 and Minnesota Power proposes to repower that unit to natural gas; Unit 4 is slated to cease coal by 2035 and the company is exploring replacement pathways for it. Cady told the council the proposed portfolio would allow Minnesota Power to reach a roughly 90% renewable share by 2035 while relying on natural gas for the remaining peak needs.

Why it matters: the IRP is a regulatory filing that sets Minnesota Power’s resource choices for a decade and beyond and forms the basis for public input and review by the Minnesota Public Utilities Commission (MPUC). Cady said the company filed the IRP in March and expects the regulatory review and contested‑case process to last about a year, with an administrative law judge order expected around mid‑July and a final MPUC decision likely this fall. She also announced upcoming public hearings across the service territory, including Duluth, Cloquet, Little Falls, Cohasset and Eveleth, plus a virtual hearing.

Public comment at the council meeting focused mainly on the proposed acquisition of Elite (the parent of Minnesota Power) by the Canadian Pension Plan Investment Board (CPP) and Global Infrastructure Partners (GIP); speakers warned that private ownership could reduce transparency, increase rates and slow decarbonization. “This buyout is a solution in search of a problem,” said Eric Henberg, M.D., a family physician who urged officials to keep the utility under public scrutiny. Henberg told the council he was worried private owners would press for higher profits and that could translate into higher residential bills.

Multiple speakers echoed that concern and highlighted BlackRock’s business relationships with GIP; some asked the council to take a public position urging the MPUC to deny the acquisition. Beth Tamminen, who identified herself as a long‑time Minnesota Power/Elite shareholder and Duluth resident, asked the council to oppose the transaction because she believed institutional owners typically hold assets for a limited time and later resell them. “When they say our headquarters will stay in Duluth as long as they own it, there's a very good chance that in five to seven years they will no longer own it,” Tamminen said.

Cady responded to council questions about the sale and regulatory oversight, saying that the acquisition essentially changes the company’s investors but not its regulated status. “We remain a regulated utility,” she said. She added that the merger agreement included commitments by the buyers to keep the company headquartered in Duluth, keep existing employee and leadership teams in place, honor union contracts and maintain current corporate giving through the Minnesota Power Foundation. Cady also said the acquiring partners have provided sworn testimony in the contested case that transaction costs will not be recovered from Minnesota Power customers.

Councilors asked clarifying questions about whether a headquarters commitment has a fixed duration and whether the acquisition could affect rates. Cady reiterated that the MPUC remains the regulator for rates and service, and noted that the Federal Energy Regulatory Commission has already approved the transaction and Wisconsin approvals for Superior Water, Light and Power have cleared an associated step. She encouraged residents to participate in the IRP’s formal public hearings.

What remains unresolved: residents and several councilors pressed for examples and independent evidence showing private equity ownership of utilities that preserved local control, stable rates and investment in decarbonization. Speakers cited cases where rates rose after private buyouts and called for heightened scrutiny by the MPUC. Several speakers urged the city to submit formal comments to the commission opposing the acquisition; at least one councilor said they intend to file comments on behalf of constituents.

The IRP itself and the merger will proceed through the formal regulatory process at the MPUC, which will accept public comment and resolve contested issues about resource selection, costs and customer protections.

Ending: Minnesota Power’s IRP filing and the pending sale to CPP and GIP set off a months‑long public and regulatory review. The MPUC’s contested‑case schedule and the company’s public hearings will be the primary venues where project specifics, costs and protections for customers will be debated and decided.