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Hibbing PUC approves 1,000-ton coal purchase as short-term winter contingency
Summary
The commission authorized purchase of 1,000 tons of coal from DTE Energy for $83,640 to cover winter operations and required pollution-control testing, and staff warned the closure of the Superior Terminal will require finding new suppliers for future seasons.
The Hibbing Public Utilities Commission authorized the purchase of 1,000 tons of coal from DTE Energy for $83,640 at its Nov. 18 meeting, approving a short-term supply intended to cover winter operations and required pollution-control testing.
Mr. Peterson told the commission that biomass is the utility’s primary fuel but that coal is used as needed for operations and air-permit accuracy testing. He said the purchase will provide roughly two weeks of solid-coal operation as a contingency and that staff intend to ‘‘bank’’ the material for severe-weather use. ‘‘What this does provide us is about 2 weeks of operations of solid coal if we needed to,’’ he said.
Peterson also noted the Superior Terminal of DTE is closing (effective June 30, 2026) and said the utility will need to identify alternative suppliers and work with groups such as the Midwestern Fuels Association to secure suitable coal for future seasons.
The motion to approve the purchase carried by voice vote. Peterson said the current purchase is sufficient for near-term needs but additional procurement could be necessary depending on weather and supplier availability.
