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RPU says interconnection savings and storage help but a capacity gap remains; federal permitting stalls some wind projects
Summary
RPU reported a roughly $15 million interconnection cost saving on Mount Simon Station and said it is adding 20 MW of battery storage, but staff warned MISO accreditation and federal permitting delays for large wind projects leave a remaining capacity shortfall to be addressed by an expanded RFP.
Rochester Public Utilities staff told the council they saved tens of millions on an interconnection and are pursuing storage and contractual options to fill a remaining capacity gap triggered by the planned 2030 retirement of a wholesale coal-supplied contract.
Bill Bullock said the Mount Simon Station interconnection came in at about 25% of the estimated cost, "so we saved about $15,000,000 on the interconnection," and that the utility is adding two battery installations totaling 20 megawatts under tolling agreements. At the same time, Bullock warned that batteries’ future accreditation at MISO is uncertain and that federal permitting delays have pushed a 180‑MW wind project from late 2027 to late 2028.
Because of those risks, staff will issue an expanded RFP to broaden market options and said it wants to "cast a super wide net" for renewable, storage and contract solutions; Bullock said staff expects recommendations by year‑end after modeling RFP responses.
