House panel passes nuclear costs bill backed by Xcel

The bill would allow the company to get upfront approval for significant upgrades for its plants.

April 20, 2018 at 11:56PM
Xcel Energy's Prairie Island nuclear power plant at Red Wing. (GLEN STUBBE/Star Tribune file photo)
Xcel Energy's Prairie Island nuclear power plant at Red Wing. (The Minnesota Star Tribune)

Legislation that would alter Minnesota's regulatory process for nuclear power plant investments — favored by Xcel Energy but opposed by both business and consumer groups — moved forward Friday.

The House Job Growth and Energy Affordability Policy and Finance Committee voted 11-8 to pass the measure.

The vote crossed party lines, with Republicans and DFL members both voting "for" and "against."

Xcel has said the legislation is needed to give it more certainty in recovering at least $1.4 billion in repairs and maintenance at its nuclear plants near Monticello and Red Wing over the next 17 years.

Opponents argue the legislation would shift financial risk from the company to ratepayers and weaken the decisionmaking power of the Minnesota Public Utilities Commission.

The legislation would allow Xcel to get upfront approval from the PUC for the costs of major improvements at the nuclear plants. Now, the PUC determines what costs Xcel can recover from rate payers after the investments are made.

Similar legislation has passed a Senate committee, and the bills are expected to go to the floors of both chambers.

Gov. Mark Dayton has threatened to veto legislation that he thinks takes power from the PUC.

Mike Hughlett • 612-673-7003

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Mike Hughlett

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Mike Hughlett covers energy and other topics for the Star Tribune, where he has worked since 2010. Before that he was a reporter at newspapers in Chicago, St. Paul, New Orleans and Duluth.

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