Coyote Station Power Plant
FERGUS FALLS, Minn.- Fergus Falls-based Otter Tail Power has reversed its decision to divest from a large North Dakota coal-fired power plant, citing new risks in the Midwest electricity market.
Otter Tail Power announced in 2021 that it would sell its minority stake in the Coyote Station Power Plant in Beulah, North Dakota.
At the time, Otter Tail said the plant had become too costly and would become unnecessary as it added more renewable energy. However, Otter Tail has now told Minnesota regulators that it still needs Coyote Station for generation capacity and concerns about the regional power grid. The utility said in a recent filing that it has added some large customers, increasing its need for generation capacity. It specifically cited a cryptocurrency operation in Jamestown that has become its second-largest customer.
The company also cited concerns about future costs and availability of electricity on the regional power grid, and price volatility for natural gas.
Clean energy and environmental groups had praised the plan to exit Coyote Station, calling it one of the “dirtiest coal-fired plants in the country.” They plan to fight the company’s new proposal before the Minnesota Public Utilities Commission.
Otter Tail serves about 137,000 homes and businesses in Minnesota and the Dakotas. It operates and co-owns Coyote Station, along with another coal-fired plant in Big Stone, South Dakota, with three other utilities. It owns the largest stake in Coyote Station at 35%.
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