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Uncertainty about the future of South Dakota's Big Stone power plant

Otter Tail Power company customers in North Dakota will see a small increase in their electric bills.

It’s a special environmental rider – to help pay for the cost of air pollution control equipment being installed at the Big Stone Power Plant in South Dakota. The installation costs are around $400 million – and North Dakota’s share is $82.5 million. That means customers will see an average $1.47 more on their monthly bills.

But North Dakota Public Service Commissioner Brian Kalk says the work the Big Stone partners did on improving emissions may go for naught. He says that’s because of the EPA’s pending clean power rules.

"It threatens to jeopardize all of this investment," said Kalk.

PSC Chairman Julie Fedorchak says that’s a good example of what she called “stranded costs” due to the proposed EPA rule. She says draft rules limit the Big Stone plant to operate no more than 40 percent of the time.

"So even if the EPA rule goes through, and they are forced to shut that plant down to 40 percent of the time, North Dakota customers will still be paying the $82.5 million," said Fedorchak. "Plus they will be paying for the energy that's needed, whatever it is, to replace the energy from Big Stone."

"We've got a great plant down there," said Kalk. "It complies with all existing rules. The people working down there do a great job. But we have to keep this facility in the mix for not just one or two years, but for the next 20, 30, 40, 50 years."

The new EPA rule could be out this summer. And the commissioners say it’ll likely be tied up in courts for a while.

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