GRANITE FALLS -- Xcel Energy is upgrading its electrical substation and improving flood protection at the adjacent, Minnesota Valley electric plant on the Minnesota River in Granite Falls.
The activity is not a sign of any change in the status of the aging, electric generation plant itself, however.
The plant has not generated electricity for more than two years, according to Lloyd Hilgart, director of peaking plants for the company.
He said Xcel Energy remains undecided about its future.
Local residents have noticed the recent activity at the plant and substation. It led some to express concerns that Xcel Energy could be in the process of decommissioning the plant, said Mayor David Smiglewski of Granite Falls.
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The mayor described the facility as a "landmark'' for the community. It's one the city would like to keep. Smiglewski said the plant used to be one of the community's best employers, and it is still valued as its largest tax paying entity.
Community leaders would like nothing better than to see the plant returned to service, said the mayor. He said a group of municipal utilities approached Xcel about purchasing the plant one year ago.
Originally constructed in 1930 but expanded and modernized in 1953, the plant can be fueled by either coal or natural gas. It has the capacity to generate 42 megawatts of electricity, making it a relatively small plant by today's standards.
During more recent years it was operated only periodically as a peaking plant. It was called into service only during periods of high electrical demand on the system.
Hilgart said its usefulness as a peaking plant no longer exists. The cost for producing peaking power with natural gas at the plant is very high.
Xcel has also increased its peaking power generation capacity with the development of modern, natural gas plants in recent years.
The Minnesota Valley plant's usefulness as a base load facility is also in question. The plant relies on older technology that is very inefficient when compared to newer plants, according to Hilgart.
Xcel Energy had explored the possibility of converting the plant to burn hybrid poplars as a renewable energy source, but the older technology in the plant worked against the plan. The company determined that it would require a significant investment of capital to upgrade the plant to adapt it to use renewable energy fuel.
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While the company continues to debate the future of the plant, it is moving ahead with efforts to improve its electrical substation located on the same grounds. The controls for the substation are located in the Minnesota Valley plant and are 40 years old.
The controls are now being replaced with much smaller, modern controls that will be protected in a separate, secure facility. The substation and its transformers are part of the company's electrical transmission network for this portion of the state, and are in constant use independent of the adjacent power plant.
At the same time, workers are installing flood control protection on the Minnesota Valley plant due to its location on the Minnesota River. The majority of the flood control work is taking place on the portion of the plant fronting the river.
