Twin Cities-based Xcel Energy would be required to pay more for electricity it buys from two biomass generators in Virginia and Hibbing under legislation heard Monday in a House committee at the state Capitol.
The bill, HF 623, modifies the agreement with Xcel Energy to purchase power generated by the Laurentian Energy Authority, which was created in 2005 when Hibbing and Virginia converted their coal burning municipal combined heat and power plants to burn wood biomass.
The bill, introduced by Rep. Carly Melin, DFL-Hibbing, requires Xcel to pay a fuel cost adjustment to the authority, requiring the utility to reimburse Laurentian monthly for all costs incurred to buy and transport the wood chips.
That would set a higher price and mean about $1.5 million more for the Iron Range authority.
Melin said the legislation would "level the playing field" for Laurentian by requiring the same rules under which Xcel buys power from authorities in St. Paul and Benson, Minn.
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Xcel officials said Monday in committee that they were neutral on the bill.
"The biomass plants in Hibbing and Virginia employ over 100 people and serve thousands of customers in the region, both residential and commercial," Melin said. "This legislation allows the LEA to retain financial viability and continue producing renewable energy under the remaining term of the power purchase agreement with Xcel Energy."
Meanwhile another Melin bill heard Monday in committee, HF 567, requires solar photovoltaic modules used in Minnesota state projects to be assembled in Minnesota at a certified Underwriters Laboratory plant. It also requires any construction or renovation of a building financed from the bond proceeds fund to include the installation of "Made in Minnesota" solar energy systems.
The bill would help Silicon Energy, which assembles solar panels in a Mountain Iron facility, and a second company, TenKsolar, in Bloomington. Current law does not require state buildings to use systems manufactured in Minnesota.
Both bills are expected to be merged into a larger omnibus energy bill later in the legislative session.
