Natural Gas and Minnesota’s Energy Future Bill Grant, Department of Commerce

}  Current and projected price of natural gas ◦  Impacts of hydrofracking ◦  Demand for electric generation, exports

}  Characteristics of gas for utility planners ◦  Environmental considerations ◦  Natural gas vs. coal, vs. renewables, vs. energy

efficiency ◦  Electricity generation as valley-filler ◦  Fuel of choice for repowering projects

}  Resource plans ◦  How will customer needs be met over next 15 yrs.

}  Certificate of Need ◦  Size, type, timing for facilities over 50 MW

}  Siting and routing ◦  Mitigation of environmental impacts ◦  Public involvement

}  Rate case ◦  Prudency of costs; who pays

Strategist  Model

DSM

Alternatives Forecast

Existing  Generation

Size,  Type,  &  Timing  

Approved

Rate  Increase  Approved

Forecast  Adjustments

Finance  Adjustments Assign  Costs

Design  Rates

Facility  Approved

Forecast

AlternativesEnvironment  &  Socioeconomics

Siting/Routing  Approved  &  Constructed

Public  Participation

AlternativesEnvironmental  

Review

}  Natural gas for electric generation likely to grow in near to medium term

}  Minnesota well positioned with gas supply }  Drivers include: ◦  Continued low cost ◦  Need for replacement of older coal capacity ◦  Load following support for variable renewables ◦  Valley-filling profile