(KNSI) – The Star Tribune is reporting that Minnesota’s Public Utilities Commission has agreed to keep the overall cost of the new Sherco Solar project hidden from the public.
The board says the company’s argument that making the bidding results widely available could give contractors leverage in other solar project negotiations that are planned for the coming years is a valid one. Although details have not been released, a price cap agreement for Sherco Solar is in place between the Minnesota Department of Commerce, state Attorney General’s Office, and Xcel. It will cost somewhere between $575 million and the undisclosed capped amount.
Xcel says inflation has caused prices to rise on solar projects by 25% since the start of 2021 alone, including by 8% in the second quarter of this year.
Residential customers will owe between $5.60 and $7.90 per year for 15 years to construct the proposed Sherco Solar farm. It is expected to generate up to 460 megawatts of electricity, about one-fifth of what is currently produced by three coal-generating stations. They will be taken offline between 2023 and 2030. The new solar farm will cover 3,500 acres. It will create an estimated 14 permanent jobs, down from the over 200 that currently exist. Temporary workers will be needed for the construction.
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