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

2. } 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

6. } 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

7. Alternatives Forecast Alternatives
Environment
&
Forecast Socioeconomics
Existing
DSM
Generation
Strategist
Model
Facility
Approved
Size,
Type,
&
Timing
Approved
Finance
Assign
Costs Alternatives
Adjustments
Environmental
Public
Review
Participation
Forecast
Design
Rates
Adjustments
Rate
Increase
Siting/Routing
Approved Approved
&
Constructed

8. } 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