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Gold/Mining/Energy : CPN: Calpine Corporation
FRO 23.73+1.7%3:59 PM EST

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From: Copperfield2/12/2003 8:49:48 PM
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Minnesota Debates Energy Future

Feb 12, 2003 -- For the Minnesota Chamber of Commerce, the debate is clear.
Nuclear power is cheap, reliable and is an important piece in the state's energy
mix. And despite the vexing environmental problem of radioactive spent fuel,
there's little to no air pollution.

But wait, say Minnesotans for an Energy Efficient Economy, a St. Paul-based
organization. What about wind, biomass, fuel cells, and countless other
low-impact and renewable energy technologies? Why not explore them first?

At a House Regulated Industries Committee hearing Tuesday, lawmakers were shown
a couple of contrasting road maps to Minnesota's energy future.

One, with labor and business leading the way, trumpeted nuclear power, and the
job security and lower costs associated with it. The other, led by
environmentalists, argued for innovation, sustainability and rural development.

During the next several months, the Legislature will debate those choices,
ultimately deciding whether Xcel Energy should continue to be limited to 17
nuclear-waste storage casks at its Prairie Island nuclear power plant near Red
Wing. Without more storage room, Xcel says it will have to close the plant by
2007.

Michael Noble, executive director of Minnesotans for an Energy Efficient
Economy, said the 1994 Legislature made that decision, and current lawmakers
shouldn't be asked to change it.

If the plant closes, Xcel will have to replace Prairie Island, which provided 24
percent of the electricity generated by the utility in Minnesota in 2001.

On Tuesday, it selected two proposals from a short list of bidders announced
last fall.

Xcel said it will negotiate with Calpine Corp. for a 565-megawatt natural
gas-fired, combined cycle plant near Mankato and with LS Power Associates for a
550-megawatt coal-fired plant proposed for Rosemount.

The Minnesota Public Utilities Commission would have to approve any agreements
resulting from those negotiations, and the bidders would be responsible for
obtaining the necessary siting and environmental permits for the projects.
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