May 2017

Wed
03
May
admin's picture

NSP agrees to pay city nearly $23 million in compensation for losing power plant

Fibrominn, now Benson Power, LLC, under construction in 2006. The plant would shut in the summer of 2018 if NSP/Xcel Energy buys it from investors.

By Reed Anfinson

Publisher

Swift County Monitor-News

Monday night the Benson City Council unanimously agreed to back Northern States Power’s (NSP) efforts to buy and likely close the Benson Power, LLC, electric generation plant in exchange for compensation that could total more than $23 million.

NSP is the parent corporation of Xcel Energy.

A substantial portion of that compensation could come in the form of $20 million for economic development efforts in the city to help it replace the jobs and economic vitality it would lose if the plant were closed. There would be four payments made to the city between 2018 and 2021.

Back when it was being planned and built in the early 2000s, Minnesota’s Department of Employment and Economic Development (DEED) estimated the plant would provide an annual economic boost to the area of $8 to $10 million.

Pages