Members of the Becker Area Chamber of Commerce met Wednesday afternoon at the BCC with a special presentation on the future of Sherco in Becker.

 

Greg Chamberlain and Mark Osendorf of Xcel Energy were present to give a presentation outlining the decommissioning of Sherco I and Sherco II and its impact to the community.

 

Chamberlain gave an overview of the project and explained the process Xcel goes through when presenting a resource plan to the Public Utilities Commission (PUC). He said Xcel submits a resource plan every two years for reviewal describing the plans to shutdown the facilities’ two units (in 2023 and 2026) and the replacement suggestions and process.

 

The goal, Chamberlain said, is to replace the two coal-burning units at Sherco with a combined cycle system (gas and wind) just as they have at other local plants in the state.

 

“We recently sent out an RFP, looking to add a 1500MW wind system,” he said. “The energy landscape is ever-changing and technology and costs are transforming as well.”

 

Chamberlain said the current coal plants have been the most economic system over the years, but “times are changing” and new regulations are being mandated.

 

Chamberlain says Xcel is looking at receiving a final ruling on the RP by the end of the year. 

 

Osendorf explained to a few listeners after the meeting that Xcel Energy has long been leading the charge for more cleaner, renewable energy and the prospect of that idea today is beginning to be achievable with technology improving and costs dropping.

 

Chamberlain was asked how the decommissioning will impact the people who have jobs at the plant and whether the new plans for a gas plant will supplant the expected loss.

 

Chamberlain said Sherco currently employs around 300 people necessary to run the three-unit plant. After the shutting down of Units I&II in 2023 and 2026, the plant will only require about 150 jobs to run the one unit. He went on to say should they build a gas plant on the Sherco site, the gas plant will only require about 10 people to run it.

 

A chamber guest asked what kind of impact will the tax portion of Xcel’s contribution to the city have following the decommissioning.

 

Becker City Council Member Rick Hendrickson described several scenarios the city is investigating to determine the tax estimates moving forward. Currently, the 2016 tax levy for the City of Becker equals $6.1 million, with Xcel’s portion being around 76%, or $4.7 million.

 

Hendrickson explained there’s a tax bill in the state senate describing how utilities are taxed (Senate 1636) and was used in an overhead describing four scenarios the city is considering.

 

The first scenario — which the city deems as the best scenario for Becker — would show a combination of SF1636 and the construction of a gas plant following the decommission of Sherco I and II, would see the city suffer a light loss in tax estimates should this scenario play out.

 

If Becker were to combine the SF1636 and keep the current tax structure in place, while still going ahead with a gas plant, the city would see a 10-25% loss — the city’s second best scenario.

 

The final two scenarios are the city’s least prudent avenues — and they would include SF1636 and no gas plant at Sherco, and the same scenario without SF1636 — both demonstrating 40% losses.

 

Hendrickson said the city is currently analyzing the different scenarios and will work with Xcel to determine the impact to the city and its taxpayers.

 

Community Development Coordinator Marie Pflipsen told the audience that her department is working diligently to conduct business retention visits to ensure the city shows its appreciation for its current businesses and ensures them the city is moving ahead with positive plans to compensate for the lost jobs at the energy plant.

 

Pflipsen added she and the city are working to improve the Hwy. 10 Corridor from Becker Furniture World to the Crossings Hotel and already have Kwik Trip in the process of buying the SA store on Rolling Ridge and doing a major renovation to the site. Pflipsen also said the city is working to get the laundromat along 1st Street to be a viable business and plan to renovate the building and property in the near future.

 

Pflipsen also pointed out the improvements to the T-Town area of Becker where additional parking has been implemented and a new business taking over parts of Hancock Street where the Pedal Inn Antique Store currently sits.

 

Pflipsen said the city is partnering with regional organizations including Sherburne County, Greater MSP, Greater St. Cloud Development Corporation, the River Crossing Coalition and the surrounding counties including Wright, Stearns and Benton Counties.

 

Osendorf explained Xcel is marketing their 4,500 acres of property surrounding Sherco to attract more business to the Industrial Park.

 

“We have an interest in making this community we have a stake in to help build it up to be stronger and reliable in the future,” he said.

 

After fielding some questions from the floor, Chamberlain and Osendorf turned the presentation over to Becker City Administrator Greg Pruszinske for a quick summary.

 

Pruszinske stated the obvious, saying, “Sherco is a big deal to Becker.”

 

“Though we have a lot of hoops to jump through, we will continue to work hard to make sure what we are doing city-wise coincides with Xcel’s plans for the future,” he said. “It’s a big task getting the city, Xcel, the county and the state to work together to clear a path for Xcel’s future in our city.”

 

Dawn Larson of Anytime Fitness commended Greg and the city for holding the presentation Wednesday, saying, “I was kinda looking at all this and not feeling so good about what the future holds for the city and Sherco, but this presentation helped to shine a light on it,” she said. “It’s exciting to see what’s being done and you guys gave a great presentation.”

 

Pastor Rob Olsen expressed the same feeling.

 

“This was a meeting of hope today,” he said. “this was really good stuff.”