Plans for Big Stone II Power Plant Scrapped

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By Associated Press

Story Created: Nov 2, 2009 at 6:39 PM CST

Story Updated: Nov 2, 2009 at 6:44 PM CST

Developers of the Big Stone II electric power plant in northeastern South Dakota say they've decided not to build the $1.6 billion project.

The plant's future has been in trouble since Otter Tail Power Co. withdrew from the project last September. Otter Tail was the lead utility in developing the new power plant, which was to generate at least 500 megawatts of electricity.

Otter Tail said it pulled out because of the poor economy and uncertainty about future federal regulation of carbon dioxide emissions.

Otter Tail's withdrawal left four utilities involved in the effort. In a joint statement on Monday, they said they tried to recruit new utility partners to take Big Stone power, but none came forward.

Environmental groups have opposed the project, saying that its power needs could be met by increased wind energy development and
other renewable sources.

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