MISO says MGE can't retire generator at Blount Street plant

From a news release issued by MGE:

Madison Gas and Electric (MGE) has received notification from the Midwest Independent System Operator (Midwest ISO) that in order to meet national electric system reliability standards, MGE will need to keep its Blount Station available at full capacity until Midwest ISO declares the 90 megawatts (MW) MGE desires to retire are no longer needed for system reliability. The company said the announcement does not affect its plans to stop burning coal at Blount.

As part of its Energy 2015 Plan, MGE announced its intention to retire the oldest, least-efficient part of its Blount Street power plant by 2011. The equipment slated for retirement represents 90 out of 190 MWs of the plant's full capacity. The remaining 100 MWs of the plant would remain in operation. MGE also announced that it would discontinue coal-burning at Blount and transition to burning only natural gas by the end of 2011 for the remaining 100 MWs of capacity.

To comply with the Midwest ISO directive, MGE will suspend its plans for retiring 90 MWs of generation equipment at Blount. However, consistent with its original Energy 2015 Plan, the company will still transition from burning coal to burning only natural gas at Blount by the end of 2011. "MGE made a commitment to the community and the neighborhood to discontinue burning coal in downtown Madison. MGE will keep that commitment even though Midwest ISO's directive has changed one aspect of our original plan," said Scott Neitzel, Vice President of Energy Supply. After 2011, the entire plant will be operated exclusively on natural gas.