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Bob Kelleher
St. Paul, Minn.

PUC approved key permits for Iron Range coal-gasification power plant

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The Minnesota Public Utilties Commission (PUC) approved some key permits for the Mesaba Energy Project; a proposed coal-gasification power plant on the Iron Range.

The PUC gave the nod to the site and a related pipeline and powerline.

The permits support the preferred location for a 603-megawatt coal gasification power plant Excelsior Energy plans near the town of Taconite.

Dick Stone, Excelsior's vice president of development and engineering, called the decision a major milestone for the project.

"It's a very important step. It's the first time the commission has approved a siting and routing permit for a large coal plant in Minnesota since the mid to late 70s," Stone said.

Stone said the company is still seeking environmental permits. The company also remains without a customer.

Xcel Energy has said 'no,' and Excelsior is asking the PUC to reverse itself and force Xcel to buy power from the plant.