Minnesota Power and Wisconsin’s Dairyland Power Cooperative announced plans to co-develop a combined cycle natural gas–fired power plant, a 550-MW facility designed to provide backup power for the utilities’ efforts to expand their use of renewable energy sources.

The Nemadji Trail Energy Center would be built along the Nemadji River in Superior, Wis., a location adjacent to both utilities’ service territories. The utilities would co-own the facility and divide its electrical power output. The companies said that if regulators approve the plan (a decision is expected sometime in 2018), construction could begin in 2020 and the $ 700-million plant—each company investing $ 350 million—could be operational in 2024 or 2025.

Minnesota Power spokeswoman Amy Rutledge said the Superior site’s access to existing natural gas and electric transmission lines made it a logical choice for the utilities. The area is served by multiple natural gas lines, including from Northern Natural Gas, Great Lakes Gas Transmission, and ANR Pipeline, according to analysts Rocco Canonica and Richard Frey of S&P Global and Platts Analytics.…

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