5 things to know about EnergyForward How we are moving EnergyForward: For more information, check out mnpower.com/EnergyForward 100 80 60 2005 Current Goal 1/3 1/3 40 20 1/3 0 15165 | 07.07.15 n Renewable n Coal n Natural gas EnergyForward is how Minnesota Power is doing its part to change the way energy is produced and used in the U.S. We’re generating more power from wind, water and the sun and less from coal. We’re improving existing thermal power plants to further reduce air emissions. And we’re helping customers find ways to use less energy to run their homes and businesses. Our road map to a cleaner energy future is based on a generation mix of one-third renewable energy, one-third natural gas and one-third coal. Beginning in 2020, we plan to move more than 350 megawatts of hydropower a year from Manitoba Hydro to our customers in Minnesota. 5 things to know about EnergyForward Boswell 4 is the largest and newest of the four generators at our Boswell Energy Center. At 585 megawatts, Boswell 4 provides a big portion of the electricity our customers need. To keep it running, we need to meet requirements of the Minnesota Mercury Emission Reduction Act and the federal Mercury Air Toxics Standards Rule. That means installing new emissions-control technology. 1. Adds renewable sources of energy. About 25 percent of the electricity we generate comes from renewable sources. By about 2026, we expect one-third of the power we produce to come from wind, water, wood and the sun. Wind: The 500-megawatt Bison Wind Energy Center in wind-rich North Dakota generates power for our customers in northeastern Minnesota. Our Taconite Ridge Wind Energy Center is the first commercial wind energy center in northeastern Minnesota. The 25-megawatt installation began operating in 2008. Hydro: Minnesota Power is the largest hydroelectricity producer in Minnesota. A series of upgrades have made our hydro stations even more efficient. Solar: We’re adding more than 30 megawatts of solar power to meet Minnesota’s solar energy standard. That includes a 10-megawatt solar installation at Camp Ripley in central Minnesota as well as community solar gardens elsewhere in our service area. 2. Reduces emissions and increases efficiency. The more than $300 million investment at Boswell 4 follows a similar emission-control project at Boswell 3. Completion of the Boswell 4 project will reduce mercury emissions 90 percent and overall air emissions 70 percent compared with 2005. We’re using increasing amounts of biomass (up to 90 percent) to reduce emissions at two power plants in Duluth and Grand Rapids, Minn., that generate steam and efficient electricity for nearby paper customers. 3. Cuts carbon dioxide emissions. 4. Enriches a successful conservation program. Minnesota has set a goal of reducing statewide carbon dioxide emissions 15 percent compared to 2005 levels by 2015. Minnesota Power expects to reduce its CO2 emissions 20 percent by 2020 and 30 percent by 2025. How are we doing that? Our energy efficiency and conservation programs provide homeowners, businesses and communities with tools for saving energy. These programs have exceeded state energy conservation goals for the past five years, and we plan to offer additional options and ideas to help customers be even more energy efficient. • We’ve retired one of the three coal units at Taconite Harbor and will idle the other two units in 2016. Coal operations at the power plant will cease in 2020. • We’ve added more wind power at the Bison Wind Energy Center in North Dakota. • We’re helping customers save energy in their homes and businesses through our energy efficiency and conservation programs. • We’ve converted Laskin Energy Center from coal to a natural gas peaking facility. CO2 emissions will decrease even more when the Great Northern Transmission Line begins delivering carbon-free hydroelectricity from Manitoba to Minnesota beginning in 2020. We also plan to add 200 to 300 megawatts of natural gas generation by 2025. Natural gas has about half the emissions of coal. 5. Keeps electricity reliable and rates reasonable. We’re balancing the needs to preserve reliability, improve environmental performance and minimize cost increases. Our total average retail electric rate is among the lowest in the nation, according to an Edison Electric Institute survey of 169 providers. (January 2015) While we’re moving toward a more diverse energy supply, we also need to be realistic about how we provide power 24/7 to keep the lights on, businesses running and communities thriving. Using a balanced mix of renewable fuels, coal and natural gas to generate electricity ensures customers will have the power they need when they need it at a reasonable cost. 24/7/365