With last week (rightfully) devoted to the exciting and innovative direct-reduced iron plant near Nashwauk, this week has the potential of bringing the much more boondoggly Excelsior Energy Mesaba project back into the headlines. But those headlines will probably range from “snooze” to “debacle.” The lawyer/lobbyist confederacy that runs Excelsior will be before the PUC on Thursday, Sept. 25, trying to force Minnesota Power to buy its theoretical coal gasification-fueled electricity (on the very shaky argument that it’s affordable). This will probably lead to another “PUC denies Excelsior” headline and a “Despite appearances, everything is fine” quote from the company. Same old, same old.
However, on the same day (Thursday), the Office of the Legislative Auditor will release its report on a complaint against Excelsior over the spending of $9.5 million in Iron Range Resources loan funds for the project. What’s in there? Well, potentially they could have found misused or underreported funds and expose the project for the sham it’s always been. That’s the essence of the complaint raised by a local citizen group opposing the project. It’s more likely that the legal team at Excelsior is very, very good and that the company’s leaders are exposed as merely being terrible at controlling business costs. That’s not illegal or in violation of the loan’s terms, but probably should be.
I suppose the OLA could also declare the whole thing A-OK, but that still doesn’t get Excelsior any closer to a customer, permits, or the tender warmth of my embrace.
UPDATE: I’ve been informed that the actual business before the PUC on Thursday is even more complicated and anti-climatic than I’ve described here. It has more to do with Minnesota Power’s regulatory complicance process and the potential for Excelsior to sell MP power and blah blah blah. Seriously, I am really looking forward to changing topics.
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