A house is seen near the Gavin Power Plant on in Cheshire, Ohio. (Photo by Stephanie Keith/Getty Images)
The Minnesota State Board of Investment is a relatively unknown state agency with a critical role for Minnesotans: managing over $146 billion in assets including public employee retirement plans. Its board members include Gov. Tim Walz, State Auditor Julie Blaha, Secretary of State Steve Simon, and Attorney General Keith Ellison.
The State Board of Investment pledges to “consider all material risks and opportunities” including those from climate change and the energy transition, according to Minnesota’s Climate Roadmap.
That’s why the board should take a close look at the implications of its investments in Energy Capital Partners, which is currently seeking an additional $250 million investment from the state.
This is concerning because while Energy Capital Partners claims to have a focus on “sustainability infrastructure providing reliable, affordable, and clean energy,” it is in the process of purchasing the General James M. Gavin coal-fired power plant. Gavin is a 50-year-old coal plant in southeastern Ohio and is one of the most deadly power plants in the nation in terms of health effects due to air pollution with a history of public health and environmental violations.
The Gavin power plant represents risks to its owners due to ongoing litigation regarding expensive toxic coal ash cleanup requirements, the plant’s high debt burden, and the unstable future for coal, not to mention the reputational risks associated with owning a power plant that has been associated with over 200 premature deaths per year and $1.7 billion in costs associated with health problems from the plant’s pollution.
The Gavin coal plant is the single biggest contributor to Energy Capital Partners’ health impacts. According to research released this summer, emissions from Energy Capital Partner’s assets nationally are estimated to cause between $1.8 and $3.3 billion in costs related to health impacts each year. The emissions are estimated to cause 62,000 asthma incidents, 130 emergency room visits, 11,000 lost work days, $15,000 lost school days, and over 200 premature deaths.
Minnesota should not rely on returns from an out-of-state power plant that causes the premature deaths of hundreds of people each year to fund the retirement of state employees.
The Minnesota State Board of Investment has an opportunity to collaborate with Energy Capital Partners to insist on a thoughtful retirement plan for the Gavin coal plant. This would be a positive result for the environment, public health, and Minnesota public pensioners.
Minnesota Reformer is part of States Newsroom, a nonprofit news network supported by grants and a coalition of donors as a 501c(3) public charity. Minnesota Reformer maintains editorial independence. Contact Editor J. Patrick Coolican for questions: [email protected].
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