MDU Resources Announces Plans to Invest in Badger Wind Farm

Core Insights - MDU Resources Group, Inc. has signed a purchase agreement to acquire a 49% ownership interest in the Badger Wind Farm, representing 122.5 MW of its total 250 MW generation capacity, pending regulatory approval [1][2][3] Group 1: Acquisition Details - The estimated cost for MDU to purchase this stake in the Badger Wind Farm is $294 million [3] - MDU previously executed a Power Purchase Agreement (PPA) for 150 MW of the Badger Wind Farm's output, which will be reduced to 27.5 MW upon closing of the ownership purchase [3] Group 2: Strategic Importance - The investment aligns with MDU's 2024 Integrated Resource Plan (IRP), which identified the need for additional generation capacity to meet future energy demands [2] - This acquisition is part of MDU's five-year capital expenditure plan and is considered the least-cost option for customers [2][3] Group 3: Impact on Generation Mix - The addition of the Badger Wind Farm is expected to change MDU's nameplate generation mix, increasing the share of renewables from 29% to 39%, while reducing coal from 31% to 26% and gas from 40% to 35% [4] Group 4: Regulatory Considerations - MDU has filed an Advance Determination of Prudence (ADP) with the North Dakota Public Service Commission to ensure the prudence of this investment [4]