Great Northern Transmission Line Needed: MPUC
May 15 2015 - 8:30AM
Business Wire
Minnesota Power’s international project
clears major regulatory hurdle
The Minnesota Public Utilities Commission (MPUC) on Thursday
unanimously approved Minnesota Power’s, a utility division of
ALLETE Inc. (NYSE:ALE), request for a Certificate of Need (CN) for
the 500-kilovolt Great Northern Transmission Line. The project is
designed to bring renewable and carbon free hydroelectricity from
Manitoba to Minnesota Power’s customers in Northeastern
Minnesota.
Among the most important approvals needed for the 220-mile
transmission line first proposed three years ago, the CN decision
follows months of public meetings and hearings and the submission
of numerous written comments and testimony.
Minnesota Power needs the line to deliver at least 383 megawatts
(MW) of energy to its customers by June 1, 2020, under power
purchase agreements with Manitoba Hydro approved by the MPUC in
2012 and 2015.
Minnesota Power estimates the total cost of the project will be
between $560 million and $710 million (in 2013 dollars). Minnesota
Power is expected to have majority ownership of the transmission
line. Thursday’s vote came two months after an administrative law
judge recommended to the MPUC that Minnesota Power had satisfied
the criteria set forth under Minnesota law that the line was
needed. The MPUC agreed with the ALJ’s recommendation that stated
the project addresses multiple needs, including:
• enabling the delivery of needed capacity and energy to
Minnesota Power and its customers
• optimizing Minnesota Power’s wind energy resources
• diversifying Minnesota Power’s energy supply and reducing its
dependence on coal
• reducing the risks of future emissions regulations
• supporting state and regional energy needs
• enhancing the efficiency and reliability of the transmission
system
The project involves the construction of a new 500 kV
transmission line in Minnesota from the U.S.-Canadian border to
Minnesota Power’s Blackberry Substation near Grand Rapids, Minn.
Various route alternatives are under consideration by the MPUC, but
the Great Northern Transmission Line will be approximately 220
miles long and constructed on a 200-foot-wide right-of-way most
likely located in the Minnesota counties of Beltrami, Itasca,
Koochiching, Lake of the Woods, and Roseau.
Minnesota Power’s route permit application is pending under a
separate MPUC docket, with hearings scheduled for this July and
August. A Presidential Permit from the United States Department of
Energy is also required for an international border crossing.
Property taxes are estimated to provide $40,000 to $60,000 per mile
in annual revenues to local Minnesota governments.
“The Great Northern Transmission Line is a signature component
of Minnesota Power’s EnergyFoward strategy to reduce carbon
emissions and assure continued reliability and affordable rates
while diversifying its energy portfolio to a one-third renewable,
one-third coal and one-third natural gas energy mix,” said Dave
McMillan, Minnesota Power Executive Vice President. “As
policymakers continue to move forward with aggressive calls for
carbon reduction, this line and associated energy supply agreements
provide us with flexibility that will benefit our customers, the
region, the state and the country.”
A unique feature of the power purchase agreements allows
Minnesota Power to use Manitoba Hydro’s hydropower system to
“store” wind energy it produces at its Bison Wind Energy Center in
south-central North Dakota. Minnesota Power will be able to deliver
electric energy from its Bison wind installation to Manitoba Hydro
when wind production is high and demand on Minnesota Power’s
electric system is low. In this way, Manitoba Hydro’s system will
act as a “battery” for energy produced from Minnesota Power’s North
Dakota wind farm.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 144,000 customers, 16
municipalities and some of the largest industrial customers in the
United States. More information can be found at
www.mnpower.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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