Minnesota Power Poised to Break Ground on International Transmission Line Following Approval of Route Permit
February 26 2016 - 4:45PM
Business Wire
Minnesota Power’s Great Northern Transmission Line cleared a
major regulatory hurdle today with approval of a route permit for
the 500-kilovolt line that will deliver renewable, carbon-free
hydroelectricity from Canada to the utility’s customers in
Northeastern Minnesota.
The Minnesota Public Utilities Commission unanimously approved
the route permit for the transmission line being developed by
Minnesota Power, a utility division of ALLETE Inc. (NYSE: ALE). The
route permit is among the most important regulatory decisions the
project requires. A presidential permit from the U.S. Department of
Energy, needed because the line crosses an international border, is
expected in March or April.
The Great Northern Transmission Line is a signature component of
Minnesota Power’s EnergyForward strategy to reduce carbon emissions
and ensure continued reliability and affordable rates while
diversifying its energy portfolio to one-third renewable energy,
one-third coal and one-third natural gas. It will be used to
deliver hydroelectric power purchased from Manitoba Power to serve
Minnesota Power customers and the region.
“Today’s decision by the Commission is an affirmation of the
wise investments, creativity and productive partnerships Minnesota
Power continues to bring as it helps transform the nation’s energy
landscape,” said Al Hodnik, ALLETE chairman, president and CEO.
“This project will promote a more balanced energy future while also
delivering value for ALLETE shareholders.”
Minnesota Power needs the line to deliver at least 383 megawatts
of energy to its customers by June 1, 2020, under power purchase
agreements with Manitoba Hydro approved by the MPUC in 2012 and
2015.
The route permit approval comes after years of comprehensive
agency review and voluntary stakeholder engagement by Minnesota
Power. The transmission line was proposed in 2012.
“Minnesota Power worked hard early on to engage landowners,
community members, tribal and other stakeholders to explain the
project and receive feedback. The extensive outreach, including
more than 75 meetings and open houses, was a critical part of the
project development process,” said Brad Oachs, chief operating
officer for Minnesota Power. “We also received an unprecedented
level of local, state and federal involvement, including
coordination with the U.S. Department of Energy and the Minnesota
Department of Commerce, in the route development, refinement and
selection process that was critical to this important regulatory
outcome."
The approved 224-mile route will cross the border between the
U.S. and Canada in Roseau County in northern Minnesota, about three
miles east of Minnesota Highway 89. The line will run to an
expanded Blackberry electric substation east of Grand Rapids, Minn.
The route includes locations in Roseau, Lake of the Woods,
Koochiching, and Itasca counties in Minnesota and largely follows
Minnesota Power’s preferred Blue Route, including the critical
international border crossing.
Building the line is a significant undertaking. Construction is
expected to get underway in earnest in 2017 with the line completed
by 2020. The line will generally require a 200-foot-wide
right-of-way, with about four or five structures per mile. Each
structure is about 100 to 170 feet in height and the specific types
of structures will depend on land type and land use.
Minnesota Power estimates the total cost of the project will be
between $560 million and $710 million.
On the Canadian side, in September 2015, Manitoba Hydro filed
its environmental documents and final preferred route with
provincial regulators as part of the process for securing a license
for the transmission line in Manitoba.
The Great Northern Transmission Line will enhance a unique
synergy involving Minnesota Power’s Bison wind farm in North Dakota
and hydroelectric power from Manitoba Hydro. Under the power
purchase agreements between the two utilities, Minnesota Power can
“store” wind energy it produces at its Bison wind farm in North
Dakota in the form of water energy stored behind Manitoba Hydro’s
dams in Canada. When wind production is high, typically at night,
the hydro operators can reduce output and store the water—and its
associated energy— that would have otherwise flowed through the
utility’s generators behind dams. When wind production is lower,
typically during the day, they can release water and send clean
power to the grid.
More information including the route map can be found at
http://www.greatnortherntransmissionline.com/
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 145,000 customers, 16
municipalities and some of the largest industrial customers in the
United States. More information can be found at www.mnpower.com.
(ALE-ENRG)
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20160226006173/en/
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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