Minnesota Power, Great River Energy plan new transmission line with at least $970M price tag

Minnesota Power and Great River Energy filed a plan with Minnesota regulators Friday to build a new transmission line from the St. Cloud area to Grand Rapids that could cost as much as $1.3 billion.

The proposed 180-mile Northland Reliability Project is designed to maintain a reliable regional power grid for central and northern Minnesota as utilities switch to more renewable energy sources. As more wind and solar power is linked to the grid, transmission capacity is being strained and new projects are facing increasing costs and longer waits to connect to the Midwest grid.

The Minnesota Power-Great River project is "one of the biggest transmission projects in the history of our state," said Priti Patel, Great River Energy's vice president and chief transmission officer.

If the project gains approval, construction could begin in 2027 and be completed in 2030. The total project cost is in the range of $970 million to $1.3 billion.

The last big project to come online in the state, CapX2020 in 2017, cost $2 billion and added 800 miles of new power lines, mostly in Minnesota.

This round of projects could top that. Xcel Energy last summer proposed a plan for a roughly $500 million, 140-mile power line from Becker to Lyon counties.

The problem isn't just congestion. Patel said that as older, coal-fired power generation lines are retired it creates gaps in the power grid.

Great River and Minnesota Power jointly filed an application for a certificate of need and route permit from the Minnesota Public Utilities Commission, which would determine the ultimate route for the project.

"More than 85% of the route follows existing high voltage lines," said Jim Atkinson, manager of environmental and real estate for Minnesota Power.

Patel said that minimizes the impact of building the new line and streamlines the permit review process.

Julie Pierce, Minnesota Power's vice president of strategy and planning, said its final budget depends on numerous issues including equipment choices, vendor selection and supply-chain problems.

"We're at the beginning stages," Pierce said.

Midcontinent Independent System Operator, the Midwest's grid operator, approved the project last year.