New Transmission Would Bring More Canadian Hydropower Southward and Improve Regional Electric Reliability
February 09 2012 - 8:30AM
Business Wire
To bring renewable, carbon-free energy from Canada and upgrade
the Upper Midwest’s electric system, Minnesota Power is proposing
the construction of new transmission from Winnipeg to the Mesabi
Iron Range and eventually into Duluth. Minnesota Power also is
exploring other regional grid enhancements.
Minnesota Power, a division of ALLETE, Inc. (NYSE: ALE), has
filed its intent to pursue the project through the transmission
expansion planning process of MISO, which manages grid reliability
and electricity markets across 11 northern tier states and
Manitoba.
“We’re well positioned geographically to serve customers with
emission-free energy, though transmission investments are required
to move electricity where it’s needed,” said Alan R. Hodnik,
chairman, president and CEO of Duluth-based ALLETE.
“Through this initiative and the significant capital expenditure
it entails, we can meet the needs of our customers and provide a
vital regional connection, linking renewable energy with millions
of customers in the Upper Midwest,’’ Hodnik said. “Through
innovative and long range planning, we are positively shaping the
nation’s energy landscape.”
Minnesota Power on January 26 received Minnesota Public
Utilities Commission approval for a long-term 250 megawatt (MW)
purchase of hydropower from Manitoba Hydro beginning in 2020.
New transmission infrastructure to carry the energy from
Manitoba is an essential component of that power purchase
agreement, first announced last June. Manitoba Hydro, a Crown
Corporation based in Winnipeg and the province of Manitoba’s major
energy utility, generates energy by way of hydroelectric dams in
the northern part of the province.
After months of study and evaluation, planners at Minnesota
Power and Manitoba Hydro are proposing construction of a 500 kV
line which would strengthen the electric grid, enhance regional
reliability and promote a greater exchange of sustainable
energy.
That 500 kV circuit is expected to extend southward from
Winnipeg and connect to a substation on the Mesabi Iron Range,
where several Minnesota Power industrial customers process taconite
and manufacture paper. The Winnipeg-Iron Range transmission build
is expected to be in service in 2020.
In activity separate from the Winnipeg-Iron Range project,
Minnesota Power and American Transmission Co. (ATC) are evaluating
the joint development of a double-circuit 345 kV line from the Iron
Range to Duluth for service in approximately 2020. This is in
addition to assessing transmission alternatives in Wisconsin that
would allow for the movement of more renewable energy in the Upper
Midwest while at the same time strengthening electric reliability
in the region. Total project costs, ownership shares and cost
allocation are still to be determined.
Minnesota Power, Manitoba Hydro and ATC are all members of MISO,
which plans regional transmission projects through the MISO
Transmission Expansion Planning (MTEP) process.
Minnesota Power, a division of ALLETE, Inc. provides electric
service within a 26,000-square-mile area in northeastern Minnesota,
supporting security, comfort 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.
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