Landowners, political leaders and officials of ALLETE, Inc.
(NYSE: ALE) and Minnesota Power gathered today to dedicate to
public service the company’s Bison Wind Energy Center, which
delivers renewable energy east to Minnesota across a dedicated
transmission line.
North Dakota Lt. Gov. Drew Wrigley and U.S. Sen. Heidi Heitkamp
were among the guests who spoke today in New Salem, N.D., about 10
miles south of the Bison Wind Energy Center.
Since construction began in 2010, Minnesota Power, a division of
ALLETE, has installed 101 Siemens wind turbines producing 292
megawatts (MW) of renewable, low-cost electricity for its customers
in northern Minnesota.
Bison has already produced about 750,000 megawatt-hours of
electricity – enough to power 85,000 homes for a year. The
electricity is transmitted along a 465-mile direct current (DC)
transmission line Minnesota Power purchased in 2009.
ALLETE President, Chairman and CEO Al Hodnik praised the
assembled landowners, contractors and governmental representatives
for their valuable partnership. He singled out North Dakota
political leaders for their leadership in helping to make Minnesota
Power’s largest wind farm a reality.
“North Dakota is an energy powerhouse blessed with an abundance
of lignite, shale, and natural gas in addition to high-capacity
wind power,” Hodnik said. “To North Dakota’s credit, the multiple
opportunities and benefits of these diverse resources are being
realized, contributing to the state’s economy and the nation’s
energy security. Our half a billion dollar investment in wind
development opens the door to future investments in this
energy-rich and policy-friendly state, to the benefit of our
customers and shareholders alike.”
“As we commission Bison Energy Center and make other strategic
resource and transmission investments, we are proud of our role in
working to transform the nation’s energy landscape,” Hodnik
added.
The Bison footprint in south-central North Dakota lies beneath
one of the premier wind resources in the U.S. Since phase 1A of the
project began generating electricity, Bison’s “wind capacity
factor” – the percentage of time there is enough wind to produce
power – has exceeded 40.
“We continue to pursue the responsible development of all our
energy resources in North Dakota and the Bison Wind Farm Center is
a major part of our success,” North Dakota Gov. Jack Dalrymple
said. “I applaud Minnesota Power for generating a low-cost,
renewable energy source and for enhancing our nation’s energy
security.”
Minnesota Power has done business in North Dakota since the
1970s, when the Duluth, Minn.-based electric utility partnered with
the Minnkota Power Cooperative in an agreement to purchase power
from the Young Generating Station in Center, N.D. A 465-mile direct
current (DC) transmission line was built to send Young Station
electricity eastward to Duluth, Minn. In 1988, ALLETE purchased BNI
Coal, a lignite producer that sells fuel to the Young Station. BNI,
based in Bismarck, N.D., remains a vital part of ALLETE’s energy
portfolio
Minnesota Power has steadily enlarged its renewable energy
capability partly in response to the state of Minnesota’s mandate
that utilities produce 25 percent of their energy from renewable
resources by 2025. Wind power from the Bison project has doubled
Minnesota Power’s percentage of renewable energy, further
diversifying its supply portfolio.
The company entered the wind energy business in 2006-07 when it
began buying the output of two North Dakota wind farms built by
NextEra Energy. In 2008, Minnesota Power built its first wind farm,
the 25-MW Taconite Ridge, in Mountain Iron, Minn. The
following year, Minnesota Power purchased the DC Line linking
Center, N.D., to Duluth, Minn., and signed an agreement to slowly
phase out its purchase of coal-based electricity from the Young
Station and replace it with renewable energy generated from
wind.
Construction of Bison’s first phase began in earnest in 2010. A
total of 33 Siemens 2.3 MW turbines were erected on a footprint of
farmland about 12 square miles in size. The first 16 wind
generators were operational by December of 2010, and the second 17
turbines were deployed about a year later.
In 2012, largely because a federal production tax credit on wind
equipment was scheduled to expire, Minnesota Power accelerated the
project by erecting 70 towers fitted with state-of-the-art 3-MW
direct-drive Siemens turbines. Total project costs for the Bison
Wind Energy Center are approximately $500 million. Because of
efficiencies gained through the course of construction, and state
and federal tax incentives, the electric output of the project is
an economical and carbon-free resource for Minnesota Power
customers.
As part of the company’s EnergyForward resource strategy
for less emission intense, reliable and affordable power, Minnesota
Power’s long-term goal is a generation mix that is one-third
renewable, one-third natural gas and one-third coal-based.
Minnesota Power is considering additional wind energy
investments in North Dakota. Earlier this year Congress extended
the availability of the production tax credit for renewable energy
facilities for projects that begin construction by Dec. 31, 2013.
With wind options on about 120,000 acres of adjacent property, the
company continues to evaluate further wind energy
opportunities.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security and quality of life for 143,000 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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