Minnesota Power Files for State & Federal Permits to Build Great Northern Transmission Line for Hydropower Delivery from Cana...
April 16 2014 - 8:30AM
Business Wire
International transmission line ‘the right
project for a balanced energy future’
Minnesota Power, an ALLETE Company (NYSE:ALE), this week applied
to state and federal regulators for permits to build the
500-kilovolt Great Northern Transmission Line from the
Minnesota-Manitoba border to an electric substation on the Mesabi
Iron Range.
Minnesota Power filed a route permit application with the
Minnesota Public Utilities Commission (MPUC) and also applied for a
Presidential Permit from the U.S. Department of Energy for the
international interconnection at the U.S.-Canadian border.
The Great Northern Transmission Line will deliver to Minnesota
Power customers and the upper Midwest clean, emission-free
hydroelectricity generated by Manitoba Hydro to meet growing and
changing energy demands. The project advances Minnesota Power’s
EnergyForward strategy of increasing its generation diversity and
expanding its renewable energy portfolio.
“The Great Northern Transmission Line further transforms the
energy landscape by reducing carbon emissions, strengthening the
regional energy grid, adding more renewable power and supporting
new industrial growth on Minnesota’s Iron Range,” said ALLETE
Chairman, President and CEO Al Hodnik. “This international project
is the right project at the right time to promote a more balanced
energy future.”
The new transmission line will facilitate the delivery of at
least 750 megawatts (MW) of energy into the U.S. beginning in 2020.
Minnesota Power, which will have majority ownership of the project,
will utilize the Great Northern Transmission Line to deliver to its
service area 250 MW from Manitoba Hydro through a power purchase
agreement approved by the MPUC. The two utilities are also
finalizing an agreement outlining how Minnesota Power will purchase
additional energy and substantially expand its energy storage
opportunities using the new asset.
“The Great Northern Line enhances a unique synergy involving
hydropower and wind,” said Minnesota Power Chief Operating Officer
Brad Oachs. “The new transmission capacity more readily allows the
Manitoba Hydro system to store intermittent wind generation during
times when energy markets don’t need it. This is important to
Minnesota Power as we expand our Bison wind project to 500 MW in
North Dakota by the end of this year.”
Minnesota Power estimates total project cost in the U.S.,
including substation work, between $500 million and $650 million,
depending upon the final approved route.
Since 2012, Minnesota Power has held more than 75 open houses
and meetings with agencies, tribes, local government units,
landowners and the general public to gather input on the routing of
the transmission line project. The applications filed with the MPUC
and DOE explain that the line will generally require a
200-foot-wide right-of-way, with four or five structures per mile
about 100 to 150 feet in height. The type of structures will depend
on land type and land use.
“We look forward to continuing our work with state and federal
agencies in identifying the best route for this project,” Oachs
said. “The public will have additional opportunities to provide
input which continues to be an important facet of this
project.”
Two alternate routes are listed in the applications. Both
proposed alternatives are approximately 220 miles and, where
feasible, follow existing transmission line rights-of-way.
In addition to delivering affordable and reliable energy, the
project will bring economic and fiscal benefits to Minnesota during
and after construction. Project construction is expected to begin
by 2016 and be completed by 2020. A University of Minnesota-Duluth
economic study estimated the project will create 213 construction
jobs and 73 additional indirect jobs.
The Great Northern Transmission Line will generate approximately
$28 million annually in state and local taxes, according to the
study. About $875 million of direct and indirect spending on goods
and services will be needed to support construction activities,
researchers said. For more information about the project, visit
www.greatnortherntransmissionline.com
The attached map shows the two alternate routes.
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.
Photos/Multimedia Gallery Available:
http://www.businesswire.com/multimedia/home/20140416005196/en/
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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