Federal Approval of a Construction Agreement for the Great Northern Moves International Transmission Project Forward
December 12 2014 - 8:30AM
Business Wire
Minnesota Power’s Great Northern Transmission Line has received
another important approval. The Federal Energy Regulatory
Commission (FERC), on November 25, approved a facilities
construction agreement required to build this 500-kilovolt,
220-mile line that will run from the Canadian-U.S. border northwest
of Roseau, Minn. to an expanded Blackberry electric substation east
of Grand Rapids, Minn. Minnesota Power is a utility division of
ALLETE (NYSE:ALE).
The facilities construction agreement signed by the Midcontinent
Independent System Operator (MISO), ALLETE, and a subsidiary of
Manitoba Hydro, lays out the costs and ownership percentages of the
Great Northern Line. MISO is a non-profit organization that
provides electric generation and transmission planning systems and
operations, transparent prices and open access to electricity
markets. It covers all or parts of fifteen states and the province
of Manitoba. Minnesota Power is a member of MISO. Based on the FERC
approval, MISO’s Board of Directors voted on December 11 to include
the transmission line in its MISO Transmission Expansion Planning
report for 2014 (MTEP14). On the Canadian side, Manitoba Hydro has
received the necessary approvals which will allow a subsidiary of
Manitoba Hydro to move forward with activities related to the
facilities construction agreement.
The Great Northern Line, under development by Minnesota Power
and the Manitoba Hydro subsidiary, has an anticipated in-service
date of June 1, 2020. It will provide 883 megawatts of transmission
capacity, of which 383 megawatts will be used to deliver
hydroelectric power purchased from Manitoba Hydro to serve
Minnesota Power’s customers. Total project cost in the U.S., is
estimated to be between $560 million and $710 million, depending on
the final route of the line. Minnesota Power is expected to have
majority ownership of the transmission line.
“The long-term purchase of carbon-free hydro power is a key
element of our EnergyForward balanced resource strategy and the
driving force behind the need for the Great Northern Transmission
Line,” said ALLETE Chairman, President and CEO Al Hodnik. “Securing
FERC approval of this facilities construction agreement is a
crucial and necessary step as we plan for a sizable new capital
investment in Upper Midwest transmission reliability and as we
answer our Nation’s call to transform its energy landscape.”
The Great Northern Line will be constructed along a
200-foot-wide right of way and will include an associated
500-kilovolt substation. Manitoba Hydro is responsible for seeking
the necessary approvals and constructing the Canadian portion of
the 500-kilovolt transmission line.
Seven public hearings on the Great Northern Line were held in
October and a two day evidentiary hearing was conducted in November
where the Minnesota Department of Commerce recommended approval of
the Certificate of Need. A decision from the Minnesota Public
Utilities Commission on the line’s Certificate of Need is
anticipated by May 2015. Minnesota Power is also coordinating the
federal Presidential Permit for the international border crossing
and the state route permit with the U.S Department of Energy and
state agencies which are required before construction can begin.
More information about the project is available at
www.greatnortherntransmissionline.com. For more information on the
FCA, please see the FERC order and for the MTEP14, visit MISO’s
website.
Minnesota Power provides electric service within a
26,000-square-mile area in northeastern Minnesota, supporting
comfort, security 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.
Minnesota Power/ALLETEAmy Rutledge, 218-723-7400Manager -
Corporate Communicationsarutledge@mnpower.com
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