MINNEAPOLIS (10/3/23) – Several Upper Midwest energy companies filed plans on Friday, Sept. 29, with the Minnesota Public Utilities Commission (PUC) to move forward with a critical transmission project in Minnesota and northeastern South Dakota that will deliver reliable energy to customers as older fossil fuel-based plants retire in the coming years and open new pathways for additional renewable energy proposed in the Upper Midwest. The 345-kilovolt (kV) Big Stone South-Alexandria-Big Oaks project consists of two segments, with one running from Big Stone City, South Dakota, to Alexandria, Minnesota (western segment), and the other running from Alexandria to Becker, Minnesota (eastern segment). The transmission project will provide additional capacity to mitigate current capacity issues, maintain electric system reliability, relieve congestion on the grid, and allow more low-cost wind power from western Minnesota and the Dakotas to reach customers throughout the region. Renewable energy has no fuel costs and contributes to a diversified energy mix, which helps energy companies provide cost-effective electricity for customers.
“This project will allow us to continue to operate a reliable transmission grid, bring low-cost, renewable energy to homes and businesses, further reduce carbon emissions and focus on meeting our customers’ energy needs,” the utilities said. “We look forward to working with our state regulators, landowners and local officials to make this project a reality.”
The Big Stone South-Alexandria-Big Oaks project will help ensure continued electric reliability and improved system resilience in the Upper Midwest. In recent years, utilities have added new renewable energy, such as wind and solar, and several fossil fuel plants are expected to retire in the coming years as they reach the end of their expected useful lives. As plants are retired, new transmission is needed to deliver energy from where it is generated, particularly widespread renewable energy, to where it is consumed. The project also supports efforts to meet each energy company’s carbon reduction goals and will help move towards meeting Minnesota’s carbon-free energy standard.
The eastern segment proposes stringing a new transmission circuit primarily on existing structures originally built as part of the CapX2020 Fargo-St. Cloud and St. Cloud – Monticello projects between Alexandria and a new substation on Xcel Energy property near the Sherco power plant in Becker. The western segment from Big Stone South to Alexandria proposes a new transmission line between Otter Tail Power’s Big Stone South substation in South Dakota and the Alexandria substation owned by Missouri River Energy Services.
The utilities jointly filed a Certificate of Need application for both segments and a Route Permit application for the eastern segment. The western segment Route Permit application is expected to be filed in 2024 following a robust public outreach process, which is ongoing. Project participants include Great River Energy, Minnesota Power, Missouri River Energy Services, Otter Tail Power Company and Xcel Energy.
Planning for future transmission needs
Broad changes in the region’s generation fleet and the increasing frequency of extreme weather events have created the need for new transmission infrastructure across the region. To address the future need for continued reliable and resilient operations, the Midcontinent Independent System Operator, Inc. (MISO) collaborated with energy companies and other stakeholders to develop the Long-Range Transmission Planning (LRTP) process that resulted in the identification and recommendation of 18 new transmission projects across the Upper Midwest region. This first set of projects, approved in mid-2022 and including the Big Stone South-Alexandria-Big Oaks project, is the initial step to build the necessary transmission infrastructure that will enable energy companies to reliably integrate new resources and effectively operate the changing grid.
More than 95% of the eastern segment of the proposed project will not require changes to the existing transmission line route, which began operation in 2015 as part of the CapX2020 project from Fargo to Monticello and a joint project with several other utilities. At that time, the PUC and the CapX2020 companies agreed there would likely be a need for new transmission in the future. As a result, the Fargo-St. Cloud and St. Cloud – Monticello projects were constructed as ‘double-circuit capable,’ enabling the companies to meet customers’ energy needs at the time while anticipating growing demand in the future.
The PUC will review the energy companies’ proposal, which generally takes approximately one year and includes opportunities for input from customers, landowners and other interested stakeholders.
Learn more about the Big Stone South to Alexandria and Alexandria to Big Oaks projects on their websites at bigstonesouthtoalexandria.com and alexandriatobigoaks.com. Both websites include maps of the project areas and opportunities to provide feedback.
Statements from utility partners
“The only way we can successfully transition our power supply and provide our members with the clean energy they want is to ensure our transmission system is built to support it. This project is one critical step in the direction of continued reliability for our region and the congestion relief it will provide will keep costs down by allowing more opportunity for the delivery of low-cost renewable energy,” said Great River Energy’s Vice President and Chief Transmission Officer Priti Patel.
“Transmission is the backbone of the electric grid, and it is essential for integrating renewable energy resources into the grid and maintaining reliable electricity service to homes and businesses in the region,” said Terry Wolf, vice president of power supply and operations at Missouri River Energy Services. “By investing in these projects, we can create a more resilient electric grid for everyone, and including our member municipals, while also making a significant step toward achieving our clean energy goals.”
“Investments in transmission are critical to accelerating a sustainable, clean-energy future and are a key piece of Minnesota Power’s EnergyForward strategy to safeguard the reliable delivery of energy to our customers and communities in northeastern Minnesota,” said Dan Gunderson, Minnesota Power VP of Transmission and Distribution. “Utilities in Minnesota have a long history of planning for the future and the foresight by the Commission and stakeholders in CapX2020 to recognize the value of future capacity is beneficial for our state and region.”
“This project, along with the other phase one LRTP projects, will help ensure a reliable, resilient, and cost-effective transmission system, benefiting not only our region and customers but also surrounding regions and customers—all while ensuring we continue to provide low-cost electricity,” said Otter Tail Power Company President Tim Rogelstad. “With past experience working with our partner energy companies, we’re looking forward to collaborating with them again on an impactful project.”
“Building new transmission will help Minnesota continue to serve our customers with the low-cost, reliable energy they need in their daily lives, while also providing the carbon-free electricity they’ve told us they want. Xcel Energy is proud to be a part of this important project to advance the region’s energy future,” said Chris Clark, president, Xcel Energy-Minnesota, North Dakota, South Dakota.
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About Great River Energy
Great River Energy is a not-for-profit wholesale electric power cooperative that provides electricity to approximately 1.7 million people through its 27 member-owner cooperatives and customers. Through its member-owners, Great River Energy serves two-thirds of Minnesota geographically and parts of Wisconsin. With $3.9 billion in assets, Great River Energy is the second largest electric power supplier in Minnesota and one of the largest generation and transmission cooperatives in the nation. Learn more at greatriverenergy.com.
About Minnesota Power
Minnesota Power, an operating division of ALLETE (NYSE:ALE), provides electric service within a 26,000-square-mile area in northeastern Minnesota, supporting comfort, security and quality of life for 150,000 customers, 14 municipalities and some of the largest industrial customers in the United States. More information can be found at www.mnpower.com
About Otter Tail Power Company
Otter Tail Power Company, a subsidiary of Otter Tail Corporation (Nasdaq Global Select Market: OTTR), is headquartered in Fergus Falls, Minnesota. With a balanced commitment to environmental, economic, and community stewardship, the company provides electricity and energy services to approximately 133,000 customers in Minnesota, North Dakota, and South Dakota. To learn more about Otter Tail Power Company visit otpco.com. To learn more about Otter Tail Corporation visit ottertail.com.
About Missouri River Energy Services (MRES)
MRES has a power supply agreement with WMMPA obligating MRES to pay for and WMMPA to supply the entire output of WMMPA-owned facilities. MRES, in turn, has long-term power sales agreements with its members to supply them with wholesale power, energy and transmission to serve their customers.
About Western Minnesota Municipal Association (WMMPA)
WMMPA will provide financing for the project. WMMPA is a joint-action agency made up of MRES members in Minnesota. It has provided financing for all major generation and transmission facilities with which MRES serves its 61-member municipal electric systems in Iowa, Minnesota, North Dakota and South Dakota.
About Xcel Energy
Xcel Energy (NASDAQ: XEL) provides the energy that powers millions of homes and businesses across eight Western and Midwestern states. Headquartered in Minneapolis, the company is an industry leader in responsibly reducing carbon emissions and producing and delivering clean energy solutions from a variety of renewable sources at competitive prices. For more information, visit xcelenergy.com or follow us on X, formerly known as Twitter and Facebook.
