MINNEAPOLIS (July 21, 2022) — Xcel Energy, a leader in renewable energy for more than a decade, has begun developing the Minnesota Energy Connection, a new power line in Minnesota that will connect renewable energy to the existing grid at the Sherco power plant, which will retire all coal generation later this decade.
The transmission line will run approximately 120-140 miles from near Becker to southwest Minnesota, home of some of the most productive wind resources in the country.
The first step in developing the project includes reaching out to landowners, local governments and other stakeholders as part of Xcel Energy’s proposal and preparing to file a Certificate of Need with the Minnesota Public Utilities Commission, which must be approved before the company can begin construction. A key part of the outreach includes working with landowners and other stakeholders to identify potential route options, discussions which will occur through 2023.
“Minnesota and Xcel Energy have been leaders in reducing carbon emissions while keeping bills affordable for our customers,” said Chris Clark, president, Xcel Energy—Minnesota, North Dakota, South Dakota. “The Minnesota Energy Connection continues our clean energy transition by replacing coal-fired power generation with renewable energy and other supporting resources, and connecting that power to the grid in central Minnesota that provides the electricity for our region’s homes and businesses.”
Re-using existing grid connections saves customers money
In its Upper Midwest Energy Plan, approved in early 2022 by the Minnesota Public Utilities Commission, the company proposed the new power line to deliver new renewable energy after the retirement of its largest coal-fired power plant, and continuing to operate the Monticello Nuclear Generating Plant another ten years. The plan will add significant renewable energy to the region and eliminate eliminating all coal use from Xcel Energy’s Upper Midwest system, helping deliver an 85% reduction in carbon emissions by 2030 while also maintaining reliability.
The company has proposed to connect the MN Energy Connection transmission line to the existing Sherco substation and to the nearby regional high-voltage grid, helping ensure continued reliable electric service for customers. Re-using this connection enables Xcel Energy to replace energy from the retiring plants while meeting federal regulations to re-use transmission interconnections or lose those rights. This strategy saves customers money compared to building new infrastructure.
“This unique proposal will deliver more carbon-free electricity for our customers, while also preserving the connections at the Sherco power plant, saving hundreds of millions of dollars in our clean energy transition,” said Clark. “The importance of central Minnesota to our electric system cannot be overstated. The grid has built up through this area over a century and continues to drive Minnesota’s economy forward.”
In addition to providing affordable, renewable energy, the project will help deliver reliability and voltage stability for the transmission system by using synchronous condensers, which mimic the mechanical energy provided by large power plants. The synchronous condensers will help maintain central Minnesota and Becker as key to Minnesota’s energy system.
Public outreach, regulatory and route development processes beginning
The Minnesota Public Utilities Commission must approve a Certificate of Need and a Route Permit application before construction can begin. The Certificate of Need application will be filed later this year, and the company is beginning to work with landowners and local governments to identify potential route locations.
A Route Permit application, which will include at least two route options for review, is expected to be filed in late 2023 or early 2024 following significant public outreach throughout the project area to identify potential route options. Following the filing of the Route Permit application, the Commission will hold meetings and hearings in the area before selecting a route.
Construction is expected to begin in 2026 and be complete in 2028.
Additional information can be found at www.xcelenergy.com/MNEnergyConnection.
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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 Twitter and Facebook.