MINNEAPOLIS (April 5, 2024) – Xcel Energy, along with the co-owning energy providers Dairyland Power Cooperative, Rochester Public Utilities and Southern Minnesota Municipal Power Agency, is proposing to build a new transmission line in southern Minnesota that will help deliver more low-cost renewable energy to electric customers throughout the Upper Midwest while improving overall system reliability and resiliency during extreme weather.

The new infrastructure, stretching about 100 miles between Mankato and the Wisconsin border, will also reduce transmission system congestion and help energy companies in the region reduce carbon emissions and manage the system as older coal plants retire in the coming years.

This week, the company filed a joint certificate of need and route permit application with the Minnesota Public Utilities Commission to build a transmission line between Mankato and the Mississippi River near Kellogg, where it will connect with the existing transmission system. Xcel Energy is leading the permitting and construction efforts, while all four energy providers are collaborating on the portion that will be located on the existing CapX2020 line near Pine Island and an associated 161-kilovolt line that will be relocated as part of this proposal.

“This project allows us to bring low-cost, renewable wind and solar energy to millions of homes and businesses. It represents an investment of more than $500 million in new energy infrastructure in Minnesota, and it will create good-paying jobs,” said Ryan Long, president, Xcel Energy-Minnesota, North Dakota and South Dakota. “As we lead the clean energy transition, our energy system is shifting from large, centrally located power plants to more dispersed renewable generation. This new transmission line will help us deliver energy from where it’s generated to where it’s needed.”

Transmission projects like these and others in development throughout the region will help utilities provide reliable electricity while keeping bills affordable. The project is part of a transmission expansion identified by the Midcontinent Independent System Operator (MISO), along with several other regional projects that will work together to provide economic benefits, regional reliability and improved access to low-cost renewable energy.

Wind and solar energy does not have any fuel costs and contributes to a diversified energy mix, helping protect against rising fuel prices and saving customers money. The project supports the company’s vision of delivering 100% carbon-free electricity in Minnesota by 2040 to meet the state’s new clean energy standards.

The application reflects Xcel Energy’s collaboration over the past year with tribal and local governments, landowners and other stakeholders throughout the project area. Xcel Energy held virtual and in-person open houses and collected more than 300 comments about potential route options, helping the company determine the least impactful routes to propose in the application.

The proposed 345-kilovolt transmission line will be built between a substation in Mankato and one near Pine Island, and then connect to infrastructure in western Wisconsin. The project also includes a new, approximately 20-mile 161-kilovolt transmission line from near Pine Island to Rochester.

The Public Utilities Commission will review Xcel Energy’s proposal, a process that generally takes approximately 12-18 months and includes opportunities for input from customers, landowners and other key stakeholders. If approved, the company expects to start construction in late 2026 or early 2027 and place the project in service by 2030.

New transmission will meet customers’ needs

The Mankato-Mississippi River transmission project is one of many examples of how Xcel Energy and other Minnesota energy providers are planning for future energy needs in the Upper Midwest. As the amount of wind energy in the Upper Midwest has increased, wind farms are now providing more energy than the transmission grid can physically deliver to customers. This causes congestion in the transmission system, like a traffic jam on a highway. Adding transmission capacity will open access for more low-cost renewable energy to reach customers. 

Xcel Energy’s proposed Minnesota Energy Connection is a separate project that would connect wind resources in southwest Minnesota with the company’s current infrastructure at the Sherco plant in Becker. The company is also in the planning stages for an additional $1 billion in transmission work approved by MISO.

Learn more about the Mankato-Mississippi River project, including detailed maps of the project area and an opportunity to provide feedback.

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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. 

About Dairyland Power Cooperative

Dairyland, a Touchstone Energy Cooperative, was formed in December 1941. Headquartered in La Crosse, Wis., Dairyland provides the wholesale electrical requirements for 24 distribution cooperatives and 27 municipal utilities. These cooperatives and municipals, in turn, supply the energy needs of approximately 700,000 people in Wisconsin, Minnesota, Iowa and Illinois. Visit dairylandpower.com.

About Rochester Public Utilities

As the municipal utility of Rochester, Minn., for more than 110 years, RPU provides high-quality and reliable electricity to over 58,000 customers. Water customers number more than 41,000. RPU continually investigates innovative technologies to help customers realize the best value from the services they receive. Current initiatives include photovoltaic offerings, wind energy, energy and water efficient equipment, and electric vehicle charging.

About SMMPA

SMMPA provides electricity and related services to 17 municipally operated utilities, mostly in south-central and southeastern Minnesota. For more information about SMMPA, please visit www.smmpa.com.