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For Immediate Release:
October 3, 2024
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Minnesota Public Utilities Commission
Contact: Cori Rude-Young, 651-201-2241
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Minnesota is first state to approve regional transmission line - moves forward on transmission projects set to enhance energy infrastructure
St. Paul, Minn. — The Minnesota Public Utilities Commission (Commission) made decisions on two significant transmission projects aimed at bolstering Minnesota’s energy infrastructure: the Big Stone South—Alexandria—Big Oaks project and the Mankato-Mississippi project. These 345-kV transmission projects are designed to improve the reliability and affordability of energy delivery across the region. They will also support the state's commitment to sustainable energy solutions.
Both projects were studied and approved by the Midcontinent Independent System Operator (MISO) and are needed to improve the ability to move electricity across the MISO region from where it is generated to where it is needed -- reliably and at the lowest possible cost. Big Stone South-Alexandria-Big Oaks is the first of MISO’s Long Range Transmission Planning (LRTP) projects approved by any state public utilities commission in the region. As an LRTP project, the 10 states in MISO Midwest will all share in the costs of these lines.
“What we approved today will return approximately $2.60 in benefits to Minnesota ratepayers for every dollar we spend - primarily in fuel savings and reduced generation costs,” said Commissioner Joseph Sullivan. “Transmission is the most inexpensive part of the electric system because it enables ratepayers access to low-cost generation and makes the system more efficient.”
The Commission approved the certificate of need for the Big Stone South—Alexandria—Big Oaks project, as well as the route permit for the eastern segment of the line, from Alexandria to Big Oaks. The western segment will come before the Commission in 2025. Xcel Energy, Great River Energy, Minnesota Power, Otter Tail Power, and Western Minnesota Municipal Power Agency are collectively working on this project to create a transmission line that connects the Big Stone South substation to the Alexandria and Big Oaks substations.
This 200-mile project is expected to enhance access to renewable energy sources, reduce transmission losses, and provide reliable electricity to thousands of residents and businesses across central and western Minnesota. The eastern route, from Alexandria to Big Oaks, is approximately 100 miles long and will connect the Alexandria substation to a new substation near Becker. Approximately 95% of the eastern line will use the existing double circuit capable CapX2020 structures, thus limiting the environmental and landowner impacts.
Xcel Energy’s Mankato-Mississippi River 345-kV project aims to improve energy distribution between the Mankato area and the southeast region, to the Mississippi River. The decision before the Commission for this project was which routes should be studied for this 150-mile transmission line. After reading through comments and hearing from stakeholders, the Commission determined that additional review of routes is needed. The added analysis will examine the feasibility of moving the line further away from Cannon Lake, potentially resulting in fewer impacts to landowners.
“Today represents a milestone in our efforts to create a cleaner, more reliable energy future for Minnesota and for our entire region,” said Commissioner Sullivan. “By investing in our transmission infrastructure, we are not only meeting current energy demands but also preparing for the future as we transition to a more sustainable energy system.”
Construction for Big Stone’s eastern segment is set to begin in the second quarter of 2025, with completion expected by late 2027. The next step for the Mankato to Mississippi project is to develop a draft environmental analysis. This will include opportunities for public comment. For further updates on these projects and other transmission initiatives, please visit the Commission’s website.
About
The Minnesota Public Utilities Commission regulates three cornerstone service industries in Minnesota's economy: electricity, natural gas and telephone. The Commission’s mission is to create and maintain a regulatory environment that ensures safe, adequate, and efficient utility services at fair, reasonable rates consistent with State telecommunications and energy policies. It does so by providing independent, consistent, professional, and comprehensive oversight and regulation of utility service providers. Learn more at mn.gov/puc.
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