Proposed Minnesota high-voltage 180-mile power line could cost $1B

Minnesota Power and Great River Energy are proposing to build a 180-mile transmission line from northern to central Minnesota.

The project is one of several new high-voltage power lines utilities want to build across the Upper Midwest in the next several years. It was one of 18 transmission projects approved last year by the Midcontinent Independent System Operator, which operates the Midwest’s electric grid.

Utilities say the new transmission lines are needed to help maintain a reliable power grid, as existing coal plants are retired and more solar and wind energy is brought online.

“As you move renewable energy into the system at higher levels, you need stronger and more capability on the grid to make all of that energy work together efficiently,” said Julie Pierce, vice president of strategy and planning for Minnesota Power. 

She called the proposed Northland Reliability Project “a new backbone to help the entire state transition and move that energy around.” 

The project includes two segments. The first, about 140 miles, would run from the Iron Range to a substation near St. Cloud. About 85 percent of the proposed route follows existing transmission corridors. 

The second segment would replace two existing 20-mile lines between Benton and Sherburne counties. The project also would expand existing substations near Grand Rapids and St. Cloud, and build a new one near Riverton in Crow Wing County.

As more power-generating plants are retired across the Upper Midwest, it raises concern about areas like northern Minnesota that are served by lower-voltage transmission lines, said Priti Patel, Great River Energy’s vice president and chief transmission officer.

That can create grid stability issues during certain times of the year — such as cold winter months — when electricity use increases, she said.

“This transmission line provides a reliable path for power to flow from southern Minnesota to the north,” Patel said.

The utilities have already held about 30 open houses and meetings with landowners, local governments and tribal nations, and have incorporated their input into the route planning, said Jim Atkinson, manager of environmental and real estate for Minnesota Power.

“As a result, it seems to be pretty well accepted,” he said. “We're not seeing a lot of consternation among landowners or anything.”

The total project cost is estimated to be at least $970 million, and could be as much as $1.3 billion.

Because the project is needed by the entire Upper Midwest, MISO’s entire customer base will help pay, Pierce said. She estimated that Minnesota Power will pay about two percent of the line’s cost, resulting in an increase of about a dollar per month on the average customer’s bill.

Minnesota Power and Great River Energy have applied to the state Public Utilities Commission for a certificate of need and route permit. The commission would determine a final route.

If approved, the utilities hope to begin construction in 2027 and aim for the transmission line to begin operating in 2030.