Project will reduce carbon emissions and advance company's
EnergyForward strategy
DULUTH, Minn.--(BUSINESS WIRE)--
Minnesota Power's Great Northern Transmission Line received federal
approval today when the U.S. Department of Energy (DOE) issued a
Presidential Permit, clearing the way for building the international
transmission line to deliver clean energy from Canada's extensive
hydropower resources to Minnesota while strengthening reliability of the
power grid.
The Presidential Permit is the final major regulatory approval needed
before construction can begin and is required because the transmission
line will cross the international border between Manitoba and Minnesota
and connect with Manitoba Hydro's Manitoba-Minnesota Transmission
Project. The DOE, the federal agency responsible for issuing
Presidential Permits for electric transmission lines, issued its Final
Environmental Impact Statement for the project in October 2015. The
Presidential Permit approval is the final step in a four-year process
that included comprehensive agency review and voluntary community
engagement by Minnesota Power, a utility company of ALLETE, Inc. (NYSE:
ALE).
"I would like to thank Congressman Rick Nolan, Congressman CollinPeterson, Sen. Al Franken, Sen. Amy Klobuchar and the Red Lake Nation
for their strong support of the project and advocacy to the DOE," said
ALLETE Chairman, President and CEO Al Hodnik. "These informed and active
partners were key to reaching final federal approval of this clean
energy milestone."
"The Great Northern Transmission Line is a crucial link in Minnesota
Power's EnergyForward strategy of balancing renewable and traditional
energy sources. Minnesota Power already has exceeded Minnesota's 25
percent renewable standard, and is well-positioned to meet future
decreased carbon emissions goals," Hodnik said. "DOE's issuance of this
permit is the latest example of how we're answering the nation's call to
transform its energy landscape, while growing ALLETE. Minnesota Power
was forged from renewable hydropower 110 years ago, and that sustainable
ethos lives on in this project that will deliver hundreds of megawatts
of carbon-free hydropower to our customers."
Construction is expected to begin in early 2017 on the 500-kilovolt line
that will deliver 383 megawatts of renewable hydropower purchased from
Manitoba Hydro to Minnesota Power's customers beginning in 2020. The
project is a key component of Minnesota Power's EnergyForward strategy
to reduce carbon emissions and ensure continued reliability and
affordable rates while achieving a balanced energy mix of one-third
renewable energy, one-third natural gas and one-third coal.
"This is an important project for securing the availability of
affordable, renewable electricity in northeastern Minnesota - especially
for residential consumers, as well as our mining, manufacturing, timber
and tourism industries," said Nolan who represents Minnesota's 8thCongressional District. "I am very pleased the project's final stage of
review has crossed over the finish line, just in time for the winter
construction season. The Great Northern Transmission Line enjoys broad
stakeholder support, including local tribes, and has positive energy
security and environmental implications for northeastern Minnesota, the
Nation, and North America. I especially want to thank Secretary Moniz
for his work and responsiveness to our recent request for a timely
resolution."
The GNTL and its clean energy benefits have been widely recognized. In
June 2016, a White House press release on the North American Climate,
Clean Energy and Environment Partnership that calls for the U.S., Mexico
and Canada to generate 50 percent of their electricity from renewable
resources by 2025, the GNTL was cited as one of the cross-border
transmission projects that will help achieve that goal.
And in May 2014, the White House pointed out that Minnesota Power's
early coordination with other agencies and meetings with tribes, local
government units and landowners was key in narrowing down potential
routes for the line.
"Minnesota Power's early work with landowners, community members, and
tribal and government representatives paved the way to this permit.
Through extensive meetings with stakeholders and open houses, the
project development process led to the best route," said Brad Oachs,
Minnesota Power chief operating officer. He noted that Minnesota Power
also coordinated with the DOE and the state Commerce Department in the
route development, refinement and selection process to reach this
regulatory milestone.
The Great Northern Transmission Line will optimize and balance the
renewable resources of wind and hydropower by creating synergy between
Minnesota Power's 500-megawatt wind farm in North Dakota and Manitoba
Hydro's system of dams and reservoirs in Canada. Under power purchase
agreements between the two companies and approved by the MPUC, Manitoba
Hydro can reduce the flow of water through its hydro generators when
there is excess wind power from Minnesota Power's North Dakota wind
farm. When winds are light or calm, Manitoba Hydro can release more
water—stored while the wind was blowing—through its dams and increase
its hydropower production.
The approved 224-mile route will cross the border between the U.S. and
Canada in Roseau County in northern Minnesota, about three miles east of
Minnesota Highway 89. The line will run to an expanded Blackberry
electric substation east of Grand Rapids, Minnesota. The route passes
through Roseau, Lake of the Woods, and Koochiching and Itasca counties
in Minnesota and largely follows Minnesota Power's preferred route,
including the critical international border crossing.
Minnesota Power estimates the total cost of the project will be between
$560 million and $710 million, with the company's portion of the cost
estimated between $300-350 million.
More information about the project can be found at http://www.greatnortherntransmissionline.com/
Minnesota Power provides electric service within a 26,000-square-mile
area in Northeastern Minnesota, supporting comfort, security and quality
of life for 145,000 customers, 16 municipalities and some of the largest
industrial customers in the United States. More information can be found
at www.mnpower.com.
(ALE-ENRG)
The statements contained in this release, and statements that ALLETE
may make orally in connection with this release that are not historical
facts, are forward-looking statements. Actual results may differ
materially from those projected in the forward-looking statements. These
forward-looking statements involve risks and uncertainties and investors
are directed to the risks discussed in documents filed by ALLETE with
the Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161116006518/en/
Minnesota Power/ALLETE
Amy Rutledge, 218-723-7400
Manager
- Corporate Communications
arutledge@mnpower.com
Source: Minnesota Power/ALLETE
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