DULUTH, Minn.--(BUSINESS WIRE)--
Minnesota Power's Great Northern Transmission Line cleared a major
regulatory hurdle today with approval of a route permit for the
500-kilovolt line that will deliver renewable, carbon-free
hydroelectricity from Canada to the utility's customers in Northeastern
Minnesota.
The Minnesota Public Utilities Commission unanimously approved the route
permit for the transmission line being developed by Minnesota Power, a
utility division of ALLETE Inc. (NYSE: ALE). The route permit is among
the most important regulatory decisions the project requires. A
presidential permit from the U.S. Department of Energy, needed because
the line crosses an international border, is expected in March or April.
The Great Northern Transmission Line is a signature component of
Minnesota Power's EnergyForward strategy to reduce carbon emissions and
ensure continued reliability and affordable rates while diversifying its
energy portfolio to one-third renewable energy, one-third coal and
one-third natural gas. It will be used to deliver hydroelectric power
purchased from Manitoba Power to serve Minnesota Power customers and the
region.
"Today's decision by the Commission is an affirmation of the wise
investments, creativity and productive partnerships Minnesota Power
continues to bring as it helps transform the nation's energy landscape,"
said Al Hodnik, ALLETE chairman, president and CEO. "This project will
promote a more balanced energy future while also delivering value for
ALLETE shareholders."
Minnesota Power needs the line to deliver at least 383 megawatts of
energy to its customers by June 1, 2020, under power purchase agreements
with Manitoba Hydro approved by the MPUC in 2012 and 2015.
The route permit approval comes after years of comprehensive agency
review and voluntary stakeholder engagement by Minnesota Power. The
transmission line was proposed in 2012.
"Minnesota Power worked hard early on to engage landowners, community
members, tribal and other stakeholders to explain the project and
receive feedback. The extensive outreach, including more than 75
meetings and open houses, was a critical part of the project development
process," said Brad Oachs, chief operating officer for Minnesota Power.
"We also received an unprecedented level of local, state and federal
involvement, including coordination with the U.S. Department of Energy
and the Minnesota Department of Commerce, in the route development,
refinement and selection process that was critical to this important
regulatory outcome."
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, Minn. The route includes
locations in Roseau, Lake of the Woods, Koochiching, and Itasca counties
in Minnesota and largely follows Minnesota Power's preferred Blue Route,
including the critical international border crossing.
Building the line is a significant undertaking. Construction is expected
to get underway in earnest in 2017 with the line completed by 2020. The
line will generally require a 200-foot-wide right-of-way, with about
four or five structures per mile. Each structure is about 100 to 170
feet in height and the specific types of structures will depend on land
type and land use.
Minnesota Power estimates the total cost of the project will be between
$560 million and $710 million.
On the Canadian side, in September 2015, Manitoba Hydro filed its
environmental documents and final preferred route with provincial
regulators as part of the process for securing a license for the
transmission line in Manitoba.
The Great Northern Transmission Line will enhance a unique synergy
involving Minnesota Power's Bison wind farm in North Dakota and
hydroelectric power from Manitoba Hydro. Under the power purchase
agreements between the two utilities, Minnesota Power can "store" wind
energy it produces at its Bison wind farm in North Dakota in the form of
water energy stored behind Manitoba Hydro's dams in Canada. When wind
production is high, typically at night, the hydro operators can reduce
output and store the water—and its associated energy— that would have
otherwise flowed through the utility's generators behind dams. When wind
production is lower, typically during the day, they can release water
and send clean power to the grid.
More information including the route map 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/20160226006173/en/
Minnesota Power/ALLETE
Amy Rutledge, 218-723-7400
Manager -
Corporate Communications
arutledge@mnpower.com
Source: Minnesota Power
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