Transmission Projects: Where are we now?
Minnesota needs to increase transmission capacity to bolster energy reliability and enable more renewable generation to be incorporated onto the grid. Since publishing our blog on the “when and where” of transmission buildouts, the regulatory processes associated with these projects have moved steadily along. Although none of the transmission lines discussed below have been approved by the Minnesota Public Utilities Commission (Commission), the timeline for final review is fast approaching for several projects.
If you want to read more about the anticipated benefits of these transmission lines or where they are located, please refer to our blog on Constructing Energy Pathways. Below, we provide a brief update on the regulatory processes associated with these projects.
Minnesota Energy Connection Project
Dockets Nos. CN-22-131; TL-22-132
Status: Ongoing
Source: Northern States Power Company, Minnesota Energy Connection Certificate of Need Application (Mar. 2023).
The Minnesota Energy Connection Project will be located in southern and southwestern Minnesota and is designed to reutilize interconnection rights as Xcel Energy’s coal facilities are taken offline and replaced with low-cost renewable energy resources..
An application for a Certificate of Need was filed for the project in March of 2023, followed by a petition for a route permit in October 2023. Regulatory review for the Certificate of Need is following an informal process, while the route permit was referred to the Office of Administrative Hearings (OAH) for a contested case.
Initial comments on the Certificate of Need were received by the Commission on September 6, 2024. The reply comment period is currently open, and parties can submit filings until October 8. Supplemental comments will be accepted until October 22.
Initial testimony on the route permit was submitted on September 6. A draft report on the environmental impact of the project will be filed at the beginning of October, followed by additional testimony and public hearings. A Notice of Public Hearing—with information about when the meetings are and how to participate—will be filed on October 15, 2024. Throughout the remainder of 2024 and early 2025, the contested case process will involve evidentiary hearings, party briefings, and the final release of an Environmental Impact Statement. A report and recommendation from the Administrative Law Judge (ALJ) overseeing the case will be released in early February, after which the Commission will hold a hearing on the project.
Big Stone South – Alexandria – Big Oaks
Dockets Nos. CN-22-538; TL-23-159
Status: Commission hearing pending
Source: Northern States Power Company et al., Big Stone South - Alexandria - Big Oaks Certificate of Need Application (Sep. 29, 2023).
The Big Stone South – Alexandria – Big Oaks project is designed to connect Big Stone City, South Dakota to Sherburne County, Minnesota by placing new 345 kV transmission lines on existing structures. The project will reduce capacity constraints and allow abundant wind resources from the Dakotas to be transferred into Minnesota.
The project is split into Eastern and Western segments, with each segment moving through the regulatory process separately. An application for a Certificate of Need and route permit was submitted for the Eastern Segment of the project in September 2023. The application for the Western Segment is expected to be filed in the fourth quarter of 2024.
An environmental assessment on the Eastern Segment was completed and published in May. Public hearings on the project were subsequently held in June, and the Commission accepted comments from interested parties through early July. On August 30, the Administrative Law Judge assigned to the case issued a report and recommendation on the project. The ALJ recommended the route permit for the Eastern Segment of the project be approved, subject to conditions designed to minimize environmental and social impacts. A Commission hearing on the Certificate of Need and route permit has been tentatively set for October 3, 2024.
Iron Range – Benton County – Big Oaks (Northland Reliability)
Dockets Nos. CN-22-416; TL-22-415
Status: ALJ report expected early November
Source: Minnesota Power and Great River Energy, Northland Reliability Certificate of Need and Route Permit Application (Aug. 4, 2023).
The Northland Reliability project will span from the Iron Range down to central Minnesota and increase grid reliability throughout the northern portion of the state. The transmission line will help utilities access wind and hydropower resources that are especially needed on cold winter days.
A Certificate of Need and route permit application for the project was filed by Minnesota Power and Great River Energy in August 2023. Comments were accepted on the Certificate of Need through June 2024, and on the route permit through August 5. An environmental assessment of the project was issued on June 28, and public hearings were held in mid-July. The ALJ hearing the case is expected to issue a report and recommendation on November 8, which will be followed by a Commission hearing.
Mankato – Mississippi River
Dockets Nos. CN-22-532; TL-23-157
Status: Ongoing
Source: Northern States Power Company, Mankato - Mississippi River Certificate of Need and Route Permit Application (Apr. 2, 2024).
As its name suggests, the Mankato – Mississippi River project involves constructing a new 345 kV transmission line between Mankato and the Mississippi River. The project will also connect a substation north of Rochester to an existing transmission line approximately 20 miles away. By adding more capacity to the electricity system, the Mankato – Mississippi line is designed to relieve “overloading,” which occurs when more energy is being produced than existing transmission is capable of handling. The project will also open up new opportunities for renewable energy development in Minnesota and the Dakotas.
The Certificate of Need and route permit application for this project was filed in April 2024. The route permit will be evaluated through a full permitting process, which involves a contested case and record-building before an ALJ. This proceeding is just getting started, and will involve public meetings, an Environmental Impact Statement filing, several rounds of testimony, evidentiary hearings, and party briefings. The ALJ is expected to file a report and recommendation in September 2025. The Certificate of Need will go through an informal, notice-and-comment process, for which no comment deadlines have been established.
Conclusion
The transmission lines detailed above will play an essential role in facilitating renewable energy adoption and will help utilities meet the state’s carbon-free electricity standard. They will also increase reliability and bring economic and carbon-reduction benefits to Minnesotans.
While the regulatory processes for these projects can be long and complicated, they help ensure a full range of stakeholder and consumer voices are heard and considered. If you are interested in sharing your thoughts on any of the above projects, you can do so via the Commission’s website. Make sure you reference the individual docket numbers listed above. Any submission you make will become part of the public record.
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