Allete will partner with Houston-based Grid United to develop a new $2.5 billion transmission line from central North Dakota to eastern Montana.
Minnesota Power’s parent company, Duluth-based Allett, will operate and own at least 35% of the 385-mile line. This is his $875 million investment. A 600-kilovolt power line connects his three different regions of the US power grid.
The entire US power grid is decentralized. Connections between the eastern and western grids are particularly scarce, making it difficult to move abundant power from one area to an underpowered area.
Julie Pearce, vice president of strategy and planning, Minnesota Power, said: The power line becomes Allete’s corporate project. Minnesota Power does not solicit money from toll payers to pay for it.
The North Dakota-Montana transmission line is one of the largest transmission projects undertaken by Allete or its Minnesota Power subsidiary.
If built, the power line, called the North Plains Connector, is expected to come online in 2029. Allete is working with Grid United, but the two companies have not signed a full development agreement.
“We are in the early stages of developing this project,” Pierce said. “There is a long road ahead.”
In fact, numerous state and federal regulatory permits are required, as well as approvals from MISO and SPP, the organizations that operate the regional power grids that cover many states, including Minnesota.
The North Plains Connector was to run from two points in central North Dakota to Colstrip, Montana, where a large coal power plant is located. North Dakota is a major electricity exporter from both coal-fired and wind farms.
New transmission lines will facilitate the transportation of electricity produced in states far beyond North Dakota and Montana. This could reduce congestion across the grid and improve power delivery to areas hit by severe weather.
Grid United and Allete say this will be the nation’s first transmission connection between three U.S. regional power markets: the Midcontinent Independent System Operator (MISO), the Western Interconnection and the Southwest Power Pool (SPP).
Grid United was founded several years ago by wind farm developer Michael Skelly, who turned to transmission development as head of Clean Line Energy. Cleanline He attempted to develop a 700-mile power line from Oklahoma to Tennessee.
The company went bankrupt in 2017 after encountering a number of regulatory hurdles, but its transmission project was effectively revived by another company named Grain Belt Express.
Grid United, which is backed by energy-focused investment fund Centaurus Capital, is working on five transmission line projects ranging from 100 miles to 385 miles in length, with North Plains Connector being the furthest, Skelly said. Stated.
“We had thousands of conversations,” he said, with landlords and government officials.
Allete is the first utility company to join one of United Grid’s projects. “It’s a big deal for us,” Skelly said. “It’s a sign of confidence in the project.”
Skelly said he expects part of the North Plains Connector to become a “merchant” power line that carries electricity to and from customers who pay for the service.
However, utility companies may also participate in the project to serve their own customers and recover their investment from rate payers.
The North Plains Connector is a high voltage DC transmission line. High-voltage DC power lines lose less power over long distances than alternating current (AC power lines), making power transport more efficient.
Transmission lines have the capacity to transport 3,000 megawatts of power.
