AWEA - Minnesota Power Buys North Dakota Transmission as Part of RES Strategy

Allete subsidiary Minnesota Power has finalized the purchase of a 465-mile transmission line running from wind-rich North Dakota as part of its long-term plan to bring more renewable energy onto its system and meet its state renewables mandate.

Minnesota Power acquired the 250-kV line connecting Center, N.D., with its Arrowhead Substation in Hermantown, Minn., from the Square Butte Electric Cooperative for approximately $70 million. The DC line will pave the way for the company to implement plans to develop several hundred megawatts of new wind generation in North Dakota.

Minnesota Power is already laying the groundwork for construction of its Bison wind farm, a 75-MW installation near New Salem, N.D. The project, consisting of 33 turbines with a 2.3 MW capacity each, will be installed in two phases. Phase 1, which will involve the construction of the first 16 turbines, is scheduled to be operational by the end of 2010.

“The DC line is the centerpiece of our wind development efforts in North Dakota and reflects our commitment to providing long-term value for our customers and shareholders,” said ALLETE CEO Don Shippar. “Finalizing this purchase will allow us to deliver more clean energy to our customers and the Upper Midwest in a cost-effective manner while supporting our efforts to meet Minnesota’s aggressive mandate of producing 25% of our energy from renewable sources by 2025.”

When Square Butte built the DC line in the 1970s, it was designed to move electricity from the coal-fired Young Station to supply Minnesota Power’s taconite-industry customers in northeast Minnesota’s Iron Range. Electricity generated at the Young Station is now shared by Minnesota Power and Minnkota Power Cooperative, an affiliate of Square Butte. Over the next several years, Minnesota Power will phase out its generation rights at the Young Station.