ALLETE, Grid United subsidiary sign development agreements for 400 mile, cross-state transmission line
A new, approximately 400 mile high voltage direct current (HVDC) transmission line will eventually unite North Dakota with Montana, as a result of development agreements reached this week between ALLETE, Inc. and North Plains Connector LLC.
It will be the first HVDC transmission connector in the U.S. to join three regional electric energy markets: the Midcontinent Independent System Operator, the Western Interconnection and the Southwest Power Pool. In all, it should create 3,000 MW of transfer capacity between them and, the companies hope, ease congestion on the system while increasing resiliency and reliability.
“The North Plains Connector is a much-needed link for a resilient and reliable energy grid from the Pacific coast to the Upper Midwest to support the clean-energy future,” Bethany Owen, ALLETE chair, president and CEO, said. “Since signing the memorandum of understanding with Grid United in January, we’ve been impressed by their dedicated and thoughtful work on this project. These agreements cement our relationship with Grid United and provide a strong foundation as we pursue this major transmission investment, part of our ‘Sustainability-in-Action’ growth strategy at ALLETE, and we look forward to working collaboratively with others to bring this important project to fruition.”
The project is expected to cost around $3.2 billion, but will provide long-term energy infrastructure gains for the states involved. In particular, the North Plains Connector project should help reduce the impact of extreme weather events while addressing growing demands on electricity.
Each company will have different responsibilities and roles for the project. ALLETE intends to pursue up to 35 percent ownership and oversee its operation, for example. Meanwhile, North Plains Connector LLC – a Grid United LLC subsidiary – has engaged with landowners and stakeholders to develop a proposed route and support both the permitting and development of the line. Currently, the project could finish as soon as 2029, if all goes well.
“We are excited to move the North Plains Connector forward with ALLETE, which brings considerable transmission expertise and experience to this important project,” Michael Skelly, Grid United CEO, said. “Connecting regional energy markets through new HVDC transmission lines is a critical need as more energy sources are brought online. This project will safeguard resilience and reliability across a wide area of the country by moving electricity from where it is generated to where it is needed.”
The week’s development agreements followed a memorandum of understanding signed between the two companies at the beginning of the year.
