The Midcontinent Independent System Operator (MISO) is getting a boost after Minnesota regulators approved two 345 kV transmission projects last week to more easily move electricity across the region →
- The 200-mile Big Stone South-Alexandria-Big Oaks project is the first of an 18-project effort to 1) reduce grid congestion in Minnesota and the Dakotas and 2) enable more low-cost wind and solar to reach customers, an Xcel energy exec told Energy Central.
- The 150-mile Mankato-Mississippi project has other major utilities working alongside Xcel Energy—Great River Energy, Minnesota Power, Otter Tail Power, and the Western Minnesota Municipal Power Agency. Through this project, the companies aim to improve energy distribution in the southeast region to the Mississippi River.
FYI: MISO is the largest Regional Transmission Organization (RTO), operating in 15 states from Texas to Wisconsin and Louisiana to North Dakota.
Why it matters: Similar project approvals are likely in the other 14 states in MISO, Minnesota PUC Commissioner Joseph Sullivan told Energy Central. As utilities add solar and wind renewable projects, grid instability becomes a pressing concern.
That’s where transmission upgrades come in.
“Where power is being produced can change by the minute, and we’re starting to see more and more reliance on big regional transmission so we can lean on our neighbors for help,” Great River Energy Manager of Transmission Strategy and Development Matt Ellis told Energy Central.
But…it’s costly. Land costs almost $13,000 per acre, towers cost $635,000 each, and regulatory permitting costs over $2,000 per acre. Altogether, that nets out to over $15,000 per acre—a bill shouldered by ratepayers.
Sullivan said, when compared to the cost of adding more power plants, “transmission is cheaper than generation.” For every dollar spent on these two projects, ratepayers will get $2.60 back.
“Though the headline numbers may appear expensive, the projects return more value than they cost,” Ellis told Energy Central.
While we’re here: This project will also help surrounding regional transmission organizations such as PJM—which is struggling to add transmission, Sullivan said. MISO’s approach (ft. numerous stakeholder energy companies coming together) could set an example. American Electric Power, Dominion Energy Virginia, and FirstEnergy proposed a similar joint effort on Monday.
