Legalectric

Electric rates in Minnesota used to be among the lowest in the nation. Now, it’s UP, UP, UP! Why? Because we’re paying for all those billions of dollars of transmission lines going UP, UP, UP!

Here’s an example, from the West Central Tribune — note in the article below, the issue of whether it’s to bring energy “into the area” was deftly dodged. This line is about MONEY, it’s NOT about bringing energy into the area.

Willmar Municipal Utilities reaches $100,000 net gain benchmark on transmission investment

The Willmar Municipal Utilities Commission on Monday heard an update from staff electrical engineer Jeron Smith regarding its transmission investment in the Grid North Partners project.

By Jennifer Kotila

November 15, 2024 at 5:17 AM

WILLMAR — Willmar Municipal Utilities has realized a net gain from its investment in the Upper Midwest transmission project formerly known as CapX2020, the Municipal Utilities Commission learned this week.

Willmar Municipal Utilities invested $550,000 in what is now known as the Grid North Partners project, making its last payment in 2012. Thus far, Willmar Municipal Utilities has realized a net gain of $101,000 from the investment, according to staff electrical engineer Jeron Smith, who presented an update to the commission during its regular meeting Monday.

Willmar Municipal Utilities and 14 other municipalities entered into an agreement with Central Municipal Power Agency/Services for the 250-mile Brookings line — a transmission line from Brookings County, South Dakota, to Hampton, Minnesota, located just south of the Twin Cities.

The transmission line was constructed for a double circuit, with only one circuit being installed when it was completed in 2015.

In January 2024, the Utilities Commission approved investing an additional $550,000 in the project to install the second circuit, which is currently in progress with an expected completion date of Sept. 15, 2025.

Willmar Municipal Utilities owns a percentage of the transmission line and shares in operating and management costs for its share of the line, according to Smith.

Owners are also responsible for roughly 10% of the cost for substations that want to interconnect using the transmission line, and the costs are allocated by each member’s percentage of ownership.

Currently, there are three new substations in the Midcontinent Independent System Operator generator interconnection application queue to interconnect with the transmission line, according to Smith.

“If those come to reality, we could potentially have more expenses in that, but we’ll keep you informed as they come along and materialize,” Smith told the commission.

Commissioner Bruce DeBlieck asked if the additional transmission is to assist in bringing more renewable energies into the area.

“It’s part of the larger MISO transmission expansion plan, but yes, that’s the bulk of it, to replace the carbon generators that are being shut down and bring more renewable energy into our area,” Smith said.

According to the Central Municipal Power Agency/Serviceswebsite, it sponsored 11 public power utilities in Minnesota and four in Iowa in the CapX Brookings/Grid North transmission project 10 years ago in order to allow public power to make transmission investments on the same basis as investor-owned utilities.

The municipal power agency and its participants own 3.9% of the 345-kilovolt line along with Xcel Energy, Great River Energy, Otter Tail Power Corporation and Missouri River Energy Services.

The investment by Central Municipal Power Agency/Services in the CapX Brookings/Grid North transmission line was a strategy to hedge future MISO transmission usage rate increases, according to the website.

During the 40-year life of the CapX Brookings/Grid North project, Central Municipal Power Agency/Services participants are projected to earn a return of $17.8 million in excess of their expenses in the form of distributions and savings from the $32 million investment to construct the line, according to West Central Tribune archives.