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Transmission line upgrades for wind generation move forward

Route approved for part of $160 million improvement plan on Buffalo Ridge

MINNEAPOLIS - The plan by Xcel Energy (NYSE: XEL) to help Minnesota’s burgeoning wind generation industry by investing in improved transmission lines in Southwestern Minnesota took a major step forward this week, when the Minnesota Environmental Quality Board approved the route for a new transmission line needed to get the area’s wind energy "crop to market."

The new 161-kilovolt line will run 26 miles, connecting the Lakefield Junction substation near Lakefield with the Fox Lake substation near Sherburn. The action by the MEQB clears the way for construction of the line, which will run along I-90 for most of its route. Xcel Energy applied for the route permit in November 2003.

The project is one of four major new transmission lines, and 19 others being completely rebuilt, which together will triple the capacity of the transmission system in the area. That will allow up to 825 megawatts of wind-generated power to be transmitted to Xcel Energy customers in the Twin Cities and other areas of the upper Midwest. In addition, nearly two-dozen substations will be upgraded. While most of the investment is concentrated in Southwestern Minnesota, the improvements will stretch as far north as Alexandria, and as far east as the Twin Cities.

"We’re very pleased to be moving forward with such a vital project," said Doug Jaeger, vice president of Transmission for Xcel Energy. "These projects will benefit local communities, the economy of the region and the environment by facilitating the continued use of the existing wind energy capacity on the Buffalo Ridge and the expected growth of Minnesota’s wind energy industry."

The MEQB is still reviewing proposed routes for the three other major new transmission lines, including:

• a 90-mile long 345-kilovolt line connecting a substation near Sioux Falls with the Lakefield substation mentioned above.
• a 115-kilovolt line in Nobles and Murray counties that will be tied into the 345-kilovolt line at a new substation, and will connect to an existing substation near the Buffalo Ridge. A decision on both lines is expected early next year.
• a new 115-kilovolt line from the Buffalo Ridge to a substation south of Brookings, S.D. That application was filed with MEQB on Aug. 10, 2004.

Xcel Energy is currently the nation’s number two provider of wind energy to retail customers, and the company plans to triple its total portfolio of wind generation in the next eight years. "A crucial part of our plan is to upgrade the transmission system, in a way that is environmentally appropriate and acceptable to residents of the area," Jaeger said. "These folks support wind energy, and we’ve been able to hold productive discussions on the routes and locations for these improvements."