Minnesota Power Accelerates Timing of New Wind Project in North Dakota
June 22 2011 - 9:00AM
Business Wire
Minnesota Power, an ALLETE company (NYSE: ALE), has accelerated
its plans to build a third wind energy project in North Dakota,
citing a competitive turbine market, federal production tax credits
and regulatory support as factors for moving up its timeline.
The Company submitted a plan to the Minnesota Public Utilities
Commission this week to build a 105 Megawatt, $157 million, wind
farm in Oliver and Morton Counties in central North Dakota. The 35
turbine Bison 3 project will be constructed in the same proximity
as the Company’s Bison 1 and 2 wind projects. Coupled with the
Company’s scheduled biomass and current wind projects, Bison 3 will
move the Company further toward its goal of achieving the State of
Minnesota’s mandate of 25 percent renewable energy by 2025.
In approving Minnesota Power’s long-term resource plan, the
Minnesota Public Utilities Commission in May ordered the Company
that it strongly consider adding more wind to its renewable
portfolio, before the expiration of federal production tax credits
on December 31, 2012.
The Company is currently building two other wind developments in
North Dakota, where wind resources are considered among the best in
the country. The 82MW Bison 1 is halfway complete with the second
phase expected to be online at the end of 2011. Bison 2, a 105MW
wind development, will be constructed concurrently with Bison 3;
both projects are scheduled to be in service in 2012. Bison 2 and 3
will begin construction upon receipt of necessary permits and
approvals. The Bison 3 project will use state of the art
direct-drive 3.0MW Siemens turbines like those being used for the
second phase of Bison 1 and all of Bison 2.
“The timing is optimal for expanding our wind initiative in
North Dakota,” said Al Hodnik, ALLETE Chairman, President and CEO.
“Building Bison 2 and 3 concurrently will result in construction
cost savings, and allow us to leverage existing transmission. We’re
delivering on our growth strategy while meeting a changing
landscape that requires a cleaner, more sustainable energy
supply.”
The energy from all three projects will be delivered to
Minnesota Power customers via a direct current large transmission
line (the DC line) which stretches 465 miles from the Square Butte
Substation in Center, N.D. to the company’s Arrowhead Substation
near Duluth. The addition of Bison 3 will move the company within
five percent of achieving the state’s 25 by 2025 mandate in the
year 2020.
“As we explained with its purchase in 2009, the DC transmission
line is a critical element in our overall strategy to diversify our
energy portfolio and cost effectively achieve the state’s renewable
energy policy,” Hodnik said.
The project will have little to no immediate impact on base
electric rates. Over time, the addition of wind energy is expected
to lower costs to customers by offsetting power purchases in the
wholesale market. Minnesota Power will seek current cost recovery
eligibility for Bison 3, which, if approved, will occur under the
Company’s Renewable Resources Rider.
ALLETE is an energy company and its principal operating division
Minnesota Power provides retail electric service within a
26,000-square-mile area in northeastern Minnesota to 144,000
customers and wholesale electric service to 16 municipalities. More
information can be found at www.mnpower.com.
The statements contained in this release and statements that
ALLETE may make orally in connection with this release that are not
historical facts, are forward-looking statements. Actual results
may differ materially from those projected in the forward-looking
statements. These forward-looking statements involve risks and
uncertainties and investors are directed to the risks discussed in
documents filed by ALLETE with the Securities and Exchange
Commission.
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