Xcel Energy receives approval for Mankato–Mississippi River Transmission Line Project

Xcel Energy (NASDAQ: XEL) and its partners received approval Thursday from the Minnesota Public Utilities Commission to move forward with its Mankato–Mississippi River Transmission Project.

The project, developed with Dairyland Power Cooperative, Rochester Public Utilities, and Southern Minnesota Municipal Power Agency, includes a 345 kV transmission line and an associated 161 kV that will deliver reliable electricity to Minnesota homes and businesses, reduce grid congestion that often leads to increased costs for customers and connect new renewable energy resources to the regional grid. The approval, which includes the project’s designated route, follows a comprehensive, multi-year regulatory review process.

“Expanding the transmission grid will provide continued electric reliability for customers throughout the region while also connecting low-cost renewable energy in southern Minnesota,” said Bria Shea, president, Xcel Energy–Minnesota, North Dakota and South Dakota. “This project is a key part of our plan to provide customers with clean, reliable, affordable and safe energy — today and for decades to come.”

The Mankato–Mississippi River Transmission Project (MMRT) will add about 120 miles of new and upgraded 345 kilovolt infrastructure between Mankato, Minnesota, and Kellogg, Minnesota, located near the Mississippi River. An additional 20 miles of new 161 kilovolt infrastructure will be added between Pine Island and an existing transmission line northeast of Rochester enhancing reliability in the growing southeast Minnesota region.

Together, the new investments will improve electricity transfer across the state, including areas in southwest Minnesota where available low-cost wind energy is often shut down due to the lack of transmission infrastructure available to deliver that energy to customers. Reducing this congestion within the grid improves efficiency and lowers overall energy costs.

The route leverages existing transmission corridors in areas near Mankato and Faribault, including the CapX2020 corridor, as well as following other boundaries such as field, section and property lines. These route choices balance reliability, cost and land use considerations while limiting new right-of-way needs.

Xcel Energy developed the route in close consultation with landowners, local governments and community stakeholders. Two rounds of open houses, hearings attended by more than 1,000 landowners and several hundred public comments helped define the final route.

“Balancing safety, reliability, local feedback and the environment is always a big undertaking,” said Shea. “Feedback from landowners helps teach us how to build smarter and balance these priorities in communities across the state.”

The MMRT is a cornerstone of Xcel Energy’s clean energy transition in the Upper Midwest. Under its current plan, Xcel Energy will reduce carbon emissions from electricity by more than 85% by 2030 (from 2005 levels), putting it on the path to delivering 100% carbon-free electricity by 2050. By 2030, about 80% of customers’ electricity in Minnesota is expected to be carbon-free.

With route approval secured, Xcel Energy will move into final design, right-of-way acquisition and detailed permitting. Construction will begin after remaining approvals are completed, with in-service timing to be shared as schedules are finalized. Throughout this process, Xcel Energy will continue proactive outreach with landowners, local governments and community partners to ensure timely information, fair treatment and responsive engagement.