PowerOn Midwest Study Highlights Jobs, Economic Activity from Proposed Transmission Projects
A new economic impact report projects significant job creation, economic activity and long-term tax revenue associated with the proposed PowerOn Midwest transmission projects as electricity demand continues to grow across the Upper Midwest.
PowerOn Midwest is a portfolio of transmission projects being developed by Great River Energy, ITC Midwest and Xcel Energy. The projects are anchored by a new 765-kV transmission line designed to connect eastern South Dakota, Minnesota and the broader Upper Midwest, helping move electricity across the region as demand increases.
According to the report, the projects are intended to support grid reliability and flexibility as electricity consumption rises, older generating plants retire and new generation resources are added to the system.
The economic impact study, released May 28, estimates that during the construction phase the projects will generate substantial economic benefits in Minnesota, particularly in communities located along the proposed route.
Projected impacts in Minnesota include:
- 4,870 jobs supported statewide, including 2,553 jobs in project counties during construction.
- More than $482 million in statewide payroll spending, including $259 million in project counties.
- More than $2 billion in statewide economic activity, including $914 million in project counties.
- Approximately $1.2 billion in property tax revenue over 35 years in project counties.
The report also states that the transmission projects would enable more than 12,000 MW of new wind, solar, energy storage and natural gas generation in Minnesota. The additional transmission capacity is expected to support a broader energy mix, increase access to existing generation constrained by transmission limitations and support private investment in the region's energy sector.
According to the study, the new generation resources enabled by the projects could generate more than $5 billion in additional economic activity.
In a joint statement, the utilities said the investments would help provide reliable, affordable and increasingly carbon-free electricity to support economic growth and competitiveness across the region.
The project team filed a certificate of need application with the Minnesota Public Utilities Commission earlier this year. The developers also expect to submit a facility permit application to the South Dakota Public Utilities Commission in September.
Priti Patel, vice president and chief transmission officer at Great River Energy, said the project is intended to strengthen the grid and expand access to a diverse mix of energy resources while supporting reliable and affordable electricity service for member communities.
Economic impact estimates were developed using IMPLAN, an economic modeling tool that incorporates project spending data and information from federal, state and local sources, including the U.S. Treasury.