Minnesota’s power grid is about to undergo a major overhaul. It’s been over 20 years since the state has seen a major upgrade to its system, and the goal of the upgrade is to prevent future blackouts and keep up with the high demand of Minnesota’s power customers.

According to an August 25, 2004 article in the Minneapolis-St. Paul Star Tribune, the four largest power companies in the state (Xcel Energy Inc., Otter Tail Power Co., Great River Energy and Minnesota Power) have told state regulators that they plan to spend $1 billion over 15 years to increase the state’s transmission capacity by 5000 MW/hr.

This increase in transmission is a necessity in Minnesota. Many times, power lines carrying electricity into and out of Minnesota are operating at full capacity, and demand for power is increasing faster than companies can supply it. Minnesota companies have to buy power from energy companies in other states, making power more expensive for consumers and increasing the possibility of a blackout.

Bottlenecks have been created along many of the major power lines leading to and from Minnesota. Bottlenecks keep utility companies from accessing affordable power, and in the long-run, consumers will have to pay more to keep the electricity flowing into their homes. “It’s like paying $500 for a Snickers bar,” said Don Jones in the Star Tribune article. Jones is the director of transmission asset management at Xcel Energy.

Over the next few months, the companies will examine the problem with the state’s power grid, and decide where and how to build the new power lines. In October, the group will submit a draft report to the Minnesota Public Utilities Commission and the state Department of Commerce. A final report will be submitted in March 2005.