Xcel Energy has announced a project to ensure its customers in south Minneapolis have reliable electricity through the next 20 years. The company proposes to invest $15 million in major improvements to its electric infrastructure, including building a new substation near the Hiawatha light-rail transit corridor and another in the Midtown area. The substations would be connected by two 115-kV transmission lines.

The Hiawatha Project is needed to meet the area’s growing customer demand for electricity, which despite broad conservation efforts is increasing due to population and economic growth, and to bolster existing capacity infrastructure.

“South Minneapolis is a thriving area,” said Judy Poferl, Xcel Energy regional vice president. “We are committed to providing reliable service to the community and this project is the next big step to fuel its future energy needs.”

The Hiawatha Project would increase reliability and expand Xcel Energy’s capability of delivering electricity, bringing enough additional electricity into the area to power the equivalent of 7,500 homes.

The new transmission line generally would be located in an area extending west from a new substation on Hiawatha Avenue to a second new substation it the Midtown area. The potential area for siting the transmission line includes a corridor that stretches as far south as 32nd Street and as far north as 26th Street (see attached map). The exact location will be determined during the routing and permitting process. The company plans to employ state-of-the-art "Smart Substation" technology that will allow enhanced monitoring and control of substation equipment. In addition, other elements of SmartGrid technology can be incorporated that will improve reliable service to customers.

Xcel Energy will seek input from the community, including the city of Minneapolis, which will be incorporated into the project design and used to lessen project impacts. Xcel Energy plans to conduct open houses this fall prior to developing its application.

“We are committed to working with all stakeholders in south Minneapolis,” said Poferl. “When developing a proposal, we'll consider input about issues such as aesthetics and recreation in the design and location of the infrastructure and we’ll offer alternatives for consideration.”

After receiving input from the community, Xcel Energy intends to file an application for the project in January 2009. Pending approval, construction on the Hiawatha Project would begin in October 2009, with service delivery by June 2010.

The Hiawatha Project is part of a long-term infrastructure plan designed to support continuing economic development in south Minneapolis. Subsequent phases call for more transmission and distribution capacity to be added as demand requires. The Hiawatha Project will be installed so that it will be compatible with future infrastructure additions.