A new economic impact report projects major job creation, economic growth, and long-term tax revenue from the PowerOn Midwest projects as electricity demand continues to rise in the region.
PowerOn Midwest, a group of major transmission projects anchored by a 765-kilovolt (kV) line, is designed to make sure the grid can keep up with growing demand while supporting a more reliable and flexible energy system. It is being developed by Great River Energy, ITC Midwest, and Xcel Energy. The project will connect eastern South Dakota, Minnesota, and the broader Upper Midwest, helping move electricity where it’s needed, when it’s needed.
As energy use increases, older power plants retire, and new generation resources come online, stronger transmission is needed to keep everything connected and reliable. The study, released May 28, shows that the economic impact is significant.
Across Minnesota, the project is expected to bring major benefits, especially in communities along the route. In the construction phase alone, Minnesota communities are expected to see:
- Jobs: 4,870 supported statewide (2,553 in project counties during construction)Â
- Payroll: Over $482 million in new spending statewide ($259 million in project counties)Â
- Economic activity: Over $2 billion statewide ($914 million in project counties)Â
- Property tax revenue: $1.2 billion over 35 years in project countiesÂ
The project will enable more than 12,000 megawatts of new wind, solar, storage, and natural gas generation in Minnesota. This expanded capacity will support a diverse energy mix, unlock existing generation that is currently constrained by transmission limitations, and help attract private investment in the region’s growing energy sector. Additional economic activity of more than $5 billion would result from the new energy generation enabled by the projects.
“Investments like PowerOn Midwest will ensure the region has the reliable, affordable, and increasingly carbon-free power needed to support economic growth, attract investment, and remain competitive,” said the utilities in a joint statement.
The project team filed a certificate of need application with the Minnesota Public Utilities Commission earlier this year, marking an important step toward construction. The project team also expects to file a facility permit application with the South Dakota Public Utilities Commission in September.Â
“PowerOn Midwest will bring the most efficient, scalable, and future-ready transmission infrastructure our region has ever seen,” said the utilities. “This project is about building a grid that can meet tomorrow’s needs—one that is more reliable, more resilient, and better positioned to serve homes, farms, and businesses for decades to come.” For Great River Energy, the project is also about creating value for the cooperatives and communities it serves.
“Projects like PowerOn Midwest are ultimately about delivering long-term value for our member-owners,” said Great River Energy Vice President and Chief Transmission Officer Priti Patel. “By strengthening the grid and enabling access to a diverse mix of energy resources, we’re helping ensure reliable, affordable electricity for the communities that depend on us every day.”
Economic impact estimates were developed using IMPLAN, a widely used economic modeling tool that analyzes project spending and local data from the U.S. Treasury and other federal, state, and local sources.
