Midwest Grid Overhaul Promises Billions and a Greener Future

MINNEAPOLIS, MN – May 28, 2026 – A coalition of regional utilities has unveiled a sweeping infrastructure plan, PowerOn Midwest, that promises to reshape the Upper Midwest’s energy landscape. Anchored by a powerful new high-voltage transmission line, the project aims to inject billions of dollars into the economies of Minnesota and South Dakota, support thousands of jobs, and pave the way for a massive expansion of renewable energy.

According to a newly released economic impact study, the series of projects developed by Great River Energy, ITC Midwest, and Xcel Energy will provide the critical capacity needed to maintain grid reliability as electricity demand accelerates. The initiative is being positioned as a foundational investment for the region's long-term economic competitiveness and its transition toward a more carbon-free power system.

“As electricity demand grows and the energy system continues to evolve, 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,” the utilities stated in a joint announcement.

A Multi-Billion Dollar Economic Jolt

The economic projections for PowerOn Midwest are substantial. The report, which utilized the widely recognized IMPLAN economic modeling software, details a significant boost for Minnesota. During the construction phase alone, the state is expected to see over $2 billion in economic activity and the creation or support of 4,870 jobs statewide. The counties directly hosting the project are projected to see a concentrated impact, with $914 million in economic activity and 2,553 of those jobs.

The benefits extend directly to workers, with an estimated payroll of over $482 million in new spending across Minnesota. For local communities, the project promises a long-term fiscal advantage. Once operational, the new transmission infrastructure is projected to generate $1.2 billion in property tax revenue for project counties over a 35-year period, providing a stable funding source for schools, roads, and public services.

The IMPLAN model, which draws on data from federal and state sources like the Bureau of Labor Statistics, analyzes how initial project spending ripples through the economy. It calculates not only the direct impact of construction jobs and material purchases but also the indirect effects on local suppliers and the induced impact from the wages spent by project workers.

Beyond the construction of the lines themselves, the project is designed to be an economic enabler. The utilities estimate that the new transmission capacity will facilitate the development of more than 12,000 megawatts of new wind, solar, energy storage, and natural gas generation, which could spur an additional $5 billion in economic activity.

The Grid of Tomorrow: Meeting Surging Demand

The push for PowerOn Midwest is driven by a confluence of factors straining the current electrical grid. Utilities report that electricity use is rising faster than it has in decades, fueled by population growth, the expansion of manufacturing, and the electrification of everything from vehicles to home heating. The existing grid, much of it built decades ago, was not designed for these modern demands or the simultaneous shift away from retiring, older power plants.

This project is a key component of a larger, coordinated regional strategy. The Midcontinent Independent System Operator (MISO), which manages the electric grid across 15 states including Minnesota and South Dakota, has identified the need for proactive, long-range transmission planning to prevent future reliability issues. PowerOn Midwest aligns with MISO’s Tranche 2.1 portfolio, a collection of 24 high-voltage projects approved in late 2024 to strengthen the grid across the Upper Midwest.

The technological centerpiece of the project is a 765-kilovolt (kV) backbone transmission line. This type of high-capacity infrastructure is described as the “most efficient, scalable and future-ready” option for the region. A single 765 kV line can carry the same amount of electricity as six of the more common 345 kV lines, minimizing the overall infrastructure footprint while maximizing power delivery. This efficiency is crucial for moving large amounts of power from increasingly remote generation sources to population centers.

Unlocking a Renewable Energy Revolution

Beyond ensuring reliability, PowerOn Midwest is being hailed as a critical key to unlocking the region's vast clean energy potential. The project is explicitly designed to support Minnesota's ambitious goal of achieving 100% carbon-free electricity by 2040. By creating new pathways on the energy superhighway, the transmission lines will help overcome a major bottleneck holding back renewable energy development.

Currently, a lack of transmission capacity creates congestion on the grid. This can lead to a phenomenon known as curtailment, where wind and solar farms are forced to shut down even when conditions are ideal for generation because there is no room on the lines to deliver the power. In Minnesota, over 19 gigawatts of clean energy projects are already in the queue, waiting for the grid connections necessary to move forward. The new lines are expected to alleviate this logjam.

The 12,000 megawatts of new generation the project could enable represent a monumental step in the region's energy transition. The MISO Tranche 2.1 portfolio, of which this project is a part, is estimated to facilitate 116 gigawatts of new generation across the Upper Midwest, with the vast majority coming from solar, wind, and battery storage. According to MISO, this broader initiative will save consumers at least $2 for every dollar invested by providing access to cleaner, lower-cost energy sources.

Navigating the Path to Power-On

While the vision is clear, the path from proposal to reality involves a complex and lengthy regulatory journey. The project's developers initiated this process by filing a Certificate of Need (CON) application with the Minnesota Public Utilities Commission (MPUC) on February 3, 2026, a key first step that the commission has since deemed complete.

The CON process involves a thorough review of the project's necessity and benefits to the state. It will be accompanied by the development of an Environmental Impact Statement (EIS) to analyze potential effects on land, water, and communities. This multi-stage review includes significant opportunities for public input, including public meetings and formal hearings presided over by an Administrative Law Judge. Following the CON process, the utilities anticipate filing a Route Permit application in 2027 to determine the specific path of the transmission lines.

A similar process will unfold in South Dakota, where the project team plans to file a Facility Permit application with the state's Public Utilities Commission this September. That process also includes public hearings and requires separate Conditional Use Permits from each county the line traverses.

To facilitate this process, the utilities have begun extensive community outreach, holding open house meetings in affected towns to share information and gather feedback. As the project moves through the formal review stages, it will face scrutiny from landowners, environmental organizations, and local governments—all of whom play a role in shaping the final outcome of major infrastructure. The utilities emphasize that this collaborative, forward-looking investment is essential for the region's future. “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.”