MDU Resources Joins North Plains Connector Utility Consortium
MDU Resources is the seventh utility to join the North Plains Connector utility consortium, a group of utility participants who intend to invest in the HVDC transmission line connecting the Eastern and Western Interconnections.
North Plains Connector welcomes MDU Resources Group Inc. (NYSE:MDU) to its utility consortium. MDU Resources has signed a non-binding memorandum of understanding (MOU) with North Plains Connector LLC, a wholly owned entity of Grid United, for 150 megawatts of capacity on the 420-mile North Plains Connector high-voltage direct current (HVDC) transmission project.
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North Plains Connector project route
"As one of the nation's top energy producers, North Dakota recognizes that robust transmission infrastructure is key to meeting our nation's growing demand for electricity," North Dakota Gov. Kelly Armstrong said. "MDU Resources signing on to North Plains Connector sends a clear signal that we're committed to strengthening our electric grid and ensuring affordable, reliable power for consumers and industry. We look forward to seeing this project constructed."
Under the MOU, and subject to successful negotiation of definitive agreements, MDU Resources would own 150 megawatts of the 3,000-megawatt project once it begins operations. North Plains Connector LLC will continue to fund the development of North Plains Connector.
"MDU Resources is proud to be the first utility representing North Dakota to sign a Memorandum of Understanding with North Plains Connector," said Nicole Kivisto, president and CEO of MDU Resources. "This MOU reflects our commitment to exploring strategic investments in electrical infrastructure that enhance reliability for our customers and contribute to a more resilient regional grid."
North Plains Connector would be an important part of MDU's energy portfolio, as 150 megawatts of capacity represents over 15% of MDU's 2024 peak load. This proportion aligns with other participating utilities on North Plains Connector – Puget Sound Energy, Portland General Electric (NYSE:POR), Avista (NYSE:AVA), and NorthWestern Energy (NASDAQ:NWE) – whose participation in North Plains Connector could meet approximately 15%, or more, of their 2024 peak loads.
Grid United and ALLETE, Inc. (NYSE:ALE) are jointly developing North Plains Connector. Avista, Portland General Electric, Puget Sound Energy, NorthWestern Energy, and BHE U.S. Transmission have also signed capacity MOUs with the project. Once completed, the project will be the nation's first HVDC transmission connection among three regional electric energy markets – the Midcontinent Independent System Operator, the Western Interconnection and the Southwest Power Pool – improving the reliability and resiliency of the electrical grid across the region while broadening market connections.
North Plains Connector represents a multi-billion-dollar investment in Montana and North Dakota and is expected to create over 800 jobs during construction. The transmission line will transport electrical power of all generation sources and bidirectionally move power depending on market needs.
"ALLETE is excited to welcome MDU Resources to North Plains Connector as we advance a reliable, resilient grid that will meet the growing demand for electricity across a large part of our nation," said Bethany Owen, CEO, ALLETE. "Projects of this size and scope require collaboration among trusted partners, and we look forward to continuing the development of critical transmission infrastructure with Grid United and the participating utilities of North Plains Connector."
Construction is expected to commence in 2028, and the transmission line is expected to be operational in 2032.
Additional information can be found at www.northplainsconnector.com.
About Grid United
Grid United is an independent transmission company developing the infrastructure needed to create a more resilient and efficient electric system to the benefit of all consumers. For more information, visit www.gridunited.com.
About MDU Resources
MDU Resources Group Inc., a member of the S&P SmallCap 600 index, strives to deliver safe, reliable, affordable and environmentally responsible electric utility and natural gas distribution services to more than 1.2 million customers across the Pacific Northwest and Midwest. In addition to its utility operations, the company's pipeline business operates a more than 3,800-mile natural gas pipeline network and storage system, ensuring reliable energy delivery across the Northern Plains. With a legacy spanning over a century, MDU Resources remains focused on energizing lives for a better tomorrow. For more information about MDU Resources, visit www.mdu.com or contact the investor relations department at [email protected].
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Grid United
Ashley McGeary, Communications Director
[email protected]
MDU Resources
Byron Pfordte, Director of Integrated Communications
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