$10.3 billion power line portfolio approved for the Midwest

Eighteen new transmission projects will wind through Midcontinent Independent System Operator’s Midwest subregion. Five of those projects are planned either wholly or partially in Iowa.

MISO’s board of directors approved the $10.3 billion portfolio last week. It consists of more than 2,000 miles of power lines that should improve the power grid’s reliability, cost-effectiveness and resiliency in the face of severe strains like changing energy generation sources, increased electrification and extreme weather.

The estimated in-service dates for the approved projects range from the end of 2028 to the middle of 2030, although they’re not definitive yet, said Robert Walter, the manager of planning at ITC Midwest.

ITC Midwest and MidAmerican Energy are the transmission owners handling the projects in Iowa.

“Right around three years would be reasonable time frame to expect construction to be underway,” Dehn Stevens, the vice president of transmission development and planning for MidAmerican, said. “But that is going to be subject to the regulatory process.”

The costs for these projects will be shared by customers across MISO’s Midwest subregion. They will pay about 1/5 of one cent per kilowatt-hour, MISO spokesperson Brandon Morris said in an email. The average residential customer in Iowa consumed 865 kilowatt-hours of energy per month in 2020, according to the U.S. Energy Information Administration, so the portfolio costs could translate to about $1.70 per month for customers.

Despite the initial investment, MISO projected the portfolio’s net benefits could stretch up to $52.2 billion. The estimated benefits for Zone 3 — which is predominantly comprised of Iowa — exceed the costs up to a factor of 4.4, potentially making Iowa one of the largest beneficiaries.

“One of the reasons that these projects are so beneficial for Iowans is that Iowans get a great deal of benefits by paying only a small percentage of the cost,” said Rod Pritchard, the manager of marketing and communications for ITC Midwest.

More lines mean more benefits

By stretching its web of lines even larger, the power grid grows more reliable, MISO said in its report addendum about the portfolio. That extra reliability lowers the risk of controlled power outages in the region.

The additional transmission lines will also reduce energy congestion — or power overloads — that has plagued lines across the grid. For example, congestion has forced low market prices and output reductions for MidAmerican’s energy generation from wind, Stevens said.

More lines mean less congestion and less strain on existing infrastructure, reducing the need to invest in upgrades.

“Across that entire MISO Midwest footprint, these projects are alleviating those overloads that would otherwise need to be addressed,” Walter said.

That congestion also made it more expensive to bring more renewable energy onto the grid. But additional lines provide more opportunities for energy generation, easing the trending transition to more low-cost renewable energy. Less dependency on non-renewable resources would produce less carbon dioxide emissions.

These projects help share that renewable energy and resiliency across regions. Project No. 7, for instance, connects the high renewable region in northwestern Iowa with the metropolitan areas in the Quad Cities, where the power can fan out to other MISO regions.

The lines also provide more energy sources into Iowa as a whole, from Missouri and Illinois.

“Having those additional connections to the outside world is a very good thing for the state,” Stevens said.

Construction to come

Although MISO approved the portfolio, the projects in Iowa will now need approval from the Iowa Utilities Board to begin construction. If they are approved, ITC Midwest and MidAmerican Energy will have shared roles in building, operating and maintaining these transmission lines.

The companies are currently working on divvying up the ownership for the shared projects, which will depend on where the companies’ existing infrastructure lies along the proposed pathways. Some segments may be 100 percent owned by one company, and others might have segmented or joint ownership.

The companies will then complete studies to assess the best paths for the proposed lines, considering factors like the length of the power lines and the number of landowners impacted. The transmission owners try to use existing rights of way and repurpose existing facilities whenever possible.

When planning the paths for the power lines, Stevens said minimizing impacts on landowners is a priority.

“We want to always have in mind that real people are impacted when we build transmission facilities,” Stevens said.

The portfolio is the first of four planned for MISO. The second portfolio is expected to also focus on the MISO Midwest subregion, Morris said.

Brittney J. Miller is an environmental reporter for The Gazette and a corps member with Report for America, a national service program that places journalists in local newsrooms to report on under-covered issues.

Comments: (319) 398-8370; brittney.miller@thegazette.com