Studies and Reports > 2009 MN Biennial Report > NE Planning Zone > Needs: 6.3.10 Essar Steel Project

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6.3.10 Essar Steel Project

Tracking Number. 2007-NE-N2

Utility. Nashwauk Public Utilities Commission (NPUC) and Minnesota Power

Inadequacy. Essar Steel Minnesota (formerly know as Minnesota Steel Industries) is proposing the construction of an iron ore mining and steel production facility to be located near Nashwauk, Minnesota. The majority of the proposed facility is located within the City of Nashwauk’s service territory so the City would be the main electric service provider to Essar (a small amount of mining related load would be supplied by Minnesota Power). In order to deliver the approximately 300 MW needed for all three phases of the Essar project, new transmission will be required and Minnesota Power will be the transmission provider.

A map of the area is shown on the following page.

Alternatives. Several alternatives to connect Essar to the transmission system were studied including a number of 230 kV lines and bringing 500 kV to the site from the Forbes Substation.

Analysis. Studies have shown that four 230 kV transmission lines provide the best alternative to deliver the electric power from the Minnesota Power system to the Essar facility. See section

7.3.13 of the 2007 Minnesota Biennial Transmission Report for additional details.

Schedule. A Route Permit Application for the 230 kV transmission required to serve the Essar Project was filed with the MPUC by Nashwauk Public Utilities Commission and Minnesota Power in June 2009. It is expected that the MPUC will rule on the Route Permit Application by July 2010. The most recent schedule provided to the Applicants by Essar Steel indicates that Phase I of the Project will commence operations in October 2011. In order to meet this schedule, the Applicants would commence ROW acquisition as soon as a route permit is granted and then proceed with construction of the line.

PUC Docket Number. TL-09-512 (Route Permit).

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