Duluth-based Minnesota Power is undertaking one of the most significant infrastructure upgrades in its history, with several major developments converging to reshape the utility’s long‑term strategy and the region’s energy system.
The largest initiative is a $900 million modernization of its high‑voltage direct‑current (HVDC) transmission system, a 465‑mile line built in 1977 that carries renewable wind power from central North Dakota to northeastern Minnesota. Construction is underway on a new converter station that will replace nearly 50‑year‑old equipment and expand the system’s capacity from 500 to 900 megawatts, with the potential to reach 1,500 megawatts in future phases. The project strengthens grid reliability, supports regional economic growth and positions Minnesota Power to meet Minnesota’s 2040 carbon‑free electricity mandate, according to the company. Siemens is providing the technology and Golden Valley, Minn.-based Mortenson is serving as general contractor, with about 100 workers expected onsite during peak construction.
A key funding component briefly came into question when the U.S. Department of Energy revoked a $50 million federal grant during a broad rollback of clean‑energy awards. After an appeal supported by Minnesota and North Dakota’s congressional delegations, the grant was reinstated earlier this month, helping reduce the project’s cost impact on customers.
At the same time, Minnesota Power has withdrawn from the proposed $1 billion Nemadji Trail Energy Center in Superior, Wisc., which would have supplied the utility with 550 to 625 megawatts of dispatchable natural‑gas generation. Years of litigation, permitting delays and local opposition made the natural‑gas project no longer viable. The utility says it is now evaluating alternative locations and technologies to provide new power generation as it prepares to retire its coal plant in 2030 and 2035.
These developments come as Minnesota Power adjusts to new ownership. In December 2025, parent company ALLETE was acquired by Global Infrastructure Partners and the Canada Pension Plan Investment Board. The sale includes a one‑year rate freeze, $50 million in customer credits and commitments to maintain the company’s Duluth headquarters and invest in clean‑energy initiatives.
Minnesota Power serves roughly 150,000 customers across northeastern Minnesota and parts of northwestern Wisconsin and employs about 1,400 people in the region. Together, the modernization effort, generation strategy shift and ownership transition reflect a utility navigating rapid change while preparing the grid for the next several decades.
