INDIANAPOLIS — MISO has opened another review of a second project from its first long-range transmission plan (LRTP) portfolio, prompted again by construction cost overruns.
MISO Executive Director of Transmission Planning Laura Rauch announced that MISO is conducting a variance analysis on the 345-kV Iron Range-Benton County-Big Oaks project in Minnesota. Joint developers Minnesota Power and Great River Energy have revised costs to build the line from an originally estimated $970 million to $1.39 billion. MISO’s Board of Directors approved the project under the first LRTP portfolio in 2022.
The Minnesota project review joins MISO’s ongoing variance analysis on the planned 345-kV Morrison Ditch-Reynolds-Burr Oak-Leesburg-Hiple line in Illinois and Indiana, which has climbed from an estimated $261 million to $675 million. That project was also approved in 2022 under the first LRTP portfolio. Northern Indiana Public Service Co. is handling the upgrade.
MISO uses its variance analysis to re-evaluate transmission projects that experience significant cost increases or other obstacles. Once it completes a variance analysis, MISO can decide either to let projects stand as-is, develop a mitigation plan for them, cancel projects or assign them to different developers if possible.
MISO Director Mark Johnson asked what timeline the stakeholder community can expect on MISO’s most recent variance analysis. He said it seemed that the variance analysis on the Indiana project had run long and noted that MISO began it in early 2024.
“At the end of the day, I don’t think this is a good look for any of us if this drags on,” Vice President of System Planning Aubrey Johnson told MISO leadership during a Dec. 9 meeting of the System Planning Committee. Johnson said MISO plans to accelerate the process overall and deliver more timely outcomes.
“We expect to do that at a faster rate next year than we have with the current project,” Johnson said. He added that MISO’s review on the Indiana project was out for “executive review” and that MISO would deliver a verdict publicly before the end of 2025.
Industrial customers across MISO have repeatedly asked MISO to enact stronger cost containment boundaries on transmission projects. They’ve said MISO’s variance analysis should have a 20% overbudget threshold to trigger the study (instead of 25%) and that MISO should consult with third-party experts and its Board of Directors on projects’ fate.
MISO staff have said they don’t see a need to alter the process but that the RTO will create more public notices when it must conduct a variance analysis. (See MISO to Make Transmission Re-evaluation Process More Public and MISO TOs Oppose Tx Cost Containment Suggestions.)
