THE KENMARE NEWS  

By Caroline Downs

 

Hartland Wind Farm principal Curt Johnson understands when landowners who have committed their acres to the project in Ward, Burke and Mountrail counties ask if any progress is being made.

 

“It’s like painting a wall,” he said at one of three landowner meetings held in Minot on November 9th and 10th. “You’ve got hours of prep work before you do that five minutes of painting.”

 

Johnson, principal Craig Swenson and engineer Mark Hutter of Michels Corporation talked with nearly 80 landowners during the three sessions about the status of the project, a work-in-progress for the past three and one-half years that proposes to develop some 2000 megawatts (MW) of electricity from wind turbines. To date, 137,000 acres have been signed for the project.

 

And that project continues to roll forward, although many of the steps taken recently have had little direct impact on the landowners.

 

Johnson opened the meeting with a summary of Hartland Wind Farm’s commitment to energy independence for America. He also discussed the development of the region’s wind resource, with over two years’ worth of data from six meteorological towers analyzed at a Class 7 level, the highest rating possible.

 

“The wind energy in the Hartland Wind Farm area is some of the best in the western hemisphere and certainly in the United States,” said Johnson, adding that area residents lived with that knowledge already.

 

He introduced Hutter of Michels Corporation, a family-owned utility contractor based in Brownsville, WI, with projects across the United States and more than 3,600 MW of wind farm construction experience. Michels Corporation has been engaged to provide pre-construction planning, engineering and permitting support for the Hartland project. The 52-year-old company has been involved in the state with a Keystone Pipeline compression station construction project as well as the Bison Wind Farm built at Center.

 

“We’ve been brought in to provide some project management,” said Hutter. “At Michels, environmental concerns and safety are really key.”

 

Johnson reviewed the role of wind energy in the state’s goal of becoming the top energy exporting state in the country and noted that Hartland Wind Farm intends to contribute toward producing 10 percent of the state’s energy from renewable resources by the year 2015.

 

He also emphasized the project’s intentions to cooperate with landowners’ oil interests. “The last thing we want is to have you consider us a real burden,” he said. “We should be able to manage to get a turbine up around where an oil well is or is going to be. We have a pretty good idea of the area of the Bakken formation and we’re trying to stay out of the way.”

 

Application submitted for

transmission with MISO

Johnson directed the discussion toward transmission, one of the biggest challenges faced by the project. “When we started three and a half years ago, we knew there wasn’t any infrastructure up here,” he said, “meaning any transmission lines.”

 

A major interstate transmission upgrade from North Dakota to Chicago and connections to points east has been discussed, and interest in such a project has been shown by major utility companies such as American Electric Power. However, the country’s economic troubles and resistance from senators and congressmen from the eastern coal mining states have slowed progress on the upgrade.

 

In the meantime, Hartland Wind Farm and partner Montgomery Midwest Transmission have engaged in discussions with the Midwest Independent Transmission System Operator (MISO) to provide about 600 MW to customers on the grid in the Dakotas and east to Wisconsin and northern Illinois.

 

“We’re planning on a regional basis for transmission,” explained Hutter.

 

Hartland Wind Farm submitted an application in April 2011 for an approximately 90-mile segment line to connect to the Coal Creek Substation. The 245 kilovolt line included in the application has a double circuit preliminary design and could be expanded for future transmission needs.

 

Electricity to be sent on the proposed transmission line would be generated from wind turbines placed in the Phase I section at the southern end of the entire Hartland Wind Farm project. The selling price for this wind-generated power will be at regional rates, most likely a lower price than the Eastern markets that could be served by a larger interstate transmission project.

 

The application is currently in the Strategic Planning Process with MISO through February 2012. If approved, the application advances to the Definitive Planning Process. “The next six months are going to be critical,” said Hutter.

 

“We’re still pursuing the larger line,” Johnson added, “but we’re going to pursue the localized line first through MISO and we’re very excited about this.”

 

Audience members asked about merging with other, larger electricity markets in the future, which Hutter agreed was a likely option. “With MISO, the picture is constantly evolving,” he said, describing a new transmission line now under construction south of Minneapolis as one example. “There are more options than there were three years ago, but it’s not a clear path.”

 

Advances in turbine technology

Even with two years of data on wind velocity and direction, barometric pressure and temperature, the MET towers continue to collect data as the project engineers determine the most efficient size of wind turbine to use.

 

Originally, the project expected to set up the standard 1.5 MW wind turbine generators available, but the data suggest larger turbines will be necessary.

 

“The size of the project’s turbines is going to be increasing and that’s good news for landowners,” Hutter said. “We’ll be creating two times the amount of energy on one plot of land. That will have less impact.”

 

Members of the audience asked if a particular size had been chosen, and Johnson said the Hartland Wind Farm may use a variety of sizes, depending on the engineers’ recommendations for the sites. “They’re talking about four megawatt turbines in some cases,” he said, “but that doesn’t mean the turbine is four times bigger.”

 

He compared wind turbine technology to changes in cell phone technology. “They’ve increased in their efficiency,” he said, “and the advancement is extraordinary.”

 

One example he described related to the turbines’ ability to operate in high wind conditions. Most turbines erected even a few years ago automatically stop turning at certain wind speeds to prevent damage. The turbines under consideration for Hartland Wind Farm can “shift gears” in high winds.

 

“So they keep turning instead of shutting down in those conditions,” said Johnson.

 

Some landowners were curious about which turbine manufacturers would be providing Hartland Wind Farm equipment. “We’re talking to all of them,” Johnson said. “It’s a competitive market. The cost of turbines has dropped 30 percent at least, with the changes in the national economy and the new changes in technology. You get more megawatts per dollar.”

 

Three years of data and

engineering surveys

While landowners were curious about placement of the turbines, Hutter explained how Michels Corporation is working behind the scenes on the required permitting process and macro-siting details of the project. “We work with regulatory agencies on the state and federal levels all the time,” he said. “Our approach is to be collaborative with the agencies whenever possible.”

 

For three years, Hartland Wind Farm has been conducting avian and biological surveys of the project area, and meeting with representatives of the U.S. Fish & Wildlife Service to discuss a strategic plan to develop and construct the wind farm.

 

“Since 2008, we’ve been doing studies to monitor migratory birds through the project area and to look at nesting impact,” Hutter said. “We need at least two distinct seasons of work in order to have data the agencies will respect.”

 

“We’ve been identifying habitat that is critical to certain plant and animal species,” added Johnson. “For example, we’ve had to consider the nesting requirements of the piping plover.”

 

Hutter noted the biological data is now being analyzed and interpreted. “That allows us to come up with a mitigation plan,” he said. “So far, Hartland Wind Farm has fewer environment impacts than we’ve found in some of our other projects, which makes it easier for us to come up with a plan that will work.”

 

Engineers have also been working on GIS mapping of the Hartland Wind Farm project since 2009, noting archaeological, weapons and other sites of interest and control points for data. They have also cross-checked the information with aerial photography and Lidar data collection.

 

Another important aspect of their work involves section corner recovery, which started in the spring of 2011. Engineers have been reviewing old government survey notes and county section corner documents to compare against field observations. In some cases, the monuments for the section corners have had to be re-set.

 

“We have to confirm these section corners to establish the location for the turbines,” said Hutter. “We’ll be laying a control network that includes all the different exclusions and where we’re planning to locate all these turbines, also taking into account the variables provided from the turbine manufacturers.”

 

Landowners to be consulted about turbine placement

That is just the news Swenson has been waiting to hear for three years. “We have to get the engineers’ input regarding the property,” he said, “and then a Certificate of Survey will be developed, within the next six months to a year.”

 

With a Certificate of Survey in hand, Swenson will visit each of the signed landowners in the project area and talk about turbine placement. “We’ll lay out how we propose to use each particular piece of property,” he said. “Then, I’ll go back to the engineers with that information.”

 

He noted that landowners’ input will be critical in this stage. “For example, one landowner has told us about the location of teepee rings on his property,” he said. Other input could be related to farming operations, temporary wetlands, roads or other factors on the ground.

 

“I see this as being fun,” Swenson said as he talked about matching data points to actual conditions on the landscape, “and I’m looking forward to seeing how we can put this thing together!”

 

As the details regarding turbine placement and the transmission project with MISO come together in the next few months, Swenson said Hartland Wind Farm will be looking to finalize the project site. “We’ve tried to keep folks up-to-date with our newsletters and meetings,” he added. “Many folks have been asking if they can still sign up to have their land considered in the Hartland Wind Farm project. The answer is ‘Yes,’, but that deadline is now by January 2012.”

 

He emphasized that the documents signed by the nearly 400 landowners already committed to the project are identical and will remain that way. “This project continues to move forward because of you, the landowner,” he said, “and we sincerely thank you.”

 

For more information about the Hartland Wind Farm project or to discuss signing acres with the project, contact Swenson at Denali Energy in Pequot Lakes, MN, by calling 218-568-6500 or toll-free at 877-557-1031.

 

“This is an opportunity,” he said, “and we want to include everybody in this opportunity who wants to join in, but the ship is about to sail!”

By Caroline Downs

www.kenmarend.com  

Nearly 128,000 acres owned by some 350 landowners are signed with Hartland Wind Farm as plans continue for the nation’s largest wind farm, but residents of Ward, Burke and Mountrail counties are not seeing a great deal of activity right now.   “We’ve been doing a lot of behind-the-scenes work,” said Craig Swenson, a principal with Hartland Wind Farm.    Swenson and Curt Johnson, another principal with the project, did have new information to share with landowners, however, when they held a series of meetings in Kenmare, Berthold and Minot at the end of May.   One of the messages Johnson wanted landowners to hear addressed the development of both wind and oil resources on the same property. Several landowners involved with Hartland Wind Farm had questions about the compatibility of the two processes.   “There’s no restriction on oil development by the development of a wind energy farm,” Johnson said. “Wind actually advances oil and coal development beyond where it is. Our project has caused legislators and the state administration to make decisions to build more transmission lines, which will enhance other energy programs.”   He reiterated North Dakota Governor John Hoeven’s goals for North Dakota to be a national leader in energy production. “I personally believe North Dakota can be the number one energy export state in the Union,” said Johnson.   Johnson noted he had spoken with representatives from oil companies that have also established a presence in northwestern North Dakota, and no major conflicts were predicted between the two types of energy projects. Johnson referred to the option agreement offered to landowners by Hartland Wind Farm, as well as the new, sample certificate of survey he and Swenson were reviewing with landowners.   “The opportunity to develop oil and gas is not limited in any way, shape or form,” said Johnson. “All we ask is that any oil well on your property is 200 feet away from a turbine to protect the integrity of the foundation. And you can farm up to the base of the turbine.”   Each certificate of survey will outline the specifications for any construction or land use by Hartland Wind Farm. “We can only do what this piece of paper says,” Johnson explained. “Everything is negotiable on this thing.”   He said that once the information in each certificate of survey was satisfactory to the landowners involved with that property, the certificate could be recorded and permits requested. Members of the audience asked about the depth of underground cabling and power lines in their fields and the locations for any new roads needed. “You tell us where you want that road on your place,” said Johnson. “You’re in control of this process with the certificate of survey.”   He also answered questions about the relationship between the option agreement and the certificate of survey. “Signing the option agreement doesn’t compel you to sign the certificate of survey,” he said. “The option agreement doesn’t guarantee a turbine on your land, and it doesn’t guarantee the landowner will allow a turbine.”   He continued, “The certificate of survey will define that, and the landowner has total control with a signature.”   Larger turbines needed With nearly three years of wind data collected by Hartland Wind Farm, one element of the project that may change is the type of turbine erected. Originally, the plans called for 1.5 MW GE turbines. Data recorded specifically from the Missouri Coteau region in North Dakota indicate the wind strength and velocity could place undue stress on turbines of that size.   “We’ll let the engineers make those decisions,” said Johnson. “That 1.5 megawatt machine is so reliable, but now we’re having to review other options The kind of machine we go with dictates where everything goes. GE wouldn’t warrant the performance of those smaller turbines in this area, because the wind resource is greater.”   On the other hand, the wind data impressed one of the project’s financing banks, which has experience with other wind energy farms. “They called me to confirm the numbers,” Johnson said. “They said they’d never seen data like this.”   Hartland Wind Farm may choose to use 2 MW turbines. “That means for every 10 GE turbines, we now get 8.5 to 9 of the larger turbines,” said Johnson, “which means fewer turbines, but the landowners with turbines on their property will receive more money, the first two percent out of the total revenue.”   Johnson wanted to see turbines sited for the first phase of the project, covering designated acres in the Berthold-Carpio-Donnybrook area, by October. “My objective is to have stakes in the round where we think the turbines are going to go,” he said.   That work may not begin by project engineers until after harvest this fall, but landowners involved with Hartland Wind Farm may notice Kadrmas, Lee & Jackson personnel on their property this summer. Johnson explained information would be collected for the project’s Habitat Conservation Plan, a coordinated effort with the U.S. Fish & Wildlife Service. “In July and August, hopefully you’ll see KLJ trucks out in the field,” he said.   Transmission upgrade delayed by Congress Members of the audience expressed concern that the construction of the wind farm tied to the construction of new transmission lines. Johnson agreed, and noted that American Electric Power (AEP) in Ohio remained firm in its commitment to a proposed expansion for the national transmission grid, with a western anchor point near Berthold. “There’s legislation on the calendar, waiting for Senate review,” he said. “We want to see states work together to develop these transmission lines.”   He continued, “This isn’t just a good idea. This is something that will happen. Our nation is not secure with the current electrical grid.”   Johnson said he called U.S. Senator Byron Dorgan’s office weekly for reports on the progress of SB1462, which contains a subsection directly addressing the siting of interstate electrical transmission facilities. “I’ve been disheartened by the American Power Act, which focuses on nuclear energy and cap and trade,” said Johnson. “Neither of these will be beneficial to North Dakota or the Midwest. We know Dorgan is working with Senators Kerry and Lieberman to include those parts of SB1642 that are important to North Dakota.”   One landowner asked about the length of the construction period for the transmission grid, saying he’d heard such a project could take up to 10 years. “They’ll build it one leg at a time, and they’ll start with this leg, which will allow us to begin power generation,” said Johnson. “Looking at our construction time frame for the project and the transmission construction time frame, two years are needed for the construction phase of both. We’re looking at the first quarter of 2013.”   He noted the first milestone area for Hartland Wind Farm was comprised of almost 240,000 acres. “We and our engineers have determined we have enough land [within the milestone area] to build 1000 megawatts, if not more,” he said, adding that such a large project appealed to AEP. “The new transmission line will come in about 20 miles southeast of Berthold. Once that’s built, then we can develop anywhere in the areas designated for future Hartland Wind Farm milestones and tie into that transmission line.”   Even with the current delays at the federal level, Johnson and his associates are looking at the wind farm’s future, including training for the technicians the project will eventually employ. “Right now at Lake Region State College, they’ve started a new wind tech program,” Johnson said. “It’s going to take a staff of two [technicians] to manage each 10 to 12 turbines, and about 200 techs will be needed for Hartland Wind Farm alone.”   Swenson serves on the advisory board for the Lake Region State College wind technician program.   Denali Energy of Baxter, MN, in partnership with Montgomery Energy of Texas, has been working on plans for the 2,000 megawatt (MW) Hartland Wind Farm since 2008. Johnson reported that $10 million had been invested in the project to date.   Johnson and Swenson recognized landowners may have more questions about aspects of Hartland Wind Farm, especially with little visible evidence of progress. “We know there can be rumors or misconceptions,” said Swenson. “We’re right here for questions or phone calls.”   Swenson welcomes those calls at Denali Energy 1-877-557-1031 (toll-free) or 218-824-6802. He can also be reached by email at craigs@denalicompanies.com.

The Kenmare News

By Caroline Downs

Area residents had their first chance to hear about the Green Power Express last week during meetings held in Kenmare, Berthold, Bowbells and Minot with Curt Johnson, a principal of Hartland Wind Farm, and Joe Dudak, vice president in charge of special projects with ITC Holdings of Novi, Michigan.

After Johnson offered an overview of the proposed 2,000 megawatt Hartland Wind Farm project in Ward, Burke and Mountrail counties, he introduced Dudak and the Green Power Express.

“What does the Green Power Express mean to us?” Johnson asked. “It is a major, major part of this project. We knew we had a great resource in the wind. More important are the people in this area and those who have committed [to the project] so far. But without the Green Power Express, the economic opportunity wouldn’t exist.”

Dudak made his first trip to the northwest corner of North Dakota last week and spent time visiting directly with landowners as well as talking with newspapers, radio broadcasters and TV news reporters about ITC and the concept of the Green Power Express. 

“We are a federally regulated utility that does only transmissions investment,” he said, describing the upstart ITC Holdings, which began operations in 2003 and oversees 15,000 miles of transmission lines in Michigan, Iowa, Minnesota, Illinois and Missouri. “We move energy resources from sellers to buyers, and we wanted to grow where renewable energy needed a champion.”

He compared ITC’s vision to the concept of a superhighway, maintaining an independent service for other utilities to transport power.

“We’re nationally scoped,” he said. “That means we don’t have a territory like many companies do. We have to interphase with the local utilities.”

Dudak emphasized the need for energy projects, like the proposed Hartland Wind Farm, to have a way to ship their power to larger markets as North Dakota continues to develop and export energy. “The load for the whole state of North Dakota is something like 2,000 megawatts,” he said. “Think about that. When Hartland Wind Farm is fully developed, it could power the entire state of North Dakota.”

The Green Power Express project would assist North Dakota’s energy producers by providing a network transmission lines covering 3,000 miles. The project would cross seven states and several utility service territories, with an estimated construction cost of $12 billion for substations and the high voltage (765,000 volt) lines.

According to Dudak, no 765 kilovolt lines currently exist in the midwestern region of the country. “We propose to expand that through the Dakotas, move the energy to Chicago where we would tie in to the existing [high voltage transmission] network to get this power to the East Coast. You could sell energy in West Virginia, New Jersey, New York, wherever, and the price is probably three times what we pay here.”

The western side of the project extends into northwestern North Dakota, with the capacity to support over 20,000 megawatts of new wind generation, as well as power from other sources.

Dudak described the current transmission system as developing around clusters of customers over the decades, without a large-scale, comprehensive plan. “The system acts like islands with extension cords,” he said. A project focused on the national scale, such as the Green Power Express, would have the capability to transport power from several sources and prevent or reduce brown-outs and black-outs, such as those experienced in areas with heavy power usage.

He compared the plan to the idea of farmers trying to transport grain to market if they were restricted to dirt roads. “We can improve the transmission grid by putting in a superhighway,” he said.

* * * 

Dudak and Johnson agreed that construction of the first phase of Hartland Wind Farm and of the Green Power Express could occur in such a manner that transmission would be available when the new wind turbines were operational. Dudak also noted that ITC was interested in building transmission capacity to meet their customers’ needs. “If more customers want to participate, we’ll enhance the size we have proposed now,” he said.

According to Dudak, ITC can be prepared to break ground on the project by February 2011. Various engineering, permitting, siting and other processes are underway, but one major factor is the $20 billion price-tag, which ITC would like to see paid by all the customers who benefit from the power, not just by the energy producers. 

“Transmission is five percent of the delivered price of electricity,” Dudak said. “We believe the cost for this should be spread over the customers in the 36 states that would receive the power, to the tune of cents per month on your electric bill.”

No project of this magnitude has been done before, and a rate change to absorb the cost of new transmission would require federal and state action. “I’m up here looking for your help at the next stages of this process,” Dudak said. “When this comes before the North Dakota Public Service Commission, we’ll want letters of support.”

He continued, “This is the least-cost solution for building out the grid. The high voltage network makes that large of a system twice as cost effective as the next largest system. If we’re planning for the long-term, this big fix is the right thing.” 

He mentioned the impact of the 22 letters provided by landowners in South Dakota when ITC completed their first filing with the Federal Energy Regulatory Commission (FERC) last spring. “That made an impression with them,” he said.

Dudak and his associates are already cooperating with the Western Area Power Administration (WAPA) and the Midwest Independent Transmission System Operator (MISO), both of which have given initial approval for the project. “We’ve talked with the governors of South Dakota and North Dakota, and they’ve agreed to support us,” Dudak said. “Each of the public utility commissions supports us. We need to work at convincing Congress and FERC that you shouldn’t pay for the line by yourself.” 

He also mentioned the importance of cooperation with existing utilities, all of which would benefit from the Green Power Express. “This line will remain independent,” he said. “We expect to partner with at least 22 utilities involved in North Dakota and South Dakota, but this is the first project this big ever proposed. We’re pushing the envelope on getting this project across.”

He explained that as mandated by FERC, the high voltage transmission line would have to take any customer that is a qualified generator of power, whether from wind, coal, natural gas, solar or other means. 

* * * 

Johnson kept his comments brief, announcing that the project had grown to more than 115,000 acres with 200 landowner documents returned.

He noted Hartland Wind Farm’s commitment to paying the increased taxes that will result from the placement of turbines. “You put up one turbine at $4 million and that $25,000 in taxes per year,” he said. “We’re going to work to get these dollars back into the areas that are impacted [by Hartland Wind Farm] the most.”

He also took a few moments to review several changes for wind developers as outlined in HB1509 and signed into law by Governor Hoeven. The new laws, most of which were standard procedure for Hartland Wind Farm, take effect by August 1, 2009. Johnson said landowners who already signed with the project would be receiving updated communications from his office regarding any impact resulting from the legislation.

Johnson and Dudak discussed further plans for coordinating construction of the wind turbines and transmission lines. Johnson and Craig Swenson, another principal with Hartland Wind Farm, explained that while things may appear quiet at the present time, the company has been busy with the permitting, design and engineering aspects of the project. “Our schedule right now is to start Phase I by mid-April 2011,” Johnson said. “We would finish that first 500 to 800 megawatts by December 2012.”

ITC’s plan for beginning construction in North Dakota in the spring of 2011 calls for finishing a line to transmission during the first quarter of 2013, just in time to send wind-generated electricity to market.

“We take on the interconnection costs, and that responsibility, as part of the system. We can afford that,” Dudak said. “We’re separate companies, but we’ve got to work together to get the timing to come out. We’ll need help to get that energy and make sure it moves.”

The first steps in transforming the Green Power Express from a proposal to reality have been taken, with the rate detail already filed with FERC. Dudak said ITC continues to work at partnering with utilities that would be involved in supplying power and to coordinate plans and operations with MISO. ITC intends to file a siting application with the North Dakota PSC by the end of December and to keep communicating the need for a change in the cost allocation of the project to members of Congress and FERC with the goal of new legislation regarding electric rates.

Dudak emphasized the significance of educating the public about the Green Power Express as he described his communications with state officials and legislators, tribal leaders, landowner groups and developers in North Dakota and South Dakota. He invited individuals and organizations to contact him with any further questions or to make a presentation about the Green Power Express.

Persons interested in more information about the Green Power Express, or in providing letters of support for the project, can contact Dudak by mail at Joseph Dudak, Vice President, ITC Holdings Corp, 27175 Energy Way, Novi, MI 48377.  He can be reached by phone at 248-946-3568 or 734-395-6974, or by email at jdudak@itctransco.com.

Further details about the Green Power Express can also be found online at www.thegreenpowerexpress.com.

Dudak laughed as he said he truly hoped to be swamped by requests for information and offers of support. “I plan on being in one of the Dakotas every week and give everyone a person to contact,” he said. “I want to hear from landowners. I want to be inundated!”

KXnet.com

North America's largest proposed wind farm to be built in northwest North Dakota is getting the transmission support it needs to turn it all into reality.

Tonight at a landowners meeting in Minot.... Denali Energy, the company heading up the 12-hundred turbine Hartland wind farm project announced that another company that invests solely in transmission grids is proposing to build an energy superhighway to transport the power out.

ITC Holdings Corporation officials say the Green Power Express would be a transmission line stretching from the North Dakota Hartland Wind Farm into states east that are in need of more power.

Vice President of Special Projects Joseph DOO-Dack Dudak says the Green Power Express would move 12 thousand megawatts of power from the Upper Midwest to eastern states that are hungry for green energy.

(Joseph Dudak, ITC V.P. of Major Contracts & Special Projects) "So it's the largest project of it's kind and it will provide the highest transmission voltage lines to the Dakota's meaning it can transmit the most amount of wind energy out of the state. So call it the super highway to get your new cash crop out of the state and able to sell it in markets."

Curt Johnson with Denali Energy says the Green Power Express Line is exactly what the Hartland Wind Farm needs.

Johnson says right now America's transmission lines are already overburden and getting power to where it's needed is the major obstacle of any new power project.

(Curt Johnson, Principal Denali Energy) "We need the equivalent of an interstate highway system to move power from the Dakota's east to Illinois and points further east to Pennsylvania and Ohio and it's projects like they're proposing that and that ultimately enables the economic develop of a project like Hartland Wind Farm."

Johnson says Denali Energy is looking to break ground on the first phase of the six billion dollar Hartland Wind Farm in 2011.

Dudak hopes ITC can start building the Green Power Express Line by February 2011.

That project is expected to cost between six and ten billion dollars.

 

http://www.commerce.nd.gov/news/detail.asp?newsID=447

The Forum - Patrick Springer

A mammoth wind farm proposed for northwestern North Dakota could anchor an electrical “transmission superhighway” if a concept from a major utility is to be viable.

American Electrical Power announced that it is exploring the feasibility of an “extra-high voltage” transmission system to connect major wind developments in the Dakotas with markets in a network ending near Chicago. 

The 765-kilovolt network, with an estimated price tag of $5 billion to $10 billion, would connect to the proposed Hartland Wind Farm in Burke and Mountrail counties of northwestern North Dakota.

The Hartland Wind Farm would have a capacity of 2,000 megawatts, dwarfing even the largest wind projects now generating power in North Dakota.  If approved, plans call for the $4 billion Hartland Wind Farm to begin construction in 2010, with completion about four years later.

“The existing grid is basically saturated and full,” Craig Fink, managing member of Hartland Wind Farm LLC, said Wednesday.

Hartland is part of the 5,130 megawatts of wind projects in service, under construction or pending regulatory approval in North Dakota.  Another large project is the proposed 1,000-megawatt development proposed by FPL Energy northwest of Center, N.D., in Oliver County.

Major wind farms now in the pipeline will require significant expansion of the transmission system, said Commissioner Susan Wefald of the North Dakota Public Service Commission.

Still, she cautioned that the American Electric Power’s transmission proposal, which the utility said is in the “conceptual stage,” would have overcome technical, financial and political challenges to become a reality.

Big transmission projects come with big debates about allocating the costs among far-flung electrical customers and winning approval to route lines, which inevitably spark resistance from landowners, she said.

“These are the questions that are big issues right now in the Midwest,” Wefald said.

Her regulatory counterparts in Illinois have been debating, for instance, about whether it would be better for ratepayers in that state if it would be cheaper to build wind farms closer to home to avoid the costs of transmitting power over long distances.

Nonetheless, major expansions of the transmission system will be required if the nation embraces ambitious mandates for wind and other renewable energy sources, Wefald said.

Robert Harms of Bismarck, chairman of the Upper Great Plains Transmission Coalition, said big projects such as the proposed Hartland Wind Farm and AEP’s possible Midwestern “transmission superhighway” might help to shape policies that have yet to be drafted for revamping the nation’s electrical grid.

Harms agrees that cost allocation questions of new transmission projects are critical to address.

“The consumers in North Dakota don’t want to pay for exporting electricity to Chicago,” he said.

Because North Dakota’s wind resource is so efficient, many wind developers have concluded it is cost-effective to transmit wind power to faraway markets, Harms said.

If built, the “transmission superhighway” being evaluated by AEP to link  wind farms in the Dakotas and neighboring states to Chicago and other eastern markets would be the first extra-high-voltage transmission system west of the Mississippi River, Fink said.

The Hartland Wind Farm will be the catalyst that would boost transmission infrastructure for other projects, he added.

“It’s almost like being an anchor tenant at a strip mall,” Fink said.  “Other wind farms in the Dakotas will benefit from this.”

Readers can reach Forum reporter Patrick Springer at (701)241-5522.

American Electric Power Company Inc. said Tuesday it is considering a multibillion-dollar project aimed at harnessing wind energy through a “transmission superhighway.”

The Columbus-based utility said it is in the conceptual phase of the proposal, which would require construction of more than 1,000 new miles of transmission lines and cost between $5 billion and $10 billion. The 765-kilovolt lines would connect wind farms in the upper Midwest – the Dakotas, Minnesota and Iowa – to an existing network that ends near Chicago.

“The wind potential in this region cannot be developed unless we build a very efficient transmission superhighway to bring this clean, renewable generation to population and electricity load centers,” AEP CEO Michael Morris said in a release. The project, which would require the approval of the region’s Midwest Independent System Operator, likely would be built in stages over 10 years, AEP said. The company plans to work with all stakeholders in the region, including other utilities.

A key piece of the potential transmission line is a North Dakota project dubbed Hartland Wind Farm LLC, which has agreed to collaborate with AEP. The farm, a partnership between Houston-based Montgomery Power Partners LP and Baxter, Minn.-based Denali Energy Inc., would be the western end of AEP’s project.

Denali CEO Curt Johnson told Columbus Business First the collaboration would be beneficial to both parties. AEP would have more access to renewable energy sources and Hartland would have a pipeline to an extra-high-voltage line that could spark additional growth. The wind farm, under development, has commitments for about 60,000 acres of land and expects to take up about 144,000 acres.

Connecting the farm to a fully-developed transmission line from AEP could open up the possibility of expanding acreage and boosting capacity to three or four times its projected 2,000 megawatts, Johnson said

“Our development can only be limited by our transmission capacity,” he said.AEP (NYSE:AEP) delivers electricity to 5 million customers. The utility recorded profit of $1.09 billion on revenue of $13.4 billion last year.

By DALE WETZEL  Associated Press Writer

A proposed 2,000-megawatt wind farm in northwestern North Dakota would be one of the world's largest energy projects, although new electric transmission lines are needed for it to be built, state regulators say."The numbers that you see being thrown around as potential development in North Dakota are truly eye-popping," Public Service Commissioner Tony Clark said Wednesday.Hartland Wind Farm LLC is planning the $4 billion project in Ward, Burke and Mountrail counties in northwestern North Dakota. The company wants to start construction in the fall of 2010.It will be built in stages and ultimately should have 1,333 wind towers spread over 720 square miles, said Craig Fink, one of the project's developers. The Public Service Commission accepted a letter of intent for the project Wednesday.Its territory is bordered by Canada to the north, the Des Lacs River to the east, U.S. Highway 2 to the south and the western border of Burke and Mountrail counties, Public Service Commission filings say.The commission's president, Susan Wefald, said both the Hartland project and a separate, 1,000-megawatt wind farm planned for Oliver and Morton counties will require building new electric transmission lines to carry the power."Planning and construction of a major transmission line can take a number of years," Wefald said.FPL Energy LLC, of Juno Beach, Fla., is developing the 1,000-megawatt farm, which will cost about $2 billion to build.Fink said Hartland expects to file its formal application for a siting permit for its wind farm in June 2009. The company would like to have the permit in hand by April 2010, and start putting up wind towers in the fall, he said.Separately, the Public Service Commission voted to allow Sequoia Energy U.S., a unit of the Sequoia Energy Inc. of Winnipeg, Manitoba, to immediately file a request for a siting permit for a 150-megawatt wind farm in Rolette and Towner counties.The Border Winds project includes 68 turbines and will cost about $300 million to build, a company filing said. Sequoia wants to begin construction in the fall of 2009.At present, the nation's largest operating wind farm is a 736-megawatt project near Abilene, Texas, called the Horse Hollow Energy Center. Projects of 1,000 megawatts or more are on the drawing boards, said Christine Real de Azua, a spokeswoman for the American Wind Energy Association in Washington, D.C.Texas oilman T. Boone Pickens, who has gained public attention for his plan to displace imported oil with wind energy and natural gas, is planning a 4,000-megawatt wind farm in four counties in the Texas Panhandle.Royal Dutch Shell PLC and TXU Corp., a Texas energy company, are separately developing a 3,000-megawatt project southeast of Amarillo, Texas."With anything that size, they are dependent on more transmission," Real de Azua said. "They're looking big, they're ambitious, and these projects are feasible, but the missing component is the need for new transmission to bring that wind power to market."

A second element of the Hartland Wind Farm is housing for employees, which is in short supply in Kenmare and the surrounding communities.

Russ Gilson, a principal with Denali Development of Baxter, Minnesota, is already working on that problem. He learned from officials at Hess Corporation about their housing problems for oilfield workers. "I can’t see having somebody sleeping in a tent trailer in the middle of the winter," he said. "We’re looking at Stanley, Tioga, Kenmare and Minot. We need to get a critical mass going. We want to get the cities involved and employers involved."

Gilson, whose background is in architecture and development, has been asking, "What do you need?" wherever he’s gone. Right now, apartments and communal facilities, with separate bedrooms and shared kitchen and living areas, are under consideration, as well as storage buildings.

He anticipated Phase 1 of the Hartland Wind Farm project requiring the services of 50 high-end technicians. "That’s roughly one person for each ten turbines," he said. "So with families, we’re looking at a minimum of 150 people. That’s why we want to house them, to get them here."

Like his colleagues, Gilson praised the quality of life he’s discovered in northwestern North Dakota, and he believes the workforce needed for the wind project will come to appreciate those same qualities. "I don’t think it’s going to be a tough sell, once we get them here," he said. "We’re just trying to do what we can to get people here to work."

Gilson has met with interested parties in Tioga and Stanley and talked with Mayor Curt Zimbelman in Minot, who raised the possibility of renovations in the city’s downtown area.

He had one session with Kenmare Community Development Corporation executive director Kari Bies and has a second meeting planned for mid-October. "We’ll get a business plan together," he said.

His own plans include relocating to Kenmare by November, to coincide with the opening of a Hartland Wind Farm office in the city.

Gilson was firm in his commitment to offering something better than a tent camper city for Hartland Wind Farm employees, and he wants to work with other people who have the same goal. "We’ll see what the reception is," he said, "and see who wants to come forward."

Persons interested in more information about housing development opportunities with the Hartland Wind Farm project should contact Gilson at Denali Development, 1-877-577-1031.

A thousand megawatts of electricity produced by the Hartland Wind Farm under development in northwestern North Dakota needs somewhere to go.

That’s why Curt Johnson--one of the project developers together with Denali principal Craig Fink of Denali Energy in Baxter, Minnesota, and project partner Montgomery Energy, based in Houston, Texas--spends so much time focused on the transmission component.

"This is a national issue," he said. "The grid for our country is older than most of our two-lane highways. Our grid is at capacity. The system needs to be updated."

He pointed out that talk about transmission has conveniently surfaced among the national candidates during this election year. However, Denali Energy has been among the entities discussing the problem behind the scenes for months before the issue was included in televised debates.

"There is a movement among utility companies and operators to upgrade the national system," he said. "We’re going to get that attention in the Midwest."

Wind projects typically develop faster than coal and nuclear energy projects in terms of the permitting process. "Socially, we’re probably the most acceptable," he said. "And we’re addressing transmission on a private basis."

The proposed Hartland Wind Farm would generate up to 1,000 megawatts of electricity from more than 650 wind turbines, with much of that energy destined for metropolitan marketplaces east of North Dakota. "Such a large project is a size that would warrant a transmission project," Johnson said. "The first two phases of our project will justify the transmission investment."

Estimated costs for the transmission project stand at $1.3 billion under Denali Energy’s current plans.

North Dakota is considered a favorable business environment for renewable energy projects, and Johnson believes construction of a transmission line in this region would hold its value for generations.

"This is potentially a 200-year asset," he said. "Once the infrastructure is in place, with the turbines, the substations and the peaking facilities, that allows for the improvements of technology in the future."

He explained that wind could generate electricity over the transmission line for decades, but the line would be in place to also accept power generated by other sources, such as solar and technologies not yet perfected or even designed.

"We recognize the favorable attitude in North Dakota," Johnson said, adding that Hartland Wind Farm and the related transmission project could help the state achieve its goal of becoming the top wind energy export state in the nation.

Progress on the Hartland Wind Farm project, which proposes up to 1,000 megawatts of energy produced by wind turbines constructed in two phases along the Missouri Coteau between Berthold and Columbus, has revised a few attitudes about North Dakota’s legendary, incessant wind.

"For so many years, we’ve said it’d be really nice if the wind weren’t blowing," said Berthold resident Susan Haaland, "but this will change that!"

Susan and her husband Roger were among the nearly 70 landowners who have already signed on with Denali Energy of Baxter, Minnesota, the company developing the wind farm. On Saturday, several of those landowners attended an appreciation picnic held in Berthold to celebrate the project’s first milestone of easement agreements covering 46,000 acres of prime ground for wind energy development.

Curt Johnson, a principal with Denali Energy, has his own ties to the area through his mother Carolyn and late father Curt Sr. and uncle Glen Johnson, who collectively own over 800 acres, collectively, near the old townsite of Hartland. Curt addressed Saturday’s gathering with enthusiasm and gratitude for the landowners’ assistance in meeting the first threshold.

"We got started in January on the ground out here, doing a site assessment," he said, adding that by April, monitoring towers were erected on land owned by Glen Johnson and by Howard Gustavson. "The data that we’re getting is exactly what we anticipated, and the wind strength and potential is greater than anticipated."

Along with promising data, however, came the warm response from landowners when Denali Energy started holding meetings in June in the Berthold, Donnybrook and Carpio areas. "At those first meetings, we had a couple of people each time," Johnson said. "By mid-June, we had 50 to 60 people. We were overwhelmed and pleased to get the response we were getting."

While the landowners learned about the potential benefits of signing option easement/agreements with Denali Energy for their property at those meetings, the project leaders experienced the hospitality of the northern plains and, somewhat unexpectedly, became friends with their clients.

Jon Dostal, one of three project managers who met with landowners, talked about how the project changed his perspective. "When we first started coming out here, it was about

the project and moving forward with the process," he said, "but it’s become more than that for us." He mentioned the influence of Bill Feickert, one of the first landowners to attend the first meeting, who welcomed Dostal to Berthold as a friend and set the tone for their future work together.

Johnson maintained that a key element in the project was the relationship of trust established between Denali Energy and the landowners. "We recognize the commitment you’ve made to us," he said, "and that commitment is as strong as we can make it back to you."

Further evidence of the commitment will be seen as Denali Energy opens an office in Kenmare in November and operates a development division to organize workforce housing in Kenmare, Stanley and Tioga. "It’s a service we can bring to the area, in addition to the wind farm," said Johnson.

Another step forward involves the engineering work behind the project being performed by Kadrmas Lee & Jackson of Bismarck in conjunction with Westwood Engineering of Minneapolis, each with extensive wind farm development expertise. The two firms are addressing the project collectively with the oversight and experience of Michels Wind Energy, a subsidiary of Michels Corporation based in Brownsville, Wisconsin, and an international engineering and construction contractor distinguished as one of the top ten utility contractors in the country. Mark Hutter, a manager with Michels Wind Energy who first visited the proposed site for the Hartland Wind Farm in August, talked about Michels with the audience in Berthold.

He believed the company’s employees would relate to the concerns of landowners involved with the Hartland Wind Farm because Michels remains a family-owned business headquartered in a town of 342 people. "Our employees either work on farms or their families have," he said. "They understand the importance of laying cable and restoring the site quickly, so the landowner can get back to work."

First option payments made

While landowners mingled with the Denali Energy staff and picked up their first option payments, they talked about the benefits of participating in the project.

"They seem to have it together as far as their plan," said Susan Halden, Stanley.

She and her husband Doug farm outside of Berthold. "We can see the town of Hartland from our farm. My husband went to grade school in Hartland!" she said about their initial interest in the project. "This is a very cohesive group and they take time to visit and answer your questions."

Gary Knudtson, who farms southwest of Donnybrook, has been familiar with wind energy since his father attached a 6-volt windcharger to his home in the early 1940s. "It was the first wind tower out here," said Knudtson. "It would rumble away on the top of

the house and charge batteries. We had three or four dim lights in the house. Later, he put up a 32-volt system."

Knudtson still has the old 6-volt charger stashed at home, and Johnson is trying to work out an agreement to display the unit. "I guess that would be a good use for it," said Knudtson. "My dad would be proud."

Along with neighbors Roger Johnson and Darrell Workman, Knudtson has been considering his options with Hartland Wind Farm. "There’s no guarantee you’re going to get a tower," he said, "but when you get up on the hill, there’s all kinds of wind."

Landowner Joyce (Haaland) Giles lives in Williston, and the letter she received from Denali Energy last May raised her curiosity. "I think it’s great," said Joyce. "I was skeptical at first, but my brothers attended a meeting, then we came over and attended a meeting. My nephew (who farms the property) told me it was a no-brainer."

"This was an easy decision," said her husband Virgil. "It’s wind, it’s non-polluting. [Denali Energy] is straight. I have yet to hear one thing that hasn’t happened. That makes you feel kind of comfortable."

He was especially pleased with the consideration Denali Energy showed toward farmers. "They understand farmers want to go in straight lines," he said. "They’ve looked at plot maps, looked at the roads and what they have to build for roads, and they’ll site stuff so there’s limited maneuvering [for the farmer]."

For Susan Haaland, the opportunity made good sense. "It seems like a nice use of the land and it’s not overly invasive," she said. "And it’s nice to be in on something that’s renewable and clean. Just to picture all of [the turbines], the logistics seem incredible!"

Agnes (Burke) Larcombe, Minot, still owns a few acres once homesteaded by her father south of Hartland. She said she heard about the proposed wind farm last winter and was surprised at the news. She was even more shocked when she received a letter from Denali Energy. "I thought, ‘What? There’s going to be life out there?’" she said.

Carl Bye of Bismarck was impressed by Denali Energy’s approach toward landowners. "The fact that they’re not here soliciting says something," he said. "It seems like it’s a lot of fun for everybody, and there’s a need for energy right now."

His wife, Wanda, is the daughter of Harold and Emily Haaland, and the family farm sits between Berthold and Carpio. "I wish my parents were here," she said. "It’s amazing to think of what can happen. This is a direction you want to go, I think."

Making it happen

Craig Swenson, another principal with Denali Energy, explained the group started meeting with landowners at the southern end of the project in order to get the project organized. "We just had to pick some place," he said.

The group has been contacting other property owners farther north and west in the proposed project area and has held initial meetings with some Kenmare-area landowners.

Swenson, who grew up with experience on farms in Minnesota and is excited about working in a rural economy again, became interested in the prospect of a wind project after attending a renewable energy conference held in Bismarck last fall. "We were blown away," he said. "We thought, how could we bring our talents into this industry and make this thing happen?"

He and his colleagues shared their enthusiasm and materials from the conference with Curt Johnson back in Denali’s offices. According to Swenson, when Johnson saw the color-coded wind potential map for North Dakota, with its purple streak representing the highest wind speeds across the Missouri Coteau, he said, "That’s where I’m from!" The project was set in motion with a phone call to his uncle Glen.

Swenson focused on the importance of the trust issue with the landowners. "When I graduated, my grandmother shook her finger at me and told me to do business right and to do business honestly," he said. "We’re coming in and partnering with the landowners because without them, we couldn’t do it. We are so excited with where we’re at this point because the cooperation is just incredible!"

Milestone reached

Saturday marked a significant point in the Hartland Wind Farm project for Johnson, and he’s looking forward to the next steps. "We’re still in the process," he said. "46,000 acres is a milestone, certainly not an end. We want to continue to solidify our site area."

Johnson also spoke on behalf of project partner Montgomery Energy, based in Houston, Texas. Frank Giacalone of Montgomery had planned to attend the event, but was unable to come because of the impact of Hurricane Ike. However, Giacalone expressed sincere appreciation for the level of commitment shown by local landowners and confirmed that he and other representatives of Montgomery intend to visit the site in North Dakota yet this fall.

Nearly 70 landowners have signed on for the project to date, with about 100 owners contacted and more than 500 total visits made. Johnson has been grateful to hear from only a handful of individuals with major concerns about the project. "We’ve had confidence we’d get to this day based on the attitude of the landowners," he said.

Landowners committed to the project have signed options for easements describing specific acreages for 40-year terms, with $15 paid per acre annually for land without a turbine located on it.

After the planning phases are completed and all the necessary permits and approvals are obtained, landowners will receive a certificate of survey with a map of the proposed locations for turbines and underground cables. Owners can discuss those suggested

improvements with the project managers and come to an agreement on the plan before authorizing the improvement with their signature.

Landowners with turbines on their property that are not operational will be paid $2,000 per year until the turbine is running again. Landowners with operational turbines will be paid 2 percent of the gross operating revenue. "Because it’s not fixed, as rates to up over the 40-year term, their payments will increase," Johnson said.

He repeated the company’s commitment to leaving a minimal footprint on the land itself. "Each landowner will have their own plan for their own parcel," he said, adding that decisions would be made by consulting the landowners as well as the producers actually farming the ground. "We’re sensitive to any impact. Our number one priority for this property is agricultural production. The project will be a collection of all these pieces put together."

Phase 1 cost $1.15 billion,

transmission $1.3 billion

As the project managers continue to contact more landowners, work has started on the pre-development engineering stages, including wetland delineation, environmental and avian studies, and GIS studies to determine the topography and characteristics of the landscape.

Construction of the turbines could begin within 18 months.

Finances for the project remain secure, according to Johnson, despite recent downward activity in the markets. "We’re in a strong position with our equity interests," he said. Cost estimates for Phase I of the project, with over 300 turbines generating up to 500 megawatts of electricity, stand at approximately $1.5 billion, while costs for a proposed transmission line (see accompanying story) are estimated at $1.3 billion. A second phase would produce another 500 megawatts of power.

Discussions with the landowners have added another dimension to the project, in the form of consumer turbines. "Some of the landowners were asking if they can access some of the power produced," Johnson explained, adding that several requests related to pumping water for livestock or drying grain.

Tapping energy from the Hartland Wind Farm towers is not possible, but smaller, stand-alone consumer turbines would allow landowners, businesses or individuals to generate electricity for their own use and sell excess electricity back into the grid. Leo Christiansen of Bowbells erected a similar wind tower last summer and sells power to Burke-Divide Electric while also providing the electricity he needs on his farm. "We’re pursuing this based on the demand from the landowners," Johnson said.

Other future plans include constructing a facility at the project’s namesake, the old townsite of Hartland. "We want to put that back on the map," Johnson said. "We would offload material there, and hope to someday build a visitors center." A visitors center

would include Gary Knudtson’s vintage windcharger, featured front and center among the exhibits.

Hartland Wind Farm remains a work-in-progress, and Swenson invited interested landowners to contact Denali Energy to learn more about the project. "Come in," he said. "Find out what it’s about."

A website for the project is still in development, but Johnson or Swenson can be reached at the Denali Energy offices by calling, toll-free, 1-877-557-1031.