HVDC, short for high‑voltage direct current, is a way of transmitting electricity as a steady one‑direction flow over long distances or undersea links instead of the usual back‑and‑forth alternating current. Like a high‑speed, nonstop pipeline for power, it cuts energy loss and can link different power grids or distant renewable sites more efficiently. Investors watch HVDC projects because they are large, long‑lived infrastructure investments that affect utility revenue, grid capacity, construction and regulatory risk, and the economics of power supply.
high-voltage direct currenttechnical
A method of sending large amounts of electricity over long distances as direct current at very high voltage, which reduces energy loss compared with conventional alternating current lines. Think of it as a superhighway for power that links remote generators and cities more efficiently; for investors it matters because HVDC projects are capital-intensive infrastructure that can enable renewables, change utility revenue streams, require long-term contracts and permitting, and carry construction and regulatory risks.
moufinancial
A memorandum of understanding (MOU) is a written agreement that outlines the basic terms and shared intentions between parties before a formal contract is drawn up. Think of it as a detailed handshake that signals commitment to work together; for investors it matters because an MOU can indicate a likely future deal, partnership or transaction that could affect a company’s strategy, revenues or risks, even though it often lacks full legal force.
midcontinent independent system operatortechnical
A midcontinent independent system operator is a nonprofit organization that runs the high-voltage electricity grid and wholesale power market across a large central U.S. region, coordinating how electricity is generated, routed and paid for to keep supply and demand balanced. For investors, it matters because its decisions on transmission planning, market rules, congestion and reliability affect utility costs, power producers’ revenues and the pace of grid upgrades—similar to a traffic controller whose signals determine how smoothly cars (electricity) flow and who pays tolls.
western interconnectiontechnical
The Western Interconnection is the large, connected electric power network that serves the western United States, parts of Canada and northern Mexico, operating like a single system so power flows and timing stay coordinated across long distances. It matters to investors because generation projects, transmission upgrades, outages and policy changes inside this network directly influence regional electricity supply, wholesale prices, utility earnings and the cost of integrating renewables—similar to how the size and condition of a water system affect water availability and bills.
southwest power pooltechnical
A regional transmission organization that operates and plans the electric grid and wholesale power market across a multi-state area in the central United States. Think of it as the traffic controller and planner for high-voltage electricity lines: it coordinates who sends power where, keeps supply and demand balanced, and runs auctions that set wholesale prices. Investors watch it because its decisions affect utility reliability, grid upgrade costs, renewable project connections, and the revenue of power producers and transmission owners.
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Minnkota Power Cooperative becomes the eighth utility in the North Plains Connector utility consortium, a group of utility participants who intend to invest in the HVDC transmission line connecting the Eastern and Western Interconnections.
BISMARCK, N.D.--(BUSINESS WIRE)--
North Plains Connector welcomes Minnkota Power Cooperative (Minnkota) as the eighth member of its utility consortium. Minnkota has signed a non-binding memorandum of understanding (MOU) with North Plains Connector LLC, a subsidiary of Grid United, to secure 150 megawatts of capacity on the 3,000-megawatt, high-voltage direct current (HVDC) transmission line once it begins operations, subject to successful negotiation of definitive agreements.
“North Plains Connector represents a promising opportunity to strengthen the regional grid and support long-term energy reliability and flexibility,” said Mac McLennan, President and CEO of Minnkota Power Cooperative. “This project would create another strong transmission connection near Minnkota’s generation resources, expanding market opportunities for that power while also enhancing our ability to serve members with reliable, affordable electricity. Just as importantly, the line would create another pathway to bring power resources from the west into our system, giving Minnkota additional flexibility to move electricity where it’s needed and respond to changing energy demands.”
Once completed, North Plains Connector will be the first HVDC transmission line in the United States to connect three regional electric energy markets – the Midcontinent Independent System Operator, the Western Interconnection, and the Southwest Power Pool – improving the reliability and resiliency of the electrical grid across the region while broadening market connections.
“The momentum on North Plains Connector is reflective of the regional utilities’ commitment to serving their customers by expanding grid capacity in the most efficient and cost-effective way,” said Colleen Nash, Leader of the North Plains Connector HVDC transmission project. “We are proud to welcome Minnkota to the utility consortium as the project’s second North Dakota-based utility serving the MISO electricity market.”
Grid United and ALLETE, Inc. are joint developers of North Plains Connector. Other members of the utility consortium with signed capacity MOUs with the project are: Avista (NYSE: AVA), BHE U.S. Transmission, MDU Resources (NYSE: MDU) subsidiary Montana-Dakota Utilities, NorthWestern Energy (NASDAQ: NWE), Portland General Electric (NYSE: POR), and Puget Sound Energy.
North Plains Connector represents a multi-billion-dollar investment in Montana and North Dakota and is expected to create over 800 jobs during construction. The transmission line will bidirectionally move electrical power of all generation sources based on market needs.
Construction on North Plains Connector is expected to commence in 2028, with expected operations in 2032. More information can be found at www.northplainsconnector.com.
About Minnkota Power Cooperative
Minnkota Power Cooperative is a not-for-profit electric generation and transmission cooperative headquartered in Grand Forks, N.D. Formed in 1940, Minnkota provides wholesale electric energy to 11 member-owner distribution cooperatives located in eastern North Dakota and northwestern Minnesota. More information is available at https://www.minnkota.com/.
About North Plains Connector
North Plains Connector is a 420-mile, up-to-525-kilovolt, high-voltage direct current transmission line connecting the eastern and western U.S. electric grids in North Dakota and Montana. North Plains Connector will transport electrical power of all generation sources and bidirectionally move power along the line in response to demand. More information can be found at www.northplainsconnector.com.
About ALLETE, Inc.
ALLETE, Inc. is an energy company headquartered in Duluth, Minnesota. In addition to its regulated public utilities, Minnesota Power and Superior Water, Light and Power of Wisconsin, ALLETE owns ALLETE Clean Energy, based in Duluth, Minnesota; BNI Energy in Bismarck, North Dakota; and New Energy Equity, headquartered in Annapolis, Maryland; and has an 8% equity interest in the American Transmission Co. More information about ALLETE is available at www.allete.com.
About Grid United
Grid United is an independent transmission company developing the infrastructure needed to create a more resilient and efficient electric system to the benefit of all consumers. For more information, visit www.gridunited.com.
