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t ~~-. <br />~. <br />°:: <br />'" <br />~, <br />r <br />i <br />c.9Px2o2o <br />INTERIM REPORT <br />DECEMBER 2004 <br />IDENTIFYING MINNESOTA'S ELECTRIC TRANSMISSION INFRASTRUCTURE <br />NEEDS: AN INTERIM REPORT <br />Minnesota's electric transmission infrastructure-a network of high voltage transmission <br />lines of 230 kilovolts and higher-requires major upgrades and expansion over the next 15 <br />years to support customers' growing demand for electricity. To ensure the backbone <br />transmission system is developed and available to serve these growing needs, the five largest <br />Minnesota transmission-owning utilities initiated the CapX 2020 project. CapX 2020 is short <br />for Capital Expenditures by the year 2020. <br />CapX 2020's mission is to: <br />^ Create a joint vision of required transmission infrastructure investments needed to meet <br />growing demand for electricity in Minnesota and the region; and <br />^ Work to create an environment that allows these projects to be developed in a timely, <br />efficient manner, consistent with the public interest. <br />Great River Energy, Minnesota Power, Otter Tail Power Company and Xcel Energy jointly <br />formed CapX 2020 in the summer of 2004; Missouri River Energy Services subsequently <br />joined this effort, and other investor-owned utilities, cooperatives, and municipal utilities <br />have been following the initiative. <br />This Interim Report presents our work to date. Its purpose is to create awareness of the <br />significant need for new transmission investment, to inform stakeholders of our study efforts <br />underway, and to begin a public dialogue on transmission issues. We present this report in <br />the following sections: <br />^ Our future needs, presenting forecasts of customer demand over the next 15 years. <br />^ Our current system, outlining the characteristics and capacity of our current backbone <br />transmission system. <br />^ A changed market, describing how management of the transmission network operates <br />under federal reforms. <br />^ The CapX 2020 planning effort, providing an overview of our CapX 2020 study. <br />^ Our preliminary results, presenting our findings to date. <br />^ Next steps, discussing the continued planning effort and inviting stakeholder dialogue. <br />FUTURE NEEDS <br />A robust bulk electric system supports our national and state economies. Data from the U.S. <br />Department of Energy's Energy Information Administration (EIA) show a parallel between <br />the nation's gross domestic product (GDP) and electricity sales.l As the GDP increases or <br />decreases, so does electricity demand. <br />ttt~//we~w eia_doe.goy/oiaP/aeo~e(e_ctrieity.html). <br /> <br />3 <br />;y <br />G <br />