PowerOn Midwest Transmission Plan Projects 5,000 Construction Jobs and $2B in Economic Activity
According to T&D World, a newly released economic impact study projects that the PowerOn Midwest transmission initiative will support nearly 5,000 jobs during construction and generate more than $2 billion in statewide economic activity, primarily in Minnesota.
Market Impact
PowerOn Midwest is a portfolio of transmission projects developed by Great River Energy, ITC Midwest, and Xcel Energy. The centerpiece is a new 765-kV transmission line designed to connect eastern South Dakota, Minnesota, and the broader Upper Midwest. The economic impact study, released May 28, details projected benefits concentrated in Minnesota communities along the proposed route.
Specific projected figures for Minnesota include 4,870 jobs supported statewide, with 2,553 of those in project counties during construction. Statewide payroll spending is estimated at more than $482 million, including $259 million in project counties. Economic activity statewide is projected to exceed $2 billion, with $914 million landing in project counties. Over 35 years, the projects are expected to generate approximately $1.2 billion in property tax revenue in project counties.
The study also projects that the new transmission capacity would enable more than 12,000 MW of new wind, solar, energy storage, and natural gas generation in Minnesota, potentially producing more than $5 billion in additional economic activity. The project team has already filed a certificate of need application with the Minnesota Public Utilities Commission and expects to file a facility permit application with the South Dakota Public Utilities Commission in September.
What It Means for Subcontractors
- Electrical and civil subs with 765-kV transmission experience should monitor the Minnesota PUC certificate of need process closely, as approval would unlock procurement activity for one of the larger regional grid buildouts in recent years.
- The concentration of $914 million in economic activity within project counties points to localized subcontracting opportunities, meaning smaller regional firms, not just national contractors, are positioned to compete for portions of this work.
- With a South Dakota facility permit application expected in September, subs operating across state lines in the Dakotas and Minnesota should begin tracking both state regulatory timelines now to get ahead of contractor qualification and bidding windows.
- The projected enablement of 12,000 MW of new generation adds a secondary wave of work beyond the transmission line itself, including potential substation, interconnection, and balance-of-plant contracts tied to new wind, solar, and storage projects.
