02 Statewide Economic Development Infrastructure Plan

CASE STUDY

Otter Tail Power Load Addition Milbank, SD

Key Takeaways » Innovative thinking lead to overcoming power obstacles » Increased costs for

Valley Queen Cheese (VQC), a large, private manufacturer, partnered with Otter Tail Power (OTP) to overcome permitting and land use obstacles for new transmission lines and a substation to support VQC operations and add significant capacity to the Milbank area. Increased VQC electrical load prompted an electrical study for upstream service from OTP. Due to local natural gas service limitations, VQC required an electric backup 10+ MW electrode boiler. The new substation is needed to add redundancy to firm electric power. The existing transmission line infrastructure was found to be inadequate for VQC loads. OTP originally planned to serve the additional load with a new 15- to 17-mile transmission line easement route. The plan did not utilize existing or established line routes, as the new line was deemed the most cost-effective and timely option in a preliminary review. When OTP contacted landowners with options related to the new line, it was apparent there were several opposed or non-responsive landowners. OTP sought approval for an alternate option to utilize an established 12-mile 41.6 kV route running parallel to Highway 12 between Big Stone and Milbank. This was approved by Midcontinent Independent System Operator (MISO), a non-profit organization regulated by the Federal Energy Regulatory Commission (FERC). While the selected option increased costs it allows OTP to meet VQC’s requested in-service date of January 1, 2025. The new 115 kV infrastructure will provide significant additional capacity to the Milbank area, allowing for growth beyond VQCs expansion.

implementing new power source provided significant

additional capacity to the area » VQC was able to grow beyond initial expansion » Economic development focused partnership between utility providers and impacted industries » VQC invested $20 million on the projected $36 million project

Visit the link to see more: bit.ly/VQC-Transmission

44 | Electric

South Dakota Governor’s Office of Economic Development

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