News > CEO’s Message – April 2025

CEO’s Message – April 2025

Wholesale Power – Capacity, Tariffs and Transmission

Recent media reports have warned of growing threats to reliable electric service, including capacity concerns, energy tariffs and the need for new transmission lines. Stearns Electric and our wholesale power provider Great River Energy (GRE) continuously monitor these challenges and implement long-term plans to safeguard reliability for our member-consumers. 

CAPACITY
Capacity refers to the maximum amount of electricity a power supply resource can generate at full operation. As a generation cooperative, GRE ensures enough capacity to meet the demand of its energy consumers.

Through its nine peaking plants and multiple wind resource agreements, GRE currently has a surplus of generation capacity for times when electricity demands are highest, such as during a polar vortex or heat wave. Through long-term resource planning, GRE continues to explore additional opportunities to meet future capacity needs for all 26 member-owners, including Stearns Electric.

ENERGY TARIFFS
In early March, an executive order imposed a 10% tariff on energy imported from Canada. Since then, clarification has been provided explaining the tariff does not apply to energy protected under the US-Mexico-Canada Agreement at this time.* Despite this, the situation has understandably raised concerns among our member-consumers about potential impacts of energy tariffs on electricity costs.

Stearns Electric purchases 90% of our energy requirements from GRE and nearly 99% of GRE’s energy is generated in Minnesota, Iowa and the Dakotas. GRE President and CEO, David Saggau reiterated, “GRE receives so little energy from Canada, that we envision tariffs or supply constraints will have minimal effects on the people at the end of the line.”

While this is positive news, Stearns Electric continues to monitor the situation and work with GRE to ensure reliable electric service is maintained.

TRANSMISSION
GRE has long been planning new transmission projects to support continued growth and reliability well into the future. In 2022, our regional power grid operator, MISO, approved Tranche 1, a multi-year transmission plan in our region. GRE will have ownership in two of the Tranche 1 projects: 

• Alexandria to Big Oaks – will add a second circuit to existing transmission structures along I-94 in our area. Construction is set to begin this year. 
• Northern Reliability – a 150-mile, double circuit transmission line connecting Minnesota Power’s Iron Range Substation near Grand Rapids, to GRE’s new Big Oaks Substation near Big Lake. 

Late in 2024, MISO approved Tranche 2.1. This plan includes three projects GRE will be investing in. One of the projects is a 765 kV transmission “superhighway” that will have three times the capacity of any other transmission line in Minnesota. 

As energy needs evolve, Stearns Electric and GRE remain committed to delivering reliable, affordable electricity. Thank you for your continued trust in Stearns Electric. 

^*Proposed energy tariffs remained paused at the time this issue went to print. 

Sincerely,

Matt O’Shea
Chief Executive Officer