A joint initiative of 11 transmission-owning utilities in Minnesota, the $2bn CapX2020 is designed to build more than 800 miles of new transmission grid.
The project includes construction of four 345kV transmission lines in Minnesota, North Dakota, South Dakota and Wisconsin, and a 230kV line in northern Minnesota.
Minnesota Commerce Department commissioner Michael Rothman said: "CapX2020 represents a vital expansion of electrical transmission capacity for our energy and economic future.
"Modernizing the electrical grid benefits Minnesota residents and businesses, delivering more reliable, efficient power and supporting further development of renewable energy resources."
Last month, the transmission-owning utilities have energized the 250-mile, 345kV Brookings County-Hampton and 240-mile, 345kV Fargo-St. Cloud-Monticello transmission lines.
Xcel Energy transmission vice-president Teresa Mogensen said: "These projects help ensure customers will continue to receive reliable, affordable energy well into the future."
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