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office of <br />{` <br />en4 <br />secure r <br />September 7, 2010 <br />Joe Sedarski <br />Xcel Energy <br />414 Nicollet Mall <br />Minneapolis, MN 55401 <br />Melanie Curtis <br />City of Orono <br />PO Box 66 <br />Crystal Bay, MN 55323 <br />95 76 Place East, 5u1re Silo, St. Paul, MN 551a1-2199 <br />=W651.296,4026 tt}: 651.2%.2560 Fax. 6}1.297.7691 <br />www .i umtlu:rCe, sW V.u1 n. us <br />Re: Local Review of Orono Substation Expansion and 115 kV Transmission Line <br />Commission Docket Number: E002/LR-10-957 <br />Dear Mr. Sedarski and Ms. Curtis, <br />Greetings. This letter confirms that the Minnesota Public Utilities Commission (Commission) <br />has received notification that Xcel Energy intends to seek local review to expand the existing <br />Orono substation and to connect this substation to the electrical transmission grid via a new 115 <br />kilovolt (kV) transmission line. The expanded substation and new transmission line would be <br />within the City of Orono in Hennepin County, Minn. <br />Under the Power Plant Siting Act, a permit from the Commission is required for transmission <br />line projects over 100 kV (Minn. Stat. § 216E). However, local review and permitting is <br />possible for eligible projects (Minn. Stat. § 216E.05). For such projects, a utility may apply to a <br />local unit of government instead of the Commission for a permit to build the project. This letter <br />confirms that Xcel Energy's proposed project is eligible for local review. <br />Xcel Energy has indicated that the City of Orono is the local unit of government with jurisdiction <br />to permit the project. A conditional use permit application was submitted to the City of Orono <br />on August 20, 2010. A local unit of government may relinquish its permitting jurisdiction by <br />requesting that the Commission assume jurisdiction within 60 days of the filing of an application <br />with the local unit of government (Minn. Rules 7850.5300, Subp. 4). <br />An environmental review process, including the development of an environmental assessment <br />(EA), must be conducted by the local unit of government with jurisdiction over the project <br />(Minn. Rules 7850.5300). This letter acknowledges that the City of Orono is the responsible <br />governmental unit for the proposed project and associated environmental review. <br />