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Based upon all of the proceedings herein, the Commission makes the following: FINDINGS OF FACT Applicant 1. Northern States Power Company, a Minnesota corporation (Xcel Energy or Applicant), submitted an application for a route permit to the Minnesota Public Utilities Commission. Northern States Power Company, a Minnesota corporation, is a wholly-owned subsidiary of Xcel Energy Inc., a utility holding company with its headquarters in Minneapolis. Xcel Energy will construct, own, and operate the Orono Substation Expansion and New 115 kV Transmission Line Project (project). Xcel Energy is a Minnesota corporation with its headquarters in Minneapolis, Minnesota. Xcel Energy is also a wholly owned subsidiary of Xcel Energy Inc.I Project Description 2. The project is located in Township 118N, Range 23 W, Sections 29, 30, and 32 in the northeastern portion of the city of Orono in Hennepin County, Minnesota.2 3. The project would replace the existing 69 kV Orono Substation with a new 115 kV substation at the same location, but with a larger footprint. The project would connect the new substation to the existing Xcel Energy 115 kV transmission line 0831 through a new double circuit 115 kV transmission line of approximately 2,040 feet (0.4 miles). The project would also remove approximately 1,030 feet of 115 kV transmission line and replace it with approximately 1,100 feet (0.2 miles) of new single circuit 115 kV transmission line.3 4. Xcel Energy states in its route permit application that the project is proposed to improve local and system reliability, reduce the risk of overloads, and allow for additional load growth in the future. The Orono Substation is currently fed at 69 kV from two directions: Dickinson and Crow River from the west and Medina from the east. In response to historical and anticipated load growth in the west metro area many 69 kV facilities are being upgraded to 115 kV. Planned upgrades anticipate conversion of the existing 69 kV line between the Medina and Plymouth substations to 115 kV would mean that the eastern source feeding the Orono Substation would be lost, resulting in a radial feed (only one source) into the substation. Radial loads have lower reliability than those with two sources. With the loss of the 115/69 kV connection at Medina, there is not enough capacity on the 69 kV system to support the load in the area. If the Crow River 69 kV line were to be taken out of service, either through a system fault or inadvertent breaker operation, the result would be low voltages and system overloads. Xcel Energy Exhibit(Ex.)2 at pp.l,6(Route Permit Application [Application]). 2 Ibid.at p. 1 3 Ex. 12 at p.I (Environmental Assessment[EA]) 2