Buffett firm eyes 10% stake in pioneer power line linking two principal US electric grids
The $3.2bn North Plains Connector project would be first HVDC line with transfer capability between the giant Eastern and Western Interconnections
Warren Buffett’s BHE US Transmission announced it has signed a non-binding MOU with a unit of merchant developer Grid United for a 10% stake in the proposed 3GW interstate North Plains Connector project linking the country’s two main electric networks.
Under the MOU, and subject to successful negotiation of definitive agreements, BHE US Transmission would own 300MW of the project.
The company is part of BHE Energy, which owns utilities, natural gas pipelines, and clean energy projects, a unit of Berkshire Hathaway, the largest US conglomerate whose CEO is Buffett.
The $3.2bn, 420-mile (676 km) power line between southern Montana and North Dakota to the east “will play a key role in further modernising and enhancing the US energy grid,” said Doug Kusyk, vice president and general counsel for BHE US Transmission.
The high voltage direct current (HVDC) project will carry power in both directions generated by wind, solar, other renewables, and conventional sources.
The project is under development by Houston-based Grid United and ALLETE, a regional utility and renewable energy developer based in Minnesota.
The two main US electric networks are the Eastern Interconnection comprising all states east of the Rocky Mountains minus Texas and the Western Interconnection, grouping states west of there. Texas has a much smaller third network.
North Plains Connector will also be the first HVDC tie between three major regional energy markets: Midcontinent Independent System Operator (MISO), the Western Interconnection, and the Southwest Power Pool (SPP).
MISO manages the flow of electricity between 15 central and upper Midwest states, while SPP does the same between 14 states to the west of MISO. They both are part of the Eastern Interconnection.
North Plains Connector is entering the permitting phase and initiating regulatory filings, with approvals expected in 2026. Construction is expected to commence in 2028, and the transmission line is expected to be operational in 2032.
“Utilities accounting for 75% of the line’s capacity have now signed MOUs to participate in North Plains Connector,” said Michael Skelly, CEO, Grid United.
“With this strong set of participants going into 2025, we look forward to a year of finalising definitive agreements, advancing engineering, permitting and construction preparations, and working closely with host communities to ensure a project that delivers value for both stakeholders and utility customers,” he added.
Skelly gained notoriety last decade as president and CEO of Clean Line Energy Partners, a company he co-founded, that proposed several high-profile long-haul merchant renewables transmission lines.
After a decade of struggling to advance the projects amid bureaucratic challenges, opposition by landowners and some states, and difficulties securing off-take, they were sold and the company shut down in 2019.
Clean Line was sometimes cited by officials in outgoing President Joe Biden’s administration as an example of why the federal government must take the lead in facilitating siting and permitting of merchant transmission the country badly needs to accelerate the energy transition.
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