April 22, 2026

This piece is sponsored by Xcel Energy.

Reliable electricity is the foundation of South Dakota’s economic growth and the quality of life we enjoy here.  It powers our homes, keeps essential services running and allows businesses across the state to invest, expand and create jobs. As demand for electricity accelerates, the need to modernize and strengthen our energy infrastructure has become more important than ever.

“Across South Dakota and throughout the Upper Midwest, electricity use is expected to rise faster than at any point in recent decades,” said Eric Pauli, community relations manager for Xcel Energy.

“Population growth, expanding manufacturing, new technologies and increased electrification are all placing new demands on a grid that was largely built for a different era. At the same time, communities rightly expect power to be available every hour of every day, through extreme weather, seasonal peaks and unexpected disruptions.”

Meeting that expectation requires planning well ahead of demand. It means investing in infrastructure before constraints appear, not after they affect reliability. That is exactly the role PowerOn Midwest is designed to play.

PowerOn Midwest is a series of high-capacity transmission projects across eastern South Dakota and southern Minnesota. It is a proactive investment to ensure that the grid remains resilient, flexible and capable of supporting growth for years into the future. By strengthening the backbone of our energy grid, PowerOn Midwest will help ensure electricity can move where it is needed, when it is needed — safely and efficiently.

Electric transmission infrastructure is more than wires and poles — it is the quiet foundation of regional reliability. It connects generation resources to customers, balances supply and demand, and provides essential backup when disruptions occur. As electricity demand increases, those connections must be expanded and reinforced to prevent bottlenecks and reduce the risk of outages.

“Without continued investment, even well-maintained systems can become strained,” Pauli said. “Higher peak loads, concentrated development and changing usage patterns all place greater demands on the grid. Planning ahead allows utilities to address these challenges deliberately and build the capacity needed to support future demand.”

PowerOn Midwest also reflects the realities of how the energy system is evolving. New generation sources are coming online across the region, and customers are using electricity in more dynamic ways. A modern grid must be capable of integrating diverse energy sources while maintaining stability and reliability. Strengthening transmission is essential to making that system work.

Beyond delivering reliability, a strong electric grid creates opportunity. Communities with dependable infrastructure are better positioned to attract and retain employers, support local businesses and plan confidently for the future. Additionally, PowerOn Midwest will provide economic benefits to host communities, including well-paying jobs, increased local spending and a bigger property tax base – funds that support local schools, infrastructure and essential public services.

PowerOn Midwest South Dakota is being developed in partnership between Otter Tail Power Co. and Xcel Energy. Guided by careful planning and coordination, it reflects a shared commitment to collaboration across the energy sector. These investments are designed to serve customers for decades, ensuring that today’s decisions continue to deliver value well into the future.

Developing and building major new transmission lines is a multiyear process that begins with significant planning, comprehensive outreach to local stakeholders and robust regulatory review by state officials. If approved, construction would begin in 2030, with segments expected to be in service between 2032 and 2034.

“At Xcel Energy, reliability is our responsibility. We plan for growth, for weather extremes and for the unexpected because our customers depend on us to deliver power without interruption,” Pauli said.

“As South Dakota and the Upper Midwest grow, change and make investments in the future, ensuring the electric grid can keep pace is essential. PowerOn Midwest is about just that: maintaining reliability, supporting communities and building the energy foundation needed to power what comes next.”