Hibbing council agrees to locally handle HPU transmission-route permit

The Hibbing City Council on July 16 voted to accept local jurisdiction over a route permit for the Hibbing Public Utilities (HPU) Southern Interconnect Transmission Project, a step that routes further review to the city's planning commission rather than to the Minnesota Public Utilities Commission in Saint Paul.

The decision came after a presentation by Lisa Crum, an energy law attorney representing HPU, who told the council the project would "increase Hibbing's electric reliability and support future economic growth in the city of Hibbing." The council approved resolution 25-07-06 recognizing the city's jurisdiction; the planning commission will next consider a conditional-use permit and built-in environmental review under the local process.

The move gives Hibbing more control over timing and local conditions, council members and counsel said. Crum and city staff contrasted the local route with the state process in Saint Paul, which they said can take longer and is subject to state timelines and appeals. Crum said the state process can take six to nine months and that appeals to the Minnesota Court of Appeals can add as much as nine months more. "By taking this locally, you are setting up a process that could work for your community," Crum said.

City Attorney Andrew Borland told the council the city had discussed the approach with city staff and the utility for months and that the planning commission had reviewed HPU's notice of intent and voted to refer the matter to the council. Borland described the council's role as recognizing jurisdiction only; the council is not approving the utility application itself.

Council members asked about liability, project costs and timing. Crum said liability risks exist at either level but that the local process is spelled out in state statute and provides a defined pathway for environmental review and local conditions. City and HPU representatives said construction costs to tie into existing transmission would be subject to confirmation by HPU management and that costs would ultimately be reflected in HPU rates. "Everything HPU does is to the rate payer," one councilor noted; Crum said the direct cost comes from rates HPU charges for service.

The council's approval returns the project to the planning commission for conditional-use permitting and the required environmental review under the local jurisdiction process. Several council members asked for a deeper briefing on the project at a future working session.

Ending: The council approved resolution 25-07-06 by voice vote. The planning commission will schedule and review HPU's conditional-use application and the environmental review as the next steps under the local process.