Stearns County approves $4.39 million Xcel transmission relocation for County Road 2

Stearns County commissioners on March 25 voted to approve an updated transmission-line relocation agreement with Xcel Energy for the County Road 2 reconstruction and authorized the county engineer to sign the contract, after staff told the board Xcel's finalized design raised the estimated cost.

The board approved the move after Jody Tyke, the county engineer, told commissioners that XcelEnergy had completed a full design for the transmission-line relocation and the new total is $4,388,165. "Xcel Energy has since done the full design of relocating that transmission line ... and the new total cost is $4,388,165," Tyke said during the meeting.

Why it matters: County staff said the relocation is required because the existing poles sit inside the federally and state-required clear zone for this section of County Road 2. Tyke explained that roads funded with state or federal aid must meet clear-zone safety standards used to reduce crash risk; in the 55 mph zones cited in the presentation, the clear zone is 42 feet from centerline (roughly 30 feet from the edge of the driving lane). Relocating utilities that are on private easement and inside that clear zone triggers relocation costs borne by the county when the county is expanding right of way for a safety reconstruction.

What drove the price increase: Tyke told the board Xcel revised design choices and right-of-way costs drove most of the rise. She said Xcel changed to steel poles at several locations and increased right-of-way costs after county plans were finalized; those engineering choices add substantially to the estimate. Tyke also noted two transmission poles on the project are owned by Great River Energy and that final costs from that co-op are still expected; she estimated Great River Energy's relocations could add roughly $130,000.

Tyke reminded the board that a separate distribution-line agreement for the same project had earlier come back well under its initial estimate: distribution relocation was estimated at about $300,000 but bid at roughly $154,000. She also said XcelEnergy provided estimates that sometimes come down and refund money but that the county's experience with Xcel refunds has been limited.

Board discussion and vote: Commissioners voiced frustration about the added cost but also emphasized safety. Commissioner Clark asked why the county must cover costs when Xcel chooses a different pole material; Tyke replied that when lines are on private easement and the county expands right-of-way, relocation costs fall to the county and that transmission operators generally prefer to keep lines outside public right-of-way to avoid future relocation obligations.

Commissioner Notch moved to approve the updated transmission-line relocation agreement and authorize the county engineer to sign; Commissioner Clark seconded. The motion passed; commissioners recorded unanimous "ayes." One commissioner stated for the record that they voted "aye under protest." Tyke noted the county expects to pay the remaining balance to reach roughly 802 of the relocation cost up front and to be billed for the final amounts when Xcel completes work.

Next steps and context: Tyke told commissioners the county has offered Xcel options that would have reduced easement costs (for example, relocating within county right-of-way but keeping poles at least 42 feet from centerline) but that transmission companies often avoid locating in right-of-way to reduce future relocation obligations. Some easement purchases on the project already totaled about $72,000, and Tyke said the county may need to secure remaining parcels through eminent domain if negotiated agreements cannot be reached. She warned the board this is the most expensive utility relocation she has seen in 25 years and that similar costs could arise on future road sections where transmission lines sit on private easement.

Tyke also said state aid and federal funds being used on the County Road 2 reconstruction will reimburse some relocation costs under program rules; she encouraged continued coordination with utilities, noting county staff plan annual meetings and longer-term planning to reduce future surprises.

Votes at a glance: The county board approved the updated Xcel Energy transmission-line relocation agreement and authorized the county engineer to execute the contract. No recorded opposing votes were entered on the record during the meeting.