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Commission approves Merchant contract to handle landowner permitting and easements for Southern Interconnect
Summary
The commission authorized a not‑to‑exceed contract (per staff ~ $448,000 total) for Merchant to provide permitting and landowner engagement services for the Southern Interconnect transmission project, covering easement acquisition and permitting through project completion.
The Hibbing Public Utilities Commission on May 19 authorized staff to enter a not‑to‑exceed agreement with Merchant for landowner permitting and engagement services tied to the Southern Interconnect transmission route.
Staff explained the contract covers local permitting work (estimated ~$91,000) and landowner services and easement acquisition (estimated ~$357,000), and that the transmission project costs are managed in a separate line of business to avoid socializing transmission costs against distribution ratepayers. Commissioners asked whether route changes could require additional outreach; staff said the scope accounts for reasonable final‑route adjustments and covers the remainder of the project through construction and closeout (construction anticipated to start next winter with completion roughly 12 months later).
Commissioners approved the authorization; staff said Merchant will proceed with landowner outreach, easement negotiations and permitting support, and that detailed parcel work will be reported back to the commission during the project’s procurement and acquisition phases.
