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The state Court of Appeals on Tuesday upheld regulators' approval of the $1.7 billion CapX2020 power-line project, shooting down citizen complaints that the enormous project is unnecessary and would harm the environment.

The decision was a big loss for the United Citizens Action Network, NoCapX2020 and Citizens Energy Task Force, which were challenging the Minnesota Public Utilities Commission's 2009 approval of the major transmission buildout. The groups argued that since energy demand has been declining, the expensive new power lines aren't needed. They also argued that regulators didn't adequately address the impacts on wildlife in certain areas such as the Upper Mississippi River National Wildlife and Fish Refuge, which one of the lines will cross as it goes to Wisconsin.

The Court of Appeals concluded in its 13-page decision that the state Public Utilities Commission didn't err, and deferred to the PUC's decisions.

Terry Grove, co-executive director of CapX2020 and manager of transmission for Maple Grove-based Great River Energy, said he was pleased.

"We regard that as a very definitive decision," Grove said.

Carol Overland, a lawyer for United Citizens Action Network and NoCapX2020, vowed to keep fighting.

"We're sharpening the toes of lizard cowboy boots," she said. "We are not giving up."

Construction of the network of high-voltage transmission lines is to begin this fall. One leg of the project, a 240-mile section running from Brookings, S.D., through prime wind-power country to Hampton in Dakota County has been delayed because of issues related to the tariff for billing the construction costs to users.

Altogether, CapX2020 will add 700 miles of overhead power lines across Minnesota, touching North Dakota, South Dakota and Wisconsin. The project is backed by a group of utilities led by Xcel Energy Inc. in Minneapolis and Great River Energy.

Jennifer Bjorhus • 612-673-4683