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Financial

2010 at a glance

• Consolidated net margin and earnings: $8.8 million
• Consolidated assets: $5.3 billion

Basin Electric utilizes a financing plan that includes many sources of capital, including both the public and private-placement markets, to finance its construction program. Additionally, Basin Electric continues to be supportive of the Rural Utilities Service (RUS) as a source of capital for rural electric cooperatives.  During 2010, Basin Electric received approval of six loan applications from the RUS totaling more than $1.2 billion in support of capital projects.

Basin Electric has been able to readily secure financing because of its strong financial metrics, financial flexibility, long-term power sale contracts which extend through the life of the Cooperative’s current obligations, low-cost and reliable power supply resources, and sound management policies.

Both now and in the future, Basin Electric is committed to maintaining its creditworthiness and the trust of our membership and all financial stakeholders.

A natural hedge

Basin Electric is the parent company of Dakota Gasification Company (Dakota Gas), which produces pipeline quality synthetic natural gas. This relationship buffers Basin Electric against huge price swings. That's because Basin Electric -with Dakota Gas - has a natural hedge: its peak electricity is generated from gas. As the price of gas goes up, its more costly for Basin Electric to make electricity, but Basin Electric gets a higher revenue stream from Dakota Gas because Dakota Gas produces gas. If the economy causes a reduction in natural gas prices, Basin Electric can make electricity at a lower cost. One hedge against the other - an advantage that only Dakota Gas brings. A typical electric company does not have this hedge.

Download the 2010 Annual Report (sidebar this page) or the 2011 quarterly reports, all of which is found on the Financial Reports page.