Board approves 2012 budget
The 2012 operating budget includes total operating expenses of almost about $1.2 billion.
Basin Electric Power Cooperative
- December 29, 2011
The Basin Electric board of directors approved the 2012 operating budget at their December meeting.
Dave Bangen, Basin Electric manager of financial planning and forecasting in Financial Services, said the 2012 operating budget includes total operating expenses of almost $1.2 billion dollars.
He told directors the 2012 budget includes two important events: the first full year of operations at Dry Fork Station, Basin Electric's 385-megawatt power plant near Gillette, WY, and the commercial operation of Deer Creek Station, Basin Electric's natural gas-fueled combined cycle generation facility in Brookings County, SD, in June 2012, including the half year of operation to follow. "If you take a look at the 2012 operating budget, about 60 percent of our total cost of electric service is directly related to coal-based generation," Bangen said. "Additionally, about 26 percent is related to purchased power, some of which we buy from our members and our subsidiaries—two pretty significant expense areas."
The 2012 budgeted member revenue requirement is $956 million, and Bangen said this represents almost 80 percent of the total budgeted revenue stream. "About 74 percent of all megawatt-hours sold will be sold to the membership. Basin's average member rate for the 2012 budget is 50.5 mills – a 5 mill increase, and that was approved by the board of directors in July."
According to Bangen, Basin Electric has a projected pretax margin for 2012 of $40.2 million and the pretax margin represents the amount to be allocated to the membership.
"On the capital side, $261 million of new capital projects is budgeted for 2012 with almost 90 percent of the budgeted amount coming from two transmission projects," he said. "Those are the western North Dakota 345-kilovolt transmission line and the western North Dakota voltage support system. That number doesn't include the proposed Pioneer Generation Station, approved by the board earlier this year, but it does include the cash flow from that turbine, which will happen mostly in 2012.”
Total cash flow for all Basin Electric capital projects is projected to be $245 million dollars in 2012.
Headquarters
1717 East Interstate Avenue
Bismarck, ND 58503-0564 USA
Phone: 701.223.0441
Basin Electric Power Cooperative will provide cost-effective wholesale energy along with products and services that support and unite rural America.
