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Harper says cooperatives are stable force in uncertain times

Despite an economic recession, Basin Electric has been a beacon of stability by staying on top of developments and adjusting plans as needed to meet the challenges it faces in uncertain times.

Basin Electric Power Cooperative - November 3, 2009

Bismarck, N.D. - Despite an economic recession, Basin Electric has been a beacon of stability by staying on top of developments and adjusting plans as needed to meet the challenges it faces in uncertain times.

Speaking at Basin Electric's 2009 annual meeting this afternoon, Ron Harper, CEO and general manager, said electric cooperatives have never been ones to hit the "easy button." "When times get tough, we close ranks and use the strength of our numbers and our unified voice to do what's right for that person at the end of the line," he told more than 800 guests and delegates.

Harper discussed the issues facing cooperatives, the most important of which is climate change. Climate change legislation could have a tremendous impact on the electric utility industry and the nation. Harper said about the only issues overshadowing the climate change debate are the recession and healthcare. "Even though the House passed the Waxman-Markey bill, which addressed some of our concerns, it wasn't enough for us to be supportive of it," he said. "Now the Senate has the Kerry-Boxer bill, which frankly doesn't bring us a lot of good news. The bill, while its intentions may be good, hurts us. It hurts our consumers. The costs are too high. The expectations are unreasonable."

He said utilities must be engaged in the debate. "We can help develop a comprehensive plan that addresses climate change, encourages technology development, gives us time to develop that technology - and do all this in a way that won't financially burden that person at the end of the line."

The strength of cooperatives has also been a proactive force, and it's been an integral part of this country's energy picture. "Thanks to the abundant and domestic coal resources of North Dakota and Wyoming, we've been able to fulfill our mission as a wholesale power supplier and light up our farms and homes with reliable, low cost electricity," Harper said.

"I think we must fight to protect coal's place in this nation's energy future. However, I think we need to continue to evaluate new ways to use it," he said. "I'm proud of the plants we operate. By the time the Dry Fork Station comes online, we will have invested $1.65 billion in emissions control equipment to make our plants even cleaner. We're always trying to look for ways to improve, and today is no different."

As a power supplier to its member cooperative systems, Basin Electric is responsible for building resources to meet a growing need for electricity. Those resources include not only coal-based plants and natural-gas fueled peaking stations, but wind farms and recovered energy sites as well. "Basin Electric's investments in wind farm development alone - through purchase power agreements and self-build projects - carry a price tag of more than $1 billion," Harper said. "While building additional renewable resources fulfills our mission as environmental stewards, it also brings us stability. Diversifying our energy portfolio makes a lot of sense, and a broad mix of fuel sources reduces risk."

Harper said Basin Electric's member systems will play a pivotal role in the future. "As the climate change debate continues, the attack on coal gets more aggressive; as you face communicating rate increases to your consumers and the road seems more bumpy than smooth, remember our roots," he said. "It's our commitment to the cooperative way that has gotten us here. And it's with those same principles that we will forge ahead into this future of uncertainty. It won't be easy, but always the right thing to do."

About Basin Electric Power Cooperative

Basin Electric is a consumer-owned, regional cooperative headquartered in Bismarck, N.D. It generates and transmits electricity to 136 member rural electric systems in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming. These member systems distribute electricity to about 2.8 million consumers.

Basin Electric's generating resources include: two coal-based power plants in North Dakota - the Antelope Valley Station, Beulah, and the Leland Olds Station, Stanton; a coal-based power plant in Wyoming - the Laramie River Station, Wheatland; three peaking stations - the Spirit Mound Station, Vermillion, S.D.; the Groton Generation Station Groton, S.D., and the Wisdom Unit 2 Station, Spencer, Iowa; nine combustion-turbine generators (natural gas) in the Gillette, Wyo., area; four wind turbines - two near Minot, N.D., and two near Chamberlain, S.D.; and 80 wind turbines near Minot, N.D. (2010). Basin Electric is also the sole purchaser of electricity from sources operated by others including: six baseload waste-heat stations owned and operated by Ormat Technologies Inc. along the Northern Border Pipeline; the output of three wind farms owned and operated by NextEra Energy Resources, Juno Beach, Fla. (These wind farms are located near Wilton and Edgeley/Kulm, N.D.; the other is near Highmore, S.D.) Basin Electric has purchase power agreements of varying capacities from the Neal IV Station (coal-based), Sioux City, Iowa, operated by MidAmerican Energy; the Walter Scott Station (coal-based) units 3 and 4, Council Bluffs, Iowa, operated by MidAmerican Energy; the Wisdom Station (coal based), Spencer, Iowa, operated by Corn Belt Power Cooperative; peaking stations located in Spencer, Estherville, Pocahontas, and Webster City, Iowa; the Duane Arnold Energy Center (nuclear), Cedar Rapids, Iowa, operated by NextEra Energy Resources; the Municipal Energy Agency of Nebraska; and three Iowa wind farms - near Superior/Lakota, operated by Iowa Lakes Electric Cooperative; in Hancock County operated by NextEra Energy Resources and in Palo Alto County operated by Crosswind Energy, LLC. For more information, go to www.basinelectric.com.

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