Financing the future of Basin Electric

We often talk about Basin Electric’s all-of-the-above energy strategy, a commitment to building a diverse portfolio that provides reliability for our members no matter what the days, weeks, and years ahead may hold. This energy strategy has been consistent since our founding almost 65 years ago: capitalize on the low-cost fuel sources within our service territory and minimize transportation costs of these fuels. As a result, our portfolio is largely fueled by mine-mouth coal, well-mouth gas, and horizon-mouth wind. As our cooperative continues to grow and power demand surges, an equally important approach is shaping our path forward: an all-of-the-above financing strategy.

This financing strategy means actively developing new channels of debt capital while strengthening and enhancing the financing tools we already rely on. By diversifying how we access capital, we maintain the flexibility, stability, and financial strength needed to support long-term investment and serve our members.

Today, Basin Electric is in the midst of one of the most significant periods of investment in our history. Just one year ago, we projected 10-year capital expenditures of $7.8 billion. Today, that forecast stands at nearly $11 billion, an investment level that will more than double our balance sheet. This growth is driven by new transmission development and the addition of reliable generation needed to serve rapidly growing traditional member load.

Basin Electric has navigated periods of transformational growth before. Between 1970 and 1986, the cooperative’s balance sheet grew nearly 100-fold as the system expanded to meet member needs. That era of growth, guided by long-term planning and a member-focused vision, shaped the cooperative we are today and demonstrated the responsibility and commitment required to invest at scale.

Key components of our strategy

An all-of-the-above financing strategy is necessary to support the scale and pace of Basin Electric’s long-term investments. Diversifying funding sources allows us to access the lowest-cost debt available, maintain strong liquidity and financial flexibility, and adapt to changing market and project conditions. Just as importantly, this approach helps protect reliability and affordability for our members while supporting the A-level credit ratings that reduce borrowing costs and preserve long-term financial strength.

Our financing strategy relies on a balanced mix of tools. We expanded and extended our revolving credit line to $1.25 billion, providing the liquidity and flexibility needed to fund major projects. We have seen increased support from our existing banking partners and strong commitment from new partners, reinforcing this foundation.

Basin Electric also uses term loans as a tool to responsibly spread borrowing over time, working with partners such as CoBank, CFC (National Rural Utilities Cooperative Finance Corporation), the Bank of North Dakota, and others. In October 2025, Basin Electric issued $700 million in public bonds, only the second such issuance in our history. The offering was oversubscribed, with offers to purchase exceeding $4 billion, reflecting strong investor confidence and positioning the cooperative well for future capital needs. We are also exploring additional channels, including tax-exempt debt on appropriate projects, such as the recently announced Bison Generation Station.

Federal programs remain an important part of the mix. Basin Electric reentered the Rural Utilities Service program in 2025 and continues to evaluate federal borrowing opportunities to support future construction.

At the center of all of these financing options is the cooperative way. Our members remain our largest long-term investors, having contributed nearly $1.5 billion in patronage capital and an additional $275 million through the Member Investment Program. This shared investment strengthens our balance sheet and shows the trust our members place in the cooperative as we work together to power the future and maintain a strong, stable financial foundation.

Member benefits of credit strength

Basin Electric’s financial strength is recognized by our financial stakeholders as well. We continue to maintain strong A-level credit ratings from all three major rating agencies, reflecting the sound stewardship of member investments and our disciplined approach to long-term planning, including strong cash reserves, stable long-term contracts with our members, disciplined rate setting, experienced governance and leadership, and a diverse portfolio of assets.

Strong credit ratings matter because they directly benefit our members by allowing Basin Electric to borrow at lower interest rates and provide greater flexibility in power and natural gas markets by reducing collateral requirements and expanding trading options. Together, these advantages help manage costs, support system reliability, and keep electricity affordable.

Looking ahead

Basin Electric forecasts show approximately $9 billion in long-term debt issuance over the next decade to support the growing energy demand. Managing a capital program of this scale requires diversification, discipline, and careful financial stewardship, principles that have guided the cooperative since its earliest days.

We move forward with confidence in our all-of-the-above financing strategy and with a clear focus on our mission of sustaining the quality of life for our members by providing reliable and affordable power produced in a safe and environmentally responsible manner.

I am grateful to our members for their continued trust and investment, to our financial partners for their support, and to our employees for their expertise and dedication as we pursue our all-of-the-above energy and financing strategies. We are building the next generation of cooperative infrastructure rooted in resilience, reliability, and a shared commitment to the communities we serve.