Basin Today Jan-Feb 2017

B A S I N T O D AY BASIN EL EC T RIC P OW ER COOPER AT I V E

JA NUA RY | FEBRUA RY 2017

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M AG A ZINE

CO-OPS REBUILD AFTER CHRISTMAS STORM

CONTENTS VOLUME 20

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NUMBER 1

ON THE COVER Lineworkers from East River Electric Power Cooperative knock ice from a conductor about 33 miles northeast of Watertown, SD. During the 2016 Christmas storm, 20 cooperatives in South Dakota reported outages to almost 23,000 cooperative members’ homes and businesses.

IN EVERY ISSUE 2 CEO and general manager column: Paul Sukut 4 In brief 13 Member focus: Winter storm Europa wallops member cooperatives 16 Feature series: A day in the life of ... Cyber Security Specialist

Dustin Erhardt 18 Employee highlights FEATURE STORIES 6 Cooperative Plan: 2017 The path to the next greatest thing 10 Helping kids and families battle cancer one bald head at a time CONTRIBUTORS Editor:

Kensli and Kenadi Binstock (blue coat), participate with their whole family in the Basin Electric cross country skiing event Jan. 14 at Riverwood Golf Course in Bismarck. They are the daughters of Linda Binstock, lead inventory analyst.

Andrea Blowers (ablowers@bepc.com)

Publications manager:

Mary Miller

Graphic designer:

Nicole Perreault

Photographers:

Chelsy Ciavarella, Jade Neumann & Greg DeSaye

Writers:

Tracie Bettenhausen, Chris Gessele, Tammy Langerud, Angela Magstadt & Joan Dietz

Use your smartphone barcode scanner to view stories online.

JANUARY – FEBRUARY 2017 | 1

CEO A ND G E NE R A L M A N AG E R C OL UMN

PAUL SUKUT OUR NEXT GREATEST THING As we begin 2017, we find ourselves in a world of change. Sometimes it’s difficult to get our bearings when so much around us appears to be in transition and in question.

Basin Electric has stood for more than 50 years as a stable force in our region and in the lives of the members whom we serve. We plan to remain that stabilizing force for many years to come.

The steps our board took in 2016 and 2017 validate that.

Making difficult decisions for the betterment of the family is what we do. So, while an intra-year rate increase was a tough pill to swallow – and believe me – it was our absolute last resort, it was a bold decision to position us for the future. I sincerely thank the membership for stepping up.

With that, I’m asking the membership to turn the page with me to our next story. It will be a story of evolution, of survival, and ultimately, a story of strength and of solidarity.

Emerging technology, volatile commodities and a carbon-constrained future continue to impact our decisions, and will no doubt, influence our course.

But, we plan to steer this Basin Electric ship through these driving forces. How? Let’s break it down into a few key areas.

Dakota Gasification Company Dakota Gas is either the belle of the ball or the fly in the ointment. No doubt, to the membership, lately it has felt more like the latter. So, why not sell it? We must remember three truths remain: First,

2 | BASIN TODAY

Dakota Gas’ Great Plains Synfuels Plant is inherently integrated with Antelope Valley Station, Leland Olds Station, and the Freedom Mine. Rapidly removing it from the scenario means we are willing to let our North Dakota coal-based plants crater, too. Are we ready to give up on coal? I do not ask this question flippantly; this is a question with which we need to give due consideration. My answer is no, but it deserves discussion.

The second truth is that through the development of the urea processing facility, we have a profitable path for Dakota Gas, not to mention we are fulfilling our mission to serve rural America. Within the Dakotas and Minnesota, there is high demand for urea. We believe the demand for urea will only increase with the unknowns surrounding the future of anhydrous ammonia.

Our last essential truth is that Dakota Gas holds the keys to the future of coal. All clean coal technologies seem to start with coal gasification. We are already partway there with the Synfuels Plant. We have great potential to bring the next state-of-the-art facility to the upper Midwest through the Allam Cycle.

While we aren’t there yet, we are actively developing that path and are encouraging our congressional delegation and our state leaders to invest in rural America through a potential demonstration facility at the Synfuels Plant.

So, given these truths, what is our plan? In short, we’re looking toward the future, bringing solutions and creating a viable path for the plant – inspired by hope and balanced with caution.

With our decisions to pursue the urea facility and Allam Cycle, we are shifting our focus from being in a reactionary mode to a proactive position. At the same time, we are measuring our risks and developing key

scenarios. Part of this scenario analysis will include a view of what the plant could look like in 2045. This could be a future that includes coal (as mentioned above) or one that doesn’t. The scenario will include an evaluation of putting a reformer on the ammonia plant, essentially decoupling coal from the facility, but yet allowing us to manufacture fertilizers. Tethering our future to natural gas isn’t without risks either, so we have our work cut out for us. We will again evaluate whether having partners is a viable option. And, we will again look at what a future would look like if we sold it. In short, nothing is being taken off the table.

Continuous Improvement Before the intra-year rate increase, Basin Electric entered into an aggressive austerity program. This resulted in more than $170 million in total cost reductions for 2016. When the board authorized the rate increase, it came with the admonition to continue our austerity program. That continues. In short, we are evolving the program by digging deeper and looking for ways to further reduce expenses without risking safety or the reliability of our facilities. Where we can, we will continue to defer expenses. But, more than anything, we need to set up a process for working smarter, increasing efficiencies, and making sure that every dollar we spend of our members’ money is spent wisely.

This continuous improvement initiative is cornerstone to our planning for 2017. It will require employees at all levels to dig deeper, look at our processes, and think of ways to work smarter. We are encouraging employees to take ownership in this process and will reward those who come up with suggestions that result in true efficiencies and cost savings.

Continued...

JANUARY – FEBRUARY 2017 | 3

CEO A ND G E NE R A L M A N AG E R C OL UMN

Next steps Our strategic planning process has resulted in eight key objectives. All of our planning relates back to those objectives, keeping intact our core themes: commitment to cooperative, commitment to workforce, operational excellence, and supporting membership and related growth. Everything we do must relate to those themes and help us achieve our objectives.

As we roll out our 2017 cooperative plan, you’ll read about those objectives, along with risks, opportunities, values and lastly, our initiatives for the year. We sought our Class A managers’ input as we developed this plan, and out of this process came a better understanding of their key challenges and how our decisions impact their cooperatives.

Central to our plan is risk mitigation. I’ve outlined steps we’re taking with regard to Dakota Gas. Our work doesn’t end there, however. We have efforts under way with regard to our hedging program, power supply planning process, and other areas of the cooperative.

IN B RIE F

All of this requires difficult conversations, extensive analysis, and the work and commitment of our employees and membership. I have complete confidence that we can do it. This time, more than ever, requires us to be looking – and planning – forward together. We have a rich history. It wasn’t easy – nothing worth it ever is – but today we stand nine states and nearly three million consumers strong.

With this plan, we begin to weave together the fabric of our next story. It will be a story about serving and strengthening rural America. And, while we may not know exactly what shape or form it will take, I do know it requires you. And, if we work together, it will be our best story yet.

Paul Sukut, CEO and general manager

4 | BASIN TODAY

First-of-its-kind engines for Basin Electric started commercial operation Jan. 1 at Pioneer Generation Station, located northwest of Williston, ND. Phase III construction at Pioneer Generation Station, which consists of 12 natural gas-based reciprocating engines, is adding 110 megawatts (MW) into the grid. Each engine has a generating capacity of 9.3 MW. Read more and watch video of the reciprocating engines’ arrival at Pioneer Generation Station. http://bit.ly/PioneerEngines

Boards approve 2017 budgets At their December meetings, the boards of directors approved the 2017 operating and capital budgets for Basin Electric and subsidiaries.

The 2017 operating budget includes total cost of electric service of approximately $1.65 billion, or approximately $25 million above the 2016 budget.

Along with this, the pre-tax margin amounts to more than $163 million.

The 2017 budgeted member revenue is $1.583 billion, and this represents 90 percent of electric sales. Basin Electric’s average member rate for the 2017 budget is 64.2 mills per kilowatt-hour.

Total cash flow for all of Basin Electric and its subsidiaries’ capital projects is projected to be nearly $415.5 million in 2017.

FIND US ON THE WEB BasinElectric.com

Wind projects go commercial at end of 2016

IN B RIE F Child care cooperative purchases building

New all-time high member billing peak

Energy Capital Cooperative Child Care closed on the purchase of the New Bethel Congregational Church Dec. 28, 2016, in Hazen, ND. The building will be home to a new child care center, set to open in March.

The child care facility will be known as the New Bethel Center. Now that the purchase of the building is finalized, the cooperative is moving forward with necessary site renovations, which include a kitchen remodel and installation of an integrated fire detection system.

For the first time since January 2015, Basin Electric’s system reached new peak member 3,684.7 sale levels primarily because of extreme cold BILLING temperatures across the PEAK membership service area.

Final billing completed for December 2016 shows Basin Electric hit a new all-time high billing peak of 3,684.7 megawatts (MW) surpassing the previous all-time high member sale level by about 87 MW. Early indications show the cooperative likely hit an even higher member billing peak in January 2017.

http://energycapitalcooperative.com/

Pioneer Generation Station Phase III is commercial

MW

http://bit.ly/BillingPeakDec2016

Three wind projects in Nor th Dakot a f rom which Basin Electric has signed purchased power agreements totaling 404 megawatts (MW), went commercial at the end of 2016.

The Sunflower Wind Project, located near Hebron, ND, has a maximum capacity of 104 MW. The owner of the project is SunEdison, Inc., headquartered in Maryland Heights, MO. The project was declared commercial Dec. 22, 2016.

Brady Wind I Energy Center and Brady Wind II Energy Center, located adjacent to one another near New England, ND, are comprised of 174 turbines with a maximum capacity of 300 MW. The owner of those projects is NextEra Energy Resources, headquartered in Juno Beach, FL. The projects were declared commercial Nov. 21 and Dec. 27, 2016, respectively.

The addition of these projects brings the renewable portion of Basin Electric’s portfolio to 1,254.6 MW. http://bit.ly/WindCommercial2016

DakotaGas.com Read Basin Today online @ basinelectric.com/BasinToday Read Basin Electric news online @ basinelectric.com/NewsBriefs

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linkedin.com/company/ basin-electric-power-cooperative JANUARY – FEBRUARY 2017 | 5

INITIA T

OPPOR TUN ITI

S RISK

ES

S RISK

6 | BASIN TODAY

PLAN

RISKS

ATIVE R E P COO 2017

Each team’s objective sets a framework for goal-making. For continuous improvement, it’s to embed a culture of continuous improvement by providing a safe work environment, supportive leadership, processes, and tools that support and reward employees’ efforts to identify and make changes that add value and eliminate waste within their jobs.

For fiscal discipline, the objective is to manage costs and develop and implement strategies that lend to efficient operations and achieve long-term financial stability.

OPPOR T U NI T

Objectives

CO-OP PLAN

ES LU A

Following a year of challenge, having and sharing a plan is more important than ever for Basin Electric.

The Cooperative Plan is a tool for the board, staff, and co-op members that concisely defines the cooperative’s values and direction for use in everyday business application.

It is based on a document created by the board and senior management, and incorporates initiatives with short-term and long-term goals. Eight senior management teams meet quarterly with the intent of releasing updated objectives and goals by January each year. Senior staff, in addition to meeting as groups, seek input from Class A managers to more clearly identify the challenges and impact of decisions made at Basin Electric.

IES

By Tracie Bettenhausen

OPPOR T U N ITI

THE PATH TO THE NEXT GREATEST THING

IES

COOPERATIVE PLAN: 2017

As for communication and a grassroots network with Another significant risk sits within the cooperamembership, the objective is to enable effective, tive’s workforce. A retirement wave is expected in transparent, two-way communication with both the next two years. Basin Electric must continue employees and members. to integrate new employees into the cooperative Staff will assist managers to develop new and workforce and culture, ensuring they understand the existing employees by instituting a learning and cooperative way, and that Basin Electric taps into development program that identifies and creates employees’ full potential. educational and leadership opportunities. They also The age of coal-based resources, in conjuncplan to continue risk mitigation for Basin tion with regulations, means decisions O Electric and Dakota Gas through will need to be made regarding PPOR ISKS R T U defined hedging plans that target future generation sources.

NI T specific levels of revenue and The markets for natural ES expense certainty. gas, oil, and agriculV ES V As for distributed ture are expected to I generation, the objecbe volatile for the ti ve is to ex plore foreseeable future. technology advanceA new marketplace ments that have the including distributed potential to impact generation and wind long-term operation will create competiO of the generation and tion for resources.

S BJ E production fleet, and could Physical and cyber E C TIV broaden new resources security threats continue options. Technology advanceto grow, along with increased ments are also monitored as part compliance issues with the North of the framework for addressing a American Electric Reliability Corporacarbon-constrained future. Gasified and liquetion and critical infrastructure protection. fied fuels and fertilizers have the potential to impact As the energy industry grows more complex, long-term operation of Basin Electric’s generation maintaining strong governance and business policies and production fleet. will grow in importance.

Despite these risks, the opportunities at Basin Risks, values, opportunities Electric are great. The geographic reach of the service territory, inter-ties and access into Southwest Power The Clean Power Plan, in its final form, presented Pool and Midcontinent ISO regional transmission the most significant shift in how Basin Electric must organizations, make Basin Electric truly unique. generate electricity in several decades. With the The infrastructure for enhanced oil recovery exists motion to stay the rule pending final litigation granted, thanks to the carbon capture project at the Great along with the unknowns surrounding the direction Plains Synfuels Plant. As the appetite for enhanced the Pres. Donald Trump administration will undertake, oil recovery grows in North Dakota and Montana, the Basin Electric has time to plan. However, it is widely cooperative is in a natural position to capitalize on the viewed that this reprieve is temporary and that carbon taps in the pipeline and current production. mitigation will be a part of the future.

JANUARY – FEBRUARY 2017 | 7

This is Mason. He’s BRAVE.

KEY INITIATIVES Continous improvements

Risk management

Fiscal discipline

Distributed generation

Membership communication

Address carbon

Safety & leadership

Attract workforce

Technology advancements to continue the use of coal, including gasified and liquefied fuels and fertilizers, have the potential to broaden new resource options. The Allam Cycle, activity at the Wyoming Integrated Test Center, and more, may provide generation options for the future.

Basin Electric’s values include employees, the cooperative business model, serving members, and operating with sound and excellent business practices.

Key initiatives The Cooperative Plan’s key initiatives are divided into four categories: commitment to cooperative, commitment to workforce, support membership growth, and operational excellence.

Basin Electric will continue to develop in-house educational opportunities for new and existing employees surrounding the cooperative business model as a way to maintain an engaged workforce.

The cooperative is also developing programs such as EMPOWER and Building Cooperative Connections to help broaden understanding of the cooperative business model.

Staff has successfully launched a revamped basinmembers.com, where members can order advertisements developed for member use.

For the workforce, the People. Power. Purpose.

Series relates back to the cooperative’s strategic plan and core values, and is broadcast live to all Basin Electric facilities. In addition, a quarterly schedule of in-person CEO visits will continue across all Basin Electric facilities. The push to attract, motivate, and retain employees through benefits and policies focused on demographics, as well as learning and

development programs that meet the needs of a diversified workforce will be coupled with succession planning, performance management, goals and incentive compensation.

To support membership growth, Basin Electric will continue dialog with both existing members and non-members, and evaluate the benefits of future collaboration, consolidations, and partnerships.

Staff will continue to evaluate the financial impact of the 2016 intra-year rate increase and report to the membership on an ongoing basis.

Marketing & Asset Management and Cooperative Planning will review the potential for new load management goals for the membership that may provide new value due to participation in the Southwest Power Pool marketplace. They will address distributed generation trends and create solutions for the membership.

Regarding operational excellence, Basin Electric will develop the framework for change management and support a culture of continuous improvement.

Staff will maintain the austerity measure implemented in 2016 while being diligent to not jeopardize reliability and safety.

The cooperative will seek a path forward in a carbon-constrained world and maintain financial strength. Staff will continue to evaluate the synergies of the Basin Electric family in order to optimize the operation of various assets and facilities.

Urea plant construction will continue, while staff develops a urea hedging program. The cooperative will look to expand its natural gas supplies to baseload generation in the Bakken area, and will further advance technology development.

Not because he asked to be, but because he has to be.

Will you be BRAVE with him?

Join us. bravetheshave.coop

Mason B., cancer fighter and Brave the Shave honoree.

8 | BASIN TODAY

HELPING KIDS AND FAMILIES BATTLE CANCER ONE BALD HEAD AT A TIME

By Angela Magstadt

Zakkry Arenz

10 | BASIN TODAY

Twins. He says when he grows up, he wants to either Since the first event 10 years ago, Brave be a businessman or a psychiatrist. the Shave has exploded into a money-raising, Zakk was diagnosed with medulloblastoma, hair-shaving frenzy. Over the years, nearly 2,200 the most common type of brain tumor in children, in volunteers have shaved their heads and raised January 2016. Doctors in Mandan found the tumor and $2.2 million for kids with cancer. the next day the family was on their way to Children’s Today, as individuals and teams sign up Hospital in St. Paul, MN. “We packed for a weekend to lose their locks, you may ask, “Why?” For and were gone for 10 days,” the kids. Every year, we honor says Zakk’s dad, Jon. Doctors the children in our communiWe wondered, why in St. Paul removed the tumor ties who are currently would they do this? What and Zakk spent the next week battling cancer, those do they want from us?

And and a half in the hospital. who have recently the answer is nothing. They It was during this time completed t re atjust want to help. men t, and those the Arenz family received a who have become call from a Brave the Shave Jon Arenz angels. This year, representative saying that Brave the Shave Zakk was going to receive an is honoring more iPad to help him keep up with than 60 of these his homework and stay in touch “super kids.” with his family and friends while he was receiving treatOne of them is 11-year-old ment. “We wondered, why would they do this? What Zakkry Arenz. do they want from us?” Jon says. “And the answer is Zakk likes to play video nothing. They just want to help. It is an organization that games, go swimming, play gives and gives and gives without expecting anything in outside with his friends, read, return. They just want to help people in our situation.” and wrestle with his brother After being released from the hospital following and sister. His favorite subject is surgery, Zakk was able to spend the next two weeks at science, and he loves baseball – home before heading to Florida for the next eight weeks his favorite team is the Minnesota with his mom, Dawn, to receive proton radiation therapy.

“She had lots of medical problems – vision issues, These trips out of town continued for the next headaches, strange pains in her body, flashes of light eight months, driving to Minneapolis once or twice a … but nobody could figure out what it was.” month for four or five days so Zakk could receive his They finally found the answer on May 4, 2015. treatments. Then in December, after a rollercoaster Bridget says it has been a whirlwind ever since, year, Zakk and his family received the news every with a brain surgery soon after diagnosis and treatfamily dealing with a cancer diagnosis longs to hear. ments that have required them Zakk is in remission. to spend extended periods of After his last treatment, It’s a really fun activity time away from home. One of Zakk’s family hosted a “last day for kids and adults. It means the treatments was a nineof chemo party,” and true to a lot to people who can’t week stint in a hyperbaric his caring, loving nature, Zakk grow their hair. It means a chamber at Mayo Clinic, asked that instead of bringing lot to me. It gets children’s done because Jiry was him presents, he wanted those hopes up and helps them not going blind. This 100 in attendance to donate to one to feel sad. percent oxygen-filled of the charities that helped his chamber forces oxygen family through this difficult year.

Jiry Rosecrans into the bloodstream Brave the Shave was at the top to promote healing. “It of that list. was fun,” Jiry says.

Although Zakk has completed “And it saved my eyesight.” his treatments, he still requires quarterly scans and In addition to the treatments, tests to continue to monitor his progress. Although staying in motels and eating the family would love more than anything to attend in hospital cafeterias and Brave the Shave’s flagship event on March 10, they restaurants for four, six, and will be in Minneapolis/St. Paul, for Zakk’s tests. They nine weeks at a time really do still have a team, “Zakk’s Attack on Cancer,” puts a financial strain on a consisting of family and friends that will shave their family. And sometimes, when heads at the event. you think nothing else can go Another honoree, Jiry Rosecrans, is a sweet, wrong, it does. “When we well-spoken, positive 11-year-old girl. She loves were at Mayo for one of Jiry’s volleyball, figure skating, arts and crafts, and math. treatments, I ran over a nail Jiry was diagnosed with craniopharyngioma, a rare and it got into the sidewall of brain tumor that develops before a child is even my tire,” Bridget says. “I was born. “I knew there was something wrong from birth wondering how in the world until she was diagnosed,” says Jiry’s mom, Bridget.

Jiry Rosecrans

JANUARY – FEBRUARY 2017 | 11

ME MB E R F OCUS

I was going to pay for these new tires, because the person at the repair shop told me I had to buy all four or it would ruin the transmission.”

Then Brave the Shave stepped in. “They called and said, ‘Go get those tires. We want to make sure you get to Jiry’s treatments safely,’” Bridget says. “Brave the Shave has also helped us with motel stays and gas cards. I can’t even begin to say how much it has helped us. It allows us to focus on our child rather than sitting at the table trying to figure out how we’re going to scramble up enough money to get to the next doctor appointment or figure out how we’re going to pay for the next nine-week motel stay. Brave the Shave has truly been a Godsend for our family.”

Jiry and Bridget say they are excited to attend Brave the Shave’s flagship event on March 10. “It’s a really fun activity for kids and adults,” Jiry says. “It means a lot to people who can’t grow their hair. It means a lot to me. It gets children’s hopes up and helps them not to feel sad.”

Jiry’s Brave the Shave team, known as “Team Jiry,” will participate in the head-shaving festivities to raise money and cheer on this special young lady.

Two organizations will benefit from this year’s campaign. The Brave the Shave Family Fund, started last year, supports families in the region by helping provide for things not covered by insurance and the many unexpected expenses that go along with a pediatric cancer diagnosis.

And, B+ helps provide world-class, cutting-edge pediatric cancer research to help find a cure for these cancers.

The 2017 Brave the Shave campaign is now open. It’s easy. You can help raise money by shaving your head or cutting eight or more inches of hair, or donating by visiting bravetheshave.coop. You can also participate by attending one of the events. Visit the website for more information on locations and dates.

Fighting kids’ cancers has never been so much fun!

Basin Electric director joins co-op team While several of the honoree families have created teams, they aren’t the only ones facing the clippers. Basin Electric has created its own team, “Bald by Design.”

One of the members of this team is Troy Presser, a member of the cooperative’s board of directors. Those interested in donating to Presser’s page can do so by visiting http://bit.ly/BTSTroyPresser. Keep your eyes out for another feature on Presser – showcasing him in “A Day in the Life of a Director,” section in the March-April issue of Basin Today.

Donations to Presser or any of the individuals participating in Brave the Shave will help fund family support and research through two organizations, the Brave the Shave Family Fund and the Andrew McDonough Be Positive (B+) Foundation.

12 | BASIN TODAY

A sunny sky in East River Electric Power Cooperative’s service territory near Summit, SD, belies the strong winds, cold temperatures, and snow that roared through large swaths of North Dakota and South Dakota around Christmas 2016.

WINTER STORM EUROPA WALLOPS MEMBER COOPERATIVES

By Chris Gessele In Greek mythology, Europa (your-OH-pah) is the name of a princess abducted by Zeus.

In December, she became the captor.

Winter Storm Europa snatched Christmas cheer from hundreds of Basin Electric cooperative members in North Dakota and South Dakota, as the massive ice storm and blizzard hammered the Great Plains during the final days of 2016 and left thousands of people without power for days.

In Basin Electric’s service dispatch group, most member outage calls came from northeast South Dakota and southeast North Dakota, mainly due to freezing rain and ice. In total, dispatch took 25,650 calls and dispatched 466 repair crews between early Christmas morning and late Dec. 26, 2016.

Basin Electric dispatch staff was also challenged getting to work during the storm, leaving some employees to take calls for 21 consecutive hours. A snowplow driver was hired to pick up staff members at their homes to relieve the previous shift, according to Tom Radenz, Basin Electric security and response services manager.

The cooperative faced similar challenges elsewhere. According to Ken Rutter, senior vice president

of Marketing & Asset Management, some employees worked a full 24-hour shift during the storm because other employees were unable to make it in.

At Basin Electric’s Antelope Valley Station near Beulah, ND, Plant Manager Chad Edwards said some employees were stranded overnight at the plant, others were unable to make it out of nearby towns, and finding space to move snow proved difficult.

Despite the challenges, cooperative employees throughout the region went into full emergency mode to provide and restore power to their respective members – and assist fellow cooperatives to get the lights back on when they could spare resources.

A cooperative line foreman, snowed in at his house, crawled through his home’s bedroom window to go out into the elements to start working on restoring power to his co-op’s members.

An anecdote from Veronica Kusser, manager of member services at West River Electric Association

JANUARY – FEBRUARY 2017 | 13

ME M B E R F OCUS

23,000

MILES

OF DISTRIBUTION LINES IMPACTED

SOUTH DAKOTA

2,900 DISTRIBUTION

WITHOUT POWER

DAMAGED

MEMBERS

POLES

IC TR

CO PS -O

5,300

ELE C

SOUTH DAKOTA BY THE NUMBERS 7” INCHES OF ICE DIAMETER IN ON SOME POWER LINES

REPORTED

OUTAGES South Dakota Heavy snow, strong winds, freezing rains, and even lightning strikes starting Christmas day hit electric cooperatives mainly throughout western and northern South Dakota.

According to the South Dakota Rural Electric Association (SDREA), 20 cooperatives reported outages to almost 23,000 South Dakota cooperative members’ homes and businesses.

Within those numbers are stories of the cooperative spirit in action, a beacon of light cutting through the dark winter evenings. Following are a couple of them.

After learning that an elderly member was heating her home with wood after her power went out, an electrician from Whetstone Valley Electric, headquartered in Milbank, SD, organized neighbors to help ensure she was kept stocked with wood.

Another Whetstone Valley Electric member shared his electric generator with his neighbors, keeping it fueled and running as he took it house to house following the storm.

North Dakota

Distribution lines were coated with ice nearly the diameter of a 20-ounce pop bottle west of Ellendale in southeast North Dakota. Photo submitted by Stan Pierson, Northern Plains Electric Cooperative.

14 | BASIN TODAY

A few other member cooperatives, such as Roughrider Electric Cooperative, headquartered in Hazen, ND, and Northern Plains Electric Cooperative, headquartered in Carrington, ND, faced outages of 400-600 members.

public safe (“LOOK OUT, still getting reports of live wires steaming while they lay hot on the snow! We are dispatching a crew as soon as we get those calls in.” – Dakota Valley Electric).

Following the storm, Josh Kramer, NDAREC executive vice president and general manager, Connecting during the storm summed up the cooperative sentiment in his editorial in the January 2017 issue of NDAREC’s In both South Dakota and North Dakota, Facebook North Dakota Living magazine. was also a popular and effective way for coopera“There are many folks tives to communicate with their who ‘answer the call’ to members during and following ser ve when conditions the storm.

In particular, our local are oppressive. T hese “Probably the biggest takeelectric cooperatives, their line include law enforcement, away regarded social media,” crews and office folks are vigifirst responders, medisays Brenda Kleinjan, director of lant on behalf of 250,000 North cal personnel, snowplow communications/member relations Dakotans connected to 61,000 operators, and, of course, at South Dakota Rural Electric miles of co-op lines. the dedicated lineworkers Association. “Social media likes on at our electric cooperatives.

Facebook rose 27 percent among Josh Kramer This is an indispensable all South Dakota co-ops. One co-op class of servants who are saw a 450 percent increase.” trained and willing to brave Two South Dakota cooperaadverse weather to assure tive managers even used video that people are safe, healthy and warm. They updates to communicate with members – one via deserve our special recognition, thanks and respect.

Facebook Live and the other simply posting a video.

“In particular, our local electric cooperatives, “Both had huge viewership numbers,” Kleinjan says. their line crews and office folks are vigilant on Clarice Kesler, North Dakota Association of Rural behalf of 250,000 North Dakotans connected to Electric Cooperatives (NDAREC) e-communications 61,000 miles of co-op lines. When a cooperative manager, scanned member cooperatives’ Facebook receives a call from a member whose power has pages frequently to share messages of triumph (“As been knocked out by a blizzard, the cooperative far as we know, EVERYONE on KEM Electric is now responds swiftly – and safely – at all hours, to get energized.” – KEM Electric Cooperative, headquartered power restored for their family.” in Linton, ND) as well as warnings to help keep the

East River Electric Power Cooperative’s transmission system suffered severe damage to almost 500 structures in the storm.

Among North Dakota member co-ops hardest-hit by the storm included Mor-Gran-Sou Electric Cooperative, headquartered in Flasher, ND, and Dakota Valley Electric Cooperative, headquartered in Edgeley, ND. Blizzard-related outages had affected approximately 1,000 of Mor-Gran-Sou Electric’s members at one time or another, during or immediately after the storm, and outages within Dakota Valley Electric’s service territory affected 1,200 members, with most damage occurring in the western half of the cooperative’s system. Power was fully restored in both co-ops’ service areas by Dec. 27, 2016.

JANUARY – FEBRUARY 2017 | 15

F E AT URE SE RIES

A DAY IN THE LIFE OF … CYBER SECURITY SPECIALIST

DUSTIN ERHARDT

By Angela Magstadt There are hackers among us. And one is a lot closer than you would ever guess.

Dustin Erhardt is a Certified Ethical Hacker, just one of the many certifications he earned to help him be more effective at his job as a cyber security specialist III at Basin Electric. “It helped me learn how to be on the offensive side of security by learning what hackers do,” he says. “Businesses are always on the defensive side, and this class helped me better understand what the bad guys do and how they do it. It was really interesting, but scary.”

Erhardt says the odds are in favor of those “bad guys” because security professionals have to find all the holes a hacker could use to get into the system, but the hacker just needs to find one hole. “We need to learn what to look for and help all the users know what to look for to avoid being hacked.”

With more than 2,300 employees at Basin Electric’s facilities and countless cyber criminals attempting to weasel their way into the network, it takes a team of 16 to keep Basin Electric and its valuable data secure.

“A lot of people want our data or access into our systems, whether it’s to obtain user data, credit card information for financial gain, or just to encrypt our files to be destructive,” Erhardt says. “They are constantly finding clever new ways to get around the roadblocks we put in place. We can install all kinds of security controls, but all it could take to circumvent everything we’ve done is for one user to click a link or open an attachment that shouldn’t be opened.”

Because security is everybody’s responsibility, Basin Electric’s Information Services and Telecommunications (IS&T) team has been focusing on keeping employees aware of potential threats, educating them about what to look for when they receive suspicious emails, and letting them know of the detrimental effects these things could have on the co-op if they’re opened.

Basin Electric has been hit pretty hard with its fair share of email and social engineering schemes. In the past six

16 | BASIN TODAY

months, five significant events involved ransomware, a type of malware that can be covertly installed on a computer without a user’s knowledge or intention, encrypting files and demanding the user pay a ransom in order to get the key to restore the infected files. IS&T also sees daily occurrences of other types of malware.

Fortunately, because of successful backups, a cross-sectional team within IS&T has been able to restore the sometimes thousands of files without having to pay a ransom, “which could have been a significant amount of money,” Erhardt says, “our members’ money.”

Erhardt says the most challenging part of his job is finding a balance between security, usability, cost, and risk. “You can make a business super secure, but it would likely be hard for employees to use and probably be cost prohibitive. We need to have the best balance for our business and, ultimately, our members,” he says.

When asked about a typical day, Erhardt says there is no such thing when working in the cyber security field.

“Some days it’s attending meetings, others it’s collecting data and evidence for audits, performing security audits, attending security training, or educating users. Every day is completely different – and that’s what I love most about my job,” he says.

Like technology, security is ever changing. Erhardt has been with Basin Electric for 11 years – almost consistently since college, working first as an information technology intern, then finding his true passion when he was hired as a security technician after graduating from college. He says back then, the focus was almost solely on building perimeter security, because computers were kept inside the facilities. “Today, with the advent of smart phones, apps that contain personal data, mobile computers, tablets, and cloud storage, the scope is so much broader,” he says.

“It’s a never-ending challenge. You can’t get comfortable.

You have to constantly keep learning.”

Protect yourself and your personal information Erhardt says cyber criminals don’t always need to do anything illegal or intrusive to get the information they need to tap into your home or office computer, bank account, online shopping account, or other private or secure site. The information they need is often highly accessible if they know where to look.

“There is so much information available online, and so much of it is public, making security a major challenge,” Erhardt says.

He says most online passwords require security questions in case users forget their passwords, but the answers to these questions can often be found by doing a little detective work. One of the most common password retrieval questions is, “What is your mother’s maiden name?” That information can often be found by searching obituaries, where close and extended family members are listed … with maiden names in parentheses.

Another popular security question is, “What is your pet’s name?”

An easy way to find that is to do a simple Facebook search.

Almost all proud pet owners post the occasional picture or anecdote about their furry friends.

Businesses are not immune to cyber stalking, either.

Hackers who want to get into a company’s network can search job postings, which list the programs the company is looking for experience in. Publications, documents, and presentations shared outside the business’ walls share a variety of information about the company, as well.

While it’s unnerving to realize how readily available this information is, it is also empowering. Knowing these tricks can help you step up your security defenses. Simple strategies such as creating more secure passwords, being cautious about what you click on, and limiting what you share online will make it harder for would-be criminals to make you or your business a victim.

BE SECURE

JANUARY – FEBRUARY 2017 | 17

E M P L OY E E HIG HL IG H T S

BASIN ELECTRIC

EMPLOYEE WELLNESS

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Members of Basin Electric’s BE Well Committee with a plaque from the American Heart Association naming the cooperative a Gold Fit-Friendly Worksite.

From left are Jeremy Woeste, Jen Krogstad, Annie Lindseth, and Nicole Perreault.

Hearts abound in February, and it’s not just because of Valentine’s Day. Since 1964, February has been deemed American Heart Month to focus on cardiovascular health.

Exercise is a strong component of heart health, and for Basin Electric employees, activities like walking and other forms of exercise are yearround efforts.

This is in part because of the co-op’s dedication to employee wellness through its BE Well Committee.

And, the committee’s efforts are paying off, once again earning the co-op recognition.

For the third year-in-a-row, Basin Electric was honored by the American Heart Association (AHA) on becoming a Gold Fit-Friendly Worksite for 2016.

The Fit-Friendly Worksite program recognizes employers who champion the health of their employees by creating physical activity programs in the workplace. With today’s workforce spending a majority of their waking time at work, much of it sitting at a

desk, physical activity is an important way to keep employees healthy and productive.

“Basin Electric is among an elite group of awardees for this initiative,” says Nancy Brown, AHA CEO. “Worksite wellness continues to be an important way to improve the well-being of the workforce and your organization is a leader in this effort. Thank you for your role in building a culture of wellness and providing employees with healthy choices.”

406,424

MILES

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To the moon and almost back

Well, not actually. But the steps that 200 Basin Electric employees racked up in the co-op’s 2016 FitBit® challenge are enough to have taken them to the moon and almost back.

With FitBits on their wrists, the 200 participants recorded 858,368,088 steps last year.

Factor in the average length of a human’s stride at 30 inches, and they walked 406,424 miles. That’s enough to get them to the moon, which is an average of 238,855 miles away, and almost back again.

If that’s not enough, their FitBits recorded a total of 2,238,587 total floors climbed by the 200 participants.

Basin Electric’s BE Well Committee launched the FitBit Challenge in July 2015 as a way to motivate employees to be more active and improve or maintain their current quality of life. The challenge features monthly and semi-annual prize drawings to those who achieve the goals of their groups.

Basin Electric’s BE Well committee is encouraging employees to continue their wellness journey in 2017 with a step challenge. Like the previous Fitbit Challenge, participation in the step challenge is optional and open to all full- and part-time employees.

THE NEW, IMPROVED BASIN MEMBERS SITE IS HERE!

Zablotney receives ERP certification Tiffany Zablotney, senior commodity risk analyst, recently became certified as an Energy Risk Professional (ERP).

The ERP certification entails a rigorous, two-part exam designed to test fundamental concepts associated with the complex physical and financial risks inherent in the major energy markets. Candidates also must have two years of relevant work experience.

Zablotney passed the exam’s first part in May 2016 and second part in November 2016.

“The ERP exam is a very difficult exam with many candidates unable to pass in their first attempt,” said Kerry Kaseman, manager of commodity risk. “Tiffany’s success demonstrates her dedication to studying for the exam and her ultimate grasp of the risks inherent in the industries Basin Electric, Dakota Coal Company, and Dakota Gasification Company operate in. The knowledge learned through the certification process will result in better risk-related decisions being made for the co-op.”

A NEW LOOK. THE LATEST TECHNOLOGY. THE STUFF YOU NEED. BASINMEMBERS.COM

JANUARY – FEBRUARY 2017 | 19

E M P L OY E E HIG HL IG H T S

New employees Toby Foland, laborer, started work at Laramie River Station Nov. 14. He is from southeast Wyoming.

Richmond Ruedy was hired Nov. 14 as a laborer at Laramie River Station.

He previously worked for the Wyoming Department of Transportation.

Billie Sailer, plant custodian, started work Nov. 14 at Leland Olds Station.

She previously worked for Dakota Staffing.

Service awards Dwight Buerkle, operator technician, started work Dec. 27 at Pioneer Generation Station. He has an associate degree in electronics technology from Bismarck (ND) State College, and previously worked at Sanjel Corporation in Williston, ND, as a shop foreman for electronics.

Joshua Tompkins started work at the Great Plains Synfuels Plant Dec. 26 as a process operations field technician. The Billings, MT, native has an associate degree in process plant technology from Montana State University Billings.

Editor’s note: Expanded retirement stories were written only for those who returned their questionnaire to Basin Today staff.

Kevin Sailer

Herb Porter

Roger Baker

electrician I

maintenance planner/ scheduler

water treatment operator

35 years

Antelope Valley Station

Jose Lopez, laborer, was hired Jan. 9 at Laramie River Station. The Wyoming native previously was an equipment operator for Peabody Energy in Wright, WY. Troy Dewey started work Jan. 9 as an electrical engineer I at Headquarters. He received a bachelor’s degree in electrical engineering from North Dakota State University in Fargo, ND. Dewey interned at Basin Electric prior to starting full time.

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L aura Dav is, administrative assistant III, was hired Dec. 12 at Deer Creek Station. The Brookings, SD, native has a bachelor’s degree from the University of St. Thomas in St. Paul, MN. She previously worked at Brookings (SD) Health System.

Jeff Kuss started work Dec. 19 as a securit y and response services equipment technician at Headquarters. The Carrington, ND, native previously worked at Lillis Electric in Mandan, ND, as a journeyman/greencard electrician.

35 years

Dry Fork Station

35 years

Laramie River Station

Joe Holtzclaw

Jamie Schindler

Vern Pederson

control room operator

shift supervisor

yard operator – lead

35 years

Laramie River Station

Lofton Hinckley began working at the Great Plains Synfuels Plant Dec. 26 as a process operations field technician. The Bismarck, ND, native previously worked for Northwest Contracting as a laborer. Hinckley has an associate degree in power plant technology from Bismarck (ND) State College.

Retirees

35 years

Laramie River Station

30 years

Antelope Valley Station

Garry Fuhrman

Monty Sailer

Lori Brown

warehouseperson – plant

assistant coal yard supervisor

manager, financial operations

30 years

Leland Olds Station

30 years

Leland Olds Station

25 years

Headquarters

Clark Jundt

Stacy Fennewald

Kelly Neameyer

manager, civil engineering

designer I

field technician

25 years

25 years

Headquarters

Headquarters

Janet Kubisiak

Peggy Clarys

manager, capital assets

senior administrative assistant

35 years

Headquarters

20 years

Dakota Gasification Company

Lora Wallender, administrative assistant, retired from the Great Plains Synfuels Plant after nearly 34 years of service. During her career at the Synfuels Plant she worked in several areas, most recently in the process operations department, as well as in plant engineering, process engineering, the chemistry lab, and logistics.

“Lora was of great value to the pipeline group,” says Claude O’Berry, pipeline superintendent. “She was very organized and set-up a uniformed system for document retention and retrieval. She was instrumental in helping with the public awareness program in various ways, whether she was sending out pamphlets to the external groups or attending and assisting with the Dakota Gas-sponsored contractor banquets.

Lora took great pride in her work.”

Co-worker Jody Gappert says, “Lora was a very dedicated, hard-working employee who would give anyone the shirt off of her back. She was always very patient and kind to everyone she dealt with at work. I will miss all the great visits we had and the great advice she gave.”

“Lora was a doer and an organizer,” says Dave Knoll, pipeline supervisor. “Everything I needed to be done was finished before I even needed it. I will miss her friendliness towards people as they walked by her desk, and her helpfulness with anything that was needed.”

During retirement, Wallender plans to spend time with family and volunteer.

20 years

Transmission System Maintenance-Mandan

JANUARY – FEBRUARY 2017 | 21

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Be the light.

Electricity brings light to the darkness. You depend on it.

And we work to ensure it’s there when you need it. It’s the assurance that you can provide light to comfort those that matter most to you.

Your energy starts here. basinelectric.com/bethelight