Basin Today Sept-Oct 2015

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

AS RUR A L COMMUNI T IES GROW ...

SEP T EMBER | OC TOBER 2015

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M AG A ZINE

Each year, Designer Genes of North Dakota hosts a five-day camp that uses adapted bicycles, a specialized instructional program and trained staff to teach individuals with disabilities how to ride a bike. Riders attend a 75-minute session for five consecutive days where they are assisted and encouraged by two volunteer “spotters.� Basin Electric employees volunteered as spotters.

One of them was Mike Wanzek, Basin Electric senior electrical engineer.

During the camp that ran Aug. 3-7 in Bismarck, ND, Wanzek helped Miles learn to ride a bike. http://bit.ly/BEPCICanBike

CONTENTS V O L U M E 18

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NUMBER 5

ON THE COVER Rodney Schaff, Bowman County Airport Authority Board president, stands in front of his airplane at the newly built Bowman County Municipal Airport. Schaff’s airplane is one of 18 stored in the new hangars at the airport in Bowman, ND. A life-long pilot, Schaff was one of the instrumental players who helped make the new facility a reality.

See page 8 for more about the new airport.

IN EVERY ISSUE 2 CEO and general manager column: Paul Sukut 4 In brief 16 Member focus: Co-op leadership program means big

opportunities for Minnesota high schooler 18 Feature series: A day in the life of ... Melody Francis 20 Employee highlights FEATURE STORIES 6 EPA’s Clean Power Plan: More harm than good 8 Energy & cooperatives: Advancing positive development

in rural communities 10 When the hour rolls to midnight Oct. 1 …

12 Getting all employees under one roof 14 Third Our Power, My Safety initiative focuses

on employee education CONTRIBUTORS Editor: Andrea Blowers (ablowers@bepc.com) Publications manager: Mary Miller Graphic designer:

Nicole Perreault

Photographers:

Chelsy Ciavarella & Dani Molinaro

riters: W

Tracie Bettenhausen, Tammy Langerud, Chris Gessele, Dain Sullivan & Joan Dietz

Use your smartphone barcode scanner to view stories online.

SEPTEMBER – OCTOBER 2015 | 1

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

PAUL SUKUT WITH EACH DECISION, THE VALUES OF OUR During my visits to Basin Electric’s facilities in August I was able to do one of my favorite things: talk with employees.

We covered a wide variety of topics ranging from our cooperative plan, employee engagement and our new child care partnership, to resource development, load growth, the SPP integration, the Clean Power Plan and RUS buyout.

That’s a lot. The good news is that we believe our efforts to align and work smart are paying off.

October is Co-op Month, and we’re celebrating at Basin Electric. Employees are harnessing the fall season and paying tribute to our roots by organizing a caramel apple delivery to all employees, along with the reasons “Why Co-ops Rock.” It’s good to see employees take initiative and have a little fun.

So, why do co-ops rock? There’s all sorts of reasons.

I’ve shared some examples in the past, but every now and then, I like to take inventory of what Basin Electric is doing to live up to the cooperative values. Here’s a few that came to mind: 1. We just announced a partnership to bring muchneeded child care solutions to our employees and community. Basin Electric, together with CHI St. Alexius Health and Sanford Health are partnering on a new child care facility with the Missouri Valley Family YMCA in north Bismarck.

Our commitment doesn’t stop there. We’re actively seeking options in Mercer County and in Wheatland, WY, as well. Our Basin Electric Backyard Garden grew this year. Sustained and governed entirely by employees, we have donated more than 500 pounds of fresh produce to those in need throughout the community.

WE MUST ASK IF WE ARE LIVING UP TO ORIGINAL INCORPORATORS 2. We demonstrate cooperation among cooperatives in many ways, but most recently, Basin Electric, together with Roughrider Electric and CoBank, joined forces to support the Sakakawea Medical Center in Hazen, ND, as it builds a new space to accommodate the growing medical needs of Mercer County. As cooperatives, we are responsible for having vibrant communities, and when needed, bring resources to bear – be it monetary support or boots-on-the-ground assistance.

While I could go on, I want to shift to another example of why the cooperative business model remains strong despite changing times. During my employee meetings, we discussed Basin Electric buying out of the Rural Utilities Service (RUS), a very difficult decision and a philosophical shift from the way we’ve done business.

When we ended our financial relationship with the RUS, formerly the Rural Electrification Administration (REA), we closed a chapter from our history book. It was with REA loans that our story began. However, as RUS evolved, a number of factors played into our decision to follow several other G&Ts and buy out of RUS. This does not change that we’re a cooperative; it only enforces the importance of our membership.

In this issue, you’ll read about another philosophical shift in the way we do business. We are joining a regional transmission organization, Southwest Power Pool (SPP).

This change shifts our focus when it comes to future power supply decisions, locations of new units, when to dispatch certain units and so much more.

Both of these decisions reflect years of work and analysis by our board and senior staff. Our guiding force has been, and will always be, what is in the best interest of our members.

The strength of our membership and business model spoke volumes when our team went to investors to take on the debt previously held by RUS. The cooperative raised $1.5 billion, more than the original goal of $800 million, and the largest generation and transmission cooperative U.S. private placement transaction to date.

Why is this? There are a couple fundamental reasons.

From a business model perspective, Basin Electric is a very unique utility. When a lender is researching our history, the first question to ask is “what’s the credit-worthiness of this organization?”

Our members have signed long-term power supply contracts with Basin Electric. It is unusual for an investor to find any other organization that has those long-term contracts in place. We have been built on a solid financial foundation. We’ve never defaulted on a loan. From a lender perspective, they see this as a positive when it comes to lending money.

Additionally, Basin Electric is very fortunate that our loads are still growing. This is due to our membership diversity, and reflects our early leaders’ vision of geographic diversity, strength in numbers and shared risk.

Today, as we embark on a new era at Basin Electric, the way we do business may change. However, the values of those who brought us light many years ago continue to guide all our decisions. For the people, by the people. We exist because of our members and without them, there is no Basin Electric.

Paul Sukut, CEO and general manager

SEPTEMBER – OCTOBER 2015 | 3

IN B RIE F

Basin Electric part of innovative solution for child care shortage

In a unique, first-of-its-kind agreement, the Missouri Valley Family YMCA (Y) has partnered with Basin Electric, Sanford Health and CHI St. Alexius Health in the Bismarck-Mandan community to expand its quality child care services.

The new child care location will open by Feb. 1, 2016, at the former Rasmussen College building, located on East Century Ave. Each partnering organization will have a designated number of slots that will be filled by their employees’ children.

The new facility, which will be named YMCA Youth Development Center North, will care for a total of

240 children, ages infant to pre-K. Child care openings not filled by the three partnering businesses will be open to the public.

“One of our greatest assets is our employees,” said Basin Electric CEO and General Manager Paul Sukut.

“When our employees struggle to find quality child care for their kids, it affects everything. We wanted to be part of finding a solution to help fill that void in our communities.”

Basin Electric names new Human Resources leaders

Future Basin Electric TSM facility

To best manage a growing workforce and continue serving its valued membership, Basin Electric has changed its Human Resources reporting structure.

In July, Paul Sukut, Basin Electric CEO and general manager, announced plans to create the position of senior vice president of Human Resources and Development. Diane Paul, former Basin Electric vice president of Human Resources, was named to the position.

The cooperative also promoted Ted Cash to vice president of Human Resources.

Cash previously served as Basin Electric manager of media support services.

4 | BASIN TODAY

http://bit.ly/ChildcarePartners

Basin Electric has signed a purchase agreement for land east of Bismarck to relocate its Mandan (ND) Transmission System Maintenance facility.

The 26-acre parcel is located about nine miles east of Bismarck just south of Interstate 94 near Menoken, ND. Basin Electric’s board of directors approved the land purchase in June.

Construction on the new facility is projected to start in spring 2016.

Basin Electric directors approve financial forecasts

Board approves 2016 Class A member rates

At their August meeting, directors for Basin Electric and its subsidiaries approved the 10-year financial forecasts for 2016-2025.

The forecast includes the addition of approximately 1,400 megawatts of new generating capacity and $2.9 billion to be spent for capital projects over the 10-year period.

Also at their August meeting, directors approved the cooperative’s rate structure for 2016.

The 2016 Class A member rate package is based on a member revenue requirement of $1.45 billion.

The rate structure was modified to include a demand and energy credit associated with the depreciation extension to the members that have signed wholesale power contracts through 2075.

The projected revenue requirement is net of the extended depreciation credit of $37.4 million. The 2016 average net rate is a 4-mill rate increase from 2015.

(members and non-members)

PROJECTED MARGINS

29 MILLION TO 36 MILLION

$50 MILLION TO $76 MILLION

ELECTRICITY SALES

megawatt-hours per year

annually

The demand for electricity by Basin Electric’s member systems is expected to increase by an average of slightly more than 3 percent annually over the forecast period.

http://bit.ly/2016Rates

FIND US ON THE WEB

Dakota Gasification Company The forecast is based on natural gas prices ranging from $3.23 (2016) to $4.86 (2025) per dekatherm, and average gross plant production of 158 million cubic feet of synthetic natural gas per day.

REVENUE AND OTHER INCOME

OPERATING EXPENSES

$508 MILLION TO $910 MILLION

$581 MILLION TO $839 MILLION

annually

BasinElectric.com DakotaGas.com

Read Basin Today online @ basinelectric.com/BasinToday

annually

Read Basin Electric news online @ basinelectric.com/NewsBriefs

CAPITAL IMPROVEMENTS $714 MILLION

over forecast period (includes urea facility)

Dakota Coal Company The forecast predicts that unweighted average coal prices will range from $15.08 to $23.88 per ton.

Projected lignite coal deliveries from the Freedom Mine range from 14.4 million to 15.1 million tons for the 10-year period. It calls for annual year-end profits after income taxes ranging from $.2 million to $1.1 million.

CAPITAL COMMITMENTS $517 MILLION estimated over forecast period

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SEPTEMBER – OCTOBER 2015 | 5

EPA’S CLEAN POWER PLAN:

MORE HARM THAN GOOD

By Andrea Blowers

The Environmental Protection Agency’s megawatts of renewable resources into its resource (EPA) final rule to address carbon dioxide (CO2) portfolio over the last 10 years. emissions, called the Clean Power Plan, was released “This rule simply doesn’t make sense for any of Aug. 3, 2015. Though it has not yet been published the energy production in the upper Great Plains,” Eggl in the Federal Register, Basin Electric has reviewed says. “As drafted, it does not provide a viable path for the 2,000+ page document and initial reactions are a utility to grow. In Basin Electric’s case, we have a that the rule is plagued by unintended consequences, real challenge. Our load forecasts continue to trend unproven assumptions and extreme complexity. upward, yet, we’re struggling to understand how According to Mike Eggl, senior vice president of we can meet this growth given the rule’s extreme Communications & Administration, the differences parameters. between the final rule and the previously published “The rule would shutter modern and efficient coal proposed rule are extensive. plants and displace an abundant, reliable, and increas“The way EPA has shifted focus within the ingly clean fuel with essentially massive amounts of region and the counwind and solar try as a method of generation.”

47% 45% CO 2 reduction is Basin Elec40% 41% drastic,” Eggl says. tric is a pioneer 48% 44% “Take North Dakota i n renewable 42% 40% 44% for instance. North energy, and knows 40% 44% 41% Dakota had an 11 first-hand that what 40% percent reduction EPA proposes is not under the proposed reasonable. Relying rule. In the final so heavily on renewable 40-48% Reduction rule, North Dakota wind and solar energy 21-39% Reduction is facing a reducignores the reality that 0-20% Reduction tion upwards of the sun does not always 45 percent in CO2. shine and t he w ind In fact, of the 12 The map shows the percent change in EPA’s 2030 rate-based goal does not always blow. from 2012 actual rates. states hit the hard“Something must back est by this rule, that generation up, and eight are in Basin Electric’s service territory. That coal-based plants are not built to quickly turn on and coupled with the fact that we are not allowed to off. That leaves us with gas,” Eggl says. incorporate our previous renewable effort into the Costs of this regulation must be considered. mix makes it very difficult.”

According to NERA Economic Consulting, consumer The rule seeks to slash greenhouse emissions electricity rates are expected to increase by between by nearly a third in just 15 years. However, no credit 9 and 20 percent each year from 2017 to 2031. is being given to utilities like Basin Electric that have “What the EPA has proposed would do more harm invested millions to incorporate more than 800 than good, and does not set a path for stable, reliable MT

ND

WY

SD

MN

NE

CO

KS

WI

IA

IL

KY

TN

6 | BASIN TODAY

EPA’S HISTORY OF MORE HARM THAN GOOD EPA’s MATS (Mercury and Toxics Standards) rule

EPA’s WOTUS (Waters of the U.S.) rule

Published in the Federal Register Feb. 16, 2012

Published in the Federal Register June 29, 2015

Reversed and remanded by the Supreme Court June 29, 2015 In a 5-4 decision, the U.S. Supreme Court overturned EPA’s rules limiting mercury and other hazardous air pollutants released from power plants.

Justice Antonin Scalia, writing for the majority, said that it was not appropriate for the EPA “to impose billions of dollars in economic costs in return for a few dollars in health or environmental benefits.”

Injunction issued by a federal judge in ND Aug. 30, 2015 A federal judge in North Dakota blocked a rule that would give the federal government jurisdiction over some smaller waterways. U.S. District Judge Ralph Erickson in Fargo issued a temporary injunction halting the EPA and Army Corps of Engineers from regulating some small streams, tributaries and wetlands under the Clean Water Act. The WOTUS rule had prompted fierce criticism from farmers and others. The 13 states exempted for now are Alaska, Arizona, Arkansas, Colorado, Idaho, Missouri, Montana, Nebraska, Nevada, New Mexico, North Dakota, South Dakota and Wyoming.

Is there a war on coal? power,” Eggl says. “The plan will harm opportunity for innovation and new technologies, economies, power supply and reliability, and, most importantly, quality of life for consumers who will be forced to choose between paying their electric bill or getting needed medical care.

In that case, we would have to ask the question, will this rule harm more people than EPA claims it will help?”

EPA does, in fact, have a jagged No. There is a place track record on inconsistency and for in the United States for the continued use of coal for issuing rules that are unable to stand up in many decades. court. Furthermore, the final rule does not

Is this a war on coal?

Reporter

Bill Maher

Actually, EPA is all about fighting against pollution and fighting for public health. That’s exactly what this is!

reflect comments EPA Administrator Gina Gina McCarthy McCarthy made during a trip to North DGC Press Conference Gina McCarthy Feb. 28, 2014 June 13, 2014 Dakota in February 2014. (See sidebars.)

According to Eggl, Basin Electric has been working with elected officials throughout the Final rule in direct conflict with McCarthy’s remarks region, with the membership and others for quite some at the Great Plains Synfuels Plant time. “We always felt we would have to challenge this During a trip to North Dakota in February 2014, EPA Administrator rule legally. This formalization of the rule only confirms Gina McCarthy said the goal of the EPA is not to shut out coal, and that, so we are planning on joining with the membership that President Barack Obama has been clear he wants an “all of and others to fight it.” the above” strategy for fueling electricity generation. “Find ways to Eggl says Basin Electric will first work to support a reduce carbon in a way that doesn’t threaten energy reliability, that stay in the rule. “While we do not know if that’s going doesn’t have a significant impact on price, that allows every fuel to be granted, it makes absolute sense that they would to continue to be burned and utilized. Those are my parameters,” try to prevent this rule from moving forward prior to any she said. of the litigation taking place.”

The final rule completely disregards any of those statements. http://bit.ly/BEPCCPP

http://bit.ly/McCarthy2014DGC

SEPTEMBER – OCTOBER 2015 | 7

ENERGY & CO

ADVANCING POSITIVE DEVELOPMENT

By Tammy Langerud Growth from energy development impacts communities of all sizes. Some of those impacts are challenging, but many more provide new, positive opportunities and cutting edge resources for smaller, rural communities that, without the growth, may not have been able to develop them.

Cooperatives like Upper Missouri Power Cooperative, a Basin Electric Class A member, and its distribution co-ops continue to work to meet the energy needs of the growth in the Williston Basin.

Though that growth has slowed, it hasn’t stopped, and the communities are reaping its benefits.

Upper Missouri’s membership consists of 10 cooperatives: five located in North Dakota and five in Montana. All told, they serve nearly 71,000 meters in 33 counties spanning 51,000 square miles.

Because of these co-ops’ dedication to serving their members, communities like Watford City, Bowman and Williston, ND, are able to grow.

The growth has come in the form of a resurgence of people to the area, new amenities and a new way of life for many. Behind it all is a solid energy infrastructure – generation and transmission systems that provide electricity for the cooperatives and their members.

The Lantern Coffee Company, Williston, ND The Lantern Coffee Company has brought a new definition of coffee to Williston: organic specialty coffee. Popular on the east and west coasts, specialty coffee is grown in ideal climates like that of South and Central America, and the beans take on distinctive flavors and tastes due to the soil they’re grown in.

Barista Kristy Bundt (pictured) says a lot of science goes into a good cup of coffee, everything from the water temperature to the grind. “We don’t just push a button on our grinder. We calibrate our coffee grinder every few hours to ensure it produces the best flavor from the bean,” she says.

8 | BASIN TODAY

OPERATIVES: IN RURAL COMMUNITIES

Taking flight in Bowman, ND A 10-year project of getting a new airport in Bowman, ND, came to a close May 25 with the grand opening of the new Bowman County Municipal Airport. It’s the first new-field construction of an airport in North Dakota since 1980. The new airport’s runway – the longest in the state for a small general aviation airport – is 5,700 feet long. The runway also supports more weight, meaning larger aircraft like private jets visiting the area can use the airport. The previous airport couldn’t accommodate large aircraft. Four private hangars and a T-hangar are also on site. They currently house 18 private aircraft.

Attracting and retaining teachers with affordable housing in Lambert, MT

The Connie Wold Wellness Center, Watford City, ND

As a way to attract and retain teachers, the Lambert, MT, School District used money from a special oil revenue fund to build teacher housing. This benefit played a huge role in attracting elementary teacher Katie Clausen, an Indiana native, to the school district. Most importantly, it means Clausen, her husband Casey and their dog can live together. Casey, a Montana native employed with ONEOK, is required to live 30 miles from his work site. Before the teaching job at Lambert, the Clausen’s lived 90 miles apart: Casey in a camper in Sidney, MT, and Katie in Wolf Point, MT. Their dog KiKi was sent to live with relatives in Indiana.

Michael Johnson, a native of Yelm, WA, exercises at the Connie Wold Wellness Center, built in 2012. Johnson works various shifts in the oil industry. The wellness center’s 24-hour access allows him to use the facility when it works for him. The two-story, 20,000-squarefoot wellness center boasts an indoor running track; a variety of workout equipment ranging from rows of elliptical machines, treadmills and bikes to weight lifting machines; two indoor endless pools; two classrooms; a children’s play area; onsite coffee bar; and the Physical Therapy Department of the McKenzie County Healthcare System. http://www.conniewoldwellnesscenter.com/

SEPTEMBER – OCTOBER 2015 | 9

WHEN THE HOUR ROLLS TO MIDNIGHT OCT. 1 …

BASIN ELECTRIC’S SPP INTEGRATION WILL BE COMPLETE

By Andrea Blowers

As of Oct. 1, 2015, Basin Electric will begin active In mid-August, marketing staff began another round of market participation in the Southwest Power Pool (SPP), a market trials on an internal basis for the marketing group. They regional transmission organization. Though the road leading called it Market Trials 2. It has provided additional opportuniup to full integration has had its bumps, it has provided ties to learn the daily procedures once the cooperative is in opportunities for Basin Electric, its staff and membership SPP for both veteran and new staff members. to better understand and prepare for direct participation Also, on Aug. 17, Basin Electric had the opportunity to in a marketplace, which is an entirely new process for the participate in an interim auction within SPP for congestion cooperative. According to Ken Rutter, vice president of management tools. “The auction normally happens in the Marketing & Asset Management, Basin Electric will be spring, but because Basin Electric is joining in October and entering the market able to do everything that needs to the models weren’t set up for us to participate last spring, be done on day 1. He recognizes though that there will be we’re participating in the interim one,” Rutter says. a learning curve for the cooperative and staff.

The final activities begin a week before Basin Electric “Will we be able to do everything perfectly right off is live in SPP. the bat? No. But, we’re going to do everything we can to “We can submit our first offers on Sept. 24, so capture as much value as we can and get to where we’re we’re going to do that to allow staff the practice and capturing 100 percent of that as soon opportunity to adjust in the event of any as we can.” last-minute issues or problems. We’ll be Will we be able to do In the months, weeks and days updating those every day.” Rutter says everything perfectly right off leading up to “go live,” there’s been SPP indicated in early September they the bat? No. But, we’re going a flurry of activities. The market trials intend to operate the market differently to do everything we can to process was complete at the end of Oct. 1-2 to ensure their staff makes a capture as much as we can and get to where we’re capturing July and initial response from SPP smooth transition. Instead of day-ahead 100 percent of that as soon was positive. awards being driven by economic dispatch, as we can.

In August and early September, SPP indicated they wanted the new marketing staff spent considerable participants to match their generation Ken Rutter amount of time at the plants working to their load and essentially “must run” with operators on the plant communithese units. They will go to full market cation piece of the PCI software. The operation Oct. 3. plant communication piece will allow direct communication SPP will have an open line with Basin Electric from 11 between the plants and the marketing group. p.m. Sept. 30 to 1 a.m. Oct. 1 to ensure everyone is aware of “The software will be able to capture outages and what’s happening. “At about five minutes to midnight Oct. 1, derates for generation, which are then electronically we’ll start getting our first real time dispatch instructions for communicated to SPP. It allows our real time marketing the assets. It will likely be a full house that night,” Rutter says. desk to communicate startup/shut down and various Though there have been challenges with various operating instructions from SPP to the generators,” Rutter pieces of the integration, Rutter says he’s confident that the says. The software will help in eliminating the manual email foundation of the process is strong and it will only continue process and was put into production at the facilities Sept. 1. to improve over time.

10 | BASIN TODAY

GETTING ALL

EMPLOYEES

UNDER ONE ROOF Basin Electric board

approves building addition

By Tammy Langerud In an effort to support the future of the cooperative workforce, Basin Electric’s board of directors approved an addition to the Headquarters building in Bismarck during their August meeting.

The decision came only after many months of analysis and Our goal throughout this evaluation. process has been to consoliThe addition will be on the date our offsite Bismarck west side of the building, and locations into one building, it will include construction of resulting in greater efficiencies a warehouse/shop. Headquarand a more collaborative work ters employees have been environment. spread out across multiple Paul Sukut locations in Bismarck for years because of limited office space in the Headquarters building.

Paul Sukut, CEO and general manager, says the board’s decision to approve the west addition

2015 July

A representation of the atrium, the space connecting the existing building to the addition.

12 | BASIN TODAY

Sept.

Nov. East blunt addition East parking lot Pre-mobilize Pre-mobilize

Jan.

March

West addition to Headquarters includes: • A 91,000-square-foot addition.

• An atrium to connect the existing and new building. This area will provide a visual way to tell Basin Electric’s story to employees and visitors, as well as serve as a comfortable work area.

• An onsite warehouse/shop.

• An updated working environment in terms of lighting, technology and collaborative elements.

supports the cooperative’s current growth and, “Technological advancements, flexible work more importantly, will assist in improving work schedules and savvy digital communications have processes for all employees. changed the physical environment “Our goal throughout this in the work setting,” says Steve We’ve been working process has been to consolidate Colberg, Basin Electric manager with Steelcase to evaluate our of fsite Bismarck locations of corporate services. “We’ve employee needs as they relate into one building, resulting in been working with Steelcase to workspace and well-being greater efficiencies and a more to evaluate employee needs as to provide employees more collaborative work environment,” they relate to workspace and opportunities for collaboration Sukut says. “Even more, it will bring well-being to provide employees and flexibility throughout their our employees working at Capital more opportunities for collaboraworkday.

Electric back to Headquarters and tion and flexibility throughout their Steve Colberg eliminate the need for employees workday.” to walk back-and-forth from the J&L In May, the board approved and Great River Energy buildings.” the east blunt expansion project, The addition also will provide a more innovawhich is currently under way. A parking lot will be tive, dynamic workspace that mirrors today’s added to Headquarters’ east lawn area as part of workforce needs, which have evolved over the years. ongoing construction efforts.

2016 May

July

2 0 17 Sept.

Nov.

Jan.

March

May

July

West building addition Warehouse West parking lot

SEPTEMBER – OCTOBER 2015 | 13

Third Our Power, My Safety initiative focuses on employee education

By Chris Gessele

Basin Electric’s Our Power, My Safety process is percolating into the very foundation of the cooperative’s culture, and the employee-driven effort is helping keep safety top-of-mind for employees both at work and at home.

Employees have completed the rollout for one Continuous Improvement (CI) initiative since Our Power, My Safety’s inception in 2014 and they are in the process of rolling out the second. The first focused on improved working condition inspections.

The second focuses on safety communications. Next up is CI initiative #3: employee education.

The third initiative and corresponding CI Team #3 were formed during a Rapid Improvement Workshop undergone by the Our Power, My Safety Steering Team in early July. The team’s purpose: To develop a plan to create and promote an understanding of Our Power, My Safety.

The Steering Team decided CI Team #3 would be comprised of Steering Team members in order to

gain a better understanding of the process CI teams undergo, while also fulfilling a need for the initiative.

Among the team’s hopes for the initiative is to educate employees on the Our Power, My Safety process and its current status, develop defined activities and establish an employee training plan.

“Our goal is for all employees to better understand the Our Power, My Safety process, and tie that into a method for training new employees as we onboard them,” says Brad Thompson, Laramie River Station plant superintendent, who serves as Steering Team lead and is a member of CI Team #3. “We want employees to recognize that this is not CAT Safety, but Our Power, My Safety. This is their fellow employees driving the process.”

The plan is to roll out the employee education program in August 2016.

The first CI initiative has been rolled out cooperative-wide, and CI Team #1 members are currently conducting employee follow-up interviews. The

The team’s purpose: To develop a plan to create and promote an understanding of Our Power, My Safety.

14 | BASIN TODAY

Continuous Improvement Team #3 • Team Leader Lucas Teigen, manager of construction, Basin Electric • Brad Thompson, plant superintendent at Laramie River Station • Dan Cieslak, lead operations technician at Deer Creek Station • Gordon Goetz, electrician at Leland Olds Station • Mark Nelson, maintenance superintendent at Antelope Valley Station • Russ Bosch, maintenance superintendent at Leland Olds Station • Ryan Wolf, safety and industrial hygiene superintendent, Dakota Gasification Company

second CI initiative has been rolled out at Dakota Gasification Company’s Great Plains Synfuels Plant, Basin Electric’s distributed generation facilities and Laramie River Station. The initiative will be rolled out at a few remaining distributed generation facilities in September, Antelope Valley Station, Leland Olds Station, Dry Fork Station and Transmission System Maintenance in October, and at Montana Limestone Company and Headquarters in November.

The Our Power, My Safety process consists of a series of CI teams, each tasked with developing how a CI initiative will be implemented across the cooperative’s facilities. Members of each CI team are selected from a pool of volunteers by the 15-member Steering Team.

“So many of these volunteers are so committed to making the cooperative better. That’s the exciting part to me,” Thompson says. “Employees have answers to many of the problems we face, and that’s the beauty of this. These folks are helping create the world they’re going to live in.

“Employees are all part of our family. If there’s anything we can do to help make injuries less likely, I think we need to do that.”

Norsk Høstfest, North America’s premiere celebration of five Nordic countries, will run Sept. 29-Oct. 3, 2015 at the North Dakota State Fairgrounds in Minot, ND. Touchstone Energy® Cooperatives has been a proud sponsor of the Høstfest for 17 years. Touchstone Energy sponsors Copenhagen Hall with a major stage featuring continuous entertainment, quaint sidewalk cafés and the Artisan Village.

Touchstone Energy also provides • free cookies made in flash bake ovens • daily drawings for prizes • radio personalities broadcasting Høstfest throughout the region Check it out, www.hostfest.com

ME M B E R F OCUS Shantelle DesMarais, a high school senior, works and volunteers with children in her community while getting active with the local electric co-op, Sioux Valley Energy.

LAUNCHING PAD

CO-OP LEADERSHIP PROGRAM MEANS BIG OPPORTUNITIES FOR MINNESOTA HIGH SCHOOLER

By Tracie Bettenhausen How busy was your summer? her attention. “Of course, it sounds like it would be Shantelle Des Marais spent a total of three nights good on a resumé, but it was a lot more than what I at home in July. thought I was getting into,” she says.

The high school senior from Pipestone, MN, spent EmPOWER was set up as four scheduled sessions her time traveling to Wisconsin, Washington D.C. and throughout the school year, landing on days when Virginia – a journey that can be traced back to the school is typically out for a holiday. Patrick developed EmPOWER Youth Leadership program started last leadership activities and training, a lineup of mentors summer by Sioux Valley Energy, a Basin Electric Class C and speakers, and opportunities for the students to member cooperative headquartered in Colman, SD. further their leadership work.

Des Marais was part of the inaugural group of For example, when Patrick accepted applications students to complete EmPOWER. The Sioux Valley to EmPOWER, she asked the students what they Energy board of directors thought wanted to do for a living. Based of and developed the concept of a on their answers, she brought in I would have never youth leadership program at one of professionals in those fields to talk been able to do that without their strategic planning sessions. with the students. To help them with Sioux Valley Energy. I’m super Directors asked themselves, who their communications skills, she set appreciative and grateful for would be tomorrow’s leaders for up a speed networking session, in that, and hope I can bring back electric cooperatives? which the students sat one-on-one everything I’ve learned and use They decided it was the coopwith a professional to talk about their it here in Pipestone. erative’s responsibility to find and careers. After three minutes, they Shantelle Des Marais help develop them, so they commitswitched to a new person. ted funding to develop leaders within The students also learned about the Sioux Valley Energy service their strengths. Des Marais has territory. Sioux Valley management always known she’s competitive, but tasked Jennie Patrick, Sioux Valley Energy marketing thought of that as something to hide. “I always kind of specialist, with program development for EmPOWER. disliked that part of me, because everybody stresses When Des Marais saw the poster for EmPOWER teamwork, and I want to win. Does that make me a in her school, she says the word “leadership” caught bad person?” she asks. “I learned it’s not a bad thing. It

16 | BASIN TODAY

I think for me to go there, which I don’t know if I’d ever have gone without the tour, and make really good friends … I would have never been able to do that without Sioux Valley Energy,” Des Marais says. “I’m super appreciative and grateful for that, and hope I can bring back everything I’ve learned and use it here in Pipestone.”

Des Marais works at her local rec center, coaching dance, gymnastics and track. She was able to bring a $500 grant back to Pipestone Active Living through the National Rural Electric Cooperative Association’s Des Marais has been coaching dance, gymnastics and generationOn program. track in Pipestone for years. Neveah Hine and Diva Darveaux are two of her dance students.

Des Marais says EmPOWER helped her move past her shyness and develop her speaking skills. Overall, means I’m good with deadlines and I want to make sure the whole process has changed her. “First of all, I know we have the best product we can. I just need to learn what co-ops are. But I have always known I wanted to how to process that.” do something good with my life, and this has shown me Seven first-year EmPOWER students, including Des how I can achieve that,” she says. “I got to meet with Marais, were elected to serve on an advisory committee senators and representatives. They took the time to meet to help form the agenda for the second year. Patrick and with us, and it showed me we are a part of this. It’s not the committee traveled to Wisconsin for the Co-ops us and them – we are the government, and we have the YES! Youth Leadership Conference as a power to maybe be one of them training to serve on the advisory commitsomeday. … I think to be able to tee. Co-ops YES! serves both Minnesota see our current leaders and know It’s learning that being a leader is more than being and Wisconsin and includes all types of that’s where I want to be someday, the general manager, the cooperatives. it really put it into perspective as vice president.

We can all be While at Co-ops YES!, Des Marais something tangible.” leaders. applied to serve on their Youth Leadership Patrick says Des Marais’ Jennie Patrick Congress, for which she was chosen. experience is just what she was Through that, Des Marais took a trip to aiming for when she was developthe National Institute on Cooperative ing EmPOWER. “I reached out to Education training, which was held at high school counselors and asked Virginia Tech University in Blacksburg. what types of skills students are lacking today. A lot of She also applied for and attended the Minnesota the students are walking down the hall and don’t have Youth Tour in Washington D.C. and served as a State the common courtesy to look up and say hello when Youth Leadership Council delegate, meaning another somebody says hello to them. It’s working on that trip to D.C. one-on-one communication. It’s learning that being a “I had never been to Washington D.C. before and I’d leader is more than being the general manager, the vice never experienced all the memorials and the monuments. president. We can all be leaders,” Patrick says.

EmPOWER excursion EmPOWER includes the option for the students to take a trip to North Dakota and tour Basin Electric’s Antelope Valley Station, the Dakota Gasification Company Great Plains Synfuels Plant, and The Coteau Properties Company Freedom Mine. Patrick says what the students learn is dramatic.

“When Kim (the tour guide) came out and asked, ‘What do you guys think is the best way to generate electricity?’, not a single person said coal. After they got done with three days of tours, I had each of them write something on the bus on the way home. I asked ‘What was your biggest aha moment?’ So many of them said, ‘I didn’t realize how clean coal can be, and all the work you guys do to produce an affordable source of electricity,’” Patrick says.

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F E AT URE SE RIES

A DAY IN THE LIFE OF … LEAD FOOD SERVICES

MELODY FRANCIS

By Dain Sullivan

Melody Francis, Basin Electric food services lead, enjoys making cooperative employees feel at home in the Headquarters cafeteria.

18 | BASIN TODAY

It’s the start of a new day in Bismarck, ND, and the clicking and clanking of cookware can be heard from Basin Electric’s Headquarters cafeteria. It’s board week, and the kitchen staff is preparing breakfast for the cooperative’s directors.

Of course, it’s also breakfast time for employees.

As one employee approaches the glass display and pans through the delicious lineup of options, Melody Francis looks up and shares a warm smile.

“Can I help you?” asks Francis, Basin Electric lead food services lead, as she continues to wrap a fruit bowl.

After a few moments, the employee, a regular, requests a breakfast sandwich. Francis knows exactly how to prepare it.

Then again, it seems Francis, known as Mel to most, knows everyone at Headquarters. When people approach the kitchen, she often greets them by name.

“With this job, you find out what people like and what they don’t like,” Francis says.

On a day like this, for example, the board members will likely be thanking her for preparing their favorite sauerkraut soup for lunch. They’ll also appreciate getting her famous lemon cookies around mid-afternoon.

Francis and her staff love the work they do.

“It’s definitely a team effort and not a one-man show,” she says.

Francis hasn’t just provided Basin Electric with delicious food for the past 17 years; she’s served up happiness for employees, whom she treats like family.

“I love being around people, and I’ve always loved to cook,” she says. “I know employees have stressful

days from time to time, and I want this cafeteria to “I’m lucky,” she says. “In this line of work, to get be the place they can come and forget about it and these hours is like winning the lottery.” catch a smile.”

On this particular day, it’s busy, but not too busy Francis also loves being able to work in the same for some laughs. As Francis maneuvers around the building as her daughter, Angela Dockter, Basin Electric kitchen, Amanda Leintz, summer assistant laborer, purchasing agent I. The two get to chat every day – a shares humor that makes the group burst into laughter. priceless perk for a proud mom.

Francis cracks up again, as she remembers the And when it comes to the rest of Francis’ co-op family, time one of the cooks was covered head-to-toe in it takes a lot of precise planning and skill flour when an open container fell to cater to such a large workforce. off a shelf. It’s a story the group I love being around However, she’s mastered the lunch line revisits often, and it never fails to people, and I’ve always loved crunch time. bring smiles. to cook. I know employees Francis is punctual, making sure “We have fun,” she says. have stressful days from different meetings are catered to by It’s obvious Francis strives time to time, and I want this cafeteria to be the place they showing up as early as 4:30 a.m., and to make people happy. And with can come and forget about it the occasional Sunday. But, those hours a building expansion project in and catch a smile. are rare. the works, she wants to provide “After all this time, you kind of even better service through an Melody Francis know how long it’s going to take to improved cafeteria layout. See get food ready for different events,” the Headquarters expansion story she says. on page 12.

She takes a moment to tell a story about one of Basin Electric consulted with Francis and her team the first times she catered to legislators who visited when anticipating the new cafeteria. Francis had an the building. With a grin, Francis recalls setting two opportunity to tour a handful of modern workplace alarm clocks and her stove timer to avoid being late kitchens to get an idea for how the cooperative could for the event. offer even more options.

Occasional off-hours aside, Francis is thankful for “It was really neat to see what kitchen technology her schedule, which allows her to have a number of is out there and what’s possible these days,” she says. holidays, weekends and nights off.

At the end of the day, Basin Electric’s cafeteria is Indeed that’s not the way the cookie crumbles Francis’ baby. She cares for it like her own home kitchen, with most culinary jobs. adding an extra dash of love in everything she does.

SEPTEMBER – OCTOBER 2015 | 19

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

SHARING A LOVE OF FITNESS Drive by Basin Electric’s Headquarters building Perreault. “It’s exciting to be a part of people’s at the end of the work day from April through Septemwellness journeys.” ber and you might see employees doing jumping jacks, One such journey Perreault immediately recalls lunges, push-ups and other exercises on the lawn. is from the first Basin Boot Camp in 2013. “That Boot Leading the group is Nicole Camp was part of an employee’s Perreault, supervisor of graphics. approach to lose 40 pounds,” I’m really fortunate to For the past three years, she’s been she says. have the opportunity to bring sharing her passion for fitness with Aside from weight loss, my love of fitness to Basin fellow co-workers.

Perreault helps participants see Electric. It’s exciting to be Perreault, who is also a certified their fitness success through an a part of people’s wellness group fitness instructor and personal endurance and strength assessjourneys. fitness trainer at the Missouri Valley ment, and by recording weight Nicole Perreault Family YMCA in Bismarck, created and body measurements. Both Basin Boot Camp when asked to components are conducted at teach a fitness class at Headquarters. the beginning and the end of the Basin Boot Camp is an eighteight-week session. week class featuring a variety of cardio and strength Perreault recognizes the participant with the training components. Employees sign up for each largest percentage of body fat lost at the end of the session and pay a participation fee. From the get-go, eight weeks with a Certificate of Awesomeness. “It’s interest has been strong and remains steady. a nice way to acknowledge a person’s hard work, “I’m really fortunate to have the opportunity and they appreciate it,” she says. to bring my love of fitness to Basin Electric,” says Basin Boot Camp also serves as a social outlet

20 | BASIN TODAY

Nicole Perreault, holding the megaphone, instructs Headquarters employees on various strength and endurance exercises during Basin Boot Camp, an onsite fitness class.

WITH BASIN BOOT CAMP My goal is to get people to enjoy working out and to incorporate that into their lifestyle. Sometimes they just need the encouragement that they can do it.

Basin Electric supports employee health and encourages employees to have an active lifestyle through the following programs:

Nicole Perreault

for the participants, helping them meet and mingle with others outside their departments.

“Participants develop a camaraderie with each other,” Perreault says. “It’s nice to get to know people outside of a work setting and develop a non-work-related bond.”

It’s not only the class participants who benefit from Basin Boot Camp, Perreault receives a sense of pride in the participants and a feeling of satisfaction.

“It’s really rewarding to see other people make healthy lifestyle changes,” she says. “My goal is to get people to enjoy working out and to incorporate that into their lifestyle. Sometimes they just need the encouragement that they can do it.”

• Fitbit discount: Basin Electric pays $50 toward a Fitbit® of an employee’s choice.

The Fitbit tracks activity, exercise, food, weight and sleep, for real-time information.

• Fitbit challenges: These monthly challenges motivate employees to increase their daily activity through the number of steps, floors climbed and minutes active.

• BE Well blog: Provides a consistent dose of inspiration, tips and exercises.

• Wellness Committees: These employeebased committees meet regularly and plan wellness activities to help employees incorporate healthy activities into their lives.

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

Miller re-appointed to North Dakota State Board of Accountancy Faye Miller, manager of internal auditing at Basin Electric Headquarters, was recently re-appointed by North Dakota Gov. Jack Dalrymple to serve another five-year term on the North Dakota State Board of Accountancy (NDSBA). In addition, Miller was also re-elected as the board president.

Miller has served on the NDSBA since 2010, and her new term will end June 30, 2020. She’s one of five certified public accountants (CPA) appointed by Gov. Dalrymple to serve on the board.

“It’s a great honor and privilege to serve in this office,” Miller says.” It’s also a great responsibility, and I’m humbled to serve the public in this capacity.”

The NDSBA reviews the entrance qualifications of CPA candidates, annually registers accountants, monitors continuing education and addresses consumer concerns. In doing this, they protect the public interest by ensuring the conduct of persons licensed as having special competence in accountancy be regulated in all aspects of their professional work.

Employees receive degrees Elizabeth Erhardt, administrative assistant I at Headquarters, associate degree in accounting, Bismarck (ND) State College, May 2015.

Karen Plum, senior tax analyst at Headquarters, master’s degree in accounting with a concentration in taxation, Southern New Hampshire University, December 2014.

Chris Breiner, compliance specialist I at Dakota Gasification Company, bachelor’s degree in chemical engineering, University of North Dakota, August 2014.

22 | BASIN TODAY

Employees receive degrees Preston Blinsky, electrical engineer I at Headquarters, bachelor’s degree in electrical engineering, North Dakota State University, May 2015.

Matt Middlemas, safety representative at Laramie River Station, associate degree in occupational safety and health, Columbia Southern University, May 2014.

Matt Kluzak, student intern IS&T at Headquarters, associate degree in computer science, Bismarck (ND) State College, August 2015.

Mat thew Jameson, desktop application analyst I at Headquarters, bachelor’s degree in information technology management, University of Mary, December 2014.

Charles Roy, pipeline engineer I at Dakota Gasification Company, bachelor’s degree in mechanical engineering, University of North Dakota, May 2015.

John Frank, manager of risk and insurance at Headquarters, master’s degree in business administration, University of Mary, May 2015.

Ethan Jones, protection services specialist at Dakota Gasification Company, bachelor’s degree in business management from Western Governors University, June 2015.

New employees Nigel Schmitz, process engineer at Dakota Gasification Company, bachelor’s degree in chemical engineering, University of North Dakota, December 2014.

Kezia Zander, settlements analyst II at Headquarters, bachelor’s degree in business management, May 2015.

Kyle Humpherys, mechanical engineer at Dakota Gasification Company, bachelor’s degree in mechanical engineering, University of Wyoming, May 2015.

Aric Bandle, senior designer at Headquarters, bachelor’s degree in business management, University of Mary, July 2015.

Slade Ternes, electrical engineer at Dakota Gasification Company, bachelor’s degree in electrical engineering, University of North Dakota, May 2015.

Greg Schaff, electrical engineer I at Headquarters, bachelor’s degree in electrical engineering, North Dakota State University, December 2014.

Mike Baltzer, business intelligence architect I at Headquarters, bachelor’s degree in computer technology management, Dickinson (ND) State University, December 2014.

Jake Haskins, system protection technician apprentice, started work at Transmission System Maintenance in Gillette, WY, on June 28. He was previously employed at PacifiCorp Energy in Glenrock, WY, as a control and electrical technician.

Alexius Schutt, chemist, began working at the Great Plains Synfuels Plant July 13. The Elk River, MN, native has bachelor’s degrees in biology and biochemistry, with a minor in math, from Sacred Heart University in Connecticut. She worked for Legend Technical Services in St. Paul, MN. Nicholas Noeske was hired July 13 as a mechanical engineer I at Headquarters. The Valley City, ND, native is a graduate of North Dakota State University, Fargo.

John Grossbauer, protection services specialist, began working at the Great Plains Synfuels Plant June 15.

The Grand Forks, ND, native is an emergency medical technician and has a degree in fire technology from Northland Community and Technical College, East Grand Forks, MN. Kelly Hansen started work at the Great Plains Synfuels Plant July 13 as a mechanical engineer. The Belle Fourche, SD, native has a bachelor’s degree in mechanical engineering from South Dakota School of Mines and Technology in Rapid City. He previously worked for Baker Hughes INTEQ, Minot.

SEPTEMBER – OCTOBER 2015 | 23

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

New employees Jeremy Skjod, network security analyst I, started work at Headquarters July 13. He previously worked as a network technician III for the State of North Dakota, and has a bachelor’s degree in information systems from University of North Dakota, Grand Forks.

Sarah Erickson was hired July 20 as an associate contract administrator at Headquarters. She previously worked at Bobcat Company as a material analyst and has a bachelor’s degree in international business and Spanish from Minnesota State University Moorhead.

Toni Moore, environmental analyst, was hired at the Great Plains Synfuels Plant June 15. The Beulah, ND, native has an associate degree in power plant technology from Bismarck (ND) State College. She previously worked as a program technician at Farm Service Agency in Beulah.

Nathan Paislee started work at the Great Plains Synfuels Plant May 17 as a process operations field technician.

The Stanton, ND, native has an associate degree in power plant technology from Bismarck (ND) State College.

Samuel Wagner started work at the Great Plains Synfuels Plant July 27 as a protection services specialist.

The Bismarck, ND, native was a paramedic for Metro Area Ambulance, Bismarck.

Jon McNees, mechanical engineer II, started work July 20 at Laramie River Station. The Rawlins, WY, native received a bachelor’s degree in mechanical engineering from University of Wyoming in Laramie. He previously worked for Sinclair Oil Company at Sinclair Wyoming Refinery as a maintenance reliability engineer.

Shawn Nixon was hired at the Great Plains Synfuels Plant July 27 as a civil engineer. The Mandan, ND, native has a bachelor’s degree in civil engineering from North Dakota State University, Fargo. He worked for Bartlett & West in Bismarck, ND.

24 | BASIN TODAY

Kyle Humpherys, mechanical engineer, started work at the Great Plains Synfuels Plant June 29. The Afton, WY, native has a bachelor’s degree in mechanical engineering from the University of Wyoming in Laramie.

Andrew Annett was hired July 27 as an operator technician at the Pioneer Generation Station. The Renville, SD, native most recently worked as a welder/mechanic for Antraquip Corporation in Hagerstown, MD. Annett was also in the U.S. Marines, serving as scout sniper and a gas turbine mechanic.

Karsen Little Soldier started work at the Great Plains Synfuels Plant July 13 as a human resources coordinator. She was working in human resources as an intern.

Service awards Ravin Masilamani, senior process engineer-PHA leader, began working at the Great Plains Synfuels Plant July 27. He has a master’s degree in chemical engineering and previously worked at Bechtel Corporation in Houston, TX, as a process systems project engineer.

Ronny Youngs

Debra Grueneich

Mark Walker

fuel/water supervisor

senior business systems analyst

maintenance planner/scheduler

35 years

Dry Fork Station

35 years

Headquarters

Ryan Bowles, real time trader I, started work at Headquarters July 27.

He’s originally from Texas and most recently worked as a financial analyst for Entergy.

35 years

Laramie River Station

Casey Merritt began working at the Great Plains Synfuels Plant May 18 as a process operations field technician. The Center, ND, native has an associate degree in power plant technology from Bismarck (ND) State College. He was a cooperative education student employee at the Synfuels Plant.

Steve Allen

Lee Apodaca

Edward Troupe

performance engineer III

mechanic-lead

water treatment operator

Sourav Dan, mechanical engineer I, started work at Leland Olds Station June 1. He previously worked at CNH Industrial in Fargo, ND, as a facilities and energy engineer. He was previously a design engineer at AGCO Corporation in Jackson, MN, and as a design engineer at SnoBear USA in Fargo. He has a bachelor’s degree in mechanical engineering from North Dakota State University, Fargo.

Mark Wasem

Delton Schwarz

Bernard Weigel

control room operator

mechanic I

facilities technician I

Trevor Huber, laborer, started work at Antelope Valley Station Aug. 24. The Center, ND, native has a degree in power plant technology from Bismarck (ND) State College.

He previously worked as an auditor for the State of North Dakota.

35 years

Laramie River Station

35 years

Laramie River Station

35 years

Laramie River Station

30 years

Antelope Valley Station

30 years

Antelope Valley Station

30 years

Headquarters

Michael Ruckman 25 years

electrician-lead

Laramie River Station

Lynn Aipperspach 30 years

scrubber operator

Antelope Valley Station

SEPTEMBER – OCTOBER 2015 | 25

PRESORTED STANDARD U.S. POSTAGE PAID BISMARCK, ND PERMIT 224

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why electric co-ops

rock

Community commitment We aim to improve quality of life in our communities.

how cool is that?

AFter all, we’re neighbors!

Bettering the future We educate youth and help build leaders for a better tomorrow.

October is National Co-op Month, which really is a celebration of you. Co-ops are made up of people who serve people. to learn more about why co-ops rock, check out http://bit.ly/WhyCo-opsRock