Basin Today Sept-Oct 2016

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

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M AG A ZINE

CO-OP SPIRIT THROUGH KIDS’ CREATIONS

SEP T EMBER | OC TOBER 2016

Malena Olson, age 5

KayLee Huntimer, age 9

Morgan Goettle, age 7

Ellery Pressnall, age 6

McKenzie Blowers, age 9

Parker Feigitsch, age 8

Annabelle Matthews, age 13

Morgan Feigitsch, age 8

Madalyn Meckle, age 8

Hayden Krusi, age 9

Jack Green, age 11

Kynzlee Wittenberg, age 5

CONTENTS V O L U M E 19

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NUMBER 5

Jenica Twete, age 10

ON THE COVER In celebration of October as National Co-op Month, Basin Electric employees’ kids were invited to participate in a drawing contest with one simple instruction: Draw what working together looks like to them. A number of employees then shared which of the drawings they thought best represented this idea. The drawing on the cover by Brody Schramm, age 9, was selected. Brody is the son of Matt and Alissa Schramm. Brody’s drawing will be featured in Basin Electric’s newspaper ads during the month of October.

Katrina Hellman, age 12

IN EVERY ISSUE 2 CEO and general manager column: Paul Sukut 4 In brief 14 Member focus: An hourly approach to load management 16 Feature series: A day in the life of ... Pipeline Superintendent Claude O’Berry 18 Employee highlights FEATURE STORIES 6 In matters of grid reliability Basin Electric carries its load 10 Shaking the Etch A Sketch: Basin Electric adds flexibility to member load forecast 12 Setting the foundation for a co-op career of continual learning CONTRIBUTORS

Brynlee Wittenberg, age 8

Guest editor:

Chris Gessele

Supervising editor:

Andrea Blowers (ablowers@bepc.com)

Publications manager:

Mary Miller

Graphic designer:

Nicole Perreault

Photographers:

Chelsy Ciavarella, Jade Neumann & Greg DeSaye

Writers:

Andrea Blowers, Tracie Bettenhausen, Tammy Langerud & Joan Dietz

Use your smartphone barcode scanner to view stories online.

Britton Blowers, age 7

SEPTEMBER – OCTOBER 2016 | 1

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

PAUL SUKUT CO-OP STRONG, CO-OP UNITED It wasn’t that long ago when I was drafting my last column; the sun didn’t set until after 10 p.m. and was back up at 5 a.m. Those long days gave way to shorter nights’ sleep as we tried to eke out every bit of our all-too-short summer.

Now, the air feels a little cooler and the sun is setting much earlier. Fall is upon us, and so is high school football, homecoming parades and the final harvest of my gardens.

It also means that Co-op Month is here. And, while we’ve celebrated Co-op Month both quietly and with a bang over the years, I think it’s always a good reason to take stock in who we are and why we’re here.

Nearly all co-ops are born out of need ... a need for services that no one else is providing. Just look at the BisMan Community Food Co-op recently started in Bismarck, ND. A group of individuals wanting access to locally grown and organic food were tired of meeting up in parking lots at various farmers markets and following the drop-off schedule of locally sourced meat producers. So, they joined together, and through hard work and the helping hands of many, launched the community’s first food co-op.

In Mercer County, several businesses and organizations – Basin Electric included – are evaluating a potential child care co-op to solve the ongoing dilemma of lack of child care within nearby communities.

And, more than 50 years ago, when co-ops’ power needs outgrew the Western Area Power Administration’s hydropower allocations, they decided they

2 | BASIN TODAY

would be stronger if they hung together and formed Basin Electric to serve their supplemental demand.

In a calculated leap of faith, they signed long-term all-requirements contracts; they were all in. And so the story of Basin Electric began.

Last year the majority of our members renewed those contracts until 2075.

Why? After all, each co-op is thriving and serving its members. The circumstances are much different than they once were.

Because, our fundamental belief remains the same, though the circumstances may be different.

From pressures surrounding the Clean Power Plan to threats in our national energy security, we still believe that we are stronger when we are united.

Our 2016 Annual Meeting is coming up in November. You’re going to be hearing a lot more about this in the coming month.

Let’s take a step back, though, and ask a simple question: What makes us strong? Just think about it. We span nine states. Our relationships within our communities and with our congressional delegations, along with state and local leaders, remain strong. We are flexible when we need to be, and we’re a force to be reckoned with when necessary.

We collectively decide how best to serve our membership. Through careful involvement of our membership, we do regular load forecasting to keep our fingers on the pulse of our load mix. You tell us what you need, and from there, we plan accordingly. As an

example, our members passed a resolution years ago directing us to add enough renewable resources to equal 10 percent of our capacity mix. You asked, and we delivered. We’ve far surpassed that goal, in fact.

Today, our membership continues to address the evolving face of energy supply in this country.

From small solar to community solar and beyond, we are continually evaluating how best to serve our membership. And, if we don’t have the answers, we work to become the experts.

We do this all with a laser focus: What is the right thing for our member-owners?

So, while times right now seem more challenging than easy, I believe we stand strong.

No one is more equipped to serve our members with low cost, reliable power and services than co-ops.

No one is more equipped to find a path through the murky waters of the Clean Power Plan than co-ops.

No one is more equipped to help promote and advance innovative solutions for a carbon-constrained future than co-ops.

No one. We’re in this together, and we’ve got this.

Paul Sukut, CEO and general manager

SEPTEMBER – OCTOBER 2016 | 3

IN B RIE F

Basin Electric and Wyoming ITC finalize partnership to move project forward

(From left) Mike Easley, Powder River Energy Corporation CEO; Wyoming Gov. Matt Mead; and Basin Electric CEO and General Manager Paul Sukut attended the ITC groundbreaking event in April.

The Wyoming Integrated Test Center (ITC) took another step forward in efforts to facilitate the next generation of carbon reduction technology, finalizing a lease and operating agreement with Basin Electric to allow the ITC to be built and operated at Dry Fork Station.

Dry Fork Station is operated by Basin Electric and co-owned by Basin Electric and the Wyoming Municipal Power Agency.

The Wyoming Infrastructure Authority (WIA), the agency charged with managing the pre-commissioning phase of the project, finalized a contract with Basin Electric to lease the site at Dry Fork Station for a period of 10 years. Eight years of the contract are designated for research activities and the last two years for reclamation.

With the agreement between the WIA and Basin Electric formalized, ITC stakeholders are now working to finalize a request for proposal (RFP) to identify candidates and select initial users to lease test bays at the testing site. The RFP is expected to be released by the end of September.

Phase II of the construction process for the ITC is slated to begin this fall. http://bit.ly/ITCAgreement

Directors approve construction work plan and engineering plan Basin Electric directors approved the 2017-2019 construction work plan ($604 million) and the 20172026 long-range engineering plan ($1.1 billion).

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The long-range engineering plan includes a preliminary look at capital projects that may be considered for approval in the next 10 years. Projects exceeding $100,000 are recognized, and the information is used as a planning tool for Engineering & Construction, Operations and ultimately, the financial forecast. All projects included in the plan ensure safety, environmental compliance, reliability and availability. Approximately $1.1 billion is expected to be spent on all facilities over the next 10 years. This includes more than $200 million on transmission and more than $360 million on potential new generation.

The construction work plan consists of projects that have projected cash flows in the next three years. The plan includes projects in the long-range plan along with projects that have been approved in previous years. The 2017-2019 plan shows an estimated cash flow total of $604 million. More than one-third – $241 million – would be spent on transmission.

All numbers are best estimates at this time.

Pending environmental regulations, and litigation concerning environmental regulations, would affect the numbers. http://bit.ly/ConstructionEngineeringPlan

Directors approve financial forecasts Basin Electric’s 10-year financial forecast for 2017-2026 was approved by directors at the August meeting.

The forecast sets the average member rate at 64.2 mills. Basin Electric’s austerity plan, put in place at the beginning of 2016, continues.

The forecast includes spending of $1.5 billion for capital projects over the 10-year period.

The demand for electricity by Basin Electric’s member systems is expected to increase throughout the forecast, ranging from 6.2 percent to 1.2 percent annually. Electricity sales to both members and nonmembers are expected to be more than 31 million megawatt-hours per year.

Dakota Gasification Company A 10-year financial forecast was also approved

by Dakota Gas directors.

The forecast shows a significant decrease in costs from last year’s forecast due to austerity.

Revenue during the forecast is predicted to range from $447 million to $917 million annually, while operating expenses are predicted to range from approximately $535 million to $813 million annually.

Capital improvements totaling $348 million will be added during the period, which includes the addition of a urea facility with a gross production capacity of 380,000 tons per year.

The addition of urea and diesel exhaust fluid provides further diversification of Dakota Gas’ product lines.

Dakota Coal Company The 10-year financial forecast for Dakota Coal was approved by its directors.

The forecast predicts that average coal prices will range from $15.54 to $23.51 per ton.

Projected lignite coal deliveries from the Freedom Mine range from 14.8 million to 14.9 million tons for the 10-year period. It calls for annual year-end profits before income taxes ranging from $2.6 million to $.2 million.

Capital commitments are estimated to be $459 million for Dakota Coal’s coal, lime and limestone operations for the 10-year period.

Cooperative Child Care to own and operate child care centers in the county. This child care co-op would be the first of its kind in North Dakota. The first of its kind in North Dakota, the nonprofit will operate as a cooperative under the direction of the parents whose children attend the care centers.

Erin Huntimer, Basin Electric project coordinations representative, is leading the effort. Dakota Gas Plant Manager Dale Johnson and Process Engineering Supervisor Laura Dronen were involved in the initial meetings and will serve on the child care co-op board of directors.

The first child care facility is being planned for Hazen. If the Hazen facility is successful, the child care co-op will consider a facility in Beulah. http://bit.ly/ChildCareCoop

FIND US ON THE WEB BasinElectric.com DakotaGas.com

http://bit.ly/FinancialForecasts17-26

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Basin Electric helps establish Mercer County child care cooperative

Read Basin Electric news online @ basinelectric.com/NewsBriefs

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True to its cooperative spirit, Basin Electric has taken an active role in finding an innovative solution to the lack of child care in Mercer (ND) County.

Basin Electric, together with seven other employers in Mercer County, has formed Energy Capital

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SEPTEMBER – OCTOBER 2016 | 5

IN MATTERS OF GRID RELIABILITY

BASIN ELECTRIC CARRIES ITS LOAD

By Andrea Blowers

Electricity has become a necessity of life.

When a blackout occurs, it’s a serious issue. It compromises safety and security and becomes a signficiant financial challenge.

Getting electricity into homes and businesses is dependent on a solid, reliable transmission infrastructure – the transmission lines that crisscross the countryside over highways, businesses and neighborhoods carrying hundreds of thousands of volts of electricity. From physical and cyber perspectives, transmission grid reliability is vital to maintaining the safety and security of all.

Basin Electric, like all utilities with transmission infrastructure, invests a lot of time, energy and money working to maintain system security and reliability.

It’s not just the cooperative’s system and members Basin Electric staff are concerned with, it’s the entire network.

According to David Rudolph, Basin Electric manager of transmission compliance, the whole system is interconnected like a spiderweb. “When

6 | BASIN TODAY

you have an outage on one particular line on the bulk power system, you don’t necessarily interrupt customers’ electricity. But, if you have enough of those, if you pull enough branches of the spiderweb away, the web collapses,” he says.

Best practice to penalty enforcement Even though grid reliability standards have been around for more than five decades, it may seem crazy to think that a number of current transmission grid regulations were initiated and enforced, in large part, because of trees. Specifically, trees that encroached on transmission lines. In fact, the largest blackout event in recent history happened, in part, because trees had overgrown into transmission lines. It was the blackout of 2003 that left 50 million people in the dark in the northeastern United States and parts of the Midwest for up to three days.

The primary cause of the blackout was a software bug in the alarm system at a control room of a utility

separation, Basin Electric has equipment in both in Ohio. Operators were left unaware of the need to interconnections – eastern interconnected electric grid redistribute power after overloaded transmission lines and western interconnected electric grid. “It doesn’t hit unpruned foliage, triggering the blackout event. quite equate to twice the amount of work, but it’s Rudolph says that critical event is one of the pretty close,” Rudolph says. main reasons he’s in his posiHe adds that a cornertion today at Basin Electric. stone of what’s regulated Though there have been reliWhen you have an outand enforceable by NERC is ability standards proposed and age on one particular line on the a matter of definition of the enforced since 1965 when bulk power system, you don’t bulk electric system (BES). the North American Electric necessarily interrupt customers’ “It’s all the interconnected Reliability Corporation (NERC) electricity. But, if you have enough transmission system above was formed, NERC’s primary of those, if you pull enough 100-kilovolts … it includes function was providing best branches of the spiderweb away, transformers, generating practice guidelines to help avoid the web collapses. plants, dispersed resources blackouts.

David Rudolph like wind farms and some Following the 2003 event, other equipment. There are the U.S. Congress implemented exclusions,” Rudolph says. the Energy Policy Act of 2005, “The radial systems, that one path of electricity, which, in part, gave the Federal Energy Regulatory those are excluded.

Commission (FERC), the governing body over NERC “You have to walk through your list of equipment regulations, the power to enforce mandatory reliability on a case-by-case basis and determine whether it’s standards on all users, owners and operators within BES or non-BES.” the bulk power system. In 2007, the Version 0 Reliability Standards became effective, which is the mandatory enforcement of monetary penalties for grid reliability violations.

“There are significant financial penalties for non-compliance,” Rudolph says. “A million dollars per day, per violation is what NERC has the authority to impose. Over the last 10 years, there have been several, probably half-dozen multimillion dollar penalties for non-compliance by different utilities across the nation.”

Complexity and new process Within the Version 0 Standards, eight regional entities were defined to enforce the standards. Basin Electric must report back to two of them – Midwest Reliability Organization (MRO) and Western Electricity Coordinating Council (WECC) – because the cooperative owns equipment in both regions.

There’s a physical separation of Basin Electric’s system because of how the nation’s electric system was developed. (Go to basinelectric.com/Facilities/Transmission/ to learn more.) Because of that

The light blue line represents the physical separation of the Eastern and Western interconnections.

Direct-current (DC) ties, or interties, bridge the national electric system separation by taking alternating current electricity on one side of the separation, converting it to direct current, and back to alternating current so it’s in sync with the other side’s alternating current.

SEPTEMBER – OCTOBER 2016 | 7

All enforceable standards are developed by Rudolph says that’s not all of it. “There is a members of the regional entities. They run through constant churn of new standards and revised standards the NERC process and then FERC ultimately approves continuing. We just implemented a new version of CIP,” them. Rudolph says once they are approved, they are he says. “Right now, there are 19 additional standards federal law. “The standards are developed in a way and another 186 requirements pending, so staff is where they have categorized the work that’s being constantly monitoring all activity.” performed. For example, there are CIP standards, or On July 1, 2016, Version 5 CIP standards went Critical Infrastructure Protection, which applies to into effect. Basically, the requirements include having securing our cyber assets.” a list of all equipment that needs to be protected and There’s significant complexity in defining respondesignating governance over that equipment. “You sibility for all compliance standards, especially in have to identify and train your personnel, identify a network as tightly woven with its members and electronic security parameters and physical security other entities as Basin Electric’s. The cooperative systems surrounding those, have an instant reporting has created an internal compliance program over and recovery plan, and anytime you change that, you the last decade and, though it has been effective, have to make sure it’s not going to cause a negative staff recognize the need to evolve effect,” Rudolph says. as more standards and regulations Within CIP 5, Basin Electric Power lines don’t like are developed. has identified 13 medium impact it when trees grow into “We’re working to develop a facilities and 180 low impact them, so vegetation mannew internal compliance program, facilities. For the medium impact agement is very important. which we hope to roll out in the first facilities, the cooperative must It’s a high focus. quarter of 2017,” Rudolph says. implement all of the standards and “Its purpose is simply to clarify requirements.

David Rudolph the roles and responsibilities for all Key areas on the operations entities (members and cooperative and planning side include commupartners) involved, because it’s an nication, protection systems and uncomfortable day when you sit in front of an auditor vegetation management. Rudolph says, believe it or and you can’t clearly articulate who’s responsible for not, every blackout that has occurred has had common performing a set of tasks. There’s risk there and those components – lack of communications at some point, risks come with a large financial penalty.” coordination issues with protection system equipment, and trees have grown into power lines. “Power lines Implementation of rules don’t like it when trees grow into them, so vegetation management is very important. It’s a high focus,” he says.

There are staff dedicated to evaluating the NERC rules and understanding them. Implementing them is Evidence and more evidence something else entirely. NERC standards touch every department, in some capacity, within Basin Electric.

There’s no one way to show compliance with The cooperative has divided the standards into NERC reliability standards. Rudolph says it boils down two primary areas of responsibility – operations and to evidence and more evidence. “If we do not docuplanning, and cyber and physical security. Right now, ment the work we do, we can’t take credit for it,” he there are 64 standards and 633 requirements just in says. Evidence can range from a simple training log the operations and planning side. Add 11 standards to a complicated test report from a protective relay. and 212 requirements on the CIP side for a total of “We simply have to gather, document and identify the 75 standards and 845 requirements. evidence,” he says.

8 | BASIN TODAY

Like the electric system, every task and documentation is a branch in the web. It may not be obvious at first glance how it pertains or relates to the entire system, but each is critical to system reliability.

David Rudolph

BASIN ELECTRIC NERC COMPLIANCE BY THE NUMBERS EQUIPMENT ABOVE

100 KILOVOLTS OPERATIONS AND PLANNING

Enforcement happens at the regional level. Again, Basin Electric must report back and show compliance within two regions and each region handles it differently, but it all comes down to supplying data and evidence.

MRO has quarterly self-certifications. Basin Electric gets a notice each year of what standards and requirements they look at each quarter and the cooperative then supplies the evidence of compliance.

WECC is on an annual basis. Basin Electric receives a list of what applies to the cooperative and then reports back if it’s compliant or non-compliant.

There’s also a formal audit process. WECC completes a full audit of the cooperative every six years. The last one was in 2015.

For what?

It’s a lot. NERC, FERC, MRO, WECC, CIP. The acronyms alone can leave a person confused. But, it’s all for a vital purpose – electric system reliability.

Most people don’t know life without electricity. It’s a critical necessity, so all the work to maintain it is necessary.

NERC standards are mandatory, federal law. Basin Electric and its employees as well as its members and partner entities must understand their roles and responsibilities and be engaged in the process, Rudolph says. “Like the electric system, every task and documentation is a branch in the web,” he says.

“It may not be obvious at first glance how it pertains or relates to the entire system, but each is critical to system reliability.”

64 STANDARDS 633 REQUIREMENTS

CRITICAL INFRASTRUCTURE PROTECTION

11 STANDARDS 212 REQUIREMENTS PENDING

19 STANDARDS 186 REQUIREMENTS CIP

13 MEDIUM IMPACT FACILITIES 180 LOW IMPACT FACILITIES

WECC

MRO

SEPTEMBER – OCTOBER 2016 | 9

By Tracie Bettenhausen

BASIN ELECTRIC ADDS FLEXIBILITY TO MEMBER LOAD FORECAST

By Tracie Bettenhausen

Micro vs. macro Have you ever, as a child or an adult, created a drawing on an Etch A Sketch? The left and right dials, The member load forecast has been continually turning separately and together, straight and slanted updated, responding to quickly changing load levels lines, creating a word, item or scene as you go. especially in western North Dakota and eastern The detail of the artwork might be just right, but Montana due to oil load growth. But until January if you hold the tool farther from your face, you might 2016, it has generally followed a standard procedure. see the picture is not greater than the sum of its parts.

Lundstrom says forecasters would touch base So you give it a shake and start from scratch. with Class C members and look to the granular details: “Giving the Etch A Sketch a shake” is how meter counts for each classification, rural residential Jay Lundstrom, lead load forecast versus seasonal residenanalyst, describes a new way the tial, street lights, irrigation member load forecast is being done accounts, small and large That’s essentially what at Basin Electric. Lundstrom says commercial, and timelines this new process lets us do is at the beginning of 2016, the load for loads coming online. wipe the slate clean, shake the forecasting team started shaking it T hat “micro” view, Etch A Sketch and say, ‘That’s up every quarter to respond more detailed down to the last history. How does it look going quickly to Basin Electric’s members’ meter, is important for looking forward from right here?’ changing load conditions. into every sector the Class C members sell electricity into.

Jay Lundstrom What is the member The process for this forecast load forecast? starts in earnest in May and wraps up in December. This The member load forecast is the process will continue to be updated annually. main tool for power supply planning, financial forecasting The “macro” view, new in 2016, looks at the big and rate planning. The forecast shows the percentage of picture, and the big drivers that can affect electricity each district’s growth or decline projected over 10 years. sales quickly. This process will be completed three The forecast is presented to Basin Electric directors times per year, the first through third quarters. each year for approval. The member load forecast used The macro forecast focuses strictly on Class A to be a requirement as part of the Rural Utilities Service members, looking for major swings that, month to (RUS) financing. Since Basin Electric bought out of RUS month, can have a large impact on sales.

July 9, 2015, the cooperative is no longer required to For example, Lundstrom says, a mild winter submit a load forecast elsewhere, but continues to or summer, or rainfall that deviates greatly from find value in its results.

10 | BASIN TODAY

the average, can mean a big difference in the need for electricity. “This year has been wet in western Nebraska, so Tri-State G&T loads in Nebraska have been lower,” Lundstrom says. “That’s because they have a heavy irrigation cycle down there, heavy irrigation load, and so this year their loads are significantly less than expected. It’s that type of insight that we need to look at on a regional level.”

The macro forecast also looks at trends in the industry, like potential loss of load due to selfgeneration. (Take a look at the industries that drive each district’s load in the graphic below.) “The price of electricity can be a factor in whether a company decides to put a generator on its site and start to generate its own electricity rather than buying it from the local co-op,” Lundstrom says. “We can start to put some effects of elasticity in there, to see what happens to the loads if we increase the price of electricity 10 percent or drop it 10 percent. Right now, it’s not an explicit input into the models, but it is something we can do if we need to.”

Population is also a driver of energy needs. “For the macro models, we don’t look at the population of a single county, like with the micro view, but we’ll look at the state population forecasts,” Lundstrom says.

Why it matters Lundstrom says the enhancement to the member load forecast will continually change to get better. Each member’s general manager is the main point of contact.

“Mild weather last winter meant our members just weren’t hitting their numbers in the forecast. Month over month of missing the forecast on the high side meant we were over-forecasting,” he says. “That starts to trickle into the budget, and that starts to trickle down to the margin.”

Lundstrom says the macro forecast will give the forecasting team a fresh look every quarter, seeing trends more quickly. ”That’s essentially what this new process lets us do is wipe the slate clean, shake the Etch A Sketch and say, ‘That’s history. How does it look going forward from right here?’”

Industry = Member needs A good (i.e. stable) member profile includes a mix of residential and industrial. Residential loads are constant, while industry loads are largely affected by the economy surrounding that industry. Each Basin Electric Class A member has an industry that, as it goes, so goes the load. In addition, each area can be affected by local economic incentives.

Central Montana Electric Cooperative Central Power Electric Cooperative Corn Belt Power Cooperative Crow Wing Cooperative Power & Light District 9 East River Electric Power Cooperative

Agriculture

Beef

Grand Electric Cooperative

Agriculture irrigation

Ranching

KEM Electric Cooperative

Corn

Coal

Soybeans

Oil

Ethanol

Secondary oil recovery

Poultry

Natural gas

Northwest Iowa Power Cooperative

Hogs

Health of local economy

Powder River Energy Corporation

Wheat

Residential

Rosebud Electric Cooperative

Barley

Government programs

Rushmore Electric Cooperative

Beef packing

Tourism

Tri-State G&T Association

L&O Power Cooperative Minnesota Valley Cooperative Power & Light Minnesota Valley Electric Cooperative Mor-Gran-Sou Electric Cooperative

Upper Missouri Power Cooperative Wright-Hennepin Electric Cooperative

SEPTEMBER – OCTOBER 2016 | 11

Lynn Beiswanger, Basin Electric learning and development director, shares some of the cooperative’s history with Basin Electric Charitable and Employment Coordinator Annie Lindseth.

SETTING THE FOUNDATION FOR A CO-OP CAREER OF CONTINUAL LEARNING

By Tammy Langerud The cooperative tradition is the foundation for Basin Electric’s continued success. Like a living room wall adorned with photos of a family’s history, photos that tell the story of the co-op’s beginnings are featured in various areas of many Basin Electric facilities.

These photos aren’t just wall décor, but a key visual that Lynn Beiswanger, Basin Electric learning and development director, refers to at the beginning of new employee orientation sessions.

Beiswanger specifically points out the photo of James Grahl, Basin Electric’s first general manager and CEO. “I tell new employees how Basin Electric started with a card table and two chairs at the Prudential Center. To me, that’s the little seed – and look what we have today,” Beiswanger says.

During orientation, the new faces of Basin Electric learn about the co-op’s history and the cooperative business model, both of which set the stage for Basin Electric’s culture.

Last year, Beiswanger and Diane Paul, senior vice president of Human Resources, had a mission to enhance new employee orientation, and both agreed the co-op’s history was a vital, missing piece.

“We stand on the shoulders of those who came before us, and Basin Electric has been so successful 12 | BASIN TODAY

because of this foundation,” Paul says. “So we should teach our new employees that cooperative history – Basin Electric’s culture and history.”

With a desire to set the foundation for new employees’ success, Paul says they revamped the orientation process so it’s no longer just handing them a stack of papers.

“We want that interaction with new employees,” she says. “We plan to continue providing learning and development opportunities as their careers progress.”

For years, new employees have been able to tour Antelope Valley Station, Dakota Gasification Company’s Great Plains Synfuels Plant, Leland Olds Station and nearby mines to get a snapshot of the operations side.

To enhance this, Beiswanger implemented a pilot program that further educates new employees about job functions and Basin Electric’s role in the generation and transmission of power. This two-day session also leverages the staff and facility at Bismarck (ND) State College’s National Energy Center of Excellence.

Beiswanger and his team are also working on curriculum and a structure that will expand employee orientation from two days to an 18- to 24-month program. Educational opportunities will be pushed out to new employees on a quarterly basis.

Building on the foundation

Another program being developed by learning and development staff is supervisory training. The Workforce The introduction to Basin Electric’s history and Plan, a succession planning tool spearheaded by Human the cooperative business model serves as the learning Resources, shows the potential for an uptick in retirees foundation for the co-op’s employees. And the learning in the coming years. Many of them currently are in and development opportunities continue from there. supervisory roles.

The monthly “People. Power.

Beiswanger’s team is taking Purpose.” sessions introduce new This is about having the a proactive approach to ensure a employees – and reintroduce opportunity to grow. We’re qualified pool of internal applicurrent employees – to various looking forward to watching elements of Basin Electric, ranging cants exists for supervisory jobs, you grow in your career. from finance and North American well in advance of them being Electric Reliability Corporation vacated by future retirees.

Lynn Beiswanger (NERC) compliance to government The team has been develrelations and timely topics like oping a program to train and cyber security. prepare existing employees for Beiswanger refers to “People. Power. Purpose.” the possibility of moving into a leadership role. This as a building block for employees’ experiences of program will launch in January 2017. being a part of Basin Electric. The monthly sessions A team like never before are broadcast live to all facilities, where employees can watch them, or supervisors can later incorporate Beiswanger and his team of Kristi Pfliger-Keller, the recordings into their tool box sessions.

Dakota Gas; Pammie Rapp, Laramie River Station; and DesaRae Berreth, Headquarters; have big plans and Beiswanger noted learning and development staff put a lot of work into creating continued educational aren’t just focused on new employees, but also Basin opportunities for all Basin Electric employees.

Electric’s long-standing workforce.

This is the first time Basin Electric has had learning “We’re running on a parallel path,” he says. “We’re and development staff in locations other than at Headeducating new employees, and we want to make sure quarters, and with a variety of expertise, Paul notes. those opportunities exist for current employees who’ve “Now a manager can come to the team with a been here awhile.” specific need, and we can develop an internal program Tuition assistance is one benefit Basin Electric geared toward the employee, that team or a specific offers that helps employees continue their education topic,” she says. “This program enhances our ability experience at the co-op, while also serving as a recruitto help employees and managers, beyond any way we ing and retention tool. have been able to before.”

Employees work with learning and development During new employee orientation, Beiswanger staff to focus the degree program on how it could tells employees that Basin Electric isn’t just about relate to their current role and prepare them for future coming to a job. “This is about having the opportunity opportunities. to grow. We’re looking forward to watching you grow “This sends a message to the employee that we’re in your career.” And the cooperative’s learning and not just interested in having you stay in your current development team is well under way to make sure role, but we want to see you grow and we encourage that happens. you to grow,” Paul says.

Co-op Month October is National Co-op Month, a time to celebrate and highlight the qualities that make cooperatives unique businesses. This article celebrates Basin Electric’s initiatives on the

cooperative principle of education, training and information. Visit basinelectric.com to learn about more ways Basin Electric celebrates its cooperative roots.

SEPTEMBER – OCTOBER 2016 | 13

M E MB E R F OCUS

AN HOURLY APPROACH TO LOAD MANAGEMENT EAST RIVER ELECTRIC LEVERAGES EXISTING ASSETS FOR ADDITIONAL POWER SAVINGS

By Tammy Langerud East River Electric Electric Cooperative, a Basin Electric Class A member in Madison, SD, is no stranger to load management programs. For more than 30 years, the cooperative has had a program in place to reduce its monthly wholesale power costs, thereby reducing costs to its members.

With approximately 60,000 participants across its membership in eastern South Dakota and western Minnesota, East River Electric has saved approximately $188 million in wholesale power costs since 1984. And with a new program, it hopes to increase that amount.

On Aug. 1, East River Electric launched another proactive element to its established load management program by joining Basin Electric’s market load management program. East River Electric is the first Class A member to be part of this pilot program.

Synergy through SPP and existing load programs

Jeff Rud, East River Electric power supply specialist, monitors loads to determine when to activate the cooperative’s load control system, which sheds member loads to keep peak demand as low as possible.

14 | BASIN TODAY

Thanks to Basin Electric’s move into the Southwest Power Pool (SPP) last fall, East River Electric Electric now can respond to an hourly price signal in addition to the monthly demand price signal.

During the extensive research and analysis leading up to Basin Electric joining SPP, Basin Electric noticed value in doing load-shifting in response to market signals.

“That opportunity was part of the information we received from Basin Electric leading up to joining SPP,” says Jeff Rud, East River Electric power supply specialist. “It was really seen as a tangible benefit of joining

an organized market – to take advantage of an existing asset and see if we can lower the power costs.”

According to Amber Joyce, Basin Electric senior energy marketing analyst, last year Basin Electric began exploring how the cooperative could work with members to proactively manage energy costs through their established load management programs.

Like East River Electric, Basin Electric has been engaged in load management for years. What’s new for both cooperatives is the potential to use both programs together to manage energy costs by shifting energy from high peak to low peak hours.

According to Joyce, three benefits have been identified – energy, transmission and capacity. “Energy is a direct benefit to participating members. We’re able to capture revenue opportunities by shifting energy.

It’s not an energy loss,” she says. “An indirect benefit is the ability to avoid the need for future generation and transmission resource development.”

East River Electric was comfortable predicting the amount of load shed.

“Our experience with load management allowed us to – after a few trials – get more comfortable with the actual prediction of what we thought would occur, and this was a big part of the trial,” he says.

East River Electric has implemented market control for a few days since the pilot program’s Aug. 1 launch.

A stepping stone to more opportunities

Rud considers the Aug. 1 go-live date as phase 2 of the trial. “We went live, but I think it’s to be considered a stepping stone,” he says.

Rud and his team at East River Electric are looking at controlled loads other than water heaters that would have potential thermal storage capability.

“We’ve done some testing and found there’s quite a bit of storage in shop floor heat, and that load can be shed for several hours,” Rud says. “So it might be a valuable asset to bring to this market load management as well.”

Trial period shows value, East River Electric has identified four sites to test brings learning and are just waiting for the cold weather so they can Leading up to the Aug. 1 launch Our experience with load start testing. The test sites date, East River Electric and Basin management allowed us to – have geothermal floor heating Electric implemented five separate after a few trials – get more and aren’t part of other rate trial runs, all limited to water heater comfortable with the actual programs, making them good control. prediction of what we thought proof-of-concept test cases.

The goal of the trial runs was to would occur, and this was a big “We’ll be able to deterdetermine two things. First, could part of the trial. mine how long you can shed East River Electric analyze the market Jeff Rud the load for shop floor heat, data and respond to Basin Electric in how long the thermal storage a timely manner to make it useful as will last, and what’s acceptBasin Electric operates in the market. able to the people who are in and out of the shop every Secondly, because participation in SPP takes a day,” Rud says. “We’ll find out if we can predict the load certain amount of predictability in the load shedding shed and load restoration from those, too.” process, could East River Electric accurately predict As East River Electric and Basin Electric continue what the load shed volumes and restoral volumes down this path together, Rud acknowledges one benefit would be. he’s experienced: a new perspective of the cooperative East River Electric used participants in its existing power-supply network. monthly peak-shaving load management program, representing approximately 49,000 water heaters.

“Because we live in an area of weather extremes, Because all control mechanisms were already East River Electric’s load is really driven by weather in place, participation in Basin Electric’s market load and climate,” Rud says. “However, the market is management program didn’t require any new investinfluenced by generator availability, transmission ment on East River Electric’s part, Rud says. constraints and wind generation. That’s part of the Throughout the trial runs, Rud said they learned new world. It changes each hour, rather than by the more, refined the process, and ultimately determined season or time of year.”

SEPTEMBER – OCTOBER 2016 | 15

F E AT URE SE RIES

A DAY IN THE LIFE OF … PIPELINE SUPERINTENDENT

CLAUDE O’BERRY

By Joan Dietz

Claude O’Berry, Dakota Gasification Company pipeline superintendent, and his team help maintain about 245 miles of pipeline.

16 | BASIN TODAY

As he soars in Basin Electric’s airplanes over the hills and valleys of western North Dakota and southern Saskatchewan, Canada, Claude O’Berry, Dakota Gasification Company pipeline superintendent, has one thing on his mind: the integrity of the carbon dioxide (CO2) pipeline.

Basin Electric’s pilots fly low enough so that O’Berry can carefully view the 205-mile stretch of 12- and 14-inch-diameter pipeline that carries CO2 from Dakota Gas’ Great Plains Synfuels Plant near Beulah, ND, to the oil fields of southern Saskatchewan.

The CO2 is used for enhanced oil production in Canada, where the older oil fields can pump out up to three times as much oil by injecting CO2 into the deep crevices of the oil wells.

Dakota Gas owns and operates four sections of pipelines: the CO2 line to Canada, and three sections of synthetic natural gas (SNG) pipelines, totaling about 245 miles of pipeline. Per federal regulations, Dakota Gas is required to inspect the CO2 line 26 times per year, in two-week intervals, and the SNG lines once per year.

“It is very important to carefully inspect the pipeline route as early detection of an issue can save us from a major problem,” O’Berry says. Before taking flight, Basin Electric’s pilots punch in the coordinates of the pipeline so they fly along the exact pipeline route.

O’Berry and the rest of the pipeline team, including supervisors Dave Knoll and Kurt Dutchuk, and pipeline operators Rod Freije, Lewis Hinckley, Kurt Kordonowy, Craig Mattheis and Scott Olson, diligently work to keep the pipelines running smoothly and safely.

The team alternates inspecting the pipeline in order to get different perspectives of the pipeline condition and its surroundings, O’Berry says.

During the biweekly flight of the CO2 pipeline’s right of way – which runs 25 feet on either side of the pipeline – O’Berry looks for dead vegetation or frost on the ground, indicating the pipeline is leaking CO2. He also looks for downed fence lines or signs, washed-out areas or third-party contractors doing

unauthorized work within the pipeline right-of-way.

“Because of the nature of our carbon dioxide gas Flying the pipeline to Canada and back takes about stream, we have had many challenges pigging the three hours. carbon dioxide pipeline,” O’Berry says. “We’ve made great strides in improving the pipeline pigging process “In 2011, we were conducting our biweekly and collecting valuable data to ensure long-term safety flyover of the CO2 pipeline when we noticed a landslide and reliability of our pipeline.” that resulted in a large portion of our pipeline being O’Berry says when pipeexposed and sagging, causing Combo pig helps save money line anomalies are found, the undo stress and jeopardizing first objective is to make the pipe integrity,” O’Berry Using a newly designed in-line inspecrepairs to keep the pipeline says. “Had we not been out tion tool or “combo pig” on a stretch of the operational. “We investigate there flying the route, months CO2 pipeline running from the Synfuels Plant the cause so adjustments could have went by before we to Tioga, ND, recently saved a substantial can be made to our integdetected the exposure.” amount of money. rity program to help prevent Federal regulations The combo pig, used in February, future occurrences,” he says. mandate pipeline maintaintakes the place of two pigs previously A nother aspec t o f used on the pipeline to detect anomalies enance and operation. One operating a pipeline is public and collect data. requirement is to perform awareness. O’Berry and his “Using the combo pig allows us to an in-line inspection (ILI), or team attend meetings and gather all the data with one run, and costs “pigging,” every five years to sponsor events across the us less than one-third of what we normally monitor the effectiveness of state. pay for pigging the pipeline,” O’Berry says. the company’s program.

“We sponsor events like With austerity in mind, O’Berry says he “Pigging the pipeline” the 811 Day at the (North and his team are always looking for ways to refers to the practice of using Dakota State) Fair as part save money, yet accomplish the same goals. pipeline inspection gauges, or of our Public Awareness pigs, to perform various mainProgram,” O’Berry says. “It’s tenance operations without a great way to educate the public and get the ‘Call stopping the flow of product in the pipeline.

Before You Dig’ word out.”

This process is done in at least three phases; first O’Berry says third-party damage is the leading a wiper pig is used to clean the pipe, then a gauge cause of pipeline failures, which can occur when the tool is used to verify the clearances before a final general public is not aware of what is beneath them run is made by an electronic or smart pig. before starting work.

O’Berry says Dakota Gas pigs a section of pipeline every year, and sometimes twice per year.

Whether flying the pipeline, pigging the pipeline According to O’Berry, a lot of research and design or simply running daily operations, O’Berry says the tweaks have improved the process and quality of team’s first priority is to ensure the integrity of the data collected over the years. lines are viable for long-term use without incident.

SEPTEMBER – OCTOBER 2016 | 17

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

The Clyde family in Brazil: (clockwise from left) Olivia, Kristine, Mike, Devin, Wyatt and Alexander.

Olivia Clyde’s favorite Olympic event to attend was swimming, where she witnessed Michael Phelps win a gold medal.

CLYDE FAMILY CHERISHES OLYMPIC EXPERIENCE “They’re all amazing though,” she says. “It Good things abound for the Clyde family. was just amazing to see what the athletes can First and foremost, Olivia Clyde was declared do and how hard they push themselves to get to cancer-free after being diagnosed in 2013 with where they are.” osteosarcoma, a bone cancer.

Most events didn’t start until about 10 p.m., Secondly, the Clyde family had the opportunity Mike says, so on many nights the family wouldn’t to attend part of the 2016 Rio Olympic Games via the get back to the hotel until 2 or 3 a.m. During Make-A-Wish America foundation. their days, which stayed about Olivia, 16, is the daughter of 80-90 degrees, the family was Mike Clyde, mechanical superI just think that when able to visit sites such as the Christ visor at Dry Fork Station. The she was going through it the Redeemer statue and Brazil’s Clyde family – Mike and his wife, all, it gave her something famed beaches.

Kristine, and their children Olivia, When Olivia was undergoDevin, Alexander and Wyatt – to look forward to. ing cancer treatments, she was arrived in Rio, Brazil, Aug. 5, in Mike Clyde watching a lot of the 2014 Winter time for the opening ceremony.

Olympic Games. She found out “It was really exciting,” that year from the Make-A-Wish Mike says. “There were a lot of foundation that she’d be going to Rio. fireworks and we sat pretty close to the front, right “I was just super shocked and super excited. behind where the American team was sitting.”

I was just ready to go,” Olivia says.

In addition to the opening ceremony, the family Mike thinks the trip provided Olivia more than attended a portion of the gymnastics, table tennis just a lifelong memory. and swimming competitions, where they saw “I just think that when she was going through Michael Phelps win one of his gold medals. Olivia, a it all, it gave her something to look forward to,” swimmer herself, enjoyed watching the swimming Mike says. events the most.

18 | BASIN TODAY

Employees receive degrees Elizabeth Erhardt, rate and load analyst at Headquarters, bachelor’s degree in human resource management, bachelor’s degree in business administration, Dickinson (ND) State University, May 2016.

A GARDEN FOR GIVING ...

NEARLY 3,000 POUNDS

Ryan Fisk, safety rep at Great Plains Synfuels Plant, bachelor’s degree in occupational safety & health, Columbia Southern University, July 2016.

Tate Baumgartner, support center representative I at Headquarters, bachelor’s degree in information technology management, Rasmussen College, June 2016.

DesaRae Berreth, learning and development coordinator at Headquarters, master’s degree in business administration with a concentration in human resources, University of Mary, August 2016.

Andrew Brown, delivery services engineer II at Headquarters, master’s degree in business administration, University of North Dakota, December 2015.

While employee-volunteers stand ready, Basin’s Backyard Garden coordinator Tracie Bettenhausen surveys the 2016 crop plan prior to planting last spring.

(From left) Employees Lori Goetzfridt and Sheila Brunner display some beans picked from Basin’s Backyard Garden in 2016.

Amy Garman, senior chemist at Great Plains Synfuels Plant, master’s degree in business administration, University of Mary, December 2015.

Employee Erin Huntimer (right) drops off a donation of fresh produce to Ministry on the Margins food pantry. About 1,000 pounds of produce was delivered to Bismarck-Mandan food pantries in 2016, bringing Basin’s Backyard Garden’s three-year total to nearly 3,000 pounds of produce donated to local pantries.

Lance Blumhagen, human resources assistant at Headquarters, bachelor’s degree in human resources, University of North Dakota, December 2015.

#BASINGARDEN BASINGARDEN.WORDPRESS.COM SEPTEMBER – OCTOBER 2016 | 19

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

New employees Kelly Bergquist started her position as a senior auditor Aug. 8 at Headquarters. Originally from Dickinson, ND, Bergquist holds a bachelor’s degree in accounting and is a certified public accountant. Bergquist previously worked as a financial analyst III for WBI Energy in Bismarck, ND. Jodi Zander started her position of administrative assistant III Aug. 1 at Headquarters. Zander, originally from southeast Minnesota, holds an associate degree in business from Rochester Community and Technical College in Rochester, MN. Zander previously worked as an administrative assistance II at North Dakota Information Technology Department.

Lenora Dockter began work at Headquarters July 27 as administrative assistant/reception. Dockter previously worked as a receptionist/ secretary for Dr. James Ragland, MD, at CHI St. Alexius Health, Bismarck, ND, and administrative assistant at Titan Machinery, Bismarck.

Jerrod Isaak started work at Laramie River Station June 27 as mechanical engineer II. Isaak, originally from Laramie, WY, holds a bachelor’s degree in mechanical engineering from the University of Wyoming, Laramie. Isaak previously worked as lead engineer at Western Research Institute, Laramie.

Kenneth Wolf began working at the Great Plains Synfuels Plant July 25 as a process operations field technician.

The Beulah, ND, native previously worked at Great River Energy-Stanton Station as an operator.

20 | BASIN TODAY

Danielle Waldschmidt began working at the Great Plains Synfuels Plant June 27 as an environmental engineer. She has a bachelor’s degree in chemical engineering from the University of North Dakota.

Benjamin Schmidt began working at the Great Plains Synfuels Plant July 25 as a process operations field technician. The Minot, ND, native previously worked for Kinder Morgan as a plant operator in Alexander, ND. CJ Ost began working at the Great Plains Synfuels Plant July 25 as a process operations field technician.

The Beulah, ND, native previously worked at Dakota Prairie Refining in Dickinson, ND, and is a volunteer for the Mercer County Ambulance.

Macy Hertel began working at the Great Plains Synfuels Plant July 25 as a process operations field technician.

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

Jesse Henke began working at the Great Plains Synfuels Plant July 25 as a process operations field technician.

The Center, ND, native has an associate degree in power plant technology from Bismarck (ND) State College where he was Power Plant Student of the Year. He previously worked as a Babe Ruth baseball coach in Washburn, ND.

Service awards

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

Mary Albrecht

Scott Addison

Kelley Tyson

shift supervisor

mechanic-lead

backshift maintenance supervisor

40 years

Leland Olds Station

35 years

Laramie River Station

35 years

Laramie River Station

Duane Ibach

Roxie Rieger

Darlene Voegele

senior network VOIP technician

administrative assistant III

cyber security specialist III

35 years

Headquarters

30 years

Dakota Gasification Company

30 years

Dakota Gasification Company

Dave Eustice

Mike Merck

Lawrence Anderson

shift supervisor chemical production

field technician

shift supervisor utilities

20 years

Dakota Gasification Company

20 years

Dakota Gasification Company

20 years

Dakota Gasification Company

Scott Fritz

Jim Pulver

Rick Schantz

field technician

area planner

field technician

20 years

Dakota Gasification Company

20 years

Dakota Gasification Company

20 years

Dakota Gasification Company

Pat Jeffries

Larry Berland

administrative supervisor

field technician

25 years

Laramie River Station

Bradley Bergstad

Bill Gorman, operator/ technician, retired from Wyoming Distributed Generation after 36 years of service.

He began working in 1980 as a laborer at Laramie River Station, where he also worked in scrubbers operations, plant operations, instrumentation and water treatment operations. He worked the last seven years as operator/technician at Wyoming Distributed Generation.

Gor man w as bor n and r aised in Guernsey, WY, and taught school in Wheatland, WY, for four years before being hired by Basin Electric.

“I am grateful to Kevin Tschosik for hiring me up here and giving me an opportunity to retire in one of my favorite retirement spots,” Gorman says. “Basin Electric was a great company to work for, most of all for exposing me to some of the best people I have ever worked for and with at Laramie River Station – Ken Duncan, Brad Campbell, Dwight Baron, Randy Jones, Greg Loveland, Randy Brown, all my ‘Guns & Ammo Crew’ and the ‘Cambo-Rambos’ – the list goes on and on. Thanks to you all.”

20 years

Dakota Gasification Company

20 years

Rick Volk 20 years

shift superintendent

maintenance planner specialist

Transmission System Maintenance-Mandan

Dakota Gasification Company

SEPTEMBER – OCTOBER 2016 | 21

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