March April 2014 Basin Today

McCarthy: No war on coal

EPA Administrator visits Synfuels Plant

Contents Volume 17

Number 2

On the cover: (from left) U.S. Sen. Heidi Heitkamp (D-ND), EPA Administrator Gina McCarthy and Basin Electric Interim CEO and General Manager Paul Sukut meet at the Great Plains Synfuels Plant.

In Every Issue 1 CEO and General Manager’s Column: Paul Sukut 14 Member Series: Keeping the lights on 16 Feature Series: A day in the life of ... Wayne Peltier 19 News Briefs 22 Employee Highlights Feature Stories 2 Journey to joining SPP: Part 1 4 A break in the rain 8 Approved Dakota Gas project adds to product diversity 9 EPA administrator visits Synfuels Plant 10 Power in numbers 12 Building in the Bakken 18 Walking the co-op talk Guest Editor: Tracie Bettenhausen, tbettenhausen@bepc.com Publications Manager: Mary Miller Graphic Designer: Nicole Perreault Photographers: Steve Crane & Chelsy Ciavarella Contributors: Andrea Blowers, Erin Huntimer, Chris Gessele, Dain Sullivan, Lindsey DeKrey & Joan Dietz

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CEO and General Manager’s Column:

Paul Sukut Our people, this nation’s power I recently held meetings with the entire workforce of Basin Electric and its subsidiaries. It was a gratifying and eye-opening experience.

I especially enjoyed my visits at Basin Electric’s facilities. I was able to go to the Leland Olds Station, Antelope Valley Station, Laramie River Station, Dry Fork Station and the Great Plains Synfuels Plant. What a humbling experience. There is nothing like stepping foot on an immaculate turbine deck, hearing the hum of the generator, and heading toward the control room where folks are monitoring this giant generation around the clock.

At each meeting, employees asked me thought-provoking and sometimes difficult questions. There is no doubt we are in a state of transition. Our workforce is starting to turn over just as we are trying to keep up with the rapid load growth in the Bakken as well as the construction of a large fertilizer project at the Great Plains Synfuels Plant. In the midst of trying to develop generation and transmission solutions, we are faced with daunting regulatory challenges.

And finally, we are all adjusting to new leadership at Basin Electric – most of all, me.

But, in the midst of all these challenges, the shining light throughout all of Basin Electric and its subsidiaries is the very people who keep our lights on: our employees.

They are forces in our communities – be it through volunteering and organizing fundraising events, or in some cases, serving in public office. They carry those same values into the workplace as they are the first to step up and ask what they can do to make Basin Electric better.

While I continue to ask myself what we can do to make Basin Electric better, the one thing I have shared with all our employees is the simple reminder that we ultimately exist to serve the member.

So, what does that mean to each of our employees, especially our folks at our facilities?

That means Basin Electric is always open for business.

Twenty-four hours a day, seven days a week, behind that light switch, a generator is running, and behind it stands hundreds of folks. Our power plants crank out low-cost, reliable power, which contributes to some of the lowest rates in the country. Our employees achieve this by running a safe, efficient fleet.

This winter in particular reminded us of the importance of this mission. We’ve endured countless days of below-zero temperatures. Since December, our system has peaked twice. And, while we heard of power brownouts and blackouts on the coasts, the Basin Electric system continued to hum, proving that diligence and a wellmaintained fleet get the job done.

Employees also raised important questions surrounding the future of this fleet, specifically, if coal is going away.

We recently hosted EPA Administrator Gina McCarthy at the Great Plains Synfuels Plant, and we asked her just that. Her answer was no. She emphasized that our energy future will include an “all of the above” strategy (See page 9). We were pleased to hear that, and will be doing our part to ensure that this is true.

Beyond that, I was proud to show her what our people do. We have such a good story to tell, and I want our folks to feel good about the contributions they make to our membership and this country.

Yes, we have our challenges. But we have the best people equipped to get us through them.

Paul Sukut, interim CEO and general manager

March – April 2014

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Journey to joining SPP

Part 1: The process, the decision and the next steps

By Andrea Blowers Some business decisions are easy. Others can challenge the very principles upon which the business was created. The decision for Basin Electric to pursue joining a regional transmission organization (RTO) falls under the latter.

Decisions like this require time, due diligence and careful consideration. Basin Electric, its members and its Integrated System (IS) partners certainly didn’t rush it.

They’ve spent more than a decade debating the issue and more concentrated efforts the last two years thoroughly vetting their options.

Ultimately, the IS partners, Basin Electric, Western Area Power Administration and Heartland Consumers Power District, resolved that pursuing membership in the Southwest Power Pool (SPP), the RTO to the south of Basin Electric’s service territory, is most beneficial for all parties involved.

The IS system is the backbone of the high-voltage transmission grid in the Upper Great Plains Region. “A significant amount of money, time and energy has been invested in the transmission infrastructure as well as generation to provide low-cost power for members and consumers,” Risan says.

Full membership in an RTO would mean Basin Electric would no longer decide for itself and its members what generation runs and when it runs. That’s a fundamental change to the way the cooperative has operated since it was created 53 years ago.

Though significant, that part of the discussion was just the tip of the iceberg. According to Dave Raatz, Basin Electric vice president of Cooperative Planning, changes in membership loads and market access created challenges in serving the cooperative’s membership at the lowest prudent cost. To meet memberThe process and decision ship load obligations, Basin Electric needs to be able to As with a lot of decisions the cooperative has made, purchase power from the markets at times and sell its Basin Electric’s path to this resolution was uncharted. surplus power when it is available. “Our membership load Though other cooperatives have joined RTOs, Basin Electric dynamic is changing and so is the world around us,” Raatz has a more complex membership structure than most says. “We knew we needed to more thoroughly understand co-ops as well as a transmission infrastructure integrated RTOs and how Basin Electric might fit into one, so in 2012, with multiple other entities. we started a major review of RTO member Mike Risan, Basin ship with our members and the other IS A significant amount of Electric senior vice partners,” he says. money, time and energy president of TransThe in-depth review evaluated trade has been invested in the transmission infrastructure as well m ission, says RTO benefits including market efficiencies as generation to provide lowversus transmission load relief; adminisdiscussions at Basin cost power for members and trative costs including FERC charges and Electric began in the consumers. internal staffing and equipment costs; early 2000s following orders by the Mike Risan transmission expansion both for the RTO Federal Energy Regulatory Commisand for the IS, capacity benefits relating to sion (FERC) that RTOs would exist to diversity and the surplus capacity market; “promote efficiency in wholesale IS transmission revenue; and drive outs, which is moving electricity markets and to ensure that electricity consumers power out of the RTO. pay the lowest price possible for reliable service.”

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“We weighed each of these issues w it h i n three decision oppor tu n ities: continue operating as we always Dave Raatz have, join the M i d c o nt i n e nt Independent System Operator (MISO), an RTO to the east of the cooperative’s system, or join SPP,” Raatz says.

After numerous discussions and input from the membership and the IS partners and a favorable evaluation for SPP, relating to economic and philosophical positions, the Basin Electric board of directors resolved in April 2013 to support Western in their federal process to join SPP and to begin negotiations with SPP with respect to terms and conditions upon which Basin Electric might join an RTO as a transmission-owning member.

Through 2013, Western carried out their federal process and, after a comment period and further evaluation, proposed in January 2014 its intent to also pursue negotiations with SPP.

Our world is changing around us, and we need to adjust to ensure we can provide our members with the lowest possible cost power within that world.

The next steps

Deciding to pursue membership in an RTO is only part of the process. Negotiating the terms and contracts of the membership is something else entirely.

Raatz says all of the current activity centers on the details. Basin Electric’s RTO manager advisory committee (MAC), its steering team and working teams have been outlining the cooperative’s RTO integration process.

In January 2014, Basin Electric finalized its SPP membership requirements and initiated a third-party review of those requirements. In February, the cooperative submitted its proposed tariff, bylaws and membership

2014 Goals SPP Activity Basin Electric /Western Agreements

Early Summer IS Party Decision

changes to SPP. Basin Electric and Western have also begun to discuss how contractual relationships between the two organizations need to be changed.

According to Raatz, activity targets for March and April include understanding SPP’s position on the cooperative’s membership requirements and costing processes; a FERC staff briefing; continued work on Basin Electric and Western’s contractual provisions with final agreements anticipated to be completed by early summer; and SPP membership approval also targeted for early summer.

“Our goal is to complete all the contract negotiations and approvals this spring with the ultimate goal of finalizing the IS party decision in May or June,” Raatz says.

“We’ve got a tight schedule, so managing all the tasks has been tricky, but workable.”

Basin Electric, its members and the IS parties have been meticulous and steadfast in the RTO process.

Though the relationship between Basin Electric and Western will change, it’s not for the worse. The relationship is simply evolving. “Our world is changing around us and we need to adjust to ensure we can provide our members with the lowest possible cost power within that world,” Raatz says. One of the ultimate goals of SPP membership is just that: To reliably serve member load at the lowest prudent rate.

March – April 2014

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Laura and Larin Backhaus, with children from left: Roman, Rachel, Leighton and Liam.

A break in the rain How St. Baldrick’s events provide more than money for research

By Tracie Bettenhausen Doctors checked him for allergies and diabetes. They ran Think of the last time you felt time slow down. a lot of tests and finally settled on mononucleosis, which Can you feel yourself there right now? What was would be odd for a four-year-old. happening? Who was there, and what did they say? What Then he stopped walking. “He just totally deteriorated, did you feel? quit walking and was staying in bed, sleeping all day long,” “I feel like I’m there when I’m talking to you right now.

Laura says. “We brought him in to the I guess it’s just the moment that I will emergency room and they, again, told us never forget,” says Laura Backhaus of The St. Baldrick’s night he had mono so I called a different doctor.

New Salem, ND. at the Bismarck Bobcats This doctor told us to load Leighton up When a mom learns her four-year-old game was something we never expected. That was just a real immediately, to be very careful when has cancer, what’s next? What else break in the rain for us as a we put him in the car, and that he would matters? family at that time. meet us in the emergency room down “Charles Peterson was his name, Laura Backhaus in Sioux Falls.”

Dr. Charlie Peterson,” says Backhaus, That’s where the family learned mother of Leighton. “He came in and Leighton had acute lymphoblastic leukeLeighton was in the bed, he could barely mia. And that’s when they began to fight. move because his spleen was so large. When children have leukemia their spleen gets really big and one of the complications that can be fatal is the spleen rupturing on Fight mode them. Dr. Peterson came in and he said, ‘Leighton, can I At the time, Leighton was the oldest son in a family of talk to your mom and dad?’” three kids. His younger brother Liam was a toddler, and Leighton had been having trouble for some time. He little sister Rachel was just 7 months old. (Another brother, was having fevers, and they thought he had a stomach bug.

Roman, was born a couple years later.)

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There is comfort when the

“You’re frozen there for a minute. And family can tell they know what the only thing I could say was, ‘Is my they are doing, that they’ve all son going die?’ That’s what I wanted to gone through this training. know,” Laura says. “‘Is my son going to Kate Gartner die?’ And he just said, ‘I don’t know, Mrs. Backhaus, I can’t tell you that. But I can tell you we are going to do everything we can right now with the research that we have to make sure that doesn’t happen. We’re going to fight really hard for Leighton.’”

With that, life changed. Laura says she barely remembers life before cancer. Doctor’s appointments were constant. They lived in South Dakota then, and drove three hours one way, once a week, for chemotherapy. That was Weeks before the flagship Brave the Shave event in in addition to the chemotherapy he had at home. Laura Bismarck, Kate Gartner, RN, says the course of steroid treatments was awful. “They wasn’t sure whether she’d shave. But she did. She says get skin sores and they balloon in size. They have a voraresearch has made treatment cious appetite. Leighton was up at 3 a.m. like a newborn more manageable for families to eat so we were up around the clock to feed him,” she facing a tough road. says. “On steroids they have an entire demeanor change in their attitude. They have steroid rage, and it’s hard to St. Baldrick’s grant named for Basin Electric control tantrums. We would go to the grocery store, and he couldn’t control himself. He would be pulling things off The St. Baldrick’s Foundation recognized Basin the shelf because he was hungry and people are looking, Electric’s efforts by naming a $44,700 childhood and they’re like, ‘Control your kid.’” cancer research grant after the cooperative.

St. Baldrick’s awarded the Basin Electric Power Welcome distraction Cooperative St. Baldrick’s Infrastructure Grant Sometime in the midst of this, Laura and her husband, to Sanford Medical Center. The grant, one of 39 Larin, received a call from a family member. Her workinfrastructure grants awarded as part of the founplace, MDU Resources Group, was putting together a dation’s grant cycle, will fund additional education Basin Electric Brave the Shave team to raise money for for nursing staff caring for oncology patients to childhood cancer research ensure safe, consistent care for all patients. through the St. Baldrick’s Kate Gartner, RN, Sanford certified pediatric Foundation. They were hematology/oncology nurse, says the education wondering if they could will help make families comfortable. “You can have Leighton as their always tell when it’s a nurse who hasn’t done a honoree. chemo treatment, for example, as many times as Laura started to do the next. There is comfort when the family can some research. “We fell tell they know what they are doing, that they’ve in love with St. Baldrick’s all gone through this training.”

Gartner says additional toys and other because of the really great distractions for kids in treatment will also make strides they have made in a difference. “I know one little guy that was up research. Forty years ago even, they would have sent us here earlier today, he gets very, very, very anxious home and told us to make Leighton comfortable and that when I access his port. Usually it’s a big screamwould have been the only treatment we would have had.”

The family had moved from South Dakota to Boston for ing match until I’m done. Today he had his iPad cancer treatment, and then eventually to North Dakota. with and didn’t scream at all, so it does make a In March 2013, Laura found out just how big St. Baldrick’s difference.” had gotten in Bismarck.

March – April 2014

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“The St. Baldrick’s night at the Bismarck Bobcats game A lasting impression was something we never expected. That was just a real Laura says if anybody has considered supporting the St. break in the rain for us as a family at that time,” Laura says Baldrick’s Foundation, but hasn’t done so yet, the impact about one of many events Basin Electric Brave the Shave spreads far and wide. honorees are invited to. “We were still in the middle of “All those sick kids that we see and know, they would not treatment. Being new to this area, it be here if it wasn’t for people like those who helped us meet people. Sometimes support St. Baldrick’s. Donating their time St. Baldrick’s allowed us you really feel alone out here. … St. and their monetary resources and making the that opportunity to go to Baldrick’s allowed us that opportubest bald-is-beautiful statement by getting the Bobcats game and meet nity to go to the Bobcats game and their heads shaved and raising awareness other kids who had chronic meet other kids who had chronic through that. How cool is that?” she says. illnesses and have pizza together and just meet other illnesses and have pizza together This year, uncle Arnie Kraft is supporting parents and get that kind of and just meet other parents and get St. Baldrick’s and honoring Leighton. “People support. That was a big blessthat kind of support. That was a big like Uncle Arnie, for example. He has a full ing for us. blessing for us.” head of hair and a mustache that I don’t ever Laura Backhaus After three years of chemo see him without. People are going to ask, treatments, Leighton finished his ‘Why did you do that?’ So it’s not even just treatment earlier this year. Laura the day we raise awareness, it’s the weeks says that can be a scary transition, because she can’t help afterwards as they are walking around with this beautiful but wonder if the cancer will stay away. bald head for such a wonderful cause.”

Brave the Shave brings in big bucks

There are upwards of 300 more bald heads in BismarckMandan, ND, and beyond following St. Baldrick’s Brave the Shave events this year.

Basin Electric’s annual Brave the Shave Campaign culminated in several rapid hair-shaving events filled with kids and adults united to raise money for the St. Baldrick’s Foundation. Green hair, purple hair, short hair, long hair, to ultimately no hair, there was no shortage of spirit, spontaneity and generosity.

The Missouri Valley Family YMCA hosted the flagship event March 14 in Bismarck.

Additionally, the Brave the Shave campaign involved tandem events in Beulah, ND, Gillette and Wheatland, WY; Boise, ID; Baker, MT, and Brookings, SD. For more information, go to www.stbaldricks.org/campaigns/ bravetheshave Donations for the campaign are still being accepted and tallied at press time. In the last seven years, Basin Electric’s Brave the Shave campaign raised more than $1 million for St. Baldrick’s. Last year’s campaign brought in more than $330,000.

You can read stories and watch videos from the events on Basin Electric: Live Wire (basinelectric.wordpress.com).

Just search “St. Baldrick’s.”

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Dash Ohlsen got to do a big job at the 2014 Brave the Shave event in Bismarck. He shaved his dad, Taner’s, head. Dash is the namesake for Team Dash, a group on Facebook that numbers in the thousands. Dash was given a cancer diagnosis in late February. So that Dash knows he’s not alone, Taner told Dash they would go through everything together. That means getting needle pricks and wearing Mickey Mouse medical masks. And on March 14, that meant Taner lost his hair. While Dash’s hair will start falling out on its own soon, seeing his dad completely bald is making that transition a little easier. Watch Basin Electric: Live Wire and www.basinelectric.com for video with the Ohlsen family.

Sometimes the armour shines from the inside out

Jillian Nordsven, a St. Baldrick’s honoree, gets a little help with her knighting duties from Jen Holen, Basin Electric event planner.

The Knights of the Bald Table is an elite group amongst St. Baldrick’s volunteers. They have shaved their heads in solidarity with kids with cancer for at least seven years, and have raised countless dollars to help advance childhood cancer research. If you meet a Knight, thank them for their part in making the St. Baldrick’s Foundation strong.

2014 Basin Electric Knights of the Bald Table: Tucker Smith, Headquarters; Ted Cash, Headquarters; Dave Pfliger, Great Plains Synfuels Plant; Chad Edwards, Antelope Valley Station; and Mike Eggl, Headquarters (pictured above).

Approved Dakota Gas project adds to product diversity

By Chris Gessele The Dakota Gasification Company board of directors approved the addition of a $402-million urea production facility at the Great Plains Synfuels Plant near Beulah, ND, at a special meeting Jan. 27.

Urea, a granular fertilizer commonly used in agricultural applications, will mark the 10th co-product for the Synfuels Plant. Dakota Gas currently produces two other fertilizers, ammonia and ammonium sulfate (Dak Sul 45®).

“We are happy to build on the fertilizer products we already manufacture, and believe the addition of urea will bring more benefit to the agricultural community,” says Paul Sukut, Dakota Gas interim CEO and general manager.

Urea production requires anhydrous ammonia and carbon dioxide, both of which are produced at the Synfuels Plant.

According to Dave Sauer, Dakota Gas senior vice president and chief operating officer, urea has the highest nitrogen content of all solid fertilizers, but costs less to handle, store and transport than other nitrogen-based fertilizers.

“The rail shipping of ammonia is getting harder and more expensive. With urea, you’re still selling into the fertilizer market, it’s an upgraded product and it’s cheaper to ship,” Sauer says.

The project includes construction of a storage facility that can hold about 53,000 tons of granular urea, as well as a new load-out facility for trucks and railcars with the capacity to

Dakota Gas products

Synthetic natural gas • A gaseous fuel manufactured from coal using the coal gasification process.

Ammonium sulfate • An agricultural fertilizer marketed under the name Dak Sul 45®.

Anhydrous ammonia • Used as fertilizer for farming and as a feedstock for producing various chemicals.

Carbon dioxide • Used for enhanced oil recovery in Canada. Dakota Gas is studying CO2 markets in the United States as well.

Phenol • Used for the production of resins in plywood manufacturing and in the casting industry.

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load up to 110 railcars in a single shipment. The urea production facility will also require the hiring of 40-50 additional employees over the next several years. The urea plant is scheduled for completion in early 2017 and is designed to produce 1,100 tons of urea daily.

While the urea can be sold anywhere, Dakota Gas’ target market area will be about a 250-mile radius from the Synfuels Plant, according to Sauer.

“We’re in a section of the country that imports urea. Right now there are no plants in Montana, South Dakota, North Dakota or Minnesota, so we’re kind of right smack dab in the middle,” Sauer says.

The new facility will also produce diesel emission fluid (DEF), the 11th co-product for the Synfuels Plant. DEF is used to reduce NOx emissions in diesel engines, as mandated by the federal government on all new diesel engines. A 1.1-million gallon stainless steel storage tank will be constructed at the plant to store the DEF. Product diversity at the Synfuels Plant is very important.

In the 1990s, Sauer recalled that about 98 percent of Dakota Gas’ revenue came from the sale of natural gas. Last year, that percentage had shrunk to about 40 percent, with approximately 60 percent of revenue coming from the sale of other products.

Krypton and xenon gases • Used for specialty lighting, such as high-intensity lighting and lasers, and for thermopane window insulation.

Cresylic acid • Used in the manufacture of pesticides and products such as wire enamel solvent, phenolic and epoxy resins and antioxidants.

Liquid nitrogen • Used for food processing refrigeration, as an oil well additive and in chemical processes.

Naphtha • Contains products that can be used as a gasoline blend stock, in making solvents and in benzene production.

Tar oil

Interim Basin Electric CEO and General Manager Paul Sukut (far right) explains the cooperative’s position on carbon dioxide legislation to EPA Administrator Gina McCarthy (center). U.S. Sen. Heidi Heitkamp (left) invited McCarthy to visit the Great Plains Synfuels Plant. The plant is home to the largest coal-based carbon sequestration project in the world.

EPA administrator visits Synfuels Plant, stresses ‘all of the above’ approach

By Tracie Bettenhausen just couldn’t get it to go. The parasitic load and the technology U.S. Sen. Heidi Heitkamp (D-ND) invited Environmental just didn’t make the project feasible. We had no assurances Protection Agency (EPA) Administrator Gina McCarthy to in technology at all,” Sukut said. “We just didn’t feel like we Dakota Gasification Company’s Great Plains Synfuels Plant could spend taxpayer money, go into something like that, and near Beulah, ND, Feb. 28 to hold a listening session on proposed we weren’t sure it was going to work at all.” greenhouse gas regulations. Heitkamp and McCarthy led a Heitkamp reiterated what industry leaders were saying. roundtable discussion including U.S. Sen. John Hoeven (R-ND), “I think sometimes the folks in this room think EPA is in the U.S. Rep. Kevin Cramer (R-ND) and more than 15 local utility, ‘Hell no to coal’ environment, and that this is all designed to union and government representatives. terminate the long-term use of coal,” she said. “If we in fact McCarthy said the EPA has been holding these listening discontinue the use of coal in our generation of electricity, and sessions so the agency can come up with rules for regulating in our energy base, that will be a decision that generations in greenhouse gases on existing plants, including carbon dioxide. the future will look back on and consider very, very foolish.”

“I know there are significant concerns about the proposed McCarthy said the goal of the EPA is not rules we’re moving forward on to reduce to shut out coal, and that President Barack carbon pollution,” she said. “That’s why we’re Coal is part of the Obama has been clear he wants an “all of here, to tell states not to worry. Tell us the energy mix today and it the above” strategy for fueling electricity information, but in the end you are going to will be for decades in the generation. “Find ways to reduce carbon in a have to be at the table participating in the future. way that doesn’t threaten energy reliability, implementation of this final rule. And it had Gina McCarthy that doesn’t have a significant impact on best be implementable.” price, that allows every fuel to continue Much of the discussion from utility leadto be burned and utilized. Those are my ers, such as Basin Electric Interim CEO and parameters,” she said. “EPA has been asked by the president to General Manager Paul Sukut, centered around needing move forward on greenhouse gas rules. But the president was regulatory certainty, and needing regulations to be achievable very clear. Number one, we have an all-of-the-above strategy. while utilities work to keep the lights on affordably. Sukut Coal is part of the energy mix today and it will be for decades told McCarthy about the 2011 study done at Antelope Valley in the future.”

Station to determine whether carbon capture would be doable McCarthy toured the model room at the Great Plains Synfuels on an existing coal-based power plant. Basin Electric was set Plant as part of the visit. Watch videos from the visit on this to receive a $100 million grant from the U.S. Department of YouTube playlist: http://bit.ly/McCarthyVisit.

Energy to complete the project. However, a front-end engineerSee page 10 for more on how Basin Electric is preparing for ing and design study found the project would cost more than EPA’s impending greeenhouse gas rule. $500 million and would capture very little carbon dioxide. “We March – April 2014

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Power in numbers Basin Electric, North Dakota rally energy states to influence carbon rule

By Dain Sullivan When clouds of adversity overshadow the well-being the stage, through the governor’s office, for this energy-states of those at the end of the line, allies unite to weather the concept that could have an alternative to what might come storm. out of the rule, or might also be used to influence the rule.”

The Environmental Protection Agency (EPA) is developThe cooperative has provided regular updates to North Dakota Gov. Jack Dalrymple and his staff on the EPA regulaing regulations for existing power plants that are creating tion issue. The state, including the North Dakota Department turbulence for rural electric utilities and those they serve. of Health, has been supportive of science-based, achievable In an effort to establish a voice that will influence regulations. impending carbon regulations, highlighted in Section 111(d) Dale Niezwaag, Basin Electric senior legislative represenof the Clean Air Act, North Dakota and Basin Electric are tative, has worked with Eggl to coordinate Basin Electric’s taking a lead role in bringing energy states together before communications with North Dakota and other states.

EPA’s proposed rule comes out in June 2014.

“The governor has been very supportive in our work Section 111(d) addresses greenhouse gas standards toward establishing an energy-states coalition,” Niezwaag for existing fossil fuel-based power plants and petroleum says. “Along with the state’s support, the attorneys general refineries. Following this year’s proposed rule, a final rule have also been very active in pushing back on regulations is scheduled to be published in June 2015, with states where they feel EPA is going too far on infringing state rights required to provide a plan to meet EPA’s expectations by or not approving state programs.”

June 2016.

The idea of an energy-states coalition EPA has left little time for North We want to get the energy is a fairly new one. It was the success of Dakota and other states to develop a states together to begin a similar coalitions in eastern states and State Implementation Plan (SIP) in the dialogue and talk about what California that increased the concept’s wake of a proposed rule. The EPA has would be a feasible rule. potential. already proposed a rule to regulate Dale Niezwaag “We want to get the energy states greenhouse gases for new power together to begin a dialogue and talk about plants, represented in Section 111(b). what would be a feasible rule,” Niezwaag says. “We’d also like to see if there’s industry consensus for Building a coalition what should be done, and convey that to EPA.” To influence EPA’s decision regarding carbon regulations State primacy. It’s an area where tension exists between for existing power plants, North Dakota and Basin Electric EPA and the states. Basin Electric stands by the idea of a are pursuing an energy-states coalition. states-first approach to carbon regulation, and is working “We’re trying to form a consensus around alternative with the Republican Attorneys General Association and options to EPA’s proposed rule,” says Mike Eggl, Basin surrounding state attorneys general toward a flexible Electric senior vice president of Communications and approach to the carbon rule.

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(From left): Senior Legislative Representative Dale Niezwaag, Mike Eggl, senior vice president of Communications and Administration, and Senior Legislative Representative Steve Tomac discuss North Dakota’s leading role in developing an energy states coalition.

“If this flexible option of proposals doesn’t work, that sets the stage for us to challenge the rule legally,” Eggl says.

Prior to EPA’s proposed ruling, an energy-producing states summit is scheduled for April 16-17 at Bismarck (ND) State College’s National Energy Center of Excellence. At least 12 states are expected to attend the event, during which further discussion on impending regulations will be shared.

Working with EPA

Following President Barack Obama’s call for stricter limits on carbon emissions, Basin Electric aims for more dialogue with EPA. In recent months, the EPA has held listening sessions regarding the 111(d) issue as a main avenue of communication.

EPA Administrator Gina McCarthy accompanied U.S. Sen. Heidi Heitkamp (D-ND) to tour the Great Plains Synfuels plant near Beulah, ND, Talking with other Feb. 28. (Read more on page 9.)

We’re certainly hopeful energy groups “EPA has been open to receiving EPA will recognize that In the meantime, Basin Electric is also comments so far,” Niezwaag says. we’re going to have some working closely with associations like One of the major questions stranded costs. If the states are Lignite Energy Council and American being directed toward EPA is given flexibility, we’re confident Coalition for Clean Coal Electricity to underwhether utilities like Basin Electric we can probably meet some line common ground on the topic of state will get any form of recognition in reasonable controls. flexibility. The cooperative has established regards to existing power plants.

Steve Tomac similar interest in the idea with regional Basin Electric Senior Legislative generation and transmission cooperatives Representative Steve Tomac is and investor-owned utilities (IOU). hopeful for that outcome, consider“We think there’s a lot of common ground between ing the majority of the cooperative’s generation fleet is cooperatives and IOUs on this issue,” Niezwaag says. coal-based.

“We’re not going to agree on every point, but the idea is “Are we going to get some kind of credit for the work that there’s a lot of commonality.” we’ve already done?” Tomac says. “We’re certainly Representatives at Basin Electric have also teamed hopeful EPA will recognize that we’re going to up with members and statewide associations to draft a have some stranded costs. If the states are given flexwhite paper outlining main talking points for the proposed ibility, we’re confident we can probably meet some carbon rule. reasonable controls.”

“The kernel of everything we do in this situation is “EPA does respond, but it takes a lot of pressure, and motivated by a consensus within the membership that this that pressure either has to come from Congress, from is an important issue. It’s worth billions of dollars to the the states or from the public,” Niezwaag says. “Our best co-op future, and we work on it jointly with the statewide effort is to get the states.” associations,” Eggl says.

March – April 2014

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Pioneer Generation Station near Williston, ND.

Building in the Bakken

By Chris Gessele

Have you heard whispers of activity levels fading in Pioneer Generation Station Unit 3 started commercial the Bakken oil play in western North Dakota and eastern operation March 1, joining Units 1 and 2 to provide a total generation capacity of 135 MW. Lonesome Creek Montana? Pay them no heed.

Station started commercial operation of 45-MW Unit 1 According to the U.S. Energy Information Administration, in December 2013, and construction of two additional crude oil production in North Dakota has grown from a daily 45-MW units are targeted for completion in 2015. average of 115,000 barrels in early 2007 to 923,000 barrels a Unit 1 of both the Pioneer and day by December 2013. In 2012, North Dakota Lonesome Creek stations features surpassed Alaska to become the second largBasin Electric is now plana clutch that allows the turbine est oil-producing state, trailing only Texas. ning for member loads in to uncouple from the generator, Electrical loads are growing rapidly as a this area to grow to almost 2,100 MW by 2025. allowing the generator to provide result of the drilling and production activity, transmission system voltage and Basin Electric member cooperatives serve Dave Raatz support. This feature, if needed, much of that load. is used to provide fast-acting reacIn 2009, Basin Electric and its member tive power that will stabilize the systems planned for 400 megawatts (MW) transmission system in the area. of load to develop in the Williston Basin, according to Dave Basin Electric has also constructed additional power Raatz, Basin Electric vice president of Cooperative Planning. plants outside North Dakota to meet its member load “Basin Electric is now planning for member loads in this growth throughout its entire membership. Some of these area to grow to almost 2,100 MW by 2025,” Raatz says. projects include: Basin Electric is monitoring the growth and planning for • Deer Creek Station, Elkton, SD generation and transmission needs associated with the rapidly »» 300-MW natural gas-based combined cycle increasing loads. intermediate plant (2012) • Culbertson Generation Station, Culbertson, MT Generation Basin Electric is constructing generating units close to »» 90-MW natural gas-based peaking plant (2011) the Bakken load to quickly support the voltage on the system.

• Dry Fork Station, Gillette, WY Pioneer Generation Station, a natural gas-based peaking »» 385-MW coal-based plant (2011) station, is located northwest of Williston, ND, and Lonesome • Groton Generation Station, Groton, SD Creek Station, a natural gas-based peaking station, sits west »» 192-MW natural gas-based peaking station of Watford City, ND. (Unit 1, 2006; Unit 2, 2008) 12

Basin Today

Basin Electric is also considering additional resources to meet its growing membership load levels in and outside of the Williston Basin.

Transmission

Basin Electric, its member cooperatives, and the Western Area Power Administration have developed a phased approach to building transmission infrastructure.

Western and Basin Electric are partners in the Integrated System, a joint transmission system in the region.

Together they have spent hundreds of millions of dollars in new construction and upgrades identified in earlier load forecasts.

Recent projects include: • Basin Electric’s 74-mile Rhame to Belfield 230-kilovolt (kV) transmission line and the associated Rhame Substation (2010) • Basin Electric’s 61-mile Williston to Tioga 230-kV transmission line and the associated Neset Substation (2011) • Western’s upgrade of their 75-mile Williston to Charlie Creek 115-kV line to 230 kV (2012) With these projects in place, the Integrated System has both a 115- and a 230-kV loop around Lake Sakakawea, increasing the system’s reliability and load-serving capability. However, forecasts indicate loads trending upward at an increased rate, requiring further additions.

In December 2011, Basin Electric announced plans to build a 190-mile 345-kV transmission line from its Antelope Valley Station (AVS) north of Beulah, around the western edge of Lake Sakakawea into the Tioga area. Construction is planned to start in 2014 with the line being in service by 2016.

The AVS to Neset project will consist of new single circuit 345-kV and double circuit 345/115-kV transmission lines, the construction of two new substations, modifications to three existing substations, river crossings, temporary construction staging sites and other facilities.

The North Dakota Public Service Commission held public hearings on the AVS to Neset line in September 2013, and a decision is expected in 2014. The Rural Utilities Service is also expected to issue a record of decision in April.

In October 2013, Basin Electric also announced plans for an additional 60 miles of 345-kV line and three additional substations. The project, known as the North Killdeer Loop, is planned to be operational in late 2016.

In addition to the projects directly related to the 345-kV line, many others are planned, under construction or have been completed to enhance system reliability, including new substations, upgrades to existing substations and a new transformer at Basin Electric’s Leland Olds Station switchyard.

Member cooperatives have also added substations and made improvements to the transmission and distribution system.

See page 14 to see how one Basin Electric member cooperative is preparing.

Transmission line in the news Much discussion in the media

Respective agencies were contacted to identify their areas of

and public has surrounded Basin

concern or special requirements to evaluate. Basin Electric

Electric’s proposed Antelope Valley

also had hundreds of landowner contacts in the proposed

Station to Neset transmission line and

battlefield study area alone, to determine support and input

a grant received by North Dakota State

for the line location. Throughout this time, Basin Electric

University (NDSU) to study the Killdeer

maintained close contact with members of the public and

Mountain battlefield and surrounding area.

state, county and federal agencies, including the NPS. There

At issue is the location of Basin Electric’s proposed line:

were scoping meetings for agencies and members of the

eight miles of the proposed route crosses a 29-square-mile

public, and also a draft Environmental Impact Statement

area that NDSU received a grant from the National Park

that underwent a comment period and hearing.

Service (NPS) to evaluate as a potential historical site. A

While Basin Electric became aware of this study area

battle took place in the area between the U.S. military and

in August 2013, the cooperative has taken several steps to

the Plains Indians in 1864.

preserve the area’s history and is working with regulating

Significant work, consideration and evaluation went into

agencies to mitigate potential impacts. While the landscape

the line’s route selection. One of Basin Electric’s first steps was

in northwestern North Dakota has undoubtedly changed, the

to gather existing cultural, biological, socioeconomics, land

cooperative is obligated to serve its member-owners with

use and other information from federal and state agencies.

electricity. No one wins if the lights go out.

March – April 2014

13

Member Series

Keeping the lights on McKenzie Electric and Basin Electric work to serve a growing membership

Gerald and JoAnn DeFoe, long-time members of McKenzie Electric Cooperative, have seen some dramatic changes in rural McKenzie County brought about by the most recent oil boom in northwestern North Dakota.

By Chris Gessele Some people opt for gnomes, deer or a few pink flamingos. The front lawn of McKenzie Electric Cooperative’s headquarters is filled with décor of a different sort.

Pallets holding electrical transformers and several large spools of cable fill the front yard of the cooperative’s headquarters in Watford City, ND. They are spillover from their equipment supply yard – and just one visible effect of the activity and growth the cooperative has seen in recent years.

McKenzie Electric, a Basin Electric Class C member cooperative, serves more than 3,500 member-owners in five counties in North Dakota – McKenzie, Dunn, Billings, Golden Valley and Mercer – and two counties in Montana – Richland and Wibaux. Much of that service territory includes the oil play in the Bakken formation, also known as the Williston Basin, which covers parts of western North Dakota and eastern Montana.

John Skurupey, McKenzie Electric CEO and general manager, will have storage space for all construction materials when the cooperative builds a new headquarters building and warehouses on a 40-acre site just east of Watford City in 2015. Other challenges brought about by the oil boom, however, won’t be so easily overcome.

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Basin Today

A changed landscape

The population of Watford City provides a portrait of the growth McKenzie Electric is facing. According to 2010 U.S. Census numbers, the city has quadrupled in population from 1,744 to an estimated 7,500 in less than four years.

Longtime McKenzie Electric members Gerald and JoAnn DeFoe live just south of Watford City. They’ve seen an uptick in business at their sand and scoria operation and met some nice people as a result of the latest oil boom, though are also experiencing the other side of the coin.

DeFoe recalls when only their neighbor would drive by their country home once, maybe twice per day. Nowadays it’s a different story.

“Traffic is horrendous. There’s more traffic in a day than, let’s be honest, than what used to go by in a year,” he says.

Skurupey was raised in McKenzie County and graduated from Watford City High School – smack dab in the middle of North Dakota’s first oil boom in the late 1970s and early 1980s.

Drilling technology in use at that time meant striking oil was hit or miss. Now each oil well is pretty much a guaranteed hit, he says, which has caused crude oil production in North Dakota to quadruple since 2007 and the need for electricity to skyrocket.

McKenzie Electric kilowatt-hour (kWh) sales kWh Sales 1,200

Millions

1,000 800 600 400 200 0 1980

2012 Total kWh Sales

John Skurupey, McKenzie Electric CEO and general manager, points out one of several project areas where the cooperative is working to meet its members’ needs for electricity.

members,” Skurupey says. “Our board, and management, At McKenzie Electric’s 2013 annual meeting in June, and our employees and our membership appreciate Ray Tescher, McKenzie Electric board chairman, reported what Basin’s trying to do to help us serve this load. We’re cooperative sales grew by 70 percent in 2011-2012. In imposing this growth on others, meaning Basin, and we 2012-2013, the cooperative saw growth of more than 40 percent. Tescher estimated that by understand that they’re dealing with 2025, the cooperative will likely be six it just like we are. We’re appreciative If it weren’t for the managetimes its size today. they’re willing to help us the way ment, forecasting, planning they have.” and construction folks at Basin

Meeting the need

Electric, the lights would be

mighty dim, if not out, for many In the quest to achieve stability in Looking to the future McKenzie Electric members. the Williston Basin, McKenzie Electric In Skurupey’s office is a binder is in various stages of planning and that’s bursting with $240 million in John Skurupey constructing 200-300 miles of 115-kilosigned member contracts for transvolt (kV) transmission line and the mission and substation projects to be equivalent of 55 substations. completed in the next three years. It’s a constant reminder Basin Electric is also building additional generation of the large amount of work that must be done in a short and transmission, and purchasing power to help meet the amount of time. region’s need for electricity.

“For me, that’s a daily struggle. How do we stay in front The additional generation and transmission capacity of this? I don’t think it’s possible, but we’re going to do our can’t come soon enough for McKenzie Electric and its best to try,” Skurupey says. “We’ve got a very smart board members. that’s very knowledgeable and up on the issues and wants “If it weren’t for the management, forecasting, planning to know more, and we’ve got a fantastic staff. I’d put them and construction folks at Basin Electric, the lights would up at the top of the list in terms of their skills, abilities and be mighty dim, if not out, for many McKenzie Electric determination to keep the lights on.”

March – April 2014

15

Feature Series

A day in the life of …

Wayne Peltier Board president balances family, farming and business

Family, farm, business, co-ops — Board President Wayne Peltier’s plate is full, but he and wife Pat navigate their work load well, using the same kind of tenacity that has brought them through adversity in years past.

By Erin Huntimer The Peltier household was built with a rare kind of determination, and the strength can be felt in the space between Wayne and Pat Peltier. They sit at opposite ends of the kitchen island as they welcome their visitors from Basin Electric on a February afternoon.

When Peltier meets people for the first time, he gets the typical “get to know you” questions, but maybe not necessarily the most obvious one: How did he lose his left arm? With the Peltiers being the owners of a metal fabrication business, as well as being engaged in production agriculture, one could jump to conclusions, but they would be wrong. He lost his arm to osteosarcoma (bone cancer) – a disease that has tried twice to take his life and failed. It’s a journey that has shaped his character, the integrity of which benefits the cooperatives he serves.

16

Basin Today

Peltier is president of the Basin Electric board of directors, representing the cooperative members of District 9 and his home cooperative of Minnesota Valley Cooperative Light and Power of Montevideo, MN. He has served as a director for Minnesota Valley since 1999, and for Basin Electric since 2008. He was elected as Basin Electric board president December 2013, and the months since have been filled with change, including the appointment of Paul Sukut as interim CEO and general manager. He’s in a challenging position, and he faces it as he has other challenges in his life: with hard work and tenacity.

He’s ready to admit, and Pat Peltier agrees, the early years were quite turbulent. The bone cancer diagnosis in September 1970 – only three months after his engagement

A walk through the warehouse reveals a glimpse into the to Pat – followed by the amputation of his arm and a grim farming side of the Peltiers’ life. Shiny red tractors, impleprognosis, left him bitter. “I had an attitude problem at the ments and ATVs sit in the shadows, patiently waiting for time. Why would they take my arm and then tell me I had the spring planting of their corn and soybean crops. He six weeks to live?” he says. But ultimately time and his and two of his sons are fortunate to be farming the same love for his wife helped change his attitude. land on which he grew up.

Together, they moved on and built a future despite the In the tidy workshop, a handful of employees work at unknown. He and Pat married, bought a house, started a various fabricating machines on customer orders. Peltier family, and began farming near Cottonwood, MN, not too has a lot of faith in his employees; he counts on them to far from their hometowns. He had proven the six-weekswork hard and safely. “If you have the right people in the to-live prognosis wrong. position, you don’t have to tell them how to do the job,” But several harvests later, it was back; the cancer had he says. metastasized to his lungs. It was 1976, and the prognosis He shows off a “CNC” machine that can be programmed again was very grim. Surgeons removed a diseased lobe via computer to cut custom shapes from metal stock, from one lung and several tumors from the other in two anything from curved front-end loader brackets to custom separate surgeries three weeks apart. feed bin and cattle gate signs. The machine was designed Rather than wallow, the Peltiers went to work back and built by his son, Colin, who has a degree in machine at the farm and renovated their kitchen that winter. In tool technology. retrospect, Pat Peltier sees their litany As the Peltiers talk about their sons of home improvement projects during I just love it. I’ve learned and their careers and accomplishments, those early years as a diversion and a so much. I enjoy the challenge. they radiate pride. They have always way to work through the fear that came ... The employees are fantasexpected much of them. “My sons, with the illness. “It gave us something tic; they’re the foundation, and Shawn, Quinn and Colin, were my other else to focus on,” she says. it shows. arm,” Peltier says. “While working side Peltier admits going to his follow-up Wayne Peltier by side, they learned, and now there’s appointments were extremely stressnot much they can’t do.” ful because he was apprehensive of One may argue the same holds true negative test results and dreaded what for him. In 1999 he chose to add another facet to his busy the doctors at Mayo Clinic might tell him next. But the life and run for the board of Minnesota Valley Light and years ticked by, and several years later, once again he Power Cooperative, a spot that had been vacated by his beat the odds. brother-in-law. He says their family conversations sparked “Mayo Clinic studied me intensely because the survival an interest in him. “I’ve always been involved in co-ops. I rate was only 2 percent back then, and I survived,” he says. believe in co-ops,” he says.

In 1992, Peltier was given a clean bill of health from Mayo, He went on to represent District 9 on Basin Electric’s but he still receives questionnaires from them regularly.

Resolutions Committee and took an active interest in Wayne and Pat Peltier share their journey within Basin Electric. He ran for and was elected to the board eyeshot of the fireplace they built together from a kitchen in 2008. “I just love it. I’ve learned so much. I enjoy the island that serves just as much business as it does meals. challenge,” he says.

Their fabrication business, P&K Fabricating Inc., mainly It’s a challenge he meets with a philosophy he carries constructs metal components for fertilizer plants but also with him and shares with his sons: “Don’t worry about takes on many other projects including livestock facilities what you can’t change; and if you can change it, fix it so and repairs. The business employs seven workers, including you don’t have to worry about it.” one of their three sons.

As for the future of Basin Electric, he has faith in the As the Peltiers give a tour of P&K’s warehouse and employees to carry the cooperative forward. “The employworkshop, Peltier talks about the giant overhead hydraulic ees are fantastic; they’re the foundation, and it shows.” doors, one of which was the first of its kind in the country.

March – April 2014

17

Walking the co-op talk

Education, fellowship contagious during South Dakota Co-op Day

By Dain Sullivan

Feb. 25 marked year two of the event, and Anderson says it was encouraging to hear positive reviews from those who attended in 2013.

Understanding the political process is crucial, he adds, especially for those who are misinformed.

“What’s going on in Congress right now is what turns people off from politics,” Anderson says. “The system at the state level is much more effective. Thank goodness we don’t suffer from the gridlock that we’re experiencing in Congress.”

SDREA General Manager Ed Anderson shares a word with For the uninformed, Anderson continues, the assumption Sen. Dan Lederman (R-SD) during Co-op Day at the state capitol. is often that lobbyists are out to throw money around and buy votes, which is false.

As Ed Anderson moseys his way through a cluster of “People just don’t know,” he says. “Our legislators rely on handshakes atop a second-floor stairwell, colleagues razz him lobbyists. It’s a symbiotic relationship.” about being late to his own party.

Co-op Day is a great educational process for legislators as It’s a lighthearted atmosphere at the state capitol, and with well. As Anderson and the SDREA team move into the capitol’s main walkway to serve lunch, attendees can be seen conversing all joking aside, electric cooperative members know how hard near banners that display various cooperative the South Dakota Rural Electric Associatidbits. Messages portray everything from the tion (SDREA) has worked to bring them Cooperatives may have electrical generation process, importance of to Pierre, SD. been born in politics, but it’s commitment to community, to the electric With SDREA’s Co-op Day in full swing, necessary to celebrate how cooperative story.

Anderson has a moment to claim an empty far they’ve come in the way of bringing people together.

Maintaining a presence with state legislabench and check his phone, which has been buzzing all morning. He lets out a tors is key, as is thanking them for their service.

Ed Anderson sigh as another Twitter follower pops up “We just want to stop by, feed legislators a on his screen. decent lunch, and tell them that we appreciate “I tell you, all this tweeting stuff, I’m not there yet,” he what they do for us,” Anderson says. chuckles. “I set up a personal Twitter account about nine Having been born and raised in the Black Hills, Anderson also months ago. I don’t even remember doing it.” values friendships outside of politics, which is why he’s regularly Mastering Twitter may take some practice for this co-op invited legislators to lunch at his home for the past three years. man, but he’ll teach folks a thing or two about the game of “I haven’t poisoned anybody yet,” Anderson jokes. “It’s usually lobbying. Anderson has headed up government relations at soup and salad, or soup and sandwiches.”

SDREA for 14 years, the last four of which he’s also served as During the four lunches he has held during the present session, general manager. he adds legislators have merely used the invitation as a chance Perhaps it’s no surprise the Twitterverse is closing in on to learn more about one another, with no political talk allowed.

Anderson. He’s the go-to guy for Co-op Day, not to mention a In the end, the friendships made during events like Co-op Day walking encyclopedia for building fellowship between cooperaare what continue to make the electric cooperative story great. tive members and their legislators.

Cooperatives may have been born in politics, Anderson says, “The political side of my job is something I really enjoy,” but it’s necessary to celebrate how far they’ve come in the way Anderson says. “It’s a sickness.” of bringing people together.

18

Basin Today

News Briefs

Basin Electric’s natural gas-based generation reaches all-time high in December

Pioneer Generation Station near Williston, ND.

Basin Electric facilities generated more electricity using natural gas in December 2013 than in any previous month.

The cooperative’s natural gas-based simple-cycle plants generated 92,908 net megawatt-hours (MWh) in December 2013. In addition, Basin Electric’s combined-cycle Deer Creek Station in Brookings County, SD, generated another 124,188 MWh. According to Kevin Tschosik. Basin Electric manager of distributed generation, the development can likely be attributed to Lonesome Creek Station Unit 1 starting commercial operation in December 2013 and a string of colder-thanaverage days.

“This is the highest simple-cycle generation we have ever had in a month’s period,” Tschosik said. “Along with adding new combustion turbines, new employees, the challenges of winter and demand for the combustion turbines, it has been a very busy and challenging time. Commissioning of these plants moves very quickly because the generation is needed almost immediately.”

The oil play in the Bakken formation covers parts of western North Dakota and eastern Montana. Learn more about how Basin Electric is meeting the need for power on pages 12-13.

Basin Electric employee named to Touchstone Energy board

A Basin Electric employee has been elected to the Touchstone Energy ® Cooperatives board of directors.

Ted Cash, Basin Electric manager of media services, was seated to a three-year term on the board during Touchstone Energy’s annual meeting March 5, which is held as part of National Rural Electric Cooperative Association’s annual meeting in Nashville, TN. Cash led the development of Touchstone Energy’s Cooperative Web Builder program and has served as a Touchstone Energy board alternate for four years, Touchstone Energy regional member for three years and is chairman of the Touchstone Energy Strategic Communications Committee.

In Cash’s 15 years of employment at Basin Electric, a Touchstone Energy cooperative, he has assumed leadership roles in event management, marketing and advertising, strategic planning and Touchstone Energy branding. Since 1999, Cash has been involved in every facet of the Touchstone Energy brand, from the distribution and generation and transmission cooperative levels to the national level.

In the community, Cash has held leadership roles in numerous advisory groups, including vice president of the Missouri Slope Areawide United Way board of directors; Vanguard Investment Committee member-elect; and member of the Basin Electric Executive Steering Committee.

Basin Electric’s system hits new all-time high member billing peak

Just a month after Basin Electric’s system hit a new alltime high billing peak, it happened again. In December 2013, the all-time high billing peak was 3,340 megawatts (MW).

January’s final billing shows the new all-time high member billing peak is more than 200 MW above December’s peak.

Sharon Lipetzky, Basin Electric supervisor of rates and revenue, said final billing completed for January 2014 show Basin Electric hit a new all-time high billing peak of 3,558 MW. The extreme cold experienced across the cooperative’s broad service territory contributed to the peak, but Becky Kern, Basin Electric manager of utility planning, said continued member load growth over the entire membership is a significant factor.

March – April 2014

19

News Briefs

Sukut announces organizational structure changes at Basin Electric

Paul Sukut, Basin Electric interim CEO and general manager, announced organizational structure changes in a Feb. 17 email to employees.

The changes, which took effect Feb. 24, include a new Operations Department and a new senior vice president of Engineering and Construction.

The new Operations Department will be led by John Jacobs, vice president of Operations. Jacobs, former Antelope Valley Station plant manager, will have responsibility of all Basin Electric generation facilities, including distributed generation and safety.

Matt Greek, former senior vice president of Generation, has been named senior vice president of Engineering and Construction. Greek will be responsible for all engineering and construction activities at Basin Electric and its subsidiaries.

“Basin Electric has experienced numerous changes over the past few years. Retirements, growth and changes that are occurring with our business have resulted in new and greater job responsibilities across the entire organization,” Sukut said. “Over the years, Basin Electric’s culture has been one in which we have worked very closely with each other and have maintained a very high level of work ethic and dedication.

With the changes I am implementing, the goal is to maintain that culture and dedication as we face future challenges and opportunities.”

Rail rate case sent back to the U.S. Surface Transportation Board

The U.S. Court of Appeals for the District of Columbia Circuit has sent a long-contested rail rate case involving Basin Electric back to the U.S. Surface Transportation Board (STB) for reconsideration.

The Court of Appeals sent the case back to the STB to consider arguments by BNSF Railway that the formula the STB used to determine that BNSF overcharged shippers didn’t accurately measure variations in costs or the proper effect traffic volume should have on rates. BNSF had appealed a June 2012 decision by the STB which reaffirmed the formula for determining maximum the reasonableness of rail rates to ship coal to the Laramie River Station, located near Wheatland, WY. The plant is operated and partly-owned by Basin Electric.

Basin Electric and Western Fuels Association (WFA) have been involved in a legal dispute with BNSF over coal 20

Basin Today

shipping rates since 2004. Basin Electric and WFA have spent nearly $9 million litigating the rate case.

In 2009, the STB determined the rates BNSF was charging for shipping coal to Laramie River Station were unreasonable, and provided an estimated $350 million in rate relief through 2024. As part of this relief, BNSF was ordered to refund nearly $120 million for excess rates paid between 2004 and 2009.

BNSF originally appealed the 2009 decision in the Court of Appeals in Washington, D.C., on several grounds, but the STB’s decision was upheld on appeal in all respects, except one technical matter remanded to the STB on the grounds that the STB had not specifically explained its rationale. BNSF’s request for U.S. Supreme Court review was also denied.

With its 2012 decision, the STB provided the explanation requested by the court on the issue remanded to the STB, and upheld the STB’s original 2009 decision.

The Appeals Court narrowly upheld BNSF’s challenges to that 2012 ruling by a vote of two to one, and marked the second time the dispute has come before the court and been returned to the STB. Basin Electric and WFA are examining the ruling and potential options to respond.

Fitch affirms ratings for Basin Electric

Fitch Ratings affirmed its F1 ratings on Basin Electric’s two commercial paper programs on Feb. 12, and stated the rating outlook is stable.

“This rating affirmation shows Basin Electric’s strong financial condition, which is very important as we continue to work to support the generation and transmission needs of our growing membership,” said Steve Johnson, Basin Electric interim chief financial officer and senior vice president of Financial Services.

Some of the key rating drivers Fitch noted include: the cooperative’s total sources of liquidity, including cash, cash equivalents and adequately sized revolving credit facilities; sound electric operations to provide overall financial stability; and low wholesale rates to provide flexibility to generate additional revenues.

“Preliminary results for the 12 months ended Dec. 31, 2013, showed financial performance being better than expected, with good performance in the electric business and particular strength in the coal production operations,” the Fitch report read.

Basin Electric honored as top corporate contributor to local United Way

Safety team sets direction for improving inspections

Basin Electric’s first Continuous Improvement Team met at Headquarters the week of Feb. 17 to take on the first safety initiative targeted for improvement: safety inspections.

The team, composed of front-line employees from the power plants, wind facilities, transmission maintenance outposts, and the Great Plains Synfuels Plant, developed a new safety inspection process that involves everyone from CEO to the newest employees.

Jon Stanley, mechanic/welder at Laramie River Station, is a member of the first Continuous Improvement Team.

He says the process being developed by employees will be implemented across the organization. “It highlights positive acts, identifies and prioritizes working area conditions, provides an opportunity for improvement, and calls for timely follow-up for unsafe conditions,” he said.

The new process is not intended to replace the safety programs already in place, he said, but rather to improve and enhance the safety culture.

A pilot process will be rolled out at Laramie River Station in March. The process will also be piloted at the Synfuels Plant in April. After making any necessary adjustments to the process, the Continuous Improvement team will roll the process out cooperative-wide.

This is the first of what will be many Continuous Improvement teams as the cooperative moves through Caterpillar Safety Services’ Zero-Incident Performance, or ZIP™, process. The safety inspection initiative was identified by the cooperative’s Steering Team in January by examining the results of the safety perception survey conducted in 2013.

BE SAFE

(From left:) Jena Gullo, Missouri Slope Areawide United Way executive director, presents a plaque of recognition to Ellen Holt, Basin Electric vice president of human resources.

Basin Electric was recognized as Missouri Slope Areawide (MSA) United Way’s top corporate contributor for 2013 at the local chapter’s annual luncheon Jan. 31 in Bismarck, ND. Basin Electric employees raised more than $105,000 in employee pledges to the United Way during the cooperative’s 2013 United Way fundraising campaign. With Basin Electric’s 100-percent match, that total grew to more than $210,000. The MSA United Way’s 2013 campaign raised more than $2.5 million.

“This is outstanding,” said Jena Gullo, MSA United Way executive director, during the luncheon. “I actually start to get teary-eyed thinking about all the good-hearted, passionate people who care so much about our community.”

Basin Electric’s 2013 campaign ended Nov. 1, 2013.

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March – April 2014

21

Employee Highlights

Employee carves award-winning snow sculptures

Mike Haroldson and his snow sculpting team earned first place and People’s Choice at the Snowscapes competion in Driggs, ID. Their creation, “Come and Get it,” was carved by hand using many tools created by Haroldson.

Step aside, Queen Elsa. You’ve met your match. (Insert hand tools – no power tools – specially designed for a rousing rendition of “Let It Go” from Frozen.) the task,” he says.

Mike Haroldson helps make magic with snow and ice.

A mechanic/welder by trade, Haroldson creates The maintenance planner/scheduler from the Laramie many of his team’s carving tools. He’s also in charge River Station and his team of family and of sculpting the more “mechanical” friends are competitive snow sculptors. elements of the sculpture, like the The people are great. These His artisan daughter introduced him to chuck wagon wheels and shelves. aren’t cutthroat competitors. ... the hobby; he joined her team and they He says his wife, daughter, and It’s a great way to break up the placed fourth at nationals that year. friend Allison from Laramie bring monotony of winter.

And well, it snowballed from there (pun the artistic skill to the team. “Our Mike Haroldson intended). team really has good chemistry. We In January, Haroldson and his team work well together, and everyone is traveled 600 miles to the Snowscapes competition at the willing to drop what they’re doing to help out,” he says.

Teton Valley Great Snow Festival in Driggs, ID. Their chuck Haroldson is passionate about his hobby. He wagon sculpture, “Come and Get It,” won first place and enjoys making tools and spending time with his earned the People’s Choice award. family. He also loves the people. “The people are Competitors start with a large, compacted block of snow; great. These aren’t cutthroat competitors. They’re in the Teton competition, it was an 8-foot cube. They then more than happy to lend a tool or share a tip. They’re spend the better part of a week, around 250 man-hours, very helpful,” he says. “It’s a great way to break up coaxing a unique story out of the snow. “It’s all done with the monotony of winter.”

22

Basin Today

New Employees

Benjamin Althoff was hired at the Synfuels Plant Jan. 13 as an electrical engineer.

Originally from Hankinson, ND, he has a bachelor’s degree in electrical engineering from North Dakota State University, Fargo.

Logan Dschaak began working at the Synfuels Plant Dec. 30 as a process operations field technician. The Beulah, ND, native has an associate degree in process plant technology from Bismarck (ND) State College.

Phillip Clouse was hired Jan. 20 at the Synfuels Plant as the director of project controls. The Devils Lake, ND, native worked for Strata Corp. for 23 years as a project manager before coming to the Synfuels Plant. He has an accounting degree from University of North Dakota, Grand Forks.

Chris Ehli was hired Jan. 12 at the Synfuels Plant as a process operations field technician.

Originally from Bismarck, ND, he previously worked at Bismarck State College. Ehli has an associate degree from Bismarck State College in power plant technology.

Terrie Rath began work in housekeeping at Headquarters Jan. 6. Originally from Bismarck, ND, Rath previously worked for Good Samaritan Society as a certified nursing assistant (CNA), housekeeper, and in transportation. She was nominated for CNA of the year award in 2010.

Colin Entringer began working at the Synfuels Plant Feb. 6 as a process operations field technician. Originally from Bismarck, ND, he previously worked at Tesoro.

Entringer has associate degrees in process and power plant technology from Bismarck State College.

Ryan Drevlow started his position as an electrical engineer I at Headquarters Jan. 13. The Gwinner, ND, native has a bachelor’s degree in electrical engineering from North Dakota State University, Fargo.

Justin Detlaff began working at the Synfuels Plant Jan. 2 as a process operations field technician. The Washburn, ND, native previously worked at Blue Flint Ethanol in Underwood, ND. Detlaff has an associate degree in power plant technology from Bismarck (ND) State College.

Taylor Dutton began working at the Synfuels Plant Dec. 23 as a process operations field technician. Originally from Bismarck, ND, he previously worked at Wentz Landscape Company. Dutton has an associate degree in power plant technology from Bismarck (ND) State College.

David Fischer was hired Feb. 10 at the Synfuels Plant as a maintenance field technician. The Lincoln, ND, native previously worked for Miller Insulation. Fischer has an associate degree in mechanical maintenance technology from Bismarck (ND) State College.

Aaron Frieze began working at Headquarters Jan. 13 as an office service technician. Originally from Bismarck, ND, Frieze previously worked for USPS as a rural carrier associate in Bismarck.

He also worked as a press brake operator for Bobcat in Bismarck. Frieze has an associate degree from Bismarck (ND) State College in electric power technology.

Austin Ness, electrician II, began working at Antelope Valley Station Jan. 13. The Underwood, ND, native previously worked for Falkirk Mine as an electrician.

March – April 2014

23

Employee Highlights

New Employees

Amber Olheiser began her position as a laborer at Antelope Valley Station Jan. 13.

Originally from Beulah, ND, Olheiser previously worked for The Sand Bar as a bartender in Zap, ND. She has an associate degree in power plant technology from Bismarck (ND) State College.

Christopher Hoepfner began working at the Synfuels Plant Jan. 20 as a maintenance field technician. The Beulah, ND, native previously worked at RDO Equipment Co. in Hazen, ND. Hoepfner has an associate degree in John Deere agriculture technology from North Dakota State College of Science, Wahpeton.

Trevor Fleck began working at the Synfuels Plant Jan. 2 as a process operations field technician. The Mandan, ND, native previously worked at Blue Flint Ethanol in Underwood, ND.

Calab Keller began working as an electrical and instrumentation field technician at the Synfuels Plant on Jan. 13. The Beulah, ND, native previously worked at Knife River as an electrician. Keller has an associate degree in electrical technology from North Dakota State College of Science, Wahpeton.

Jim Greer was hired Dec. 4 at the Synfuels Plant as the project management supervisor.

Originally from Wheatland, WY, he previously was project manager of CEPO Energy in Boise, ID. Greer has a bachelor’s degree in mechanical engineering from the University of Colorado at Boulder, a master’s degree in business administration from the University of Utah and an energy innovation certificate from Stanford University.

Mandi Hetletved, scheduling and trading assistant, started work at Headquarters March 10. The Belfield, ND, native previously worked for Northwest Tire in accounts payable in Bismarck, ND. She has a bachelor’s degree in business administration from University of Mary, Bismarck.

Jacob Hipp was hired Feb. 10 at the Synfuels Plant as a maintenance field technician. The Riverdale, ND, native previously worked for Falkirk Mine. Hipp has an associate degree in mechanical maintenance technology from Bismarck (ND) State College.

Shannon Kadrmas began working as a maintenance field technician at the Synfuels Plant on Jan. 20. Originally from Hazen, ND, he was working for the Boilermakers Local 647.

Kadrmas has an apprenticeship degree from International Brotherhood of Boilermakers.

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Basin Today

Brady Hillerud began working at the Synfuels Plant Jan. 13 as an electrical and instrumentation field technician. The Hazen, ND, native previously was an instrumentation and controls technician. Hillerud has an associate degree in instrumentation and controls from Bismarck (ND) State College.

Chance Hochhalter, laborer, began his position at Antelope Valley Station Jan. 13.

The Regan, ND, native previously worked for Fuel Tech as a service technician. Hochhalter has an associate degree in power plant technology from Bismarck (ND) State College.

Corey Schaff began his position as a laborer at Antelope Valley Station Jan. 13. Originally from Mandan, ND, Schaff previously worked for Tesoro - Mandan Refinery as an operator.

He has an associate degree in process plant technology from Bismarck (ND) State College.

Sarah Kurle began working at the Synfuels Plant Jan. 2 as a process operations field technician. Originally from Mandan, ND, she previously worked as a pharmacy tech at St. Alexius Medical Center. Kurle has an associate degree in power plant technology from Bismarck (ND) State College.

Derik Youngs began working at Headquarters Jan. 13 as a desktop application analyst I. He previously worked at Headquarters as an information services and telecommunications intern.

Kayse Hathaway began working at Headquarters Feb. 10 as a call taker. The Bismarck, ND, native previously worked for Snap Fitness in membership sales. Hathaway also worked for Clear Link Technologies as an inside sales associate.

Logan Kessler was hired Nov. 25 at the Synfuels Plant as an electrical and instrumentation field technician. The Beulah, ND, native has an associate degree in instrumentation and controls from Bismarck (ND) State College.

Kris Martens began working as a maintenance field technician at the Synfuels Plant on Feb. 10. The Beulah, ND, native previously worked at Dakota Westmoreland as a diesel mechanic.

Leigh Lund was hired Jan. 2 at the Synfuels Plant as a process operations field technician.

Originally from Golden Valley, ND, she has an associate degree in process plant technology from Bismarck (ND) State College.

Ryan Roundy began working at the Synfuels Plant on Feb. 3 as a safety representative.

The Phoenix, AZ, native previously worked for the Corval Group as a safety manager in Beulah, ND. Dave Martinez was hired Jan. 2 at the Synfuels Plant as a process operations field technician. Originally from Chicago, IL, he previously worked for Garrett Brothers. Martinez has an associate degree in power plant technology from Bismarck (ND) State College.

Daniel Dilts, substation electrician apprentice, began his position at Transmission System Maintenance - Williston Jan. 27. Originally from Rocky Mount, NC, Dilts previously worked for Duke Energy Progress - Carolinas as a relay technician in Raleigh, NC.

Jean Schafer, government relations coordinator, began her position at Headquarters Feb. 10. Originally from Bismarck, ND, Schafer previously worked for the North Dakota Water Coalition as executive director in Bismarck.

Emory Mattson was hired Jan. 2 at the Synfuels Plant as a process operations field technician. The Mandan, ND, native previously worked for Red Trail Energy as an operator in Richardton, ND. Mattson has an associate degree in process plant technology from Bismarck (ND) State College.

Andrew Meidinger was hired as a maintenance field technician Jan. 20 at the Synfuels Plant. Originally from Bismarck, ND, he previously worked for Westcon as a pipefitter.

Meidinger has an associate degree in mechanical maintenance technology from Bismarck (ND) State College and an associate degree in automotive technology from Wyoming Tech.

Jonathan Reis was hired Jan. 2 at the Synfuels Plant as a process operations field technician.

The Bismarck, ND, native previously was a laborer at Cretex Concrete Products in Menoken, ND. Reis has an associate degree in process plant technology from Bismarck State College.

Bo Klindworth was hired Jan. 20 at the Synfuels Plant as a maintenance field technician. The Stanton, ND, native was previously an aviation mechanic at Dakota Helicopters.

Klindworth has an associate degree in aviation maintenance from Northland Community and Technical College.

March – April 2014

25

Employee Highlights

New Employees

Troy Sabot was hired Jan. 2 at the Synfuels Plant as a process operations field technician.

Originally from Bismarck, ND, he previously worked as an operator for Sioux River Ethanol in Hudson, SD. Sabot has an associate degree in process plant technology from Bismarck State College.

Cam Scheetz was hired as a maintenance field technician Jan. 20 at the Synfuels Plant.

Originally from Washburn, ND, he previously worked for Tesoro in Watford City, ND. Scheetz has an associate degree in mechanical maintenance technology from Bismarck (ND) State College.

Michael Schneider was hired as a maintenance field technician Jan. 20 at the Synfuels Plant. The Bismarck, ND, native previously worked for River City Sports as a marine mechanic. Schneider has a diploma in marine engine technology from Minnesota State Community and Technical College.

Mike Conway began working at Headquarters as a commodity risk analyst Feb. 10. The Fargo, ND, native previously worked for PPL Montana - Butte, located in Minneapolis, MN. Jennifer Seibel began working at the Synfuels Plant Jan. 13 as a safety representative. The Beulah, ND, native previously worked at SWCA Environmental Consultants in Bismarck, ND. Seibel has a bachelor’s degree in occupational safety and health from Columbia Southern University.

Rachel Lozensky was hired at the Synfuels Plant Jan. 13 as a field technician in the chemistry laboratory. The Dickinson, ND, native has a bachelor’s degree in chemistry from Minot (ND) State University.

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Basin Today

Michael Muehler began his position as a security and response services equipment technician at Headquarters Feb. 10. Originally from Bismarck, ND, Muehler previously worked for the U.S. Department of Homeland Security as a program analyst in Bismarck He also was a licensed law enforcement officer for 17 years. He earned a law enforcement degree from University of North Dakota - Lake Region.

Keanon Serna was hired as a maintenance field technician Jan. 20 at the Synfuels Plant.

The Beulah, ND, native previously worked for Koch Nitrogen Co. as a rotating mechanic in Enid, OK. Serna has an associate degree in mechanical maintenance technology from Bismarck (ND) State College.

Steve Serr was hired Jan. 2 at the Synfuels Plant as a process operations field technician.

Originally from Mandan, ND, he previously worked in operations at Coal Creek Station in Underwood, ND. Serr has an associate degree in power plant technology from Bismarck (ND) State College.

Clay Solem was hired as a maintenance field technician Jan. 20 at the Synfuels Plant.

The Beulah, ND, native previously worked for Star-D Livestock Equipment as a welder/ laborer in Bismarck, ND. Solem has an associate degree in mechanical maintenance technology from Bismarck State College.

John Tschritter was hired Jan. 2 at the Synfuels Plant as a process operations field technician. Originally from Strasburg, ND, he previously worked as an operator at Flint Hills Resources in West Fargo, ND. Tschritter has an associate degree in process plant technology from Bismarck (ND) State College.

Kristopher Waller was hired as a maintenance field technician Jan. 20 at the Synfuels Plant. The Jamestown, ND, native previously worked as a foreman for BNSF Railway in Jamestown. Waller has an associate degree in diesel technology from North Dakota State College of Science.

Aaron Weisenburger began working at the Synfuels Plant Jan. 20 as a maintenance field technician. The Bismarck, ND, native previously worked as a journeyman boilermaker for Boilermaker Local #647 in Ramsey, MN, and Mandan, ND. Weisenburger has an associate degree in process plant technology and welding certificate from Bismarck State College. He also completed the boilermakers apprenticeship program through the International Brotherhood of Boilermakers.

Kermit Wiest was hired Jan. 27 as a maintenance field technician at the Synfuels Plant.

The Beulah, ND, native previously worked for Northern Plains Heating and Air as an installer in Bismarck, ND. Wiest has an associate degree in mechanical maintenance technology from Bismarck State College.

Eli Schumann was hired as a maintenance field technician Jan. 20 at the Synfuels Plant.

The Stanton, ND, native previously worked for North Dakota Parks and Rec as a maintenance supervisor at Lake Sakakawea State Park.

Schumann has a certificate in automotive technology from Bismarck (ND) State College

Scott Weinberger began working at the Synfuels Plant Jan. 13 as an electrical and instrumentation field technician. The Hazen, ND, native worked at St. Alexius Medical Center as a biomed tech and has an associate degree from Minnesota State Community and Technical College.

Nate Messerschmidt was hired as a process operations field technician Nov. 18 at the Synfuels Plant. Originally from Bismarck, ND, he has an associate degree in power plant technology from Bismarck State College.

Jay Wheeler, system security administrator II, began working at Headquarters Feb. 24.

The Medicine Lake, MT, native previously worked at United Tribes Technical College as an instructor. He also worked for the U.S. Air Force as an information and security manager. He has a master’s in management degree from University of Mary, Bismarck, ND. Elliot Rayman, lineman-journeyman, began working at Transmission System Maintenance – Gillette Feb. 24. Originally from Spearfish, SD, he previously worked for Govert Powerline Services in Reva, SD, as a journeyman lineman foreman.

Lee Knudsvig, employment recruiter, began working at Headquarters Jan. 27. The Audubon, MN, native previously worked for Harlow’s Bus Sales in Bismarck, ND, as a human resource manager. He has a bachelor’s degree in business management from Southwest Minnesota State University, Marshall.

Jackie Grahl, accounting analyst I, began working at Headquarters March 10. Originally from Beulah, ND, she previously worked for Bismarck (ND) Parks and Recreation District as an accountant.

Aaron Wangler, congestion management engineer II, started working at Headquarters Mar. 10. Originally from Bismarck, ND, he previously worked for Western Area Power Administration as an electronics engineer in Bismarck. He has a master’s degree in electrical engineering from University of Idaho, Moscow.

March – April 2014

27

Employee Highlights

Service Awards

Robert Moody

Dale Howard

Kevin Tschosik

Delon Bohrer

Richard Lewis

Gregory Masie

lab technician lead

electrician I

mgr. of distributed generation

shift supervisor

lab technician

control room operator

35 years

35 years

35 years

35 years

35 years

35 years

Antelope Valley Station

Antelope Valley Station

Headquarters

Leland Olds Station

Laramie River Station

Laramie River Station

Curtis Schank

Sheldon Berger

Wayne Hermes

Joe Grimm

Bruce Herman

Bruce Winkler

equipment attendant

turbine electrical operator

maintenance planner/scheduler

field technician

field technician

field technician

30 years

Antelope Valley Station

30 years

Antelope Valley Station

30 years

30 years

30 years

30 years

Dakota Gasification Company

Dakota Gasification Company

Dakota Gasification Company

Antelope Valley Station

Ralph Kemmet

Theodore Metcalf

Ricky Ahlschlager

Bradford Meidinger

Michael Schwartz

Steven Horner

field technician

maintenance shop supervisor

shift superintendent/ shop maintenance

field technician

manager of operational technology

system administrator

30 years

Dakota Gasification Company

30 years

30 years

30 years

Dakota Gasification Company

30 years

25 years

Dakota Gasification Company

Dakota Gasification Company

Dakota Gasification Company

David Layton

Loren Carson

Lynette Raymo

John Erickson

John Mills

Jill Leintz

field technician

pilot/aviation safety officer

senior administrative assistant

maintenance planner/scheduler

instrument I

help desk coordinator III

25 years

Dakota Gasification Company

25 years

Headquarters

25 years

Headquarters

25 years

Headquarters

Leland Olds Station

Cynthia Richter

Maurice Ternes

administrative assistant II

control room operator

35 years

30 years

Headquarters

Antelope Valley Station

Rhonda Thill

Eileen Keck

Curtis Alkire

Kevin Herrmann

desktop applications analyst III

administrative assistant II

equipment attendant

equipment attendant

25 years

Headquarters

28

Basin Today

20 years

Laramie River Station

30 years

Antelope Valley Station

30 years

Antelope Valley Station

25 years

Laramie River Station

25 years

Headquarters

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

Due to the large number of retirements at the end of 2013, some stories have been held for the next issue.

Kevin Mohl retired from the Synfuels Plant Dec. 31 after 30 years of service. He began working at the plant in 1983 in the chemistry laboratory as a technician. Mohl moved into the process development lab as a senior process development chemist. He then spent the remainder of his career in the chemistry lab as a senior chemist and shift supervisor.

“Working in the chemistry lab was always rewarding for me,” Mohl says. “We were on the forefront of working on and solving chemistry problems of the newly started plant. One project, early on, gave me direction in my career at Great Plains. During the start-up, the phenosolvan area was rate-limiting due to emulsion problems. The Department of Energy was about to shut the plant down if we could not reach full rates. I was proud to work on the task force that solved this problem. Many such occurrences happened throughout the start-up years, many of which I was asked to work on. These gave me direction in my career, leading to a transfer to the newly created process development lab. There we researched and developed new by-products needed to diversify and add additional revenue to the plant. Afterward, moving back to the chemistry lab to work with the great people I started out with in the early days.

“Remembering all the challenges we overcame over the past 30 years at Dakota Gas has given me a feeling of profound pride,” he says. “I am very proud to have worked with so many talented and accomplished people over the years. All of us went to work to keep the dream of energy independence in America alive.”

Mohl plans to enjoy time with his wife and family, including some travel to warmer climates during the winter months. Also he’d like to pursue new hobbies, sometime after getting the home renovation projects completed.

Orla Crawford retired Nov. 15 from the Synfuels Plant after 16 years of service. She began working at the plant in 1997 and worked as a process operations field technician.

Crawford and her husband, Freeman, have three children and nine grandchildren.

Tim Winn retired from the Synfuels Plant Dec. 31 after 30 years of service. Winn began working at the plant in 1983. During his time at the plant he worked in the electrical and instrumentation department as a field technician. Winn says he enjoyed being a part of and working with the many talented and dedicated people that made the Synfuels Plant a success from start-up through today.

Winn plans to take it easy, enjoy life and spend more time with family and friends.

Connie Isaak, retired from Headquarters Dec. 31 after 34 years of service. Isaak began working as an account technician II in 1979.

Her title was changed to financial technician, financial analyst I, financial analyst II, cash management analyst I, associate financial analyst, financial analyst II, financial analyst, and financial analyst III. Steve Johnson, interim senior vice president and chief financial officer, says Isaak was in constant contact with the membership throughout her management of the Member Investment Program (MIP). “When she started working on the MIP, her challenge was to get the program to $55 million. When she left, the balance of the program was consistently in the $150 million range,” Johnson says.

“She made many friends across the membership and I know they’ll miss their frequent contact with her. She was an important cog in the finance wheel and the ultimate professional.”

In retirement Isaak plans to “enjoy each day and fill it with family and friends.”

Terry Dickinson retired from the Synfuels Plant Dec. 23 after 30 years of service. He began working at the plant in 1983 and was a maintenance field technician while at the plant. Dickinson is married, has two children and four grandchildren. He plans to spend his time wood-working, hunting and visiting family.

March – April 2014

29

Employee Highlights

Retirees

Robert Eriksen retired from Headquarters Dec. 31 after 39 years of service. Eriksen began working as a chemical engineer in 1974. His title was changed to environmental engineer, control coordinator, control coordinator super v isor, adm in istrator of environmental operations, administrator of environmental compliance, environmental compliance administrator, and senior environmental compliance administrator.

Eriksen was first hired to develop strategies for complying with new environmental regulations, including sulfur dioxide (SO2) scrubbers and water discharge monitoring.

“Rich Fockler, Leland Olds Station plant manager (former), said after I get all the environmental issues settled, he and Kent Johnson would find other things for me to do. After over 39 years I’m leaving with issues still remaining to be done for the EPA,” Eriksen says.

Lyle Witham, manager of environmental services, says Eriksen began working many years before Congress enacted many of the key provisions of the Clean Air Act and other major environmental laws. “Bob was one of the shepherds who guided Basin Electric through those early developmental periods when most of the current baseload facilities, Leland Olds Station Unit 2, Antelope Valley Station and Laramie River Station, were choosing appropriate pollution control technologies and figuring out how to run them after those facilities came on-line,” Witham says. “Bob is experienced, knowledgeable, loyal, and creative. I will miss his slightly goofy word play jokes, and his willingness to provide counsel and assistance when called on to do so.”

Eriksen says he believes he is the only employee to have had offices on all six floors of Headquarters. “I also had an office in the J&L building (I actually knew those two men - Arthur Jones and Dennis Lindbergh, former presidents of Basin Electric), the professional building downtown above the Jack & Jill store, and two offices at Leland Olds Station,” Eriksen says.

In retirement, he plans to “do what I want, when I want.”

Kerby Entze retired Dec. 29 from the Synfuels plant after 30 years of services. He was a maintenance field technician and began working at the plant in 1983. Entze has three children and four grandchildren and plans to farm and ranch.

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Basin Today

Leonard Fleck retired from the Synfuels Plant on Dec. 26 after 30 years of service.

He was hired at the plant in 1983 and was a maintenance field technician. Fleck is married to his wife, Karen, has three children and three grandchildren.

Tim Gallaher retired Dec. 25 from the Synfuels Plant after 30 years of service. He was a process operations supervisor at the time of his retirement.

Mike Walker retired from Dry Fork Station Dec. 31 after 37 years of service. Walker began working as an apprentice lineman in 1976. His title was changed to journeyman lineman, lead lineman, and assistant transmission line superintendent.

In retirement, he plans to travel and enjoy his new home near Spearfish, SD. Charles Gitter retired from the Synfuels Plant Dec. 27 after 24 years of service. He was hired in 1989 in the engineering department and was a senior electrical engineer at his retirement.

He remembers the challenge of starting up the head bolt header plug-in poles in the parking during frigid winter temperatures. “We built huts around the transformer to heat it up to free the cables from the ice,” he says. “It took a week to get the transformers checked out in sub-zero weather.”

Gitter plans to ski, paint and maybe travel to Russia.

Wilmer Kittler retired from the Synfuels Plant Dec. 29 after 30 years of service. He was hired in 1983 and worked in maintenance for 17 years before moving to the maintenance planning department where he was a planner/scheduler when he retired.

Kittler plans to live in Bismarck and maybe find a part-time job. He’d also like to do some traveling and enjoy retirement with his wife, Diane, and two children.

Dennis Jelleberg retired Dec. 29 from the Synfuels Plant after 29 years of service. He was hired in 1984 and was a process operations field technician at the plant.

Bruce Berger retired from Antelope Valley Station Dec. 31 after 30 years of service.

Berger began working as a coal yard attendant II. His title was changed to lead coal/ yard attendant, lead yard operator and coal yard supervisor.

Chad Edwards, plant manager, says Berger was a pleasant person to have around. “Bruce always had a smile on his face.

He was willing to help out when he could,” Edwards says.

In retirement Berger plans to drive his Corvette, ride motorcycle, snowmobile, farm and help take care of his grandkids.

Gordon Leingang retired from the Synfuels Plant on Dec. 29 after 29 years of service.

He was hired in 1984 in the process operations department and was a shift supervisor when he retired. He and his wife, Mavis, have two children.

Valdie Magstadt retired from the Synfuels Plant on Dec. 29 after 29 years of service. He was hired in 1984 in the process operations and worked as a field technician in various areas of the plant including the oxygen plant, boilerhouse, byproduct loadout area, wastewater and the carbon dioxide pipeline. Magstadt and his wife, Elaine, have three children and three grandchildren.

They plan to relocate to the Bismarck/Mandan area. He would like to travel and spend time wood-working in his retirement.

Mike Morrell retired from the Synfuels Plant Dec. 29 after 16 years of service. He was hired in 1997 and worked as a maintenance field technician. Morrell plans to enjoy life in his retirement. He will spend his time fishing, hunting and spending time with his two grandchildren and his family.

Katie Fisher retired from Headquarters Dec. 21 after 33 years of service. Fisher began working as a computer operator trainee in 1980. Her title was changed to computer operator I, computer operator II, computer operator III, control desk coordinator, computer operator, mainframe computer operator, senior mainframe computer operator, computer operator/ help desk coordinator, systems software analyst trainee, help desk coordinator/ computer operator II, help desk coordinator II and help desk coordinator III. Fisher remembers when the data center was relocated from the fourth floor to the third floor of Headquarters in 2009.

“Some of the equipment was too large to fit in the elevator. It had to be moved by crane to third floor,” Fisher says. “It was really amazing seeing that equipment hanging from the crane!”

Rhonda Thill, desktop application analyst III, says she will miss Fisher’s smile and upbeat personality. “We worked together for many years and had many laughs over those years. Once Katie took a job on, she did it with all her heart.”

In retirement Fisher plans to spend time with family and friends, volunteer, and possibly work part-time for a while.

“I would also like to take time to travel and be able to see all 50 states. I only have a start so far.”

Roxane Pollak retired from the Synfuels Plant Dec. 26 after 28 years of service. She was hired in 1985 and worked as a maintenance field technician.

Tom Sailer retired Dec. 27 from the Synfuels Plant after 34 years of service. Sailer was hired 1979 and worked as a senior database administrator at the time he retirement. He plans to remain in the area.

Mark Gerving retired from the Synfuels Plant Dec. 27 after 29 years of service. He was hired in 1984 and worked as a maintenance field technician. He is married to his wife, Marla.

March – April 2014

31

Employee Highlights

Retirees

Delbert Fortin retired from Headquarters Dec. 31 after eight years of service. He began working as construction coordinator II in 2005.

Fortin says he enjoyed working with all the engineers and hired contractors while at Basin Electric. He plans on staying in the construction field and working for Western Area Power Administration.

He also plans to enjoy the cabin on Cottonwood Lake with the grandkids.

Jordan Wegner retired from Leland Olds Station Dec. 31 after 27 years of service.

Wegner began working as an electrician apprentice in 1986. His title was changed to electrician II, electrician lead and maintenance planner/scheduler.

Wegner came from a construction background where he worked for various contractors in multiple states. He says he was “wowed” to find out that most of Basin Electric’s employees had ten or more years of experience. “I thought that was a very long time and doubted I would be able to match that kind of tenure. Then relationships form, work challenges keep you focused and special events draw us closer creating a work family. Now over 27 years later I can truly say I am very proud to have been a part of this great family,” Wegner says.

Bruce Benz, maintenance planner/scheduler, describes Wegner as honest. “If you needed someone to hold a million dollars for a period of a month and think you would want it back, Jordon would have been that person to hold the money for me,” Benz says. “He’s a quiet guy, but when he does say something you better listen because it will be good.”

Perry Kress, maintenance planner/scheduler, says Wegner is very patient and caring. “Jordan is the type of person who would put his activities on hold to help out another person,” Kress says.

In retirement, Wegner says sharing time with family and friends will be his first priority. He also plans to travel and go camping and fishing. “Our extended travel plans we hope will include an Alaskan adventure, trips to various southern states, and some international travel. If after all this there is some unclaimed time, my wife and I both have old hobbies and projects we can revive,” Wegner says.

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Cheryl Kemmet retired from Headquarters Dec. 31 after 35 years of service. She began working as an account technician II in 1978.

Pat Meidinger, manager of accounts payable, says Kemmet was a true professional. “She was a consummate accounts payable staff member and team player. Her loyalty and dedication to the cooperative and specifically the accounts payable group was exemplary. She will be sorely missed by all those who interacted with her on a regular basis,” Meidinger says. “We will also miss her dry wit and humor.

They just don’t make them any better than that!”

Tom Stadick retired Dec. 26 from the Synfuels Plant after 16 years of service. He was hired 1997 and worked as a maintenance field technician.

Tom Schiermeister retired from the Synfuels Plant Dec. 29 after 30 years of service. He began working at the plant in 1983 and worked as a process operations field technician.

David Stenson retired from Laramie River Station Dec. 31 after 35 years of service. He began working as a boiler attendant in 1979.

His title was changed to auxiliary equipment operator, plant systems operator, control room operator and water treatment operator.

Dave Patterson, water treatment plant supervisor, worked with Stenson off and on for more than 20 years.

“Dave was a very knowledgeable operator who truly cared about his work and was always willing to share ideas on how to improve what we do. I will miss Dave’s caring attitude about Laramie River Station and this area,” Patterson says. “Last spring and summer Dave organized a cleanup of the road to Grayrocks Reservoir and the area around the reservoir. He and his wife spent several Saturdays working on this. Dave is a very good artist and has donated some of his drawings to help raise money for someone in need.

The local union IBEW 612 uses one of Dave’s drawings of a bighorn sheep as a logo on their apparel. I wish Dave a long and healthy retirement,” Stenson says.

Cindy Moran retired from Laramie River Station Dec. 31 after 28 years of service. She began working as a laborer in 1985. Her title was changed to utility operator, assistant yard equipment operator, boiler attendant and assistant plant operator.

Moran says she has many good memories. “Back in the old days I had a lot of fun in the coal yard. Y2K was exciting when Randy Jones was in charge,” Moran says. “It’s been a privilege to work with so many good and intelligent people.”

Walt Sturdivant, shift supervisor, says Moran was a valuable member of their crew. “Cindy was quick to engage and be involved with what the crew was doing at the time. She was always someone who had a quick smile for anyone at any time.”

Sturdivant says he worked with Moran in the Unit 3 scrubber area during start up, through the coal system and again in the main plant operations. “When you work that long with someone like Cindy you cannot help to be friends. I, along with all of E crew, bid Cindy a long and happy retirement. She earned it,” Sturdivant says.

In retirement Moran plans to spend more time with her family, go camping, and four wheeling. She also plans to have a garden and ride and work with her horses.

Arnie Minear retired Dec. 31 from Laramie River Station after 32 years of service. He began working as an instrument I in 1981. His title was changed to maintenance planner, assistant electrical supervisor, electrical supervisor, instrument supervisor and maintenance superintendent.

Kelvin Lower, maintenance planner/scheduler, says Minear moved up the ladder into several different leadership roles through his years at Laramie River Station. “Arnie had many ideas for work and personal interests. Arnie, being an avid scuba diver, had several photos of being up-close and personal with sharks. Because diving was one of his interests, he designed, manufactured, and sold diving lights. He used his computer to control a lathe to machine aluminum stock into a waterproof light.” Lower says Minear also made designs, like the Wyoming Cowboy bucking bronco, with his computer controlled router system. “I am sure Arnie has many options to keep him busy in retirement,” Lower says.

In retirement Minear plans to plans to travel, go scuba diving, continue his hobbies and “throw away the alarm clock.”

Craig Muilenburg retired Dec. 28 from Headquarters after 20 years of service.

Muilenburg began working as a journeyman lineman in 1993 at Transmission System Maintenance - Gettysburg. His title was changed to construction coordinator and construction coordinator II. Muilenburg says he has many good memories of working as a lineman. “Working on high-voltage lines is a special field, whether it’s changing insulators while the line is hot, bare handing live 345-kilovolt transmission line, or repairing line due to winter storm damage or summer tornadoes.”

Muilenburg says being the construction coordinator for the first and second LMS-100® built in the world at Groton (SD) Generation Station was an experience. “It was a big change to go from building a substation to building a gas-fired turbine generation plant. As a construction coordinator there is satisfaction with working through issues and keeping people safe. You get a sense of accomplishment by the physical results of your efforts,” he says.

In retirement Muilenburg plans to continue to work on high-voltage electrical construction projects and spend more time at home with his family. He also plans to fish, hunt, and build a new house.

Ronald Bosch retired from Laramie River Station Dec. 27 after 34 years of service.

Bosch began working as an auxiliary equipment operator. His title was changed to plant systems operator, plant operator, and control room operator.

In reference to his retirement, Bosch says, “I have been informed by my wife that I will not be bored. And even if I do get bored, I’m not telling her.”

March – April 2014

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