May-June Basin Today 2015

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

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M AG A ZINE

SA F E T Y F IRS T

M AY | JUNE 2015

NO M AT T ER YOUR VA N TAGE P OIN T

In celebration of Earth Day, more than 50 employees from Dakota Gasification Company’s Great Plains Synfuels Plant, Basin Electric’s Antelope Valley Station and The Coteau Properties Company’s Freedom Mine spent a few hours on April 23 collecting garbage along several miles of ditches surrounding the facilities near Beulah, ND. http://bit.ly/BEEarthDay

CONTENTS V O L U M E 18

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ON THE COVER Basin Electric line crews from North Dakota, South Dakota, Wyoming and Nebraska gathered in Spearfish, SD, the week of May 4 to test new equipment and train on wood pole structures. Paul Kaiser, Basin Electric assistant line superintendent, says the crews worked through self rescues, bucket rescues and testing the 100 percent fall protection equipment. Featured on the cover is Shane Homan, lead lineman, Stegall, NE. IN EVERY ISSUE 2 CEO and general manager column: Paul Sukut 4 In brief 14 Member focus: Co-op involved with helping teens make safe choices 18 Employee highlights FEATURE STORIES 6 Dakota Gas brings positive value to the cooperative 8 Bakken peaking power: Chapter III 9 In the midst of testing and market trials 12 Basin Electric begins steps to buy out of Rural Utilities Service 13 Train the Trainer empowers co-ops, informs youngest members 16 Nearly 40 years with his co-op family, Claire Olson retires CONTRIBUTORS Editor: Andrea Blowers (ablowers@bepc.com) Publications manager: Mary Miller Graphic designer:

Nicole Perreault

Photographer:

Chelsy Ciavarella

Writers:

Tracie Bettenhausen, Joan Dietz, Chris Gessele, Tammy Langerud, Dain Sullivan, & Lindsey DeKrey Use your smartphone barcode scanner to view stories online.

MAY – JUNE 2015 | 1

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

PAUL SUKUT DIGGING DEEPER AND GETTING SAFER As my daughter, Lizzie, was leaving to make her way back to Minneapolis Easter weekend, I told her, “Be safe.”

She looked at me – as only a 20 year-old can – and said, “Ummm … okay.”

I worried about her all day until I got her text saying she arrived safely.

Then I reflected on our Our Power My Safety initiative ongoing at Basin Electric. I’ve sat in on some of the steering team meetings so I can meet the folks across the cooperative who are helping us implement this culture-changing initiative. I am impressed with their commitment, diligence, knowledge and teamwork. But what really struck me is their passion.

Their passion transcends safety records, industry averages and near-miss logs. These people are completely vested, and it is rooted in a profound commitment to their fellow coworkers. They care.

I’ve often told employees to “be safe.” While I have struggled to find the words to convey how important safety is, my exchange with Lizzie has helped me to dig a little deeper.

So, what does “be safe” mean at Basin Electric?

It means you look out for not only yourself, but your fellow coworkers. It means that you view your coworkers as your own brothers and sisters.

It means you create an environment where safety takes priority over getting the job done.

It means that employees feel empowered to stop a job if they view unsafe work habits, and they don’t feel like they’ll be mocked or criticized for it.

2 | BASIN TODAY

It means that we look out for the little things and give each other a heads-up, be it a broken tile or a wet floor.

It means that those who have “desk jobs” no longer feel like their safety doesn’t matter, because “what would really happen at a desk?” Cords, steps and so many more things all have implications on our safety. You rarely hear of someone breaking their leg in a “valiant” way, but it’s tripping up the stairs while carrying a load or tripping on a twig in a parking lot that often gets us.

It means that when we get home, we carry that same mentality off the job.

It means that safety isn’t just talked about, it’s practiced daily, and ultimately, intuitively.

It means that road trips may be canceled, because the risk of driving isn’t worth the risk of the accident.

And, it means that we put our phones down when we drive.

I recently learned of an accident where a young man died in a car crash. He was texting and driving.

We’ve all done it. And, we need to stop.

I could go on, but I think you get the point. Are we there yet at Basin Electric?

No. We’re far from it. We’ve got our work to do, and it’s going to take everyone – top down and bottom up.

I’ve had many discussions with Basin Electric’s managers about this topic.

To formalize this process, I’ve laid out a number of initiatives, including regular safety conversations with

employees, participation in continuous improvement inspections and ongoing feedback regarding safety observations. Each manager is to meet with his and her staff on a weekly basis. Safety, cooperative updates and job-specific news will be addressed.

Furthermore, at least annually, I will meet with the Our Power My Safety steering team and each active continuous improvement team to see how the process is working from their perspective, recognize successes, and assess problems and solutions. Board members have also been invited to participate in the Our Power My Safety meetings and they are ready to do so.

While I understand these steps will not get us there all the way, they are a step in the right direction. I was in a friend’s office the other day. He had this quote hanging in his office. While I’m not usually affected by lofty quotes, this one in particular seemed to fit where we are right now, so I wrote it down.

“Vision is not enough; it must be combined with venture. It is not enough to stare up the steps; we must step up the stairs.” - Václav Havel Basin Electric has started our way up the stairs.

I hope you’ll join us.

Paul Sukut, CEO and general manager

MAY – JUNE 2015 | 3

IN B RIE F

Co-op message hits Capitol Hill

2015 EOY generation statistics show greater fuel diversification Basin Electric’s projected generation statistics for 2015 end of year (EOY) are now posted online, and show continued increase in natural gas and renewable generation.

U.S. Sen. Heidi Heitkamp (D-ND) talks with cooperative representatives during visits with legislators.

Basin Electric representatives joined nearly 2,000 electric cooperative leaders in Washington D.C. May 3-5 as part of the National Rural Electric Cooperative Association (NRECA) Legislative Conference.

Conference topics ranged from the Environmental Protection Agency’s (EPA) Clean Power Plan 111(d), to solar power, to cybersecurity. In addition, three topics were top of mind: seeking cosponsors for the Ratepayer Protection Act; seeking cosponsors for the Regulatory Integrity Protection Act and the Federal Water Quality Protection Act; and urging support for the Coal Combustion Residuals Regulation Act.

2008-2015

$440,000 $1.9 million

participants in 2015

“The support and generosity people continue to show each year blows us away. The amount of money that was raised this year and the number of people who shaved really speaks for itself. It tells that we have a community made up of amazing people who are passionate about joining the fight against childhood cancer, and what a difference we’ve been able to make together,” said Jennifer Holen, Basin Electric event planner/charitable giving coordinator. http://bit.ly/2015BraveTheShave bravetheshave.coop

4 | BASIN TODAY

Recovered 0.8% Coal 56.4%

Wind 14.5%

Nuclear 1.1.%

Hydro 5.6%

Maximum winter capability in MW Coal-based – 3,154.1

Hydro – 315.7

Recovered – 44

Nuclear – 62.2

Natural gas – 1,026.5 Oil, diesel and jet fuel – 180.8

Wind – 810.7

2015 EOY

Basin Electric’s 2015 Brave the Shave campaign sets records

360

{

Oil 3.2%

TOTAL = 5,594 MW

http://bit.ly/May2015LegConf

2015

Renewable 15.3%

Natural Gas 18.3%

Basin Electric’s Resource Portfolio (above) consists of generation in megawatts (winter ratings) from owned facilities and purchased power contracts longer than 3 years. The renewables percentage includes wind, recovered energy generation, and flaregas totals.

http://bit.ly/BEPCGlance

Member survey shows satisfaction with Basin Electric’s efforts Basin Electric member managers and communications/member relations staff participated in a survey this spring measuring member satisfaction with Basin Electric. Participation was strong, with 125 members responding, and the results were favorable.

The survey showed members are most satisfied with Basin Electric in the areas of being a good environmental steward, giving back to communities throughout its service territory via donations, being engaged in issues important to the membership and communicating cooperative news and information. http://bit.ly/2015BEPCMemberSurvey

2014 annual report distributed

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Basin Electric Power Cooperative

This 2014 Annual Report was written, compiled and produced by the employees of Basin Electric Power Cooperative and its subsidiaries.

Editor: Andrea Blowers (ablowers@bepc.com) Senior Graphic Designer: Julie Ness Photographers: Steve Crane & Chelsy Ciavarella

Leland Olds Station Plant Manager Jamey Backus (middle) accepted the Excellence in Safety Award April 22 on behalf of plant employees from Lignite Energy Council Chairman and Minnkota Power Cooperative CEO Mac McLennan (left) and North Dakota Gov. Jack Dalrymple. The plant received the award for achieving a zero-accident incident rate last year.

Information Requests:

On the cover: Lance Steiger, with his son Brodey, is a lineman for Basin Electric Class C member West River Electric Association in Wall, SD. Photo credit: West River Electric Association.

Annual Meeting

Audited Consolidated Financial Statements

The 2014 Basin Electric annual report follows the cooperative’s 2014 annual meeting t h eme, “ M emb er O w n e d, Member Driven,” and focuses on the reason Basin Electric exists – to serve its members.

“This year, we’ve included a large pullout map that shows our cooperative’s service area, the directors for each of our Class A members, locations of our generation resources and generation data,” said Andrea Blowers, annual report editor.

The 2015 Basin Electric annual meeting of the membership is scheduled for Nov. 4 and 5 in Bismarck, ND.

Safety accolades across the co-op

http://bit.ly/2014BEPCAnnualReport

FIND US ON THE WEB BasinElectric.com DakotaGas.com

Read Basin Today online @ basinelectric.com/BasinToday Auston Biles (middle), Basin Electric safety coordinator, accepts the Commendation for Safety Award April 22 from Chuck Clairmont, North Dakota Safety Council (NDSC) executive director/CEO, (left) and NDSC Board President Darrel Hellman, environmental, safety & health manager for Doosan Infracore International. The NDSC recognized several Basin Electric facilities where employees displayed “exemplary safety performance” throughout 2014, during their Safety & Health Awards Luncheon in Bismarck.

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MAY – JUNE 2015 | 5

A fleet of two ambulances and five fire and rescue vehicles are available for emergency response and have aided in emergencies in Mercer County, as well as at area electric generating facilities.

DAKOTA GAS BRINGS POSITIVE VALUE TO THE COOPERATIVE

By Joan Dietz It has been nearly 27 years since Basin Electric’s membership voted to purchase the Great Plains Synfuels Plant and form Dakota Gasification Company. It’s no secret that purchasing the facility posed a risk for the cooperative and its membership, but taking bold initiatives had been the basis for founding Basin Electric.

It’s taken some time and innovation, but the value that purchase has provided to Basin Electric and the membership over the years has proven to be significant, and can be measured by more than just dollars.

Basin Electric staff recently conducted a study to show the benefits Dakota Gas brings to Basin Electric and its members. The information was shared during the March board of directors meeting.

When the plant was purchased in 1988, the Synfuels Plant’s value proved to be about $37 million a year, considering the fuel supply, power supply and shared facilities.

Around the year 2000, the plant was in a construction phase, and then was repaying debt to Basin Electric for several years. By 2008, debt was paid off and dividends were coming back to Basin Electric members.

6 | BASIN TODAY

Currently, the plant is in a construction phase again with the urea plant project.

Working with several components, the recent study found Dakota Gas brings a benefit of $59 million per year to Basin Electric and its membership. This includes the fuel supply, power supply, shared facilities, allocations and other miscellaneous benefits. To the membership, that equates to a 2.5 mill on-going benefit.

Over the years of operating the Synfuels Plant, the business model has changed significantly from primarily producing natural gas, to producing a slate of products.

Currently, the Synfuels Plant produces 10 products including natural gas, anhydrous ammonia, ammonium sulfate, cresylic acid, phenol, krypton-xenon, liquid nitrogen, carbon dioxide, naphtha and tar oil. With the completion of the urea plant projected for spring 2017, sales of urea and diesel exhaust fluid will be added to that list of products.

Manager of Financial Planning and Forecasting Andrew Buntrock explains why the value of Dakota Gas has grown. “Several things have changed in the past five years for Basin Electric – mainly that Basin

$ Millions

continues to grow at a record Dakota Gas benefit to Basin Electric studies pace, so it is not surprising $59 that the benefit that Dakota 60 Gas provides to Basin grew, as well,” Buntrock said.

50 Other “We also keep our eye $39 40 $37 Allocations on the historical benefit that $30 Dakota Gas brings to the table Shared facilities 30 from a cash perspective. This Power supply 20 includes the purchase price of the plant, dividends received Fuel supply 10 and the loan advances and repayments, which of course 0 1987 1998 2011 2015 includes interest. At the end This chart shows the cumulative cash impact of Dakota Gas of the day, the current cash throughout the subsidiary’s history. flow from Dakota Gas to Basin is positive by more than $200 available for emergency response and have aided million. So if we wrap this all together, we estimate in emergencies in Mercer County, as well as at area that Dakota Gas has benefited the cooperative by electric generating facilities. Having trained emermore than $1.1 billion since Basin Electric purchased gency medical technicians, nurses, a family nurse the plant in 1988.” practitioner and doctor on staff, ready to respond at a Additionally, value is added, not monetarily, but moment’s notice to save lives, is more than valuable; with infrastructure. The shared benefits that come it’s invaluable. with in-house medical services provided to employees Full-scale mass casualty exercises held in 2013 cooperative-wide, the use of machine shop services to and 2014 are an example of the efforts to improve fix equipment at the power plants and the fire-fighting emergency response and coorcapability available to the area power dination within the community. plant facilities continue to add value, So if we wrap this all The exercises were coordinated along with sharing the water intake, together, we estimate that

by Synfuels Plant personnel with rail spur, coal facilities and purchasing Dakota Gas has benefited the the assistance of the Mercer electricity from Basin Electric. cooperative by over $1.1 billion County emergency manager The medical services team at since Basin Electric purchased the plant in 1988. and Local Emergency PlanDakota Gas provides a benefit to ning Committee. Participants employees that saves on medical Andrew Buntrock included representatives from costs. Dr. Tom Kaspari and his staff local fire departments, emersee employees throughout the coopergency medical services, law ative, traveling between the facilities enforcement, hospitals and the North Dakota Departeach month. Employees save time away from their ment of Emergency Services. This proactive approach jobs, as well as the cost of an office visit, by seeing provides value to Dakota Gas and Basin Electric, as well Dr. Kaspari at their job site. Whether employees are as the local communities and other energy facilities. visiting medical services for their yearly physicals, a The ongoing study of Dakota Gas in relation to random drug test, a rash, strained back, respiratory Basin Electric indicates continued benefit for Basin infection or the annual influenza injection, Dr. Kaspari Electric, its members and surrounding communities. and his staff are available to provide on-the-spot Basin Electric’s members made a wise investment medical care. in Dakota Gas in 1988 to support the goal of minimizing Emergency services provide coverage not only and stabilizing the cost of power. And this benefit can at the Synfuels Plant, but also to area Basin Electric be seen even when Dakota Gas profit margins are low facilities and the local communities. A fleet of two as a result of commodity prices. ambulances and five fire and rescue vehicles are

MAY – JUNE 2015 | 7

BAKKEN PEAKING POWER:

CHAPTER III

By Chris Gessele The steep incline of electrical load growth in the Williston Basin has flattened some in response to depressed crude oil prices, but Basin Electric’s members in the region remain in great need of power.

That’s where Basin Electric’s Pioneer Generation Station and Lonesome Creek Station come into play.

At Pioneer Generation Station, a 135-megawatt (MW) natural gas-based peaking station northwest of Williston, construction started May 4 on Phase III of the project.

Phase III for Pioneer Generation Station will consist of 112 MW of additional peaking capacity, provided by 12 natural gas-based reciprocating engines that each have a generating capacity of 9.3 MW. Commercial operation of Pioneer Generation Station Phase III is targeted for June 2016.

“This technology is totally brand new to Basin Electric,” says Josh Rossow.

According to Rossow, Basin Electric project manager II, contractors are currently grading the site, installing storm sewer systems, excavating holes for building foundations and building roads at the site.

Foundations for all buildings and major equipment will begin being poured in June 2015. The most critical is the foundation for the building that will house the 12 reciprocating engines. Those large engines set sail from Finland, and once they arrive they’ll be loaded onto 12 separate rail cars in Duluth, MN, and railed to Williston, ND. The engines will arrive onsite via heavy haul truck in November 2015.

“During November there will be a lot of mechanical and electrical work going on,” Rossow says. “That will be the height of construction.”

Construction has also started on Phase III at Lonesome Creek Station, a natural gas-based peaking station west of Watford City, ND. Permitting for the Lonesome Creek Station Phase III allows for the addition of three 45-MW

8 | BASIN TODAY

combustion turbines. Commercial operation of two of the units is targeted for June 2016, with the potential third unit slated to go commercial in 2017.

Lonesome Creek Station Unit 1 started commercial operation December 2013, with Units 2 and 3 going commercial on Jan. 1, 2015. Each of the three units has 45 MW of generation capacity, giving the station a total rating of 135 MW. The new turbines will be adjacent to three existing turbines at the site, bringing the plant’s total generation capacity to 270 MW. The two new units will be arriving onsite in September 2015.

About 150 workers are expected at the peak of construction at each site.

Each of the projects take many months of planning and collaboration by many different people, Rossow says.

“There’s a ton of work that goes into the permitting, engineering and procurement for these projects,” Rossow says. “The project teams have put in a lot of hard work over the last year. There’s still a huge amount of work to be done, but it’s a great feeling to see these plans put into action and begin coming together.”

Projects receive permits The North Dakota Public Service Commission approved Basin Electric’s applications for Certificates of Site Compatibility for both Phase III projects at Pioneer Generation Station and Lonesome Creek Station on April 29, 2015.

In addition, Basin Electric received Air Pollution Control Permits to Construct from the North Dakota Department of Health for Pioneer Generation Station on April 7, 2015, and Lonesome Creek Station Phase III on May 12, 2015.

IN THE MIDST OF TESTING AND MARKET TRIALS

By Andrea Blowers “This really has been a huge undertaking. I don’t “We’ve been planning up to this point and all the think there’s a department in Basin Electric that hasn’t work that’s been done has been preparation for the been involved in this process.” market trials. Once they’re complete, SPP will have Kevin Tschosik, manager of distributed generation, a go/no go decision by July 31 if Basin Electric will is referring to the time and energy Basin Electric staff participate in the market on Oct. 1,” Rutter says. have devoted to completing the work necessary to join Market trials began May 18 and run until July 17.

Southwest Power Pool (SPP), a regional transmission Becoming a member of SPP means Basin Electric organization (RTO). will be a member of a transmission network that includes Following Basin Electric’s board decision in July more than 48,000 miles of transmission and more than 2014 to move forward with joining SPP, hundreds of 63,000 megawatts of generating capacity. employees across the cooperative have been involved Registering generation at various levels to ensure it’s done right. “They’ve really dug in, working long days to make the transition happen A large part of preparing for the trials was gathering

by Oct. 1 of this year,” says Ken Rutter, vice president all the data and logistics of each generating unit and of Marketing & Asset Management. registering that information into the Is Basin Electric ready? That’s SPP system. Employees at each This really has been being tested now in what’s called of the cooperative’s generating a huge undertaking. I don’t market trials. facilities worked with Headquarters think there’s a department in “Market trials are a period of staff and others to gather the data Basin Electric that hasn’t been time where we actually get to see of their respective plant and that involved in this process. if we’ve done everything we needed information was then supplied Kevin Tschosik to do,” Rutter says. to Cooperative Planning to be During the trials Basin Electric registered in the SPP system. and SPP will be doing deployment According to Becky Kern, testing – can the plants respond to SPP signals; reguladirector of utility planning, the registration process tion testing – can the plants respond to regulation started around September 2014. “There are three and ramp rates provided in the market registration; aspects to it,” she says. “One is the network transmismarket activity – can marketing submit generation sion service registration, which basically says we offers, demand bids, virtual transactions, etc. to SPP have the rights on the transmission system to use the and receive awards back; settle – can the back office transmission system. With that, Basin Electric must receive and tie out settlement information from SPP; register all the load points, which are the points on the and transmit/relay – can Basin Electric send/receive transmission lines that signify where the electricity is data from the portal. coming off the SPP transmission system. We’ve had to

MAY – JUNE 2015 | 9

identify all the different loads and determine whether operations, to pass data signals back and forth between it’s a co-supply or not.” the generator and SPP. “A lot of work has been done by Because the transmission in the Integrated System Headquarters control engineers, plant staff and IS&T to (IS), which includes Basin Electric, Western Area Power get this all installed and tested,” Tschosik says.

Administration and Heartland Consumers Power District, The third registration piece is specific to the Market was built jointly, Basin Electric is tasked with defining Monitoring Unit. The Market Monitoring Unit evaluates the load splits at each of the hundreds of load points. each offer submitted to SPP to ensure the offers are in The entities have to then all agree what percentage of no way manipulating the market and in compliance with the load was used to fulfill their obligations at each of how the unit can be operated. All the data Basin Electric those load points. submits for each plant is part of the market monitoring “Then there’s the market participant registration data depository. and that’s the part of the energy market which defines “Everything we register has a value,” Tschosik how you are functioning in the market environment; how says. “There’s a monetary value in the marketplace for you are grouping your loads and your all aspects of how you register each SPP has taken pride generators; and who’s financially generation facility. We worked with our in that they’ve never missed responsible for all of it,” Kern says. plants’ performance engineers and did a go live date. Part of it is the The amount of data for each a cost study analysis of each plant and amount of effort they put into generating asset is extensive for the all the costs to run that plant. Basically, the market trials period to make market participant registration. For it’s the fuel cost, the maintenance cost sure that everybody’s comforteach asset it includes information and the capital cost.” able that they can do what they such as its latitude and longitude, The market monitoring data is also need to do. its operating parameters and limits, supplied to and used by the marketing Ken Rutter if it’s a jointly-owned resource and department to assist in developing and so much more. The registration was submitting generation offers. The data completed for the resources Basin is basically a model of each plant and Electric owns and purchases. how they run, so the data is adjusted as needed. With “Our coal plants in the east side market, which is every offer for a generating asset into the marketplace what will be in SPP, are Laramie River Station Unit 1, the Market Monitoring Unit monitors review and analyze Antelope Valley Station Units 1 and 2, and Leland Olds the offers to be sure they are sound.

Station Units 1 and 2. The coal plants are registered as a Testing the market regulation up and down, which means in the marketplace they will receive a four-second command signal from SPP Preparation was key in the market trials process. directly to the plant to advise what load the plant should The software, systems, people and communication be at within five minutes. That could be up or down,” processes had to be ready.

Tschosik says. “The range, however, is predetermined The trials themselves consist of an evolution of by the plant registration.” Groton Generation Station, testing and scenarios in a mock market simulation.

Culbertson Generation Station, Lonesome Creek Station, “SPP runs a true full day-ahead dispatch simulation Pioneer Generation Station and Deer Creek Station will and real time dispatch simulation for all 60 days of the also be included in SPP, but have been registered with market trials,” Rutter says. different sets of parameters because they’re startup Basin Electric will be doing simulations of business and run capabilities are different. as usual as well more than a 100 different combinations To have the capability to accept a four-second of system issues and/or stresses. dispatch signal, each generator must have Automatic “What if our load forecast intervals aren’t working Generation Control (AGC), which is a computerized or we can’t get Western the co-supply piece they need power system maintaining scheduled generation that’s for participation in the market through normal means? changing moment to moment to follow the loads in a What if the tools we communicate through the market defined area. They also must have an Energy Manageare down and we have to submit through the web-based ment System (EMS), the software system used by portal?” Rutter says. All of these scenarios and more are SPP for the real time acquisition of operating data and being tested.

10 | BASIN TODAY

“Then there’s the stresses,” Rutter says. “What if we have a high load day and a low load day? How are we going to respond differently with our generation offers and demand bids? What if gas prices are high? What if wind is high? What if there’s a lot of congestion in the marketplace on the transmission system? There’s also the generation outage scenarios.”

As the trials are taking place, a major transition also occurs. SPP takes over as reliability coordinator from Midcontinent Transmission System Operator (MISO) for Basin Electric and Western on June 1.

Western will continue be the transmission operator for the Upper Great Plains area even after go live in October. That means they will do submission of transmission outages to SPP. In fact, Western is an integral part of the testing process. SPP has stated that both Basin Electric and Western will need to be successful during the market trials for Basin Electric to be cleared for the Oct. 1 go live.

Settling and adjusting as needed “The whole purpose of the market trials is to work out discrepancies and also work out the business processes within the organization. The market requires the development of the model, which comes from the market participant registration and then actually operating in that environment and settling at the end of the month,” says Jason Doerr, manager of RTO and delivery service.

Settling at month’s end has a number of components.

The rates and revenue division must gather the generation meter data and load meter data for settlements with SPP. Western reads a large percentage of the member load meters and transfers it to a software called MV90 system, says Sharon Lipetzky, manager of rates and revenue. Basin Electric then reads the meters or imports the reads from Western and other entities. Historically, this process has been done once a month beginning the first of the month.

In SPP that data will be more time sensitive.

Instead of gathering the meter data once a month, the process will be done a minimum of every two weeks. The rates and revenue division will begin this process during the market trials.

From the back office perspective, which is the settlements of all the market transactions, particularly during the market trials, they’ll be looking back at each day and reviewing what happened at each hour of that prior day, says Delphine Alm, manager of settlements.

“During market trials, each day SPP will post a settlement statement. What that’s going to show is all of our load and all of our generation. Like today we’ll come in and review what occurred yesterday.

So, we’re always looking behind. Where the front office is concerned with things going forward, we’re always reviewing what happened.

“Every day we’ll need to know all the different scenarios that happened at specific times. It’s our job to review what the impact of those were and to provide the feedback to the front office, the marketing group,” Alm says.

Once Basin Electric completes market trials, the ultimate responsibility in settlements is if they’re finding things that aren’t looking appropriate, they need to be asking a lot of questions and trying to figure out if there’s something in the front office that’s incorrect or if it’s an SPP issue.

“If we find discrepancies, we’ll have an opportunity to dispute them,” Alm says.

Market trials are an intense process in which employees across the cooperative are engaged. “It’s really a massive project,” Rutter says. “SPP has taken pride in that they’ve never missed a go live date.

Part of it is the amount of effort they put into the market trials period to make sure that everybody’s comfortable that they can do what they need to do.”

Components of a resource offer Offers include: Resources qualified to provide energy

• Startup offer* • No-load offer* • Energy offer curve* • Operational parameters

Regulation-qualified resources • Regulation-up qualified regulation up offer* • Regulation-down qualified regulation down offer*

Spin-qualified resources • Spinning reserve offer* • Supplemental-qualified resources • Supplemental reserve offer* *Mitigated offers accompany the day-ahead market

MAY – JUNE 2015 | 11

BASIN ELECTRIC BEGINS STEPS TO BUY OUT OF RURAL UTILITIES SERVICE

By Tracie Bettenhausen

Percentage

The Rural Utilities Service (RUS) has been he’d been witnessing at the agency since he started the borrower of choice for cooperative electric utilities his tenure five months earlier. He wasn’t able to provide for generations. In fact, it’s been referred to right along much comfort that the proposed NEPA rules would with the terms “motherhood and apple pie.” But at either be rewritten or withdrawn. Schneider has since their May board meeting, Basin Electric directors voted been replaced as administrator by Brandon McBride. unanimously to refinance all RUS guaranteed Federal Basin Electric isn’t the first generation and transFinance Banking debt and go to cooperative banks as mission cooperative to take this step. Tri-State G&T, a well as the private and public markets for all future Basin Electric Class A member, completed their RUS debt financing. buyout Nov. 5, 2014. Others such as Chugach Electric Steve Johnson, Basin Electric chief Association, Old Dominion Electric Cooperative and financial officer and senior vice presiGreat River Energy, have bought out as well. dent, says proposed upcoming new Johnson says while Basin Electric is not the first rules at RUS mean the timeframe for cooperative to buy out of RUS, his knowledge and borrowing money is increasingly longer experience told him it was wise to avoid waiting to be and more uncertain than ever. “Changes further down the list. “Money will potentially be more are being proposed to the National difficult to come by as more large Environmental Policy Act (NEPA) cooperatives buy out. By starting By starting the process that are the first significant the process now, we’ll have a ‘first now, we’ll have a ‘first mover changes since 1977, and the final mover advantage’ that will mean advantage’ that will mean better rule and ultimate implementation better access to capital. Also, today’s access to capital. are unknown. We are concerned markets present the opportunity Steve Johnson these changes would mean much to lock in historically low financing longer delays in financing construccosts,” he says. tion for generation and large While this is a good move for transmission projects,” he says. The future of RUS is in generation and transmission cooperatives, Johnson question as well. Appropriation, organization, strategic says RUS will continue to serve a vital purpose for direction and staffing are in flux, and the power supply distribution cooperatives. “Where we keep seeing major division has been eliminated. delays in receiving money is in the generation area, That uncertainty, coupled with current interest rates which is where Basin Electric’s larger investments will hanging at their lowest point in decades and threatening be moving forward,” he says. “On the distribution end, to move up, Johnson says directors saw the need to continuing to use RUS will remain a prudent option.” make a decision soon.

Basin Electric’s RUS funding decreases Johnson says the RUS buyout may be done in one or two phases. Groundwork began in January in preparation 80 of the board decision. All told, Basin Electric could be 70 completely bought out of RUS by September. The total 60 buyout is worth approximately $1.4 billion.

50 The decision wasn’t made lightly. Discussions at 40 Basin Electric have been ongoing since late 2014, when 30 directors and staff began inviting in subject matter 20 experts to talk about the issues.

10 In January, the board invited then-RUS interim 0 administrator Jasper Schneider to talk about what 2004 2014 2022 12 | BASIN TODAY

train the trainer EMPOWERS CO-OPS, INFORMS YOUNGEST MEMBERS

By Lindsey DeKrey “When we were presented with this know how to deliver the program, the more kids will opportunity I told my boss, ‘I’m first in line.’” see it, and be kept safe around electricity,” Kranz says.

Robert Adams is excited about the new role In January, the first training session was held, he gets to play within his cooperative. Adams has and six employees from Tri-State G&T, Continental begun presenting the Story Behind the Switch Divide Electric Cooperative and Otero County Electric program in a train the trainer pilot roll-out. Adams Cooperative participated. Continental Divide was is a relationship manager for Basin Electric Class A involved in the brainstorming for the program. member Tri-State G&T Association.

Basin Electric pays for the cost of the turnkey kits, Basin Electric has been bringing the Story which are customized to the Class A member. The Behind the Switch hands-on educational program kits include retractable banners, table skirts, teacher to its members for more than 30 years, teaching workbooks, stickers, a PowerPoint presentation, an students to be safe around electricity, the various energy efficiency booklet and demonstration equipment ways of generating electricity, and electricity’s path like the Van de Graaff generator. from the power source to a home.

The training spans a few days and includes time to Since 1983, the program unpack, set up and learn about the has undergone several evolumaterials. It also includes time for The train the trainer pilot program is tions. The most recent update trainees to observe Kranz conductbeing offered to Class A members. For was in 2013. “The upgrades and ing a presentation at a local school, more information, contact Kim Kranz at modernization of the program followed by the trainees conducting 701-212-6775 or kkranz@bepc.com. has created more of a buzz and a presentation of their own. Once interest. Schools are referring Class A members are trained, they the program to other schools and our co-ops can conduct the presentation to their members. have been getting more and more requests for Since being trained in January, Adams has visited the presentation,” says Kim Kranz, Basin Electric four different member systems, spending about a week demonstration coordinator. at each one giving presentations to several schools.

The popularity prompted the recent creation “The best part is getting to interact with the kids and of the train the trainer pilot program, where Kranz literally seeing the light bulb go on when you talk about is training staff at Class A member co-ops how to electricity,” Adams says. deliver the Story Behind the Switch presentation.

When Adams delivers the program, he talks about “We wanted to provide this tool so they can foster more than just electricity. “The younger generation relationships with their members and share their doesn’t have a good understanding of what a co-op is. co-op story,” Kranz says.

I always try to take the opportunity to explain what it Before the program was rolled out, Kranz means to be a co-op member and tell them traveled Basin Electric’s nine-state member region how we came about,” Adams says. bringing the one-hour program to more than 12,000 Adams encourages other coopstudents a year. The program will now reach even eratives to take advantage of the more students. “It frees our members up from my program. “The benefits are calendar limitations. Now we’re able to deliver this too enormous to count,” program more efficiently. The more people that Adams says.

MAY – JUNE 2015 | 13

M E MB E R F OCUS

CO-OP INVOLVED WITH HELPING TEENS MAKE SAFE CHOICES

By Tammy Langerud Kelly Stern stands in front of 125 freshman-aged students in the Jones County High School gymnasium in Murdo, SD. The South Dakota Highway Patrol sergeant holds a large, white diamond-shaped sign with the word THINK printed in bold black ink.

Stern tells the crowd of young faces that signs like the one in his hand are located at spots along South Dakota highways to mark the site of a fatality. This should be alarming for these teens because drinking and driving is the leading highway killer for their age demographic nationally.

But it’s also personal for Stern. “I remember people’s faces from those crashes, and I don’t want to remember these kids from a THINK sign at the side of the road,” he says.

A proactive stance

A lineman from West Central Electric Cooperative holds a fake de-energized power line that was part of the mock crash scene for Freshman Impact. Firefighters tend to the scene in the background.

14 | BASIN TODAY

In 2006, Stern and Pennington County Deputy Rick McPherson, both stationed in Wall, SD, noticed the troubling trend of underage drinking and destructive behavior among teens. They decided to do something.

The genesis of their care and concern for South Dakota’s youth is a prevention program called “Freshman Impact: Caught in the Moment.” This day-long program targets high school freshman and arms them with knowledge and skills to make safe choices and to prevent destructive behaviors that can lead to bodily injury and death.

What started out as a program reaching two schools now reaches 29 South Dakota schools and is growing. Freshman Impact’s parent non-profit organization, C.O.R.E (Community Organized Resources for Educating youth), has a goal to expand the program statewide. It’s also endorsed by the South Dakota Highway Patrol.

“If we can get students to make the right choices early on in their high school career, we’ve succeeded,” Stern says.

Communities like Murdo, home to West Central Electric Cooperative, a Class C member of Basin Electric, are taking a proactive stance to ensure the success of their youth by encouraging them to make smart choices. For the second year, the local school hosted Freshman Impact and included four schools from neighboring communities. Since the first program in Murdo, West Central has supported Freshman Impact by providing equipment, sponsorships and manpower.

High school freshmen observe first responders treat victims of a mock drunk driving car accident, which is part of Freshman Impact. West Central is a sponsor of this annual program that educates youth about making smart choices and provides training for local rescue services.

Tammy Van Dam, co-chair and co-site coordinator for Freshman Impact’s Badlands area serving Murdo, has volunteered with the local ambulance service for 20 years and has seen first-hand car accidents involving local youth.

“If we can educate our youth and save one life with this program, it’s worth it,” Van Dam says.

Fellow co-chair Ray Erikson, involved with the Murdo Fire Department since 1976, shares Van Dam’s sentiments. “If my presence here makes it more comfortable for them to talk to me about something that happened, it’s worth every moment for that,” Erikson says.

New in this year’s crash scene is the inclusion of a downed power line. As a result, West Central played an active role. Linemen also rushed to the scene to tend to the downed power line before rescue services could approach the scene to treat the victims.

Joe Connot, member services representative at West Central, says he was excited when Freshman Impact coordinators contacted him about including a downed power line.

“Any time we can educate our youth to be safe, whether it’s electrical safety or drug and alcohol safety, we’ll do anything they ask us to do,” Connot says.

Far-reaching benefits

The benefits of Freshman Impact run deep through the communities it serves.

Freshman Impact features learning stations that First and most importantly, students are educated cover topics of teen dating, drugs, mental health/ about making safe life choices. suicide prevention, cyberbullying, texting, Second, local firefighters along with simulators of drunk driving and and EMTs, all of whom are Anytime we can educate the effects of not wearing a seat belt if volunteers, receive handsour youth to be safe, whether it’s a car rolls over. on training at a mock crash electrical safety or drug and The pillar of Freshman Impact is scene. This vital training helps alcohol safety, we’ll do anything a mock drunk driving car crash, which the volunteers learn how to they ask us to do. provides the students with an as-realhandle scenarios – like a Joe Connot as-possible experience without having downed power line – before to experience an actual tragedy. Fake encountering them live. blood and car fluid pool on the street An additional benefit beneath the wreck. Crash victims, portrayed by of Freshman Impact is that students see law previous attendees of Freshman Impact, scream for enforcement in a positive scenario. “This may be help. Their faces and bodies are marred with trauma the only positive interaction these kids may ever wounds, thanks to professional makeup and moulage. have with law enforcement, EMTs or firefighters Law enforcement, firefighters and emergency because when we show up at something, things are medical technicians (EMTs) rush to the scene and already bad,” Stern says. “We’re trying to change treat it like a real car crash. Nearby, the freshman that perception.” students, perched on bleachers in the street, observe www.freshmanimpact.com as the scene unfolds before them.

Learning not to become a statistic

MAY – JUNE 2015 | 15

NEARLY 40 YEARS WITH HIS CO-OP FAMILY,

CLAIRE OLSON RETIRES

By Dain Sullivan

After nearly 40 years at Basin Electric, Claire Olson, senior vice president and General Counsel, retired May 12.

16 | BASIN TODAY

It’s a sunny Tuesday, and Claire Olson briefly gazes out his office window. Being indoors is tough when there’s perfect golfing weather.

For Olson, now retired Basin Electric senior vice president and General Counsel, any time can be tee time.

After nearly 40 years of serving the cooperative’s legal department, perhaps this lawyer has earned some time on the fairway.

We’ll allow it.

Of course, saying goodbye isn’t always easy.

“After working here for nearly 40 years, you have mixed feelings about leaving,” he says. “It’s like you spend 40 years with your family, and then you have to walk out the door.”

It’s a family Olson has loved since he started working at Basin Electric as a staff attorney in 1975, shortly after graduating from University of North Dakota Law School.

Back then, Basin Electric was based in the Provident Life Building in downtown Bismarck, ND, and the current Headquarters building was under construction.

Leland Olds Station Unit 1 was the only operating generation unit at that time, and the construction of Unit 2 was nearly complete. The membership load was growing rapidly, so the cooperative was in the early stages of planning for the Laramie River Station in Wheatland, WY, and what would become the Antelope Valley Station near Beulah, ND. “The general counsel at that time, Bill Wisdom, assigned me to work on the legal matters associated with Laramie River,” Olson says. Basin Electric owned 42 percent of the project, and was designated as project manager by the five other project participants.

Olson’s coworkers will tell you Laramie River has been his baby ever since. And rightfully so, considering it was baptism by fire for Olson and other staff during the plant’s early years.

Claire Olson, at his retirment gathering April 15, says he had mixed feelings about leaving. The people he worked with at Basin Electric had become like family to him.

(From left): Casey Jacobson, Claire Olson, Michelle Wiedrich, Darlene Steffan, Mark Foss, Deb Levchak, Russ Mather and Anine Lambert gather at Olson’s retirement.

“I could tell you war stories for the next two The trust Olson has for his employees is nothing days, just about the litigation and related matters short of impeccable, leaving him time to focus on the associated with obtaining the water supply for the overall legal direction of the cooperative. project,” Olson says.

“In my role, you’re responsible for keeping your One significant case involved the question of fingers in the pie on everything that’s going on, keepwhether Laramie River’s use of water ing management informed,” would adversely affect the habitat of Olson says. He has also enjoyed There is an outstanding the endangered whooping crane. The working with Basin Electric’s team of lawyers working here at Basin Electric. They do most of project contributed $7.5 million to membership, managers and the day-to-day legal work, and establish the Whooping Crane Trust, advisory committee on important my job is to balance the workload, and led to cooperative representation issues. report to the general manager and on the trust’s board of trustees. To But on this particular day, board of directors, and focus on this day, the trust works to preserve with a May 12 retirement date how all legal issues affect the critical habitat. quickly approaching, Olson cooperative.

Laramie River’s water rights were knows the important issues in Claire Olson also an issue in decade-long litigation his life will take new form. between Wyoming and Nebraska in In addition to spending more the U.S. Supreme Court. time on the golf course, he looks To this day, Laramie River remains a thriving part forward to spending time with family. But he’ll always of Basin Electric’s generation fleet. look back on his time at Basin Electric with a smile.

While the focus of his work changed since “It’s been an eventful and interesting 40 years,” becoming the cooperative’s general counsel 15 he says. years ago, Olson says the job remained interesting Olson also admits he’ll miss his work family. But, and challenging. He’s also very appreciative to have they’ll never be too far away. Thankfully, he can still had a stellar staff. see the big white building from the comforts of his “There is an outstanding team of lawyers working front porch. here at Basin Electric,” he says. “They do most of the day-to-day legal work, and my job has been to balance Mark Foss, previous the workload, report to the general manager and board assistant general of directors, and focus on how all legal issues affect counsel for Basin the cooperative.”

Electric, became Mark Foss, general counsel for Dakota Gasification senior vice president Company, is carrying the torch upon Olson’s retireand General Counsel ment. Foss is a great leader for the legal department, upon Claire Olson’s retirement.

Olson says.

MAY – JUNE 2015 | 17

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

FAMILY ENCOURAGES NEIGHBORS TO READ WITH

LITTLE

FREE LIBRARY

The Bismarck Veterans Memorial Public Library stocks the Little Free Library when it’s low on books, but the Bergstads like to share their old favorites, too.

Everyone has a favorite book.

The Bergstads had to go What’s yours? Is it a Stephen King novel? through an application process and We hope it encourages kids to read... They A book about history? A Dr. Suess book? be selected before they had their don’t have to wait for a Or a book about cooking? Imagine those Little Free Library installed. Currently, parent to take them. They books in a library that is little and free, 12 other homeowners in Bismarck can just hop on their bike if located just down the street. This is a have been selected to host a library they want a book. reality for the neighborhood of Driftwood on their property. “I think we are a Bradley Bergstad Lane in Bismarck, ND. great location for one since we live Bradley Bergstad, Dakota Gasificaclose to an elementary school now. tion Company area planner, and his I’m sure we will have a lot more kids family had a Little Free Library installed on their lawn stop by, so I plan to fill it with more books for them,” in the fall of 2014. The Little Free Library is a box full Stromme says. of books to be shared with anyone and everyone. “We “We hope it encourages kids to read. They’re not thought it would be a nice way to connect with our going to get late charges from this library, and they neighbors,” says Renee Stromme, Bergstad’s wife. don’t have to wait for a parent to take them. They can “It’s a neat concept to be able to invite them to stop by just hop on their bike if they want a book,” Bergstad and take a book.” says. “It’s that easy for them.”

Little Free Library is a world-wide effort, with nearly 25,000 locations around the globe. The program was brought to Bismarck by the Friends of the Bismarck Public Library to encourage reading within the community. Now, Little Free libraries are scattered throughout Bismarck.

“Some people go by and have to do a double-take.

Basin Electric is a sponsor of a Little Free I think a lot of them think it’s a bird house at first. When Library in Bismarck. Find the one Basin they realize it’s a library though, it’s interesting to watch Electric has sponsored at the corner of them go open it up and look around and maybe even Washington Street and Avenue C. take a book,” Bergstad says.

18 | BASIN TODAY

KIDS AND COMMUNITY PROJECT HOPE Basin Electric teamed up with area businesses in support of Project HOPE, sponsored by the Bismarck Cancer Center May 4-8.

Employees gave a donation of $10 to dress casually and wear the cancer ribbon colors on the designated day in support of cancer awareness. The top four most diagnosed cancers in North Dakota are featured during the week. These include prostate cancer, breast cancer, lung cancer and colorectal cancer.

All proceeds supported the Bismarck Cancer Center Foundation.

REBUILDING TOGETHER Chad Reisenauer, manager of member support & services, volunteered along with other Basin Electric employees in Rebuilding Together Greater Bismarck/Mandan Area’s annual Rebuilding Day May 8 in Bismarck.

Rebuilding Together is an annual event intended to help neighbors in the community who are unable to provide themselves with the basics many of us take for granted. Volunteers from Basin Electric helped clean and repair a home in Bismarck. Home improvements included repairs and modifications to support a warm, safe and dry environment. http://bit.ly/RebuildingTogether2015

TAKE OUR DAUGHTERS AND SONS TO WORK It was Take Our Daughters and Sons to Work Day at Basin Electric April 30 and Dakota Gas April 29. Parents were proud to welcome their special young guests who enjoyed a full day of learning about where their parents work. Chase Bandle (left), son of Aric Bandle, senior designer, and Mason Johnson, son of Trisha Johnson, commodity risk analyst, work with calculators during the payroll presentation. http://bit.ly/KidsToWorkDay2015

GREAT AMERICAN BIKE RACE The Basin Electric Power Pedalers cycled and raised money for the Sanford Great American Bike Race (GABR) in Bismarck. The team pedaled 78.92 miles at the April 11 event, good for 23rd out of 116 registered teams. The team raised more than $6,100, which will benefit local children with cerebral palsy and their families. Basin Power Pedalers, decked out as “Pedalers in Paradise” (front row from left): Annie Lindseth, Lynn McNulty, Jackie Stromme, Jennifer Krogstad, Jesse Huber and Jesse’s son, Dylan, (midde) Lori Leier and Brittany Reiser, (back row) Lynn Beiswanger, Kelly Cozby, Justin Fleck, Mark Foss, Chris Gessele and Dustin Erhardt.

MAY – JUNE 2015 | 19

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

New employees Frederick Bernhardt began work as an electrician II March 23 at Laramie River Station. Originally from Carpenter, WY, Bernhardt previously worked for Faith Enterprises as a central foreman electrician.

Darrell Slavick, construction coordinator I, began his position April 6 at Headquar ters. T he Hazen, ND, native previously worked for Corval Group as a field engineer in Beulah, ND. He has a bachelor’s degree in mechanical engineering from North Dakota State University, Fargo.

Leah Williamsen, administrative assistant I, began her position Feb. 9 at Dry Fork Station. Originally from Gillette, WY, Williamsen previously worked at Dry Fork Station as an intern/office clerk. She is attending Northern Wyoming Community College District at Gillette College to obtain an associate degree in business.

Kyle Creeach started his position as an instrument technician II April 6 at Laramie River Station. Originally from Columbus, NE, Creeach previously worked for Kaiser-Francis Oil Company in Cheyenne, WY, as a lead I/E tech. He has degrees in process control and electrical/electromechanical technology.

Steve Schnell started his position as a utility operator March 23 at Dry Fork Station. Originally from Montana, Schnell previously worked for Montana-Dakota Utilities as an operator II in Sidney, MT. He has an associate degree in power plant technology from Montana State University, Billings.

Mike Fimreite began working at the Great Plains Synfuels Plant March 9 as a process operations field technician. The Minot, ND, native previously work for Oil Source Science in the Williston Basin. Fimreite has an associate degree in power plant technology from Bismarck (ND) State College.

Dustin Norris began work as a utility operator March 23 at Dry Fork Station.

The Gillette, WY, native previously worked for PacifiCorp-Wyodak as a utility operator in Gillette. He also worked as a low voltage electrician and operated local custom electronic shops.

James Baker began work as an instrument technician II April 6 at Laramie River Station. The Wheatland, WY, native has a bachelor’s degree in electrical engineering.

20 | BASIN TODAY

Chad Formanek, mechanic/welder II, began his position April 6 at Laramie River Station. The Colstrip, MT, native previously worked at PPL Montana in Colstrip, MT, as a mechanic leadman.

Tonya Pinney, lab technician, began her position April 6 at Antelope Valley Station. Originally from Midland City, AL, Pinney previously worked as a loan closing coordinator in Alabama.

She also worked as a senior chemist with a commercial nuclear power plant and has a bachelor’s degree in biology and a master’s degree in environmental analysis and management.

Cliff Menting is a civil engineer who began working at the Great Plains Synfuels Plant March 23. Originally from Bismarck, ND, he previously was project manager at CH2M Hill. Menting has a bachelor’s degree in civil engineering.

Bryan Howard began work as a peaking station operator technician March 23 at Groton Generation Station in South Dakota. He is originally from Minnesota.

John Desrocher, substation apprentice electrician, began his position March 23 at Transmission System Maintenance in Williston, ND. Originally from Verndale, MN, Desrocher previously worked for Paradigm Enterprises as a project manager in Moorhead, MN. Daniel Yarochowicz started his position as a substation electrician March 9 at Transmission System Maintenance in Williston, ND. Originally from New Fairfield, CT, Yarochowicz previously worked for Northeast Utilities as a substation electrical journeyman in Connecticut.

Terri Schuette, administrative assistant I, began her position March 9 at Headquarters. The Bismarck, ND, native previously worked for Rodenburg Law Firm in Bismarck as a legal assistant.

Justin Noehre started his position as a lab technician April 6 at Antelope Valley Station. He is originally from Beulah, ND.

Dave Caswell, lineman-journeyman, began his position March 9 at Transmission System Maintenance in Williston, ND. The Bondurant, WY, native previously worked for EC Source Services as a lineman-journeyman in southern Utah. He also worked for Lower Valley Energy in Jackson Hole, WY, as a linemanjourneyman.

Glen Gould began work as an electrician II March 23 at Laramie River Station. The Cheyenne, WY, native previously worked for ECA (Engineering and Consulting Alliance) as a journeyman wireman at Laramie River Station.

Lisa Maurstad started her position as an accounting analyst II March 9 at Headquarters. Originally from northwestern Minnesota, Maurstad previously worked for North Dakota Department of Transportation as an accounting budget specialist in Bismarck. She has bachelor’s degrees in accounting and business administration from University of Jamestown, Jamestown, ND. Charles Lawhorn began working at the Great Plains Synfuels Plant March 9 as a process operations field technician. Originally from Nashville, TN, Lawhorn had been working at Kimberly-Clark in Roswell, GA, as a research and engineering technician.

Chris Roemmich began work as a senior electrical engineer March 9 at Transmission System Maintenance in Mandan, ND. The Hazen, ND, native previously worked for AECOM as an electrical engineer/engineering manager in Denver, CO, and Bismarck, ND.

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

New employees Robin Gowen started her position as a service dispatcher Feb. 16 at Headquarters. The Bismarck, ND, native previously worked at Early Childhood Learning Center (ECLC) in Bismarck as a caregiver.

Rob Herman, enterprise database administrator I, began his position Feb. 16 at Headquarters. Originally from Bismarck, ND, Herman previously worked for Mandan Public School District as a data integration specialist in Mandan, ND. Randy Ziniel began work as a service dispatcher Feb. 23 at Headquarters.

Originally from Mandan, ND, Ziniel previously worked for Minnkota Power Cooperative as an equipment operator I in Center, ND.

Derek Ness began work as a service dispatcher April 13 at Headquarters.

The Bismarck, ND native previously worked for CVS Pharmacy as a shift supervisor in Bismarck. He has a bachelor’s degree in English and a minor in communications.

Chris Patch, real time trader I, began his position Feb. 16 at Headquarters.

The Bismarck, ND, native previously worked for Tornier in Bloomington, MN.

Reiley McKendrick started his position as a service dispatcher April 13 at Headquarters. Originally from Creswell, OR, McKendrick previously worked for DAL Global Services as a customer service representative at the Bismarck (ND) Airport. He also worked for Netflix as a telephone customer service representative.

John Gagnon, wind technician, began his position April 20 at PrairieWinds ND. Gagnon previously worked for United States Air Force in Great Falls, MT, as an ICBM (intercontinental ballistic missile) codes superintendent. He has two associate degrees from his experience in the Air Force including degrees in human resource management and missile space systems.

Rhace Gelo began working at the Great Plains Synfuels Plant March 9 as a field technician in inspection. The International Falls, MN, native previously worked as an inspection technician in Roseville, MN. Gelo has an associate degree in nondestructive testing from Ridgewater College, Hutchinson, MN. Lloyd Hart, mobile equipment mechanic, began his position April 20 at Laramie River Station. Originally from Cheyenne, WY, Hart previously worked for Wyoming Machinery Company as a field mechanic in Cheyenne.

G&T C O M M U N I C AT O R S M E E T I N G JUNE 22-24, 2015 BISMARCK, NORTH DAKOTA · HOSTED BY BASIN ELECTRIC

22 | BASIN TODAY

Service awards

Faye Miller

Ben Thomas

Stan Horning

Wendelin Burgard

Martin Finnerty

manager of internal auditing

instrument I

yard operator

telecommunications supervisor

water treatment operator

40 years

Headquarters

40 years

Leland Olds Station

40 years

Leland Olds Station

40 years

Transmission Systems Maintenance – Wheatland

35 years

Laramie River Station

James Futch

Wayne Koerwitz

Wayne Perkins

Shawn Rupert

Daniel Job

lab technician lead

lab supervisor

shift supervisor

yard equipment operator lead

facilities director

35 years

Laramie River Station

35 years

Laramie River Station

35 years

Laramie River Station

35 years

35 years

Headquarters

Laramie River Station

David Raatz

Leon Conitz

Curtis Michaelson

Marci Schorsch

Tom Christensen

vice president Cooperative Planning

transmission warehouse supervisor

instrument/control supervisor

benefit compliance examiner

manager transmission rates

35 years

Headquarters

35 years

Transmission System Maintenance-Mandan

30 years

Antelope Valley Station

30 years

30 years

Headquarters

Headquarters

Patricia Cogdill

Michael Meier

Chad Edwards

Kelly Neuberger

Tammy DeWitt

protection services supervisor

control room operator

plant manager

field technician

executive assistant

30 years

30 years

Leland Olds Station

25 years

Antelope Valley Station

25 years

Dakota Gasification Company

25 years

Headquarters

Dakota Gasification Company

Jeff Lehr 30 years

substation electrician lead Transmission Systems Maintenance-Broadland

Colette Weber

Zane Zuther

Russell Bosch

James Nelson

Tom Sperle

records retention coordinator

utility planning analyst

maintenance superintendent

warehouse supervisor

electrician I

25 years

Headquarters

25 years

Headquarters

25 years

25 years

Leland Olds Station

25 years

Leland Olds Station

Leland Olds Station

MAY – JUNE 2015 | 23

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

Retirees

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

David Herriott, operations superintendent, retired from Laramie River Station March 20, after 36 years of service. Herriott’s career began in 1979 as a control room operator. He was promoted to assistant shift supervisor, shift supervisor, operations supervisor and finally operations superintendent.

Herriott says memories from starting up three units at Laramie River Station from 1980 to 1982 stand out. “All of the employees worked hard to start up the station, putting in long hours and facing many challenges,” Herriott says. “It was an exciting and satisfying time when we completed each startup.

Everyone experienced a lot of growth and detailed understanding of the facility during this time.”

Herriott says he’s worked with great folks from Laramie River Station, Headquarters and other facilities during his tenure. “The camaraderie I’ve experienced and friendships made won’t be forgotten.”

Brad Thompson, Laramie River Station plant superintendent, says Herriott was one of the most conscientious employees the cooperative had and was a valuable asset to Basin Electric. “His dedication to the organization as well as to Laramie River Station and its employees was obvious in everything he did.

He was always available and on-call for any issues that arose and took full responsibility for any problems,” Thompson says.

“Dave was a fountain of operational knowledge and was our expert on NERC (North American Electric Reliability Corporation) and NERC compliance. He was a key player in this area for all of Basin’s coal-based generation and had a profound impact on moving us forward in those efforts. He worked very hard with our safety group in developing a Human Performance program which will eventually pay huge dividends in both safety and plant reliability,” Thompson says.

“Dave was always a stickler for following protocols and probably kept many of us out of trouble in that regard. In many ways, he was our conscience.”

24 | BASIN TODAY

Herriott and his wife, Jenny, plan to move to Spring Hill, TN, to be closer to their daughter and her family. They look forward to participating in their grandkids’ lives and activities. Herriott says Spring Hill is just south of Nashville so they look forward to enjoying lots of music. He and Jenny also plan to travel, starting with a trip to London in the late fall. They will periodically return to Wheatland to visit friends and relatives.

Deborah Fohr Levchak, senior staff counsel, retired May 2 from Headquarters after nearly 39 years of service. Levchak began working as staff counsel I in 1976 and worked her way up to senior staff counsel in 2012.

Levchak says after nearly forty years she has so many good memories. “In short, I cannot imagine having a more rewarding career than being legal counsel to the co-op,” she says.

Claire Olson, retired senior vice president and General Counsel, says Levchak’s knowledge and leadership skills will be missed at Basin Electric.

“Deb has done outstanding work over the years in resolving environmental issues. She was a major player in resolving the environmental issues facing the Great Plains Synfuels Plant at the time of its acquisition. More recently, she has done the same with respect to compliance with the BART (Best Available Retrofit Technology) regulations at our coal-based generating facilities in North Dakota and Wyoming,” Olson says. “I will personally miss her upbeat personality, her enthusiasm for the job and, of course, that laugh.”

Levchak’s retirement plans include “adapting to not coming to work and having the freedom to decide my day’s activities.” She also looks forward to gardening and traveling to visit family this summer. Beginning in 2016, Levchak and her husband, Paul, hope to travel abroad two to three weeks a year, starting in Scotland.

Jimmy Peterson, water treatment operator, retired May 4 from Laramie River Station after 32 years of service. He began working as a laborer in 1982. He also held positions of utility operator, boiler attendant and auxiliary equipment operator.

Dave Patterson, Laramie River Station water treatment plant supervisor, says Peterson had been working at the water treatment plant since last September and fit in right away. “Having spent most of his career in the scrubbers, he had a solid background working with pumps, slaking lime and working with lime slurry. Jim was willing to jump in and help whoever needed it and was willing to bounce around to different crews to fill where our needs were,” Patterson says.

In retirement, Peterson plans to travel with his wife and build street rod cars.

Steve Allen, per formance engineer III, retired from Laramie River Station April 2 after 34 years of service. Allen began working as a mechanical engineer I in 1980, and he worked his way up to performance engineer III in 1987.

Laramie River Station plant manager Brian Larson notes that Allen has been a valuable asset to Laramie River. “His co-workers and I will definitely miss him,” Larson says.

Jim Jackson, mechanical engineer III at Laramie River Station, describes Allen as quiet and patient.

“Because of his patience, he was the go-to guy for help in finding drawings and documents in Altien,” Jackson says. “I’ll miss his engineering knowledge and experience. Often I would go to him for advice on a project I was having difficulty with, and he always provided valuable input.”

Dan Hagel, mechanical engineer III, says Allen was always willing to help out. “Occasionally I would have questions on computer issues and 99 percent of the time he would have an answer,” Hagel says.

Cary Ost, electrician I, retired from Antelope Valley Station (AVS) March 20 after 30 years of service. He began working as an electrician II in 1984.

Delton Schnaidt, Antelope Valley Station electrical maintenance supervisor, says Ost had many skill sets in the electrical field that were admirable assets to Antelope Valley Station and Basin Electric.

“Cary began his employment at the site, working for an electrical contractor when AVS Unit 1 was built,” Schnaidt says. He later applied and was hired as an electrician II in November 1984. “His experience and recollection of the many phases during construction of AVS Unit 1 proved beneficial many times over,” he says. “What we at AVS will miss most about Cary is his friendly nature, his exceptional electrical troubleshooting skills, PLC programming and electrical construction. We all wish Cary and his family the best in his retirement years. We will miss him.”

In retirement, Ost plans to do some ranching.

Ruben Bosch, procurement coordinator, retired from Antelope Valley Station (AVS) April 17 after 31 years of service.

Bosch began working as a warehouseperson in 1983. In 2007, he assumed the position of procurement coordinator.

Chris Fitterer, manager of purchasing, says Bosch provided outstanding support to Antelope Valley Station.

“Due to his vast experience in the procurement world, Ruben was able to provide high levels of commitment when performing his job duties and was a leader to those not only at Antelope Valley Station but also to the other plant locations as well,” Fitterer says.

“I’ll miss Ruben’s positive, cheerful attitude and his willingness to help wherever needed. I’ll also miss our weekly talks on how things were going at AVS, as well as the stories of his grandchildren. He took pride not only in his job but in his family life as well,” Fitterer says.

Bosch and his wife, Lasy, plan to move to the Columbus, OH, area to enjoy retirement and be closer to family.

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Retirees Gene Baker retired March 3 after working at the Great Plains Synfuels Plant for more than 28 years. He worked in process engineering and research and development and was the process engineering technical advisor when he retired. He came to the Synfuels Plant from the University of North Dakota, Grand Forks, where he worked at the Energy and Environmental Research Center.

“Gene was a very dedicated and hardworking employee,” Laura Dronen, process engineering supervisor, says. “He was very creative and came up with many unique solutions to issues he encountered throughout his career. Gene was always soft spoken and truly listened to what a person had to say. He was well liked and respected by everyone who worked with him.”

Dronen describes Baker as an incredibly patient mentor. “He was very good at taking something back to the basics and relating it to a real life example to help you understand the concept,” Dronen says.

“He has trained a lot of employees at DGC (Dakota Gasification Company) and that will be greatly missed.

Gene is a caring and funny individual. His stories and conversations will be missed, as well.”

Dronen says Baker was never afraid to teach by showing you how to do something. “One of my first tasks at the Synfuels Plant was to repopulate the main cooling tower with microbes following the 2004 black plant,” Dronen says. “Gene was right there with me, elbow deep in cooling water, showing me what needed to be done and why we were doing it that way.”

Baker did what it took to get the job done.

One day, he brought his personal canoe to work to complete a job. “We had designed some aerators for the cooling tower surge pond to try and improve microbe health,” Dronen says. “Gene suited up in his safety gear, including a Tyvek suit and life vest, then took his canoe out into the pond to help guide the installation of the new aerators. He was always willing to get right into the middle of a task to make sure it was done and done right.”

Baker and his wife Gayle have two children. He plans to fish, golf and travel in retirement.

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Bob Fagerstrom, vice president of strategic studies, began working at the Great Plains Synfuels Plant in November 1986 while the Department of Energy owned the facility.

After more than 28 years of service, he retired April 10.

He was hired as a process engineer and held numerous positions while at the Synfuels Plant. From process engineer, he moved on to be the process engineering supervisor, technical services manager, process operations manager and plant manager before being named vice president of strategic studies.

Fagerstrom notes he has worked with many talented and fantastic people over the years. “The initial ammonia plant startup in the middle of winter as well as going through the 2004 first black plant maintenance outage tops the list of challenges we’ve had at the Synfuels Plant,” Fagerstrom says. “We learned a lot during that first black plant outage, which improved the planning for the 2013 black plant outage.”

Fagerstrom says one of the things he most enjoyed while working at the plant was when he was process operations manager and he’d take Friday afternoon walkabouts. “I always enjoyed walking throughout the plant visiting with employees and listening to their concerns,” he says.

An example of the many great people he worked with comes from the time during the IPE boiler fire outage in the middle of winter. Fagerstrom says, “I just couldn’t believe how everyone pulled together to get the work done in a quick, yet safe manner.”

Dave Sauer, COO of Dakota Gasification Company, worked closely with Fagerstrom on many projects throughout the years. “Bob was a great guy to work with,” Sauer says. “He was the most practical engineer I’ve ever worked with and approached jobs with common sense. He was instrumental in many projects and changes applied at the Synfuels Plant to improve its operation over the years. His commitment and dedication to the plant will be missed.”

Fagerstrom was known for his homemade neckties and passed on a couple of them before he left.

After retiring, he says he has a laundry list of things planned, including working on his golf game,

relearning to fish the river, playing with the grandkids, catching up with home projects and an elk hunt in the fall.

Bob and his wife, Maria, have three children: Andrea, Erika and Krista. They also have three grandchildren.

Steve Goetz, process operations field technician, retired from the Great Plains Synfuels Plant March 18. Goetz retired exactly 30 years after he began employment at the Synfuels Plant on March 18, 1985.

Originally from Beulah, ND, he has been through the ups and downs at the plant since the beginning of its operation. Goetz has three children: Shane, Stephanie and Shelby. He also has a grandchild.

Tim Leidholm was an MIS technician in the process operations department when he retired from the Great Plains Synfuels Plant Feb. 20. Leidholm had worked at the plant for 32 years, beginning his employment May 9, 1983.

“Tim was always easy to work with and was very knowledgeable,” says John Boe, shift superintendent.

“He knew more about the intricate working details of the plant than anybody else I worked with. He could always identify the trouble spots in the plant and knew how to deal with them. If you were in a plant upset, there was nobody else you wanted to be in charge of working your way out of it. Tim always had a positive outlook on things with a great sense of humor. We’ll all miss him at DGC (Dakota Gasification Company), not only for his knowledge, but his genuine personality.”

Leidholm and his wife, Debbie, have three children: Mitch, Tyler and Kayla. They also have four grandchildren.

DID YOU KNOW? Basin Electric is 54 years old Following is an excerpt from “Power for the Plains,” Basin Electric’s 25-year history book.

Formally incorporated on May 5, 1961, Basin Electric was described at the time as a “regional generation and transmission cooperative” responsible for achieving the goal of large-scale thermal generation of electricity.

In 1976, Basin Electric President Arthur Jones recalled that day: “We organized in 1961 on the basis of open membership so that all cooperatives who wished to join could share in the benefits of low-cost power. By joining together in this way and building large-scale generation, we could realize this low cost and all co-op members would benefit. Every co-op would pay the same rate, a ‘postage stamp’ rate, for delivered power. We would strive to keep the cost of electricity as low as possible.

“A major accomplishment toward this end came with the signing of an agreement with the Bureau of Reclamation the following year.

“To achieve further economies, we adopted the principle of coordinated planning and pooling. We would being to actively pursue this goal with the formation of a consumer-owned power pool in early 1963.

“We adopted a policy of natural resource conservation. Later, when we would sign a fuel contract for lignite, there would be provisions in it for restoring soil banks to rolling countryside.

“These policies, adopted in the spring of 1961, were mandates which the Basin Electric Board of Directors were committed to as elected representatives of the member cooperatives in the region.

“These are the bedrock policies of the cooperative.

There have been times when they have been tested severely.

By they have endured.

“We continue to be committed to them no matter how difficult the going gets.”

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We will remember ...

Robert (Bob) De Maria Robert (Bob) De Maria, 67, Bismarck, died March 3, 2015, at Sanford Health, Bismarck, after a brief struggle with cancer. De Maria was a maintenance engineering technical advisor at Dakota Gasification Company’s (DGC) Great Plains Synfuels Plant.

Bob was born Feb. 12, 1948, to John and Susan (Albazati) De Maria in Bayonne, NJ. He was raised and educated in Rutherford, NJ. Bob graduated from St. Mary’s High School and attended college at Stevens Institute of Technology in Hoboken, NJ, and completed a degree in mechanical engineering.

He married Lorraine Laico on Feb. 14, 1965, and was blessed with seven children. He started his career in Virginia working at Allied Chemical. He then had subsequent jobs at LCP Chemicals in New Jersey and Staley in Illinois prior to moving to North Dakota in 1984, where he first worked at Enderlin Sunflower in Lisbon. In 1985, he moved to Beulah, where he worked at the Synfuels Plant. He married Charlene Anderson on May 9, 1992, making their home in Bismarck. They were blessed with two children, Erin and Rachel.

Bob spent 30 years with Dakota Gasification Company, where he loved his work and was always excited for the next project. He personally mentored many of his co-workers throughout his career.

Plant Manager Dale Johnson says, “Bob will be sorely missed. He was a true expert in his field and he was instrumental in making positive changes to our equipment and our programs. On a more personal note, Bob was fun to work with. He always had a great smile and an infectious laugh. Bob’s life changed very quickly in the last few months and this serves as a reminder of how precious life is. My thoughts and prayers go out to Bob’s family.”

Maintenance Manager Steve Pouliot says Bob was always a pleasure to work with. “His enthusiasm and passion were contagious,” Pouliot says. “He truly loved his job. Bob’s knowledge regarding design and reliability of equipment, especially rotating machinery,

28 | BASIN TODAY

was tremendous. He was also very generous with sharing his knowledge and many current and former employees benefitted greatly from Bob’s mentoring over the years.”

Brian Dillman, maintenance engineering supervisor, was one of those employees and can attest to Bob’s mentoring skills. “Rather than give you an answer when seeking advice, he would give you clues to investigate certain paths in determining the answer or the root cause of a problem,” Dillman says. “One of his favorite quotes was, ‘The devil is always in the details.’ He was known nationwide for his experience with rotating equipment and reliability.

His knowledge, compassion and dedication to the success of this company will be dearly missed. Bob played a key role in my professional development; he was a great man and a good friend. I’m honored and humbled to have learned from and worked with him during my career at DGC.” Bob was very active in his church and dedicated to his Catholic faith. He served the church community by being a member of the finance council for Spirit of Life Catholic Church. He also served as an Extraordinary Minister of Holy Communion and would give communion to the homebound members of the church.

Bob’s family was central in his life as he enjoyed spending time with them as much as he could, especially when it came to competitive card games of pinochle. Bob also enjoyed traveling, camping, boating, gardening and outside yard work.

Bob will be deeply missed by his wife, Char, Bismarck; his children, Robert (Carmie) and children, Andrew, Justin, Nathan and Abby, Parker, CO.; Deborah and son, Tyler, Parker, CO; Yvonne (Shane) Keller and daughters, Raeha and Tori, Palmdale, CA; Eugene (Edith) and children, Matthew and Isabella, Canyon Country, CA; Tyrone (Katie) and children, Lauren, Collin and Alyssa, Castle Rock, CO; Anthony (Kristin), Chino, CA; Nicole, Sherman Oaks, CA; Erin, Bismarck; and Rachael, Bismarck; and his brother, John (Ellen) De Maria, Lake Worth, FL.

Wes Pinkerton

Wally Beyer

Wes Pinkerton, 61, of Gillette, WY, died April 17 following complications from an auto accident Dec. 3, 2014. Wes was born March 16, 1954 in Deadwood, SD, to William and Donna Pinkerton. He grew up in Lead, SD, and attended Lead High School. After graduation he began working for Black Hills Power and Light in Lead, and assisted in commissioning three power plants during his career with the organization.

He most recently worked for Basin Electric as a shift supervisor at the Dry Fork Station.

Bob Donovan, operations supervisor at Dry Fork Station, said Wes brought a lot of experience when he started working at the Dry Fork Station in 2009. “Wes was a great asset to have during commissioning of Dry Fork Station, and he was able to stay calm in all situations,” Donovan says. “Wes really enjoyed going to work each day, and in the five years that he worked at Dry Fork Station, he never called in sick.”

Wes was one of the most selfless people one could meet. He was always giving without ever asking for anything in return. He was a hard worker and could do anything he put his mind to. A man that hated to hire anything done, Wes built a home by himself, worked on his own vehicles and even tried to make his own dentures.

Wes’ three granddaughters were his biggest pride and joy. He loved spending every minute he could with them. He also enjoyed the simple pleasures in life like hunting, camping and chopping firewood.

All who knew and loved Wes could attest to the fact that he was “a go to guy.” There was no project or task that he would shy away from.

He is survived by his mother, Donna Pinkerton of Gillette; wife Chandra, Gillette; son Keef Pinkerton, Tucson, AZ; daughters Mindie (Lance) Morlock, Kalispell, MT; and Keelia (Adam) Nissen, Loveland, CO; stepdaughters Roxanne Jordan, Cristy Witt and Crystal (Greg) Laher; brother Dale (LouAnn) Pinkerton, Sturgis, SD; sisters Cathery Andrews of Novi, MI; Fawn (Jeff) Hadlock of Gillette, WY; and Deanna (Mike) Makousky, Newcastle, WY; and three grandchildren Macie and Maddy Morlock, and Quinn Nissen.

Wally Beyer, the former Rural Utilities Service (RUS) administrator who also represented North Dakota cooperatives as an engineer and Verendrye Electric Cooperative CEO, died March 27 at age 84.

Beyer was a North Dakota native, and he served in the U.S. Air Force in the 1950s as a crew chief of an air rescue squadron. He later became the third CEO of Verendrye Electric.

“Wally was an incredible leader in the cooperative movement. His personal commitment and accomplishments in economic development won’t be easily forgotten,” says Paul Sukut, Basin Electric CEO and general manager. “He will be greatly missed.”

One of Basin Electric’s first wind towers, “Wally,” which is located near Minot, ND, was named after Beyer. The cooperative also awarded him the Cornerstone Award – the cooperative’s highest award – which honors an individual whose leadership and outstanding service to electric cooperatives has been a “cornerstone” for Basin Electric, its member systems, and the rural Americans they serve.

An annual economic development award presented by the North Dakota Association of Rural Electric Cooperatives is named after Beyer.

After being nominated by President Bill Clinton to lead RUS in 1993, Beyer helped restructure Rural Utilities Service (RUS) loans to generation and transmission cooperatives. His priority was to work with borrowers to get troubled loans straightened out, and he successfully preserved the RUS lending program in the 1970s and 1980s.

Beyer is survived by his wife, Joyce, three children and three grandchildren.

MAY – JUNE 2015 | 29

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