May June 2014 Basin Today

Contents Volume 17

Number 3

On the cover: Wayne Peltier (left) announced May 14 that Paul Sukut had been named Basin Electric’s fifth CEO and general manager.

In Every Issue 1 CEO and General Manager’s Column: Paul Sukut 17 Member Focus: Sweet deal 20 Feature Series: A day in the life of ... lead yard equipment operator 22 News Briefs 26 Employee Highlights Feature Stories 2 Basin Electric refocuses, moves toward a stronger cooperative 6 Paying tribute for gifts of historical significance 8 Voices of reason 12 Come what may 15 Journey to joining SPP: Part 2

Editor: Andrea Blowers, ablowers@bepc.com Publications Manager: Mary Miller Graphic Designer: Chelsy Ciavarella Photographers: Steve Crane & Chelsy Ciavarella Contributors: Tracie Bettenhausen, Chris Gessele, Dain Sullivan, Lindsey DeKrey & Joan Dietz

Use your smartphone barcode scanner to view stories online.

CEO and General Manager’s Column:

Paul Sukut It all starts with a plan When I accepted the board’s appointment to serve as Basin Electric’s CEO and general manager, I knew we had a great deal of work to do.

Leading a cooperative through a transitional period, with intense and rapid growth, and a changing workforce, presents a unique set of challenges.

That’s when it’s time to roll up our sleeves and get to work. And, that’s just what we’re doing.

You’ll read on p. 2 just what we’ve been up to. Simply put, we’ve been making a new plan. This plan will help us reinforce our cooperative values, increase employee morale, improve member communications, give focus to employee development, gain operational excellence and help us better support membership growth.

We all know that each of these goals will require careful thought, consideration, hard work and a whole lot of collaboration and cooperation. I’m pleased Basin Electric’s board of directors and senior staff are fully committed to this effort.

While we’re not creating some of these initiatives from scratch, we are refining our focus and bringing clarity to our process. Several initiatives were launched two years ago – balanced scorecards, the development of a Point of View, strategic objective maps, a new mission/vision, and the list goes on.

We’re working to unify these initiatives today. While work continues on a Point of View and balanced scorecards, these past few months have allowed us to take a step back and bring a renewed focus to these efforts to make sure they work together to help us reach our goals. In some cases, we’ve eliminated initiatives if we don’t see an immediate benefit to the cooperative.

Our intent is to develop an overall action plan to provide direction and predictability. If done correctly, the end result will include an engaged, empowered workforce and even stronger relationships with our member-owners. Just how will cooperatives respond in this next era? How can we work smarter? How can we be stronger? These questions continue to challenge us. We must come up with answers so we can serve our membership in the best way possible.

While the questions require complex answers, the Basin Electric board, senior staff and I are committed to this process. Together, we will build an even better Basin Electric.

Paul Sukut, CEO and general manager

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Basin Electric refocuses, moves toward a stronger cooperative

By Mary Miller Paul Sukut and the Basin Electric board of directors have a mission.

And, with the mission, they’re going to have an action plan to achieve that, along with the tools to get there.

Over the past couple of years Basin Electric undertook a number of initiatives, all with the goal of making Basin Electric better.

Some of these concepts such as balanced scorecards, new mission/vision statements, Point of View development, strategic objectives roadmap, and employee opinion survey became a part of the daily dialogue within the cooperative.

Since being named Basin Electric CEO and general 2

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manager, Sukut decided to streamline these efforts and most importantly, bring direction, value and clarity to the cooperative.

“First, we plan to unify Basin Electric’s direction, and, second, we are developing an easily digestible summary of the cooperatives top priorities for the next year,” he says.

Sukut acknowledges the cooperative has its work cut out for itself. “Basin Electric has seen a number of major changes and initiatives in the last several years. “We have a strong record, but we can and will do better. We are pulling together some of the various initiatives we have been undertaking and are responding to some of the issues raised by a recent employee survey,” Sukut says.

He says there are also many internal and external factors putting pressure on the cooperative.

“Nearly two years ago, Basin Electric initiated a strategic planning process that included the board of directors, member managers, employees and senior staff, and introduced a number of new initiatives such as developing the concept of incentive pay, Caterpillar Safety Services and scorecards to name a few. At the same time Basin Electric has been addressing external issues such as membership growth, increasing load demands and joining a regional transmission organization (RTO). Add to this the significant amount of retirements in the past two years due to a workforce all reaching retirement age at once. All these factors can contribute to a sense of uncertainty.”

Today, Sukut, senior staff and the board of directors are working with the Cooperative Planning department at Basin Electric to unify Basin Electric’s direction and develop priorities for the coming year. Specifically, work is focused on four core areas: • Enhanced communications and cooperative development • Employee development • Supporting the growth of the membership • Operational excellence While the Point of View, balanced scorecard and strategic objectives efforts are still under way, they are being modified to better work together in support of Basin Electric’s overall action plan.

In the meantime, senior staff is finalizing Basin Electric’s action plan, and working closely with Peter Stark and Associates, who conducted the employee opinion survey.

Elements of the plan

Enhanced communication

The employee opinion survey identified that communications – both within the employee base and across the membership – needed more focus.

Internal communications To better enhance internal communications, senior staff will meet on a weekly basis, with the minutes distributed to all employees. Sukut started this practice immediately following his appointment.

Additionally, Sukut intends to bring consistency to all-employee sessions. Two sessions will be scheduled per

year and will take place at all facilities. Additionally, senior staff will conduct site visits on a rotating basis.

“You can’t place a value on face-to-face communications,” Sukut says. “These sessions run both ways. I learn just as much from them as our employees do.”

When he can’t see employees in person, Sukut does not want to lose that connection. “I plan to send consistent emails to folks outlining direction and progress. Additionally, we’re installing digital communications boards to bring news and announcements to people on the job.”

External communications Basin Electric recognizes that having an empowered workforce is critical. However, without the member-owners, Basin Electric would not exist. Two-way communication and collaboration is a must.

“Our communications with the membership suffered over the course of the past two years. Clearly, we have room for improvement.”

Sukut has outlined a structured and formalized member communications plan, facilitating opportunities for member engagement each month. Additionally, either Sukut or his senior staff plans to attend all Class A annual meetings, and member relations staff will continue attendance at many Class C meetings.

Employee development/ reinforcement of cooperative values

For many years, Basin Electric enjoyed the benefits of a highly stable and reliable workforce. There is a need to recruit new talent and retain existing talent. Bringing on a qualified workforce also requires a renewed commitment to training and staff development.

The days of posting a single ad in the newspaper and receiving hundreds of applications are gone. Competition for a skilled and educated workforce is fierce, especially in the Midwest where the energy boom has created several high-paying careers. This is requiring Basin Electric to be creative in developing a recruitment plan, which means solid retention and succession plans should also be in place.

The cooperative plans to undertake a hiring action plan, which includes a cross-departmental marketing team to recruit effectively, including trade shows, outreach to schools and work with local cooperatives.

A key message in all these initiatives will be the May – June 2014

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cooperative difference.

“With a transitioning workforce, many of the employees who grew up in the cooperative movement have departed, and that culture needs to be reinforced and made relevant for today,” Sukut says. “As a cooperative, we have a great story to tell. Our values and business model are unique. We need our employees to understand that and ultimately develop a loyalty for the model.”

To help facilitate that, Basin Electric will develop a cooperative internship program, working internally and within the membership to facilitate boots-on-the-ground immersion at member cooperatives along with a more formalized education and messaging program.

“Lastly, we must always keep in mind that a motivated and happy workforce is a safe workforce,” Sukut says. “We are continuing to work with Caterpillar Safety Services to institute a safety culture across the cooperative.”

Pilot projects are currently under way at the Laramie River Station in Wheatland, WY, and the Great Plains Synfuels Plant in Beulah, ND.

Future environmental regulations are impacting the cooperative’s plan to address growth. “We must develop a comprehensive plan that addresses our growth, but deals with the environmental issues – particularly carbon dioxide (CO2).”

This can present opportunities, however. “We have had great success with marketing CO2 for enhanced oil recovery (EOR) in Canada through our carbon capture project at the Great Plains Synfuels Plant.

With the development in the Williston Basin, we may see an appetite for EOR in the region.”

S u k ut recog n i ze s t h at growth presents both benefits and challenges. “We must seek the best way to increase the capacity of the cooperative with the least disruption to the existing membership. We will continue to seek ways to enhance these opportunities to meet both power supply and financing needs in the future.”

If everyone across the cooperative can answer the question, ‘How does your job help Basin Electric achieve its mission,’ then we have done our job.

Supporting growth of the membership

Basin Electric’s membership is growing. While everyone has heard of the Bakken, Basin Electric is seeing membership growth across the spectrum. The cooperative needs to take proactive steps to ensure the growth is advantageous for the entire membership.

The delivery of reliable wholesale power is central to the cooperative’s mission. “This is a challenge today, given the intense growth in the Williston Basin,” Sukut says.

“We are taking immediate actions, building incremental generation, tackling major transmission projects and are evaluating intermediate generation options.”

Sukut says the cooperative continues to investigate renewable options as well.

“We must grow smartly, always thinking about the future,” he says.

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Basin Today

Paul Sukut

Operational excellence

In addition to the initiatives already outlined, Basin Electric must never lose sight of those issues critical to the success of the cooperative.

“Maintaining our financial strength is paramount,” Sukut says. “Our long-term member relationships are the cornerstone of stability for achieving reasonable rates for our lending. Having a strong equity position is also a key to maintaining this stability.”

Additionally, as Basin Electric moves into an RTO environment, the cooperative must adjust to this new structure, while maintaining strong connections to the members of the Integrated System. “We must be able to maintain access to markets as a method of reducing risk, but we cannot adversely impact our operations,” Sukut says.

This will require a structured and transparent process for participation in the market, along with a clear understanding of impact.

To help the cooperative achieve operational excellence, the plan calls for the development of a high level scorecard to develop a process to ensure that initiatives are based

off of, and streamed from, the scorecard. “This will help us stay on track and measure our progress,” Sukut says.

Next steps Sukut says significant work on this action plan lies ahead. Discussion with the board of directors and the member Manager’s Advisory Committee continues. “This plan is aggressive, and it’ll take a fair amount of time to

fully implement. We’ve never shied away from hard work, though.”

Sukut draws on an old African proverb recently shared

by Dennis Hill, executive vice president of the North Dakota Association of Rural Electric Cooperatives, during the North Dakota Historical Society’s recognition dinner for Touchstone Energy® cooperatives on April 24. “If you want to go fast, go alone. If you want to go far, go together.”

Paul Sukut named Basin Electric’s CEO and general manager Basin Electric’s board of directors announced May 14 their selection of Paul Sukut as the fifth CEO and general manager of the cooperative. In this capacity, Sukut will also serve as president and CEO of Basin Electric subsidiary Dakota Gasification Company.

Sukut, who has been serving as interim CEO and general manager since January, previously served as the cooperative’s chief financial officer.

Basin Electric board president Wayne Peltier said the action is a reflection of Sukut’s strong record as interim CEO and general manager and as a long-term employee of Basin Electric. “The board is pleased that Paul has done an outstanding job facilitating the transition of Basin

Electric as interim general manager and looks forward to a strong working relationship,” Peltier said in a memo to all employees Wednesday morning. “This change is effective immediately. The board deeply values the commitment of the employees to Basin Electric’s mission and vision.

Thank you all for your ongoing support of Basin Electric.”

“I am humbled by this opportunity and honored to accept this position,” Sukut says. “I’ve spent more than 30 years at Basin Electric. I grew up in the cooperative world; co-ops are in my blood. Basin Electric has a great story to tell, and I look forward to working with the membership and employees to help write Basin Electric’s next chapter.”

Sukut has been employed with Basin Electric since 1983 and has worked in the energy industry since 1979. A native of Ellendale, ND, Sukut has a bachelor’s degree in business administration and political science from University of Jamestown, Jamestown, ND, and a master’s degree in accounting and tax from the University of North Dakota, Grand Forks, ND, and is a certified public accountant.

Johnson named senior vice president and CFO On May 15, Sukut appointed Steve Johnson to serve as the cooperative’s senior vice president and chief financial officer (CFO).

Johnson stepped into the interim CFO position in January, replacing Sukut. Johnson started at the cooperative in March 1982 and previously served as vice president and treasurer.

A University of Mary alumnus, Johnson holds bachelor’s degrees in accounting and business administration, and a master’s in management. He is also a certified public accountant.

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Paying tribute The State Historical Society of North Dakota paid tribute to the state’s Touchstone Energy® cooperatives for their lead financial donations to the renovation of the state’s museum.

By Andrea Blowers Walking around the Ramkota Hotel Ballroom in Bismarck, ND, the evening of April 24 was like a walk through Basin Electric’s history book. The room was filled with the state’s electric cooperative giants; community and state leaders, past and present; and cooperative employees and members.

All came out to pay tribute to the early investors in a 97,000-square-foot expansion and renovation of North Dakota’s state museum – among them the Touchstone Energy Cooperatives of North Dakota – as well as celebrate North Dakota history and the significant impact rural electrification had on the state.

U.S. Sen. John Hoeven welcomed the crowd during the evening event. When he was governor of North Dakota, Hoeven embraced the recommendation of the five governors before him – Gov. Bill Guy, Gov. Art Link, Gov. Allen Olson, Gov. George Sinner and Gov. Ed Schafer – to enhance the resources of the Historical Society, and as governor, Hoeven 6

Basin Today

played a key role in positioning the expansion for success.

“The idea was that we would get state funding for it, but we would get state funding as the private sector raised a certain amount of matched money. … In 2009, when I put it in the budget, I really didn’t expect to get it,” Hoeven admitted. “It really shows the power of the people, the power of the idea and the power of the concept and the fact that we have really, really great legislators, because in 2009, they approved this project.”

The legislature approved $40 million in state funds for the $52 million project.

Of the private funding, Basin Electric and other state Touchstone Energy cooperatives grabbed hold of the project early and provided much needed lead donations to initiate the fundraising process. Basin Electric committed to $250,000 in funds and $250,000 in in-kind services to the project. Other cooperatives provided donations as well and the collective $1.3 million contribution has resulted in the

Karl Lembke, development officer for the State Historical Society of North Dakota Foundation, was emcee for the event.

More than 500 people attended the tribute dinner including employees and directors of member cooperatives.

for gifts of historical significance Touchstone Energy Cooperative Governors Gallery. The 5,000 square-foot gallery will feature changing exhibits, both temporary and traveling. In fact, the first exhibit will depict the history of rural electrification in North Dakota.

NDAREC Executive Vice President Dennis Hill provided the keynote address during the event.

Under the Touchstone Energy umbrella, Basin Electric and its family of cooperatives, Great River Energy, Minnkota Power Cooperative, the North Dakota Association of Rural Electric Cooperatives (NDAREC) and the National Information Solutions Cooperative, were all recognized and paid tribute during the evening event.

“We (Touchstone Energy cooperatives) have been such an integral part of this story called North Dakota. … We’re so proud to partner with the State Historical Society and its foundation, our congressional delegation, our legislative leaders and our elected statewide office holders to keep writing chapter after chapter of who the RECs are and why we matter to the state’s continuing growth,” said the night’s keynote speaker, Dennis Hill, executive vice president and general manager of the NDAREC. Others recognized at the event for their early action and financial contributions include A. Kirk and Janet Lanterman, Tesoro, U.S. Forest Service, Former Gov. Bill Guy and Jean Guy, and the North Dakota legislature.

The North Dakota Heritage Center, which began construction on the expansion in March 2011, opened its doors to the public April 28. Final gallery touches will be made throughout the summer and there will be a grand opening during the state’s 125th statehood anniversary Nov. 2, 2014.

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Voices of

reason 8

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It’s time to chat about states’ rights, proper timing and best practices with carbon regulation.

That’s the message a large group of state environmental officials and electric industry representatives want to send to the Environmental Protection Agency (EPA).

Following the Energy-Producing States Summit, held April 16-17 at Bismarck (ND) State College’s (BSC) National Energy Center of Excellence, the Energy-Producing States Coalition is addressing the core issues via a letter to the White House’s Office of Management and Budget.

Addressing the triad of topics is the coalition’s next move in an effort to implement rules in the Clean Air Act, mainly Section 111(d), which addresses greenhouse gas standards for existing fossil fuel-fired power plants and petroleum refineries.

EPA is set to release proposed rules for 111(d) in June, and is scheduled to publish a final rule in June 2015, with states being required to provide a plan to meet the agency’s expectations by June 2016.

North Dakota has a leading role in the coalition, with help from Basin Electric. Dale Niezwaag, Basin Electric senior legislative representative, says the recent summit was very productive.

“I’ve been getting a lot of positive feedback from the states and industry folks that were there,” he says. “They’re eager to see what moves forward.”

The development and implementation of potential rules were closely reviewed by the coalition during the summit.

The coalition, which includes environmental officials from 13 states and electric industry representatives from 22 states, has spoken, but are regulatory entities willing to listen?

Following a recent summit, energy-producing states sent requests to the White House.

By Dain Sullivan

North Dakota Public Service Commissioner Brian Kalk speaks during the Energy-Producing States Summit April 16.

States want a say

The scene on the first day of the Energy-Producing States Summit was one of vigorous conversation. The EnergyProducing States Coalition came to be largely because energy-producing states have a common interest in having their voices heard by the federal government.

The states’ concern about their influence in carbon discussions became clear immediately as Dave Glatt, North Dakota’s environmental health section chief, approached the podium.

“Basically, there is a concern energy-producing states have that our voice, as singular states, is not being heard,” he said.

“We are central to the development and implementation of common sense regulation.”

The tone of Glatt’s presentation expressed the importance of states and the federal government working together to find solutions.

“This is a major undertaking, and for it to succeed at all, we need to have cooperation, equal partnership between the states, the federal government and industry,” he said.

Following Glatt, North Dakota Gov. Jack Dalrymple agreed with the idea of both parties working together. He further explained how the summit is the perfect opportunity to get the ball rolling with state and federal dialogue.

“North Dakota is like all the states represented here this morning – energy is very important to our state,” Dalrymple said. “We have an opportunity to do some communicating at this key stage of a process that might just do some good.”

Dalrymple also mentioned that, as energy-exporters, North Dakota and other energy-producing states tend to hold a different perspective on the government’s carbon rules than states that are strictly on the receiving end of energy development.

On that note, the governor shifted to North Dakota’s intentions May – June 2014

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to pick up speed with energy production.

I’ve been here through the “We’re serious good times and the bad about growing our times, and now we’re headed energ y supplies back to the good side again. to the nation,” he ... I think we’re headed in the sa id . “ We h ave right direction. I really do. tremendous wind Dave Glatt resources, great coal reserves; we’re able to produce a lot of biofuels, and all of those things, to us, tell us that we need a policy that includes all forms of energy.”

Using lignite coal to keep the cost of energy low is not only critical to the state, but to the nation, he added.

Clean Air Act, which highlights work practice standards in energy generation.

It’s an idea that may provide all invested parties with other ways of looking at carbon regulation.

State and industry representatives agreed there needs to be an understanding of best practices, but Dalrymple stressed that rules still have to be within reach.

“We are apprehensive that the EPA is going to propose a standard that will be very, very difficult, if not completely unattainable, for us to reach,” he said.

Not enough time

The reality is states have been given little time to come up with state implementation plans in regards to carbon regulation.

“We show positive results, if given enough time, and if allowed to follow applicable science,” Glatt said. “We know that, if given sufficient flexibility and time, we can find a bridge from today’s energy concerns and investments to a future that continues to meet the nation’s energy and environmental goals, while remaining reliable and affordable.”

On the topic of timing, Glatt also took the opportunity to stress the possibility of an all-of-the-above approach that could work for both the states and federal government.

“It doesn’t have to be all coal or no coal,” he said. Dalrymple agreed. If carbon discussions continue to speed up, he said, a final ruling could be shaped quicker than is technologically feasible. “We need to be able to respond to that challenge quickly and effectively,” he said.

As far as EPA’s air quality standards for North Dakota are concerned, Dalrymple reported thus far the state meets all current standards for EPA on regulated emissions.

“We’ve invested more than $2 billion in technology to protect the environment in the last five years,” he said.

Carbon rules perhaps belong in work practice standards

In the midst of efforts to spark increased dialogue between states, industry and the federal government, Niezwaag relayed that the coalition inquired into the option of addressing carbon regulation in Section 111(h) of the 10

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Joe Goffman, EPA’s associate assistant administrator and senior counsel, addresses the Energy-Producing States Coalition April 16.

EPA official weighs in

With the podium open after shared thoughts from Glatt and Dalrymple, Joe Goffman, EPA’s associate assistant administrator and senior counsel, addressed the coalition with optimism.

Goffman said he’s appreciative of increased communication from states and industry representatives.

“We’re really counting on you to continue that partnership as we, together, examine the proposal that we will issue, and then move that proposal from draft stage to final stage,” Goffman said. “What we will have to talk about is the opportunities that are available to all of us as we meet the challenge of addressing climate change and, in particular, carbon dioxide emissions from the existing power fleet.”

Goffman closed by saying he is confident in EPA’s ability to finalize an approach to carbon ruling that makes sense for all parties involved.

As for future action, Niezwaag anticipates the EnergyProducing States Coalition will meet again, after EPA publishes its proposed rule in June.

1 campaign • 9 events • 344 shavees Nearly $385,000 raised in 2014

Nearly $1.5 million raised since 20

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6th top campaign worldwide in

2014

Thank you for the part you played in making this year’s campaign our most successful yet.

ΣΛΧ

Sigma Lambda Chi Construction Management Honor Society

Come what may Basin Electric forecasters develop a power supply formula to serve members’ growing needs.

By Chris Gessele When it comes to predicting the future, a crystal ball has nothing on Basin Electric’s load forecast experts.

In a future wrought with uncertainty, Basin Electric’s Cooperative Planning and Transmission departments ensure the cooperative’s members have the power they need no matter what.

Becky Kern, Basin Electric manager of utility planning, is responsible for the cooperative’s long-term load forecasting and long-term power supply activities.

“We don’t look at today, tomorrow, next summer or next winter. It’s more like 2016 and forward,” Kern says.

Load forecasts are used for power supply planning, monitoring members’ need, transmission planning, financial forecasting and rate analysis. The forecasts take into account several factors, including current load demands; 84 distribution member and eight Class A member forecasts; detailed energy sector analysis of the coal, ethanol, and oil and gas sectors; and pending issues such as the Keystone XL Pipeline decision.

The Basin Electric board of directors approved Basin 12

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Electric’s latest load forecast at its April meeting. The forecast, which runs 2013 through 2035, predicts 2,460 megawatts (MW) of member annual peak demand load growth, with almost 1,000 MW of that growth predicted to occur in the next five years. The weather normalized forecast expects Basin Electric’s overall membership demand to grow about 2.32 percent annually.

The Williston Basin in western North Dakota and eastern Montana now accounts for more than 10 percent of total U.S. oil production, according to the U.S. Energy Information Administration’s Drilling Productivity Report. A 2012 Energy Works North Dakota study projected that the oil and natural gas industry in North Dakota will produce another 13,144 jobs by 2015 and an additional 15,840 jobs by 2020.

Sustaining that level of growth requires electricity, and Basin Electric, in cooperation with its members, is working to ensure the availability of reliable and affordable power.

That requires a balance between generation and transmission resource development.

With 180 MW of new peaking generation in operation and another 90 MW under construction in western North Dakota, the pressing need is transmission.

Matthew Stoltz, Basin Electric manager of transmission services, is currently focused on a planned 345-kilovolt (kV) transmission project that will include a nearly 200-mile transmission line running from Basin Electric’s Antelope Valley Station near Beulah, ND, to the Neset 345-kV substation near Tioga, ND. Pending regulatory approval, construction is set to begin this fall.

A related transmission project, called the north Killdeer loop, includes 60 miles of 345-kV transmission line and three substations that will deliver power into member cooperative McKenzie Electric Cooperative’s service territory. The project is scheduled to be operational in late 2016.

“Once we get those built, hopefully we can take a little breather,” Stoltz says. “But I’m guessing that as we process the results of the new load forecast, I think we will need to look at our next increment of additions to meet the needs after the first round of these 345-kV facilities are laid in.”

2016 and beyond

Based on the projected need in the latest forecast, several proposed generation projects in the Integrated System (IS) of Basin Electric, Western Area Power Administration and Heartland Consumers Power District are being considered.

• 100-MW peaking facility north of Lake Sakakawea in North Dakota, online by June 2016 • 100-MW peaking facility near Watford City, ND, online by June 2016 • 200-MW peaking generation, with 100 MW online

by June 2017 and 100 MW online by June 2018 • Power purchases 2017-2019 • Combined-cycle generation online by May 2019 Possible generation fuels include natural gas and dual-fuel capabilities using diesel or propane, Kern says.

“These projects would basically solve our need for additional power needs through 2019-2020, though they’re preliminary conclusions that could change, and there has been no board authorization for any of them. Staff, however,

Potential sites for future generation

PEAKING COMBINED CYCLE 1. Williams County 2. McKenzie County 3. McKenzie County 4. Dunn County 5. Emmons County 6. Brown County

2 3

1 4 5

ND 6

SD

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has plans to request board authorization to proceed with these projects during 2014,” Kern says.

Stoltz and the Transmission department recently received a more granular description of the forecast and are beginning to determine how to best serve the load from the IS. Basin Electric and Western split the IS analysis into several different project zones. Basin Electric is focused on the Williston Basin, while Western is responsible for analysis in eastern North Dakota, South Dakota and Iowa.

In addition to the load forecast, a peer review process will help determine need for new transmission within the IS. Once a need is identified, it takes about a year of analysis and stakeholder meetings as required by the Federal Energy Regulatory Commission to formulate a final plan for the entire IS. “My guess is that after we get done building the AVS to Neset line and the line from Killdeer up to Alexander, the next weak point is between Tioga and Minot. We may have to start considering something in that area in the 2019-2020 timeframe,” Stoltz says.

It typically takes four-to-five years to get a transmission project into service, according to Stoltz. That means for a 10-year forecast, those projects can typically be completed before they’re needed.

Basin Electric member input is important for any proposed project. One recent example is collaboration on a proposed

345-kV line from Williston to Tioga. A portion of that line will be double-circuited with a 115-kV line owned by Basin Electric member Mountrail-Williams Electric Cooperative, conserving right-of-way space and cost for both cooperatives.

“The members are in the field with the local people and know the local geography,” Stoltz says. “It’s always good to call up the member manager on the phone and say, ‘Hey, what do you think about this idea?’”

Responsible planning

While planning to meet members’ needs, Basin Electric must do its best to ensure it doesn’t overbuild generation and transmission resources, creating surplus power and stranded transmission investments.

“We’re trying to incrementally add facilities to minimize risk of overbuilding. We don’t want to get too far ahead of ourselves,” Stoltz says.

“The load is just coming so fast that it is challenging to respond fast enough,” Kern says. “We are fortunate that we can take advantage of economic market purchase opportunities in the near-term to allow enough time to develop long-term resources to serve the load growth. These market purchase opportunities also give us time to monitor the load growth while we do the initial resource development activities to minimize the chances of overbuilding our long-term resource portfolio.”

produce 15,840 jobs

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2020

2015

produce 13,144 jobs

Based on a 2012 Energy Works North Dakota study

Journey to joining SPP

Part 2: Working through the details

By Andrea Blowers

It’s difficult to know how many steps will be needed on any particular journey, especially one that has no map.

It could be a hundred. Or it could be a hundred-thousand.

Some might argue that Basin Electric’s journey to joining Southwest Power Pool (SPP), the regional transmission organization (RTO) south of Basin Electric’s membership, has teetered closer to a hundred-thousand.

The trek has been long, which is understandable given the intricacies of the cooperative’s membership, and its partnerships with Western Area Power Administration and Heartland Consumers Power District in the Integrated System (IS).

There have been many questions and lots of unknowns.

In fact, a generation and transmission cooperative with a multi-level membership structure like Basin Electric has never joined an RTO before.

“Due diligence has been preeminent,” says Mike Risan, Basin Electric senior vice president of Transmission.

Presently, Basin Electric’s internal working groups, which are broken down into resource operations, transmission, shortterm operations, long-term planning, risk mitigation and settlements accounting, are engrossed in working through

RTO integration working structure SENIOR MANAGEMENT BOARD OF DIRECTORS

RTO MAC MEMBERS

TARIFF COMPLIANCE

PROJECT COORDINATOR

IS&T COORDINATION

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TRAINING

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MEMBER TOPICS

STEERING TEAM

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the contract language, membership details and the single high voltage transmission assessment to the other decision points leading to the potential of load. As a result, there are not multiple wheeling becoming and integrating into SPP transmissionassessments for load which receives its power from owning membership. resources within the RTO,” Raatz explains.

With SPP membership, Basin Electric’s is consider“These working groups are developing their task items and additional staff ing the adoption of a new transmission service policy will be added to the groups as and wholesale power contracts would need to be required,” says Dave Raatz, Basin modified to reflect the new Basin Electric points of Electric vice president of Cooperative delivery obligation.

Planning. “We are also looking at On the SPP side, Risan says the SPP memberoptions to contract out some of these work activities ship is evaluating the IS parties’ requests for as appropriate.” by-law, membership and tariff Basin Electric is also fully language modifications.

In an RTO environment, there engaged in discussions with “The IS parties are continutypically is only a single high the membership regarding ing to work well with the SPP voltage transmission assesspotential changes to its transmembership,” he says. “To this ment to the load. As a result, mission service policy; the point, we haven’t run into any there are not multiple wheeling assessments for load option for members to include impediments in our discussions.” which receives its power from their qualifying transmission Though a number of details resources within the RTO. and substation facilities in the are yet to be worked through, SPP tariff; meter data processRaatz says an SPP board deciDave Raatz ing and load data incentive sion is just around the corner. program; discussions about “We are expecting the SPP load management operations; board of directors to take action and Class A rate structure. on the language changes over the next month or so.

“The one that has and will require significant The IS parties are updating our economics of joining discussion is determining all the details of our SPP and we expect the IS party governance groups transmission service policy,” Raatz says. “Basin to take formal action to join SPP this summer.”

Electric has historically been generally responsible The board and governance decisions are vital, for a single high-voltage wheel away from the but that’s not the end of the journey. generator and the member has been responsible After board decisions authorize Basin Electric to for wheeling beyond the Basin Electric point of join SPP; staff will need to work through all the finer delivery. As a result, some members incur addidetails of integrating into SPP. Basin Electric’s goal tional wheeling assessments beyond the Basin is to achieve transmission-owning membership in Electric point of delivery related to Basin Electric’s SPP by October 2015. power supply.

Read more: Part 1, http://bit.ly/SPPJourneyPart1.

“In an RTO environment, there typically is only a 16

Basin Today

Member Focus Life is pretty sweet in Le Mars, IA. Embraced as the Ice Cream Capital of the World, a culture of fun and success seems to line every street.

The flashing lights of a cone-shaped theater sign greet travelers who navigate downtown. Five-foot tall, painted fiberglass ice cream cones are sprinkled in front of businesses and homes throughout the community. Even the air is rich with the aroma of a local factory’s freshly baked waffle cones.

But the cherry on top of this little town isn’t just its touristy landmarks and storybook charm. Le Mars is a utopia of bustling economy, brought to life from the spirit of its people and electric cooperatives.

A city raised on ice cream

The Blue Bunny® ice cream brand, owned

by Wells Enterprises, was born in Le Mars.

In 1935, the local Wells family held a “Name That Ice Cream” contest, and a man from the nearby community of Sioux City, Iowa, received a $25 cash prize after submitting his winning entry and sketch of the original Blue Bunny character.

The Wells family had founded the company with the establishment of a Le Mars milk route in 1913, making 2013 the company’s 100-year anniversary. Stories of the “sea of people” that flooded the local Blue Bunny ice cream parlor for last year’s anniversary and Ice Cream Days celebration live on through the people.

There’s no doubt the Wells name is significant to the community. The company produces more than 150 million gallons of ice cream a year. With more than 2,500 employees, it serves as an economic powerhouse for the region. It’s also attracted and helped boost complimentary industries like BoDeans conebaking factory, Dykstra Dairy and milk processing facilities.

Painted ice cream cones such as this are sprinkled throughout Le Mars.

Sweet deal

By Dain Sullivan

Ice Cream Capital remains, thanks to co-op, community May – June 2014

17

(Sitting, from left): Matt Washburn, Kent Pauling, Neal Adler, Scott Langel, Lyle Korver and Jim Henrich enjoy ice cream cones at the Blue Bunny Ice Cream Parlor in Le Mars, Iowa. The group, which was served the tasty treats

by Parlor Manager Gary Susemihl and fellow employee Brenda Phelan, were among those who played a key role in shaping a development package to keep the Wells corporate headquarters in the community.

People from far and wide seek out Le Mars to get a taste of life that comes in the form of nearly 500 different ice cream flavors.

It was 10 years ago when the residents celebrated the fact that Wells made a permanent commitment to the community when it announced plans to keep its corporate headquarters in Le Mars.

In response to efforts from neighboring states to woo the ice cream manufacturer away from its city of origin, North West Rural Electric Cooperative, Northwest Iowa Power Cooperative (NIPCO) and other community members and entities decided to act.

Helping Wells stay put

In October 2003, Wells announced its plans to consolidate its various corporate facilities, which, thanks to 90 years of business expansion, were scattered throughout Le Mars.

With employees traveling around town to conduct day-to-day business, the company had to address efficiency.

Wells concluded it needed a 200,000 square-foot corporate building to fix the problem. That meant shopping for locations.

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Like so many others in Le Mars, Lyle Korver, CEO and general manager of North West REC, considered the impact a potential move would have on cluster businesses that existed mainly because of Wells.

“We obviously wanted to see them stay in the area,” he says. “There were a lot of partners involved in demonstrating our sincere interest in wanting Wells to stay in Le Mars.”

Wells wasn’t proposing to move its entire operation.

However, trucking companies, dairy operations, cold storage facilities and cone manufacturers would have been among those heavily impacted by the move.

“It would have been less of an attractive move for some of those companies,” he adds.

Also hanging in the balance was Le Mars’ title of Ice Cream Capital of the World. As it sat, the town was No. 1 in terms of ice cream production from a single company in one location.

Like Korver, other community economic development partners understood Wells’ reason for examining their location.

“They had to look at the cost of doing business,” says

Angela Catton, member relations and development manager for NIPCO, also located in Le Mars.

The first step in keeping Wells local was tracking down a 40-acre site the company would need for a new corporate headquarters building.

“We thought, let’s get aggressive and proactive here,” Korver says. “We worked with NIPCO’s right of way person at that time to get an option on that property.”

Other community entities, such as Le Mars Business Initiative Corporation, the City of Le Mars and Plymouth County, also helped secure the site and develop a strong incentive package for the project.

North West REC and NIPCO also worked on securing Wells with a dedicated circuit from one of the two NIPCO substations on opposite sides of the site, on the southwest end of town.

The agreement strengthened service reliability for Wells, but Korver and others took their development package a step further.

“We offered a $750,000 zero-interest 10-year loan through the USDA Pass-Through loan program,” he says.

The entire effort was the extra hand Wells needed at the time.

Dan Harskamp, North West REC energy and ag advisor, (left) and Darin Dykstra stand in a dairy barn outside of Le Mars, IA. With more than 3,000 head of cattle, Dykstra Dairy provides milk directly to Wells.

A decision worth celebrating

It all paid off.

With the countless hours of work North West REC, NIPCO and the community had put into their development package for Wells, Korver couldn’t have been happier with the outcome.

On May 24, 2004, a press release found its way to his desk.

A few words in, he had a reason to smile.

Wells had decided to stay.

“That was a pretty exciting day,” Korver says. “This was one of the bigger projects we had ever been involved with.”

For Wells, the feeling was mutual.

“The assistance provided 10 years ago no doubt has helped Wells to grow and continue to have a positive impact on the local economy, our employees and future generations,” says President and CEO Mike Wells. “North West REC and NIPCO are certainly acknowledged as valuable business assets for the Le Mars community.”

The story of how local electric cooperatives and their community members stepped up to save a town’s identity lives within every scoop of ice cream that’s served in Le Mars to this day.

“We showed that we cared,” Korver says. “It was a real cooperative effort to keep Wells here.”

Pam Gleiser collects freshly made waffle cones at the BoDeans Baking facility in Le Mars, IA.

Blue Bunny Ice Cream Parlor employee Brenda Phelan.

May – June 2014

19

Feature Series

A day in the life of ‌ lead yard equipment operator

Shawn Rupert

20

Basin Today

By Tracie Bettenhausen

on site, because the less they push the coal around on the He used to get pushed around a bit. Pulled in every ground, the more efficient the operation. direction. Bucked and tossed.

The first four cars on a train are dumped manually, Rupert As an amateur bull rider, Shawn Rupert lived a life in says, and then they go into auto. Running in auto means each which buckles weren’t as important as fun. Until he got car is pulled through, set up, and the operator dumps it. “If dragged by a bull and hurt his leg badly enough to be laid everything is working, it’s fabulous. But if it’s not, you could up for six months. fight it for hours, maybe days, finding electricians, mechanics, That’s when Rupert decided it was time to hunker down whoever you need to get it fixed,” he says. “It can make you and get serious about work. He had been working in construcpull your hair out.” tion in Kansas when he learned about jobs at a power plant From where the coal is dumped, it goes through feeders to near Wheatland, WY. He still remembers the starting wage a belt that hauls it and drops it into one of the three silos. “We for a laborer at Laramie River Station in 1980: $7.77 an hour. also have a lowering well. We can dump coal out there, and put “Awesome money. It was great money, great money,” he dozers and scrapers to work pushing it out, hauling it away.” says. And the safe nature of the work, well, he couldn’t put Most of Rupert’s career has been spent driving equipment a price tag on that. using a steering wheel. The new equipToday, 34 years later, Rupert is a lead yard equipment operator. He worked his ment has joysticks. “Where else do you I’ve been here through the way up through the ranks, from laborer get to play with Tonka® toys that are good times and the bad to utilities to equipment operator. He’s this big? I played with them in the sand times, and now we’re headed been in the coal yard his entire career, box, now I get to run them,” he says. back to the good side again. running scrapers, the picker, dozers, all “Awesome for a farm and ranch kid.” ... I think we’re headed in the kinds of heavy equipment.

For the past six years, Rupert has right direction. I really do.

These days, they’re a little shortbeen in his current position, overseeing Shawn Rupert staffed. The plant has lost employees laborers, utilities and equipment operato retirement; co-workers Rupert’s age tors. When he gets to work, he checks his are moving on. “We only have five new email right away to see what is needed laborers right now. One of them already of his crew for the day. “You try to work has a bid out (meaning he may be promoted, possibly away with everybody and get as much done as you can, and you try from the coal yard), which is awesome for him, but it’s hard on to do it safely. Sometimes I can’t send maintenance a crane us,” Rupert says. “I’ve been here through the good times and operator because we have him busy over here,” he says. “You the bad times, and now we’re headed back to the good side try to accommodate everybody. You have to juggle people to again. … I think we’re headed in the right direction, I really do.” make things work and that’s just a daily thing.”

Staffing has been a challenge, and so has keeping enough As for moving into a supervisory role after so many years, coal on the stockpile. At Laramie River Station, the goal is to Rupert says his experience has helped him be a better boss. have 38 days worth of coal on the pile, or 900,000 tons. At its “If you let the guys work, they’ll work. But you can’t stand on lowest point, the stockpile was down to 17 days worth of full top of them and look at them. ‘How is that going?’ … There are burn at the plant. Now, it’s back up to about 21 days. days you just go help them because you don’t have anybody Rupert remembers one time in plant history when there else. We got a good bunch of people, really,” he says. was 3 million tons of coal on the pile. “I helped haul a lot of When Rupert talks about the people at Laramie River that,” he says.

Station, he gets a little teary-eyed. He might blame it on a A recently completed project is helping to build the pile cold if you ask him later, but he can name co-workers he’s again. A rail expansion project added enough track so that worked with his entire career. “I’m as ornery as they come,” three 136-car trains can be kept on plant site. That’s important he says. “I pick on them, they pick on me. I think that’s what because it gives more options for how coal is unloaded at the makes it worth it. This is your family. If you fought all the plant. Read more on p. 22. time, this would be a miserable place. You got to laugh, you Rupert says the goal is to first get coal in the three silos got to enjoy it.”

May – June 2014

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News Briefs

Laramie River Station rail project brings efficiency

A look at some of the added sections of track at Laramie River Station near Wheatland, WY.

At the Laramie River Station near Wheatland, WY, a project to add sections of railroad tracks is complete.

Plant Manager Brian Larson said the project was done so the plant can store three 136-car trains on site. “In the past, we were only able to have two coal trains on site at a time,” Larson said. “BNSF Railway had an interest in this project because they couldn’t allow us to keep a train on the main line. It was decided between Basin Electric and BNSF Railway that we would add sections of track to accommodate three trains on the plant site.”

Larson said the plant needs to have three trains on site because there is sometimes a need to dump trains in a different order from how they arrive at site due to coal quality. “For example, if we have a higher BTU (British thermal unit) coal train, we dump that and put it in our coal silos. We’re able to blend that with coal off the pile or with lower BTU coal from a different train. This gives us more options,” he said.

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Basin Today

This project should also help build the coal stockpile at the plant because it gives BNSF Railway more options for unloading, without being tied up on the main line. Larson said the goal is to have 38 days worth of coal on the pile, or 900,000 tons. At its lowest point, the stockpile was down to 17 days worth of coal.

The sections include 1,770 feet to the dumper loop; 4,970 feet to the new outbound track; 500 feet to realign the inbound siding loop; and 800 feet to Track 9 siding, the area where a full train set is stored when not in use. “This project should pay itself back in three years,” Larson said.

The rail addition project started at the end of August 2013, and was finished at the end of February 2014.

“Harlan Fortin (Basin Electric construction coordinator II) oversaw the whole project, and he did a great job,” Larson said. “When you take a project of this size and try to get it accomplished in a short amount of time, and do most of the work during the winter, that’s fantastic.”

Dakota Gasification Company board approves water projects

The Dakota Gasification Company board of directors approved two projects to improve operations at the Great Plains Synfuels Plant during its April meeting in Bismarck, ND. Beth Schettler, Dakota Gas mechanical and civil engineering supervisor, presented information to the board regarding a $1.5 million project to replace a corroded 18-inch primary water supply line that brings water from Basin Electric’s Antelope Valley Station to the Synfuels Plant.

The project will use 18-inch high density polyethylene piping to replace the existing line and resolve corrosion issues, Schettler said. Construction is slated to begin this summer, with project completion planned for this fall.

The Dakota Gas board also approved a project that will reduce water flow to the deepwell system.

According to Sara Edinger, Dakota Gas mechanical engineer, the project involves installing a reverse osmosis (RO) system to concentrate low pressure blowdown water – water that is purged from low pressure boilers to reduce impurities in the boilers during continuous steam evaporation – prior to it being sent to the deepwell system.

“The original need for the project was to alleviate the water balance issue in the deepwell system,” Edinger said.

“The deepwell system heavily relies on having a balance of the streams being sent to the pond and those being injected into the deepwells. With continual operation of the ammonia plant, it has become increasingly difficult to maintain this balance. The deepwell water balance situation will only get worse as the facility expands and additional cooling tower blowdown is required.”

About 19 million gallons of storm water have accumulated in the Synfuels Plant’s ash landfill. With permission from the North Dakota Department of Health, the storm water will be sent to the deepwell system once the RO unit is installed.

The RO unit will produce two streams: a permeate stream (which can be reused as low pressure boiler feedwater) and a concentrate stream (which will be sent to the deep well, and has also been approved for injection into the deepwells).

“The project will reduce the volume of water sent to the deepwell system, thus making room for other streams to be sent to it. Those streams include additional cooling tower blowdown from plant expansion and other streams, due to non-normal conditions,” Edinger said.

The $4.1-million project will begin in July and finish in August.

On behalf of Basin Electric, Legislative Representative Chris VandeVenter supported the ACCTION Act at the Lignite Energy Council in Bismarck on March 24.

Basin Electric supports Heitkamp’s ACCTION Act for clean coal technology

U.S. Sen. Heidi Heitkamp (D-ND) visited the Lignite Energy Council in Bismarck on March 24, and Basin Electric representatives were present to support her new bill.

The ACCTION (Advanced Clean Coal Technology Investment in Our Nation) Act is a funding bill that aims to increase coal technology innovation, reduce carbon emissions and create a path forward for coal to maintain a place in the national energy mix.

The bill increases the federal government’s support of innovative new coal technologies, as well as federal incentives for private investment in new coal technologies. It also boosts public transparency in advancements of new coal technologies, as well as carbon capture and storage projects.

On the topic of engaging in clean coal technologies, which she said are often viewed as nonexistent, Heitkamp attributed success close to home.

“We do it right here in North Dakota,” she said. “Every time that our industry has been given a challenge to meet traditional pollutants standards, we’ve stepped up and not only met them but exceeded them.”

Heitkamp added that government funding is key for putting clean coal technology projects in play.

“We’re not going to get there overnight, and we’re not going to get there without a little help,” she said.

Legislative Representative Chris VandeVenter expressed Basin Electric’s support of the bill during the morning press conference.

“We think it’s a bill that’s going to really set the stage for the debate in Washington, D.C. on what it means to have a reliable coal future,” VandeVenter said.

Others heavily invested in coal also had representation at the meeting. Leaders from the Lignite Energy Council, Minnkota Power Cooperative, Great River Energy, the North Dakota Association of Rural Electric Cooperatives and MDU Resources Group also expressed their support of the ACCTION Act. May – June 2014

23

News Briefs

Plant conversion secures much-needed capacity

Basin Electric and its members will need additional generation to serve the ever-growing need for electricity. A recent plant conversion project in Iowa will help provide that extra generation for many years to come.

Earl F. Wisdom Generating Station Unit 1, a 38-MW capacity power plant near Spencer, IA, came online April 24 after a major conversion to burn natural gas and fuel oil as a backup fuel supply.

The plant had been fueled by coal since 1960, when it was commissioned and put into commercial operation. The conversion is due to new environmental rules that won’t allow the unit to operate using coal without the addition of expensive environmental controls.

The unit is owned by Corn Belt Power Cooperative, Humboldt, IA, a Class A member of Basin Electric. When Corn Belt Power became a Basin Electric member in 2009, its generating resources were turned over to Basin Electric for dispatch. Corn Belt employees still remain at the plant for operations.

Co-op supports judge’s decision to halt Next Generation Energy Act

Basin Electric is pleased with Judge Susan Richard Nelson’s April 18 decision to shut down restrictions imposed by Minnesota’s Next Generation Energy Act (NGEA), said Casey Jacobson, Basin Electric attorney II. The judge said Minnesota was attempting to regulate conduct that occurs in other states, a view brought forth when North Dakota and other plaintiffs filed a lawsuit with Minnesota in 2011.

Jacobson said the law gained Basin Electric’s attention because the cooperative had previously decided to transfer power from its Dry Fork Station, located near Gillette, WY, to North Dakota through the Eastern Interconnection to serve increasing loads.

While highly unlikely, the transfer could result in the theoretical possibility of coal-generated power potentially crossing into Minnesota. Along with Basin Electric, the state of North Dakota’s position was that 24

Basin Today

Minnesota should not be able to control conduct that occurs wholly outside of Minnesota.

Gov. Mark Dayton (D-MN) announced Minnesota will appeal the judge’s decision. He added the law is aimed at replacing older power plants with newer facilities.

Basin Electric facilities honored for safety by LEC

Employees at Basin Electric’s Leland Olds Station, Antelope Valley Station and the Dakota Gasification Company Great Plains Synfuels Plant were honored with the Lignite Energy Council’s (LEC) Distinguished Safety Award April 23 for compiling a safety record lower than the industry’s average accident rate in 2013.

The employees at Basin Electric’s facilities were among those of four utilities honored for exceptional safety records at the event. The awards were presented at the LEC’s Contractor/ Supplier Meeting in Bismarck, ND. “The lignite users and producers in this region believe that the efficient production of a low-cost, reliable energy source cannot be achieved without serious attention to the health and safety of the employees who work to produce that product,” said Jason Bohrer, president and CEO of the LEC. “That’s why we acknowledge those companies that are leading the way in the field of safety.”

A safe work environment, an active safety awareness program and hands-on safety training are integral parts of Basin Electric.

The LEC conducts programs to help maintain a strong lignite industry, one that currently employs more than 17,000 people, has an annual economic impact of nearly $3.5 billion in North Dakota, and generates more than $100 million in state taxes each year.

(From left) Mac McLennan, chairman of the Lignite Energy Council Board, presented awards to Gerry Pfau with the Milton R. Young Station; Russ Bosch with the Leland Olds Station; Trinity Turnbow with the Great Plains Synfuels Plant; Brian Scherer with the Coyote Station; and Eric Timmer with the Antelope Valley Station.

Basin Electric department name gets update

Born out of a restructuring less than two years ago, Basin Electric’s Marketing & Trading Department is still young. But, with anything new, as the department has grown in size and experience, it’s also evolved in its function.

With that, the department name has changed to reflect its true purpose. It is now called Marketing & Asset Management.

The department was developed to evaluate and, ultimately, manage the cooperative’s risk tolerances relating to its shortterm commodity and asset exposures.

Basin Electric’s short-term commodity and asset management includes the market exposures for baseload generation, wind projects, gas peaking units, member and non-member loads, transmission and pipeline utilization, regional transmission organization (RTO) offers and bids, natural gas and tar oil hedging for Dakota Gasification Company, and eventually Dakota Coal Company’s diesel fuel exposure.

Ken Rutter, vice president of Marketing & Asset Management, said that his team and others in many areas of the cooperative have worked hard over the last 18 months, and are continuing to work hard, to establish systems and processes that improve risk mitigation and optimize the overall Basin Electric system.

A key goal is to provide stability to member rates through proactive management of the risks Basin Electric has always had. “We believe the cooperative and ultimately its memberowners are already seeing the value of centralizing the function.

We were able to mitigate through a very dynamic winter that included significant variation in market prices and member loads,” Rutter said.

“With the team managing the cooperative’s west side real time desk, the work continuing to ultimately bring the east side real time desk inside, the process of joining an RTO and improved management processes, it was the appropriate time to align our team’s name to better convey our function within the cooperative,” he said.

Find us on the web basinelectric.com basinmembers.com dakotagas.com

Dry Fork Station near Gillette, WY.

Dry Fork Station sets continuous run record

The Dry Fork Station is following in the footsteps of its older siblings and running hard and strong.

Basin Electric’s newest coal-based power plant has set a new continuous run record by operating 110 days without a planned or unplanned outage. The Dry Fork Station, located near Gillette, WY, started operation in 2011.

Tom Stalcup, Dry Fork Station plant manager, said the milestone, though small on the surface, is significant in that it demonstrates the new power plant’s reliability.

The power plant’s strong, consistent operation is especially important to the Basin Electric system during times of growth and high demand like the cooperative experienced this past winter.

Basin Electric’s system reached an all-time member billing peak in January 2014 at 3,558 megawatts, the second peak in two months.

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May – June 2014

25

Employee Highlights

Strong and powerful men of Basin Electric

Devin Renner, equipment attendant at Leland Olds Station, holds up the trophies he received at the Colorado State Powerlifting competition in Denver March 1.

Weight of a valve wrench: 2 lbs.

Weight of a water plant chemical bag: 50 lbs.

Weight of a vacuum hose: 100 lbs.

Devin Renner heaved a 557-pound deadlift, cranked a 407-pound bench press, and lowered 518 pounds in a squat.

He is one of two Basin Electric employees to rock weightlifting competitions this spring, proving their strength outside the walls of the power plant.

Renner, equipment attendant at Leland Olds Station, participated in the Colorado State Powerlifting competition in Denver March 1 through the Natural Athlete Strength Association.

Renner was awarded the State Championship Jacket for winning Best Overall Powerlifter out of 70 competitors at the event.

“The competitions are a blast and all the people are really good people. It’s not a competition of, “I hope I do better than him.”

It’s more that you want to see everyone get big lifts,” Renner says.

Chris Lotvedt, mechanical technician I at Dry Fork Station, participated in the Energy Capital Indoor Strongman© competition March 22, in Gillette, WY, and took first place in the Novice Division. “That was my first sanctioned event in North American Strongman. I have competed in local events, but nothing on this scale,” Lotvedt says.

So, what is the difference between powerlifting and Strongman competitions?

Renner says powerlifting is made up of three lifts: the squat, deadlift and bench press. “During the competitions you’re basically competing to get your best one-rep max for each lift,” Renner says.

As for Strongman competitions Lotvedt says, “If anyone has seen the World’s Strongest Man on TV, this competition has 26

Basin Today

Chris Lotvedt, mechanical technician I at Dry Fork Station, performs in the tire deadlift event at the Energy Capital Indoor Strongman competition in Gillette, WY, March 22.

those same events, such as atlas stones and log press.”

Renner began powerlifting after learning about it from a friend. “I have always been into working out and felt like I was fairly strong so I decided to give it a try. Then I was hooked,” he says.

As a powerlifter, there are a variety of different ways you can train. “Resting in powerlifting is very important. You don’t want to exhaust your muscles when you lift, so you lift certain percentages of your max when you’re training because you don’t want to fatigue yourself,” Renner says.

Nutrition is important to fuel those muscles. “I just want to eat enough to maintain my body weight, so I eat to stay where I am because this is the weight I feel strongest,” Renner says.

“As a powerlifter, you want to keep your body fueled with a lot of carbs so you have fuel to get through the workout.”

Lotvedt started weightlifting when he was in college. “I realized I had more energy and just felt better, along with all the other benefits that come with fitness,” Lotvedt says.

Lotvedt trains with another competitor and uses a combination of Strongman and powerlifting training to stay well-rounded.

Lotvedt says he avoids sweets and sodas and says if a person is interested in health and fitness, “Personal trainers are a great way to learn correct form and are knowledgeable about nutrition.”

Renner is planning to participate in two upcoming competitions with his brother. They will compete in a powerlifting competition in Texas this September and a national powerlifting competition in June 2015.

Lotvedt plans to participate in the Open Men’s Division Strongman competition in June in Parker, CO.

New Employees

Isaac Schwehr, laborer, began working at Laramie River Station March 24. The Hazen, ND, native has a bachelor’s degree in operations management from Minnesota State University Moorhead and an associate degree in electronic engineering technology/ industrial controls from Lake Superior College, Duluth, MN

.

Darrell Kelsch, human resources operations manager, began working at Headquarters April 21. Originally from Richardton, ND, he previously worked by IBEW Local 1593 in Hazen, ND, as a business manager. He also worked at Antelope Valley Station in operations and instrumentation.

Mike Tietz began working at the Synfuels Plant March 24 as an environmental engineer. The New Leipzig, ND, native has a bachelor’s degree in civil and environmental engineering from South Dakota School of Mines and Technology. Tietz was previously employed at South Dakota Department of Environment and Natural Resources.

Jennifer Bowerman, payroll analyst, began working at Headquarters April 21. The Jamestown, ND, native previously worked for Garrison (ND) Public Schools as business manager.

Kasey Lesmann, training coordinator, began working at Leland Olds Station March 24.

Lesmann previously worked for Otter Tail Power Company as an operator at Coyote Station in Beulah, ND. Steven Smokey, environmental coordinator, began working at Headquarters April 7. He previously worked for Great River Energy as a senior engineer at Stanton Station and at the North Dakota Department of Health.

He has a bachelor’s degree in chemical engineering from University of North Dakota, Grand Forks, and is a registered engineer in North Dakota.

Sarah Ward began working as a laborer at Laramie River Station March 24. Originally from Cheyenne, WY, Ward previously worked for Electrical Corporation of America as a journeyman wireman. She was located at Laramie River. She received her journeyman wireman Wyoming electrical license through Wyoming Electrical Joint Apprenticeship and Training Committee.

Adam Berger began working at the Synfuels Plant March 10 as a process operations field technician. The Mandan, ND, native has an associate degree in process plant technology from Bismarck (ND) State College. Berger was previously self-employed.

Keith Kruckenberg, laborer, began working at Antelope Valley Station Jan. 17. The Mandan, ND, native previously worked as an operator at Glacial Lake Energy in Mina, SD. He has an associate degree in power plant technology.

Zachary Fred began working as a laborer at Antelope Valley Station Feb. 10. Originally from Wilton, ND, he previously worked for Nova Fire Protection as a foreman in Bismarck, ND. He has an associate degree in power plant technology.

Kendra Entze, medical services assistant, began working at the Synfuels Plant April 2.

Originally from North Carolina, Entze has lived in North Dakota for 12 years. She previously worked for the Knife River Care Center Beulah, ND. She also works part-time at Marion Mann Health Care in Glen Ullin, ND. Kyle Hochhalter began work as a rotating equipment engineer March 10 at the Synfuels Plant. Originally from New Leipzig, ND, Hochhalter has a bachelor’s degree in mechanical engineering from South Dakota School of Mines and Technology. He previously was employed at Hibbing Taconite Company.

May – June 2014

27

Employee Highlights

New Employees

Jennifer Krogstad began working as a benefits coordinator at Headquarters April 14. The Mandan, ND, native previously worked for Blue Cross Blue Shield of North Dakota in Bismarck as an account executive.

She has a bachelor’s degree in finance from Minnesota State University Moorhead.

Paul Grahl started his position as a service dispatcher at Headquarters March 24. Originally from Ann Arbor, MI, Grahl previously worked for North Dakota Department of Corrections. He has a bachelor’s degree in criminal justice from Minot (ND) State University and an associate degree in social work from Bismarck (ND) State College.

Monte Hubbard began working at Laramie River Station April 21 as a laborer. Originally from the Wheatland and Chugwater, WY, area, he previously worked for the Wyoming Department of Transportation as a heavy equipment operator and ranched for 25 years.

Bret Weiland began working as a service dispatcher at Headquarters April 7. The Bismarck, ND, native previously worked for Spee-Dee Delivery Service. He has an associate degree in process plant technology from Bismarck State College.

Brad Roehl, network security analyst I, began working at Headquarters April 7.

Originally from Oakes, ND, Roehl previously worked for Sanford Health as an IT security specialist in Bismarck, ND. He has an associate degree in network administration.

Eric Hyttinen began working at the Synfuels Plant March 24 as an electrical and instrumentation field technician. The Washburn, ND, native has an associate degree in computer support from Bismarck (ND) State College.

Hyttinen was previously employed with North Country Business Products.

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Basin Today

Jason Lagge, senior enterprise applications architect, began working at the Synfuels Plant March 10. The Garrison, ND, native previously worked for Case New Holland as an information communications technology site lead in Benson, MN. He has a bachelor’s degree in computer science from North Dakota State University, Fargo.

Jennifer Prew started her position as a laborer at Laramie River Station March 24.

Originally from Munfordville, KY, Prew previously worked for the U.S. Department of Defense in San Diego, CA, and the U.S. Navy as an aircraft electrician. She has an associate degree in industrial electricity from Gillette (WY) College.

Alyssa Striefel, human resources coordinator, began working at the Synfuels Plant Feb. 17.

The Beulah, ND, native previously worked for Sanford Health in Bismarck, ND. She has a bachelor’s degree in health administration from Minnesota State University Moorhead.

Tyler Simpfenderfer began work as a process operations field technician March 17 at the Synfuels Plant. The Bismarck, ND, native has an associate degree in process plant technology from Bismarck State College. Simpfenderfer previously was employed by Blue Flint Ethanol.

LaDonna Carpenter started her position as learning management system coordinator at Headquarters April 7. Carpenter, a North Dakota native, previously worked for Microsoft in Fargo, ND. She has a bachelor’s degree in education from Chadron (NE) State College.

Steven Dittus began working at the Synfuels Plant March 10 as a process operations field technician. The Hebron, ND, native was previously employed as a supervisor at SuperHeaters of North Dakota.

Andrea Diehl started her position as an accounting analyst I at Headquarters March 24. The Bismarck, ND, native previously worked for National Information Solutions Cooperative (NISC) in Mandan, ND. She has a bachelor’s degree in accounting from Dickinson (ND) State University.

Matt Ferderer, web developer II, began working at Headquarters March 24. Originally from Linton, ND, Ferderer previously worked for Mandan (ND) Public School District. He has a bachelor’s degree in graphic communications from Minnesota State University Moorhead.

David Poppen began working as a wind technician March 24 at Crow Lake Wind Project in South Dakota. The Willow Lake, SD, native has an associate degree in automotive technology from Lake Area Technical Institute in Watertown, SD, and a business management degree from Mount Marty College, Yankton, SD.

Mathias Gieser, web solutions architect II, began working at Headquarters April 7. The Mandan, ND, native previously worked for KK BOLD in Bismarck, ND. He also worked for Tao Interactive and Lee Agri-Media. He has an associate degree in web development from Bismarck State College.

Paul Schable, contract administrator, began working at Headquarters April 21. Originally from Grand Forks, ND, he was previously the general manager for Kirkwood Mall in Bismarck, ND. He has a bachelor’s degree in business administration from University of North Dakota, Grand Forks.

Darcy Klimpel began working as a security and response services shift lead at Headquarters March 10. The Bismarck, ND, native previously worked as a captain for the ND State Penitentiary, and as a police officer. He has a bachelor’s degree in criminal justice from Minot (ND) State University. He is also a licensed North Dakota Peace Officer and a self-defense instructor.

Lance Long started his position as a laborer at Laramie River Station April 7. The Wheatland, WY, native previously worked for Jenkins Auto & Body Services in Wheatland. Long has an associate degree in electric power plant technology from Casper College, Wyoming.

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Travis Hirsch, call taker, began working at Headquarters April 21. The Bowman, ND, native previously worked for BNC National Bank.

James Jackson started his position as a network security analyst I at Headquarters April 7. Originally from Lewistown, MT, Jackson previously worked for Charter Communications in Billings, MT. He has a bachelor’s degree in computer science from Minot (ND) State University.

Elizabeth “Liz” Giuliani began working as a travel coordinator at Headquarters March 27.

Originally from Ashland, WI, Giuliani previously worked for Satrom Travel. She has 18 years of travel agent experience and owned her own travel agency in Neenah, WI. May – June 2014

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Employee Highlights

Service Awards

John Jacobs

Susan Vinje

Robin Graves

S.C. Henderson

Jon Lewis

Jeffrey Busk

vice president of operations

human resources coordinator

water treatment operator

maintenance planner/scheduler

yard equipment operator lead

system protection technician lead

35 years

35 years

35 years

35 years

35 years

35 years

Headquarters

Headquarters

Laramie River Station

Laramie River Station

Laramie River Station

TSM - Gillette

Dennis Cahoon

John Kessler

Rodney Stein

Donald Buck

J. K. Irwin

Edward Morrison

mechanic I

mechanic I

mechanic I

field technician

field technician

field technician

30 years

30 years

30 years

30 years

30 years

30 years

Antelope Valley Station

Antelope Valley Station

Antelope Valley Station

Dakota Gasification Company

Dakota Gasification Company

Dakota Gasification Company

Dean Navratil

Randolph Thielman

Larry Yeager

Steve Ellefson

Effie Carr

Curtiss Kovash

field technician

field technician

field technician

chief auditor

administrative supervisor

senior business applications administrator

30 years

Dakota Gasification Company

30 years

Dakota Gasification Company

30 years

Dakota Gasification Company

30 years

Headquarters

30 years

30 years

Headquarters

Headquarters

Thomas Pfliger

Gerry Netzer

Orvin Rosaasen

Daryl Delzer

Eldon Leapaldt

Ann Schreiber

supervisor of general maintenance

field technician

field technician

lead short-term trader

systems administrator III

senior integration architect

30 years

25 years

Dakota Gasification Company

25 years

Dakota Gasification Company

25 years

Headquarters

25 years

Headquarters

Headquarters

Dakota Gasification Company

Marlin Larson 35 years

yard operator A Leland Olds Station

Perry Kress

Dean Bray

Sandra Schiermeister

Reggie Christian

Connie Simonson

maintenance planner/scheduler

director of lignite, lime and limestone

changehouse attendant

substation electrician

information security administrator

25 years

Leland Olds Station

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Basin Today

25 years

25 years

Headquarters

20 years

Dakota Gasification Company

35 years TSM - Beulah

25 years

Headquarters

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

Michael Paul retired from Headquarters Jan. 3 after 33 years of service. Paul began working as a mechanical engineer I in 1978.

He later worked as a results engineer at Antelope Valley Station, mechanical/performance engineering supervisor, and vice president of engineering and construction.

Paul’s career with Basin Electric began at the old William J. Neal Station. “I soon had the good fortune to be a part of the design, construction and startup of Antelope Valley Station, along with many other successful projects over the years. My work at Basin has been so fulfilling, primarily because of the wonderful people I have worked with,” Paul says.

Matt Greek, senior vice president of Engineering & Construction, says Paul was a joy to be around. “As a newcomer, he was always patient with me and open to my ideas. I enjoyed talking cars or Vikings football with him. Most of all he had a great work ethic and worked hard right up to the end of his time with Basin,” Greek says.

Paul says he is looking forward to the next chapter of his life in retirement. “Diane (Paul’s wife and Basin Electric retiree) and I plan to winter in Arizona, spend more time with our children, and in the summer you’ll find me in my shop working on an old car or two,” Paul says. They are also planning to travel to their many bucket list destinations.

Earl Schumann retired from Laramie River Station after 35 years of service. He began working as a scrubber operator in 1979. He worked in many areas of the plant as electrician apprentice, instrument apprentice, water treatment operator, and finally instrument I. Greg Loveland, instrument supervisor, says Schumann was always willing to share his knowledge and experience with others. “Earl had a lot of experience in different areas of the plant. He was very conscientious about safety and training. He also had some good stories to tell and was always good for a ‘Schumor’ or two about what was going on at the plant,” he says.

In retirement, Schumann plans to “smell the roses!”

Patricia Preuit 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 and storekeeper.

Preuit says a favorite memory is from when she brought her family to Laramie River Station’s annual Family Night. “One year, our grandson who was very young at the time, said, ‘There is the castle where grandma works!’”

Kim Kimura, warehouse supervisor, says Preuit always stayed on top of things and did an excellent job no matter what was asked of her. “She was always willing to help anyone that asked her and did it with a smile, no questions asked. I remember after she started as a laborer, she came into the warehouse one day covered in fly ash. She mentioned how she needed to get a job in the warehouse.

Her luck, she was promoted to a storekeeper position,” Kimura says. “She will be missed after all these years in the warehouse.”

In retirement, Preuit plans to do some traveling with her husband and spend more time with her family.

Clarence Banish, storekeeper, retired from Laramie River Station Jan. 6 after 32 years of service. He began working as a warehouseperson in 1982.

Kim Kimura, warehouse supervisor, says he was always amazed by Banish’s memory of where parts were located in the warehouse. “He really didn’t need a computer to find something, and if one of the crafts came in and was having trouble looking something up, chances were he knew where it was. He was also a very good automotive mechanic and restored a couple vehicles. He did some work on mine as well and it was much appreciated,” Kimura says.

In retirement, Banish plans to travel and go fishing and camping.

May – June 2014

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Employee Highlights

Retirees

Doug Rothe retired from Headquarters Dec. 31 after 36 years of service. He began working as mechanical engineer production in 1977. He also worked as chief startup, plant engineer, NextGen project engineer, commissioning and generation resource project engineer, mechanical performance consulting engineer, and mechanical engineer supervisor.

Gavin McCollam, engineering services director, describes Rothe as a valuable resource to Engineering & Construction. “Not only did he have the technical knowledge on the design and operational aspects of power plants, he was experienced in the startup of plants as well. This particular skill was relied upon for the critical startups of both Dry Fork Station and Deer Creek Station – tasks he coordinated efficiently, professionally and effectively.”

McCollum says Rothe was skilled as a teacher to the newer staff members. “Doug’s knowledge of power plant systems and maintenance activities will be sorely missed and was greatly appreciated,” he says.

In retirement, Rothe plans to stay in Hazen, ND, and pursue several delayed projects at home. He hopes to do some woodworking and become more active in volunteering with existing organizations in the community. He also plans to stay at Lake Metigoshe and Lake Sakakawea, do more hunting, fishing and traveling, and visit his children more often.

David Erickson retired from Headquarters after 35 years of service. He began working as a field office engineer, later moving to supervisory engineer I, senior engineer, and senior civil engineer.

“I have been very lucky to have worked with people at all levels within the cooperative at all locations,” Erickson says. “I have been involved in projects that range from construction inspection in Nebraska on transmission lines during the late 70s to lead civil engineer on major generation projects in Wyoming, South Dakota and North Dakota in my later years. … It’s been a great career.”

Clark Jundt, manager of civil engineering, says, “Dave had the ability to play a practical joke while keeping a straight face through it all. He almost never got caught.”

In retirement, Erickson and his wife plan to split their time between North Dakota and Arizona.

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Basin Today

Blair Mitzel retired from Headquarters April 1 after 35 years of service. He began working as an account technician II. He later moved to being an accountant and finally, manager of payroll.

When Mitzel was asked to provide a work-related memory or story, he instead provided a list of the top ten reasons why he will miss work. Listed as his number one reason was, “Being a part of one of the best working teams at Basin who supported the payroll functions. It was a fun and great pleasure to work with those people and many others.”

Robin Brucker, human resources planning analyst, says, “I have worked with Blair for over 25 years. We went through a couple of software implementations and numerous unique payroll situations. Blair was always the one to call together everyone involved and talk through the situation until a satisfactory solution could be agreed upon.”

Both Brucker and Sue Vinje, human resources coordinator, say Mitzel once switched out their office chairs with big, comfy chairs from the lobby and parked their cars “in Mr. Harper’s (Ron Harper, former general manager) spot.”

Vinje remembers Mitzel would “take a roller off a chair so you would be off-centered when you sat down. Or he would unplug the phone cord so the phone would continue to ring after you picked it up.”

On a more serious note, Vinje says, “He set up a fundraiser and silent auctions for a direct report when she was in the process of waiting for a kidney transplant. He did compassionate things.”

In retirement, Mitzel plans on spending time fishing and relaxing with friends and family, and playing with his grandkids.

Jan Keller retired from Headquarters Feb. 3 after 21 years of service. She began working as a travel coordinator in 1993.

Keller says in retirement she will keep busy with a list of projects at home and spend as much time as she can with her children and grandchildren in Tampa, FL, and Las Vegas, NV.

We will remember…

Katie Henderscheid Katie Henderscheid, assistant plant operator at Laramie River Station, passed away Feb. 13 at her home near Wheatland, WY. She was 24 years old.

She was born Jan. 5, 1990 in Wheatland, the daughter of Dan and Danette (Donovan) Henderscheid.

She was a resident of W he at l a nd s i nce bi r t h , homeschooled, achieving all three Congressional Award Certificates and Medals. Henderscheid was an avid horsewoman and hunter.

According to her obituary, “She could out man anyone around, even John Wayne, and often proved that to be true. ... Katie was always upbeat and ready for anything; she often brought home bull snakes, her wild pet of choice.

Along with her wild critters, she always had two or three or four dogs following her around. She was fearless (except for spiders and June bugs) and wild like the mountain winds, beautiful inside and out.”

She liked to spend time in the mountains surrounding the area with her fiancé Josh Evans. They were planning to be married in October 2014.

Henderscheid talked highly of many of her co-workers.

Before Basin Electric, she was employed at Common Cents as a manager.

Gary Lockman was Henderscheid’s supervisor for two years. “Katie will be greatly missed by all coal yard employees that had the opportunity to work with her.

She was an extremely hard and conscientious worker.

She was never afraid to get dirty and jump right in when things needed done,” he says. “She, at times would get a questioning look on her face when someone was teasing her and she was unsure. Once she figured out that she was catching a little ribbing from someone, she would be right on them, like a rat on a Cheeto, giving grief right back.

When Katie would come to work and greet everyone with a ‘whaaat’s up,’ you knew she was in a fantastic mood and the heckling was on.”

Katie is survived by her fiancé, Josh Evans; mother, Danette Henderscheid and her partner Ron Gardner; father, Dan Henderscheid; siblings, Elizabeth (Nathan) Owen, Lee Henderscheid and Charlie Henderscheid; grandparents, Bert and Dorothy Donovan, and Budd and Alice Henderscheid; niece, Rona Owen; Josh’s parents and brother, Don and Jennifer Evans, and Chris (Jessica) Evans; as well as numerous aunts, uncles and cousins.

Curtis Geigle Curtis Geigle, a process operations field technician in the coal and ash handling area at the Great Plains Synfuels Plant, died Feb. 22 at Sakakawea Medical Center in Hazen. He was 56 years old.

Geigle was born Sept. 8, 1957, in Turtle Lake, ND, the son of Artur “Art” and Janice (Ketterling) Geigle. He was raised and educated in Turtle Lake. He graduated from Turtle Lake High School in 1975, and attended Bismarck (ND) State College where he received a degree in power plant technology. He worked for Madison Gas and Electric in Madison, WI. He married Sharon “Shari” Beyer in Madison on Aug. 8, 1993. They moved to Beulah, ND, in 2005.

Geigle had worked at the Synfuels Plant since 2005.

His co-workers described him as someone who always had a smile on his face. “Curtis greeted you no matter if he knew you or not,” says Jeff Keller, gas production section manager. “He worked with a tight-knit crew who will miss him for many years to come.”

A memorial hangs on the wall in the coal handling control room in memory of Geigle.

He is survived by his wife, Shari; his mother, Janice Geigle; a brother, Charles; and three sisters, Cheryl (Alton) Lakoduk, Cheryn (Wayne) Klatt, and Cheryi (Peter) Teller; and many nieces and nephews.

Services were held Feb. 27, at Trinity Lutheran Church, Turtle Lake.

May – June 2014

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