November December 2014 Basin Today

Tuesday, November 4

1 p.m. Resolutions Committee meeting – Prairie Rose 101 6-9 p.m. Pre-annual meeting reception – ND Heritage Center

(See reception invitation on page 14.)

Wednesday, November 5

6 a.m. Registration opens – Bismarck Civic Center Exhibition Center foyer 7 a.m. Tours – buses depart Exhibition Center parking lot

7 a.m. Security & Response Services breakfast – Prairie Rose 102

7-10 a.m. Continental breakfast – Exhibition Center Hall C

7:45 a.m. Resolutions Committee reconvenes – Prairie Rose 101

8 a.m. Display booths open – Exhibition Center Hall C

9 a.m. Pre-conference session

Untangling the EPA 111(d) web – Prairie Rose 103-105 10:15 a.m. Pre-conference session

Distributed Generation’s role in the national energy picture .

– Prairie Rose 103-105 11:30 a.m. Spouses/special guest luncheon – Prairie Rose 101-102

1 p.m. Annual meeting convenes – Exhibition Center Hall D

1:10 p.m. President’s message

1:20 p.m. General manager’s report

1:50 p.m. Keynote address

2:50 p.m. Coffee break

3 p.m. Basin Electric reports

4:40 p.m. Resolutions report

4:45 p.m. Member caucus announcement

4:50 p.m. Meeting adjourns

7 p.m. Banquet – Bismarck Civic Center Exhibition Center

Thursday, November 6

7 a.m. Continental breakfast – Exhibition Center Hall C

8:20 a.m. Annual meeting reconvenes – Exhibition Center Hall D

8:30 a.m. Legislative/regulatory/community report 10:15 a.m. Coffee break 10:30 a.m. Financial report 11:15 a.m. Subsidiary video report 11:45 a.m. New business Old business Adjournment

Contents Volume 17

Number 6

On the cover: Lance Steiger, with his son Brodey, is a lineman for Basin Electric Class C member West River Electric Association in Wall, SD. West River is a distribution cooperative of Basin Electric Class A member Rushmore Electric Power Cooperative in Rapid City, SD. Member owned, member driven. Photo credit: West River Electric Association.

In Every Issue 15 Member Focus: EmPOWER Youth Leadership at Sioux Valley Energy 18 Feature Series: A day in the life of ... Basin Electric Director Gary Drost 20 News Briefs 23 Employee Highlights Feature Stories 1 President and general managers’ report 4 Committee perspectives, member approval guide Basin Electric 6 Development to benefit all members 11 Basin Electric embraces cooperative way through United Way Editor: Andrea Blowers, ablowers@bepc.com Publications Manager: Mary Miller Graphic Designer: Nicole Perreault Photographers: Steve Crane & Chelsy Ciavarella Contributors: Tracie Bettenhausen, Chris Gessele, Tammy Langerud, Dain Sullivan, Lindsey DeKrey & Joan Dietz

Use your smartphone barcode scanner to view stories online.

Member owned. Member driven. We thought a lot about our theme for this annual meeting.

It’s a simple theme, but it says it all. At the end of the day, when you take away our assets, the megawatt hours, the regulatory challenges, and the changing workforce, it comes down to this: we’re a cooperative.

We’re owned by you. We exist because of you. Basin Electric is YOU. So, let’s talk about your cooperative.

We usher in this annual meeting with a lot of new faces.

We have lost many employees to retirement as the natural retirement bubble grew. Much like when we built up Basin Electric 53 years ago, our workforce is fresh-faced, working hard and learning the cooperative way.

Even more, they’re smart, aggressive and ambitious.

To help new and existing employees understand their roles and the importance of the coop- Wayne Peltier, president erative family, we’ve undertaken a cooperative-wide action plan, which encompasses four key areas, two of which include employee development and cooperative reinforcement. While we are still in the early stages of implementing this plan, the important takeaway is that we’re investing in our people. They are

our future, and we need them armed with the resources and knowledge to do their jobs along with the values and cooperative philosophy that brought us here decades ago.

We are working to accomplish this through enhanced on-the-job training and leadership development.

As much as we can, we will provide opportunities for engagement across the cooperative and membership.

Our revised employee orientation program will provide opportunities to visit with members of senior staff and train with existing employees. Our leadership program concept will include an internship program to facilitate facility-Headquarters swaps, along with cooperative internships. Additionally, we are planning to formalize a cooperative education opportunity for all employees.

Having the right people on board and equipped with the tools to get their work done is only part of it. Our roots lie in our Paul Sukut, CEO and membership. Serving a growing general manager membership is another fundamental component to our action plan. Growing the grassroots power that brought us here is as critical as ever. A new era of cooperative members are here. They don’t remember when the lights came on. We must foster that cooperative loyalty and learn new ways to engage them.

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In simple terms, cooperatives aggregate the needs of Meeting our members needs also means we often many and solve problems. We must look at today’s problems need to make difficult decisions and change the way we within our communities and help solve them. do things in order to better fulfill our mission to serve. We To that note, Basin Electric is responding to the needs must assure that we bring operational excellence to our of our growing membership. Our most recent load forecast day-to-day activities and the way we conduct business. shows a 1,800-megawatt (MW) growth between now and This is the fourth component of our action plan.

2035. Our generation fleet nearly doubled in size in the In July, our board authorized Basin Electric to join the Southwest Power Pool, a regional transmission organization last decade. Most recently, we announced plans to add (RTO) headquartered in Little Rock, AR. This decision was Phase III of Lonesome Creek and Pioneer Generation stations the culmination of years of analysis, discussions with the near the Watford City and Williston, ND, areas. Adding an membership and carefully weighing pros and cons. Joining additional 200 MW will help serve the immediate needs of an RTO will dramatically change many the oil-impacted Williston Basin. aspects of how Basin Electric provides Additionally, the largest and most signifWe’re owned by you. power to its members. icant transmission line of our recent history We exist because of you.

Ultimately, we realized the Federal received final approval, and construction Basin Electric is YOU. Energy Regulatory Commission’s movehas started on the AVS to Neset project.

The line starts near our Antelope Valley ment toward RTOs left Basin Electric Station, near Beulah, heads straight west to our Charlie Creek operating as an island, often leaving our resources stranded substation and curves north, following Lake Sakakawea to during times of surplus and conversely, unable to access Williston and ultimately ending near Tioga. This line will the market during times of shortage. We are now enmeshed facilitate the delivery of baseload generation to the Williston in the integration process, which will be complete in late Basin and beyond, strengthen our transmission system 2015. While this has been a complicated process that at and provide much needed voltage support. We anticipate times elicited difficult conversations, we feel this move completion by 2017. will overall enhance our service to the membership and We are also addressing member growth with the addition allow us to better manage our assets. of three power purchase contracts from new wind projects We are also working to protect our assets from regulatory set to come online by the end of 2015. The first developer, challenges. This past year, the EPA rolled out two rules that Infinity Wind Power, Santa Barbara, CA, will be developing have huge implications for coal and its future role in the the Sunflower Wind Project (106 MW) near Hebron, ND, national energy picture. EPA’s sections 111(b) and 111(d) limit and the Antelope Hills Wind Project (172 MW), near Golden carbon dioxide from new and existing generation sources.

Valley, ND. The third project is the 98-MW Campbell County As written, these proposed rules are incredibly restrictive, (SD) Wind Farm. ambiguous and create more questions than answers. We’re 2

Basin Today

actively engaged in discussions with our congressional delegations, the EPA, our members and industry groups.

We intend to be proactive in our comments and present a workable solution, one that keeps coal viable into the future.

Regulatory concerns aren’t the only challenge facing our coal fleet, however. We’ve endured many rail challenges this past year. Last year, our Leland Olds Station was days away from running out of coal, forcing us to truck coal from Dakota Gasification Company’s Great Plains Synfuels Plant. Our Laramie River Station also faced a similar challenge when our stockpile was reduced to a concerning level. We’ve had many discussions with the Surface Transportation Board and BNSF, who has since brought on additional crews and pledged more units for LRS deliveries. We are hopeful BNSF will deliver on all of these assurances.

We can’t always play defense, however, with outside challenges. We owe it to the membership to be proactive in looking for other ways to add value to the membership while strengthening the financial integrity of the cooperative. Dakota Gasification Company has been a calculated risk from day one when we purchased it from the federal government. Since then, we made significant investments to bring it up to environmental compliance. Beyond that, we’ve combined science and economics to diversify the product profile at the plant. We currently produce 10 products from the gasification process. Most recently, the board approved an 11th product, a urea production facility.

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

Urea has the highest nitrogen content of all solid fertilizers, but costs less to handle, store and transport than other nitrogen-based fertilizers.

We are so excited to bring this value-added product to our membership. Not only will urea contribute to the bottom line, thereby helping rate management, but it provides our agriculture end-use members with a popular fertilizer – one that is especially in demand in North Dakota, South Dakota and Minnesota. The $402-million plant will produce 1,100 tons of urea daily and is expected to be up and running in 2017.

From Dakota Gas’ urea facility to the cooperative’s many new initiatives, the list of new projects is indeed long. But, that list is about progress. It’s about moving forward. It’s about doing the right thing. The thread running through all these projects – from employee development and cooperative reinforcement to member growth and operational excellence – is you. You own us.

These Basin Electric assets are your assets. You have entrusted us to manage them prudently, and at the same time, deliver power to you, the membership at the lowest possible cost.

We pledge to continue our mission to always do right by you.

Wayne Peltier, president

Paul Sukut, CEO and general manager

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The Basin Electric Resolutions Committee (back, from left): David Sigloh, John Van Beek, Troy Presser, Jack Finnerty, David Meschke, Louis C. Reed; (front, from left) Leslie Mehlhaff, Melanie Roe, Philip Habeck and Don Feldman.

Committee perspectives, member approval guide Basin Electric

By Dain Sullivan membership meetings, we mean from the member all the Drafting a strong future for your cooperative? There’s way up to Basin Electric, the generator.” a committee for that.

As a nearly 15-year Resolutions Committee member, Van Basin Electric’s member-elected Resolutions Committee Beek provides insight from his experience as a business is one of the sharpest tools in the cooperative’s belt. owner, as well as a retired farmer and rancher. Sigloh, an The group convenes annually to reexamine the direction eight-year committee member, is also a businessman who of Basin Electric. It’s a collaboration of great minds that raises cattle. tend to the cooperative’s living resolutions When meeting at Headquarters, document, year by year, page by page.

It’s very important that committee members bring multiple But the true power lies with Basin the members have the final perspectives to the table. It’s what makes Electric’s member-owners, who ultimately say. They give the cooperathe resolutions process so beneficial at approve suggested revisions to the docutive guidelines on what to Basin Electric. ment. The membership will vote on this work toward.

Melanie Roe, who represents Park year’s resolutions during Basin Electric’s John Van Beek Electric Cooperative in Livingston, MT, 2014 annual meeting. brought additional expertise when she Member approval is vital to the resolujoined the committee in 2004. tions process, and committee members “I’m probably one of the few people on the board that’s make it their mission to best represent the membership not a farmer or a rancher,” she says. “My husband and through their valued perspectives and years of experience.

I have a construction company, so we bring a different “It’s very important that the members have the final perspective than a lot of the ag folks do.” say,” says committee member John Van Beek, a represenIn addition to serving as a roadmap for Basin Electric, tative of Rushmore Electric Power Cooperative in Rapid Roe says resolutions are useful in a political sense.

City, SD. “They give the cooperative guidelines on what “It’s a reflection of how we want to present Basin to work toward.”

Electric to our leaders in Washington and at the various Resolutions Committee Chairman Dave Sigloh, who state levels,” she says. represents Upper Missouri G&T Electric Cooperative in She also agrees with Sigloh and Van Beek in that the Sidney, MT, further describes the nature of cooperative resolutions process is the perfect example of the cooperaguidance when it comes to tailoring resolutions. tive way, which gives deciding power to Basin Electric’s “It exemplifies the grassroots control of the cooperamembers. tive system,” he says. “When we say ‘we’ at our annual 4

Basin Today

Everybody seems to put on their Basin Electric hat when they’re in these meetings. The bottom line is, you’ve got to care about the guy at the end of the line.

Melanie Roe

“It truly is the meat and potatoes of what the co-op is all about,” she says.

Resolutions Committee members feel it is their mission to provide responsible business planning when analyzing Basin Electric’s future. They also cling to the values of safe, affordable and reliable electricity.

Of course, the ability to maintain safe, affordable and reliable electricity is something the committee discussed this year, in the wake of new carbon rules proposed by the Environmental Protection Agency (EPA). The government agency comes up often in resolutions meetings.

“The EPA is always a big deal,” Sigloh says.

The Sept. 9 Resolution Committee meeting also served as a platform to discuss transmission updates, cooperative planning in association with load growth, and Basin Electric’s plans to join Southwest Power Pool.

Maintaining and building strong relationships with tribes was proposed as an additional resolution.

Of course, some issues returned from previous years.

Much-needed improvements with rail shipping, for example, have proven to be a long haul.

“The big wheels of bureaucracy grind pretty slowly,” Roe says.

But regardless of any challenges that lie ahead, committee members find solace in a revisited vision statement, as well as a proposed mission statement.

“We’re getting back to zeroing in on Basin Electric’s goals,” Sigloh says.

Each committee member serves as a voice for member-owners they represent, but resolutions discussions allow them to unite as one.

“Everybody seems to put on their Basin Electric hat when they’re in these meetings,” Roe says. “The bottom line is, you’ve got to care about the guy at the end of the line.”

Of course, it’s the guy at the end of the line Basin Electric turns to when carving out the cooperative’s future. That’s the great thing about resolutions: they’re member-owned, member-driven.

Sigloh reappointed as chairman; committee proposes changes

When the Basin Electric Resolutions Committee reviewed the cooperative’s resolutions Sept. 9, they moved that David Sigloh of Upper Missouri G&T remain chairman.

The group also listened to presentations from Basin Electric staff on transmission projects in western North Dakota, and the cooperative’s intentions to join Southwest Power Pool.

The committee received updates on Basin Electric’s load growth and the associated new resource timeline, as well as the Environmental Protection Agency’s proposed carbon rules, represented in Section 111(d) of the Clean Air Act. New vision and mission statements reflecting changes proposed by the Basin Electric Managers Advisory Committee, Basin Electric board of directors and staff were also reviewed Sept. 9.

The committee asked Basin Electric staff to draft a resolution on building and maintaining relationships between cooperatives and the tribal nations. In addition, the committee proposed revisions to a number of other resolutions.

The committee will meet again Nov. 4, during Basin Electric’s 2014 Annual Meeting, to get members’ final approval on resolutions and revisions.

The membership will vote on the proposed resolutions during the business meeting Nov. 6.

Resolutions Committee members District 1

Les Mehlhaff

East River

District 2

David Meschke

L&O Power

District 3

Troy Presser

Central Power

District 4

Louis C. Reed

NIPCO

District 5

Jack Finnerty

Tri-State

District 6

Melanie Roe

Central Montana

District 7

John Van Beek

Rushmore Electric

District 8

David Sigloh

Upper Missouri

District 9

Dean Hummel

KEM Electric

District 10

Philip Habeck

PRECorp

District 11

Don Feldman

Corn Belt Power

Board Representative

Allen Thiessen

Basin Electric

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Development to

benefit all members

By Chris Gessele and Tammy Langerud With all of the news headlines about rapid growth and increased activity coming out of the Williston Basin, it’s natural to feel like everyone’s attention is on the oil boom.

Basin Electric is indeed working with member cooperatives to ease growing pains in western North Dakota and eastern Montana. After all, more than 1,600 megawatts (MW) of Basin Electric’s projected load growth of more than 1,883 MW is forecast to come from the Williston Basin.

It’s significant, but with members spread across nine states, that region is not Basin Electric’s sole area of focus.

The cooperative’s current generation and transmission projects are being built to serve all of its members and their 2.8 million customers.

Below is a rundown of a few of those projects, followed by snapshots of member-owners who depend on the reliable electric service Basin Electric and its member cooperatives tirelessly work to provide.

Lonesome Creek Station Lonesome Creek Station, a 45-MW natural gas-based peaking station west of Watford City, ND, started commercial operation of Unit 1 in December 2013, and construction of two additional 45-MW units – Phase II – is targeted for completion in late 2014.

Construction on Phase III at Lonesome Creek is slated to begin in late spring 2015 after acquiring state and local 6

Basin Today

permits. Phase III will consist of the addition of three 45-MW combustion turbines. Like the existing unit and two units currently under construction, the planned units will utilize a dry low-emission combustion process. “Dry” indicates the process will not utilize water for nitrogen oxide emission control. Completion of units 4 and 5 are targeted for June 2016.

Construction has started on the AVS to Judson transmission line and AVS, Charlie Creek and Judson substations as part of the AVS to Neset project, according to Amanda Wangler, Basin Electric project manager II. Completion of the AVS to Judson line and associated substations is targeted for Oct. 31, 2015.

North Killdeer Loop (NKL) Pioneer Generation Station Pioneer Generation Station, a natural gas-based peaking station northwest of Williston, ND, started commercial operation of Unit 1 in September 2013. The plant’s Unit 2 started commercial operation in February 2014, and Unit 3 started commercial operation in March 2014. Each unit has 45 MW of generation capacity, giving the station a total rating of 135 MW. Construction on Phase III at Pioneer Station is slated to begin in late spring 2015 after acquiring state and local permits. Phase III will consist of 112 MW of additional peaking capacity. The additional generation will be provided by 12 9.3-MW natural gas-based reciprocating engines. Pioneer Station’s three existing units utilize LM 6000 water-injected simple cycle combustion turbines. Completion of Phase III is targeted for June 2016.

Combined Cycle Basin Electric is currently examining the possibility of building a high-efficiency combined cycle natural gas-fueled plant, with two turbines fueled by natural gas and a third powered by steam generated by the first two turbines. Potential sites are being examined in Emmons and Morton counties in North Dakota. Engineering studies are being performed to determine technology alternatives and project-related infrastructure requirements. If pursued, the plant would need to be in service by 2019-2020.

AVS to Neset Transmission Project Basin Electric will construct, own and operate a new 345-kilovolt (kV) transmission line and associated supporting infrastructure. The entire project will consist of constructing approximately 200 miles of new single circuit 345-kV and double circuit 345/115-kV transmission lines, the construction of two new substations, modifications to three existing substations, river crossings, temporary construction staging sites and other facilities.

The project will be located in portions of Dunn, McKenzie, Mercer, Mountrail and Williams counties in western North Dakota.

The NKL project was added as part of the AVS to Neset transmission project due to the significant load growth projected in McKenzie County.

The NKL project 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 NKL project would be permitted in two phases, with the first 28-mile phase siting application scheduled to be submitted in fall of 2014, with construction to begin by mid-2015 after acquiring all state and federal approvals. The NKL project is scheduled to be operational in late 2016.

Serving those at the ‘end of the line’ Basin Electric’s focus is the person at the end of the line. Those member-owners are the reason the cooperative exists.

Basin Electric, a generation and transmission (G&T) cooperative, does not sell electricity directly to consumers. Control and direction of the cooperative begins with member-owners who support the seven cooperative principles and are governed by the cooperative business model.

Basin Electric’s 11 directors are elected by the cooperative’s members. These directors have been elected to the boards of their local distribution systems and then, with the exception of Districts 9 and 10, to their respective intermediate generation and transmission systems. Many of Basin Electric’s Class A members are generation and transmission electric cooperatives.

The following profiles highlight Basin Electric members and members of their respective distribution cooperatives. Those cooperatives are served by intermediate generation and transmission cooperatives, which in turn are served by Basin Electric.

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Tom Pearson, controller at Gooseneck Implement, Minot, is a member of Verendrye Electric Cooperative, Velva, ND.

Retired ranchers Le Roy and Twila Dean, Belle Fourche, SD, are members of Butte Electric Cooperative, Newell, SD.

Le Roy and Twila Dean

Tom Pearson

How important is a reliable electrical system to you?

How important is a reliable electrical system to your home Le Roy: Oh, it’s very important. If you’re out of electricity and business? you’re at a standstill.

If you can’t count on your electric system, the commuTwila: First thing we’re out of is water because we nity won’t grow. And as we know, with what’s going on in have a well.

Western North Dakota, there’s been an increase in populaLe Roy: And the heat system is electric. tion, not just in regard to people, but also the businesses Twila: We bought a generator because we are on coming in to our communities. And if we can’t provide electric heat, and you don’t want to be caught in the middle the need or provide the power that’s going to be needed of the winter without heat. in the future from these businesses and people, we’re not What are your first memories about getting electricity? going to see the growth.

Twila: My folks lived north of Phillips, Is there more to electric SD, and I think it was 1953 when we got cooperatives than Just flipping that switch and power out there. I remember we had a waffle providing electricity? having lights was really nice, that’s iron, but very few things that would run off Ye s . T h e p e r f e c t the thing I remember more than from electricity. Just flipping that switch example relates to my anything.

Le Roy Dean and having lights was really nice, that’s the work. We’re building a thing I remember more than anything. You new Gooseneck Impledidn’t have the lantern or the lamp to clean, ment dealership in Harvey, you just flicked the switch.

ND, and we partnered with Verendrye Electric to do a $1 Le Roy: It was probably one of the best things that million loan to help provide financing for it. Verendrye happened to the rural area. I think we first got power in Electric and USDA (U.S. Department of Agriculture) are March in 1953. They were coming through setting poles. teaming together to provide us this loan that’s making it When we were married in 1961 if you bought a dryer or more feasible for us to do this brand new building in that some big appliance the power companies would give away community. You know, they’re not just looking at bringing things like an electric skillet or a toaster to try to get people in the power, they’re part of our community, and Verendrye to use electricity. Now they’re trying to conserve energy. wants the communities they serve to have the ability to Talk about your relationship with your electric co-op. grow, and they’re going to grow right with us.

Twila: When we were members of Southeast Electric What else is compelling about your electric cooperative? we were without power one time for quite a few days. It Verendrye is a strong part of our community. They was a spring storm and it broke poles right and left. The want us all to be part of their cooperative. They’re willing line crew stayed at our place that night because it was a to work with us and to provide services that we’re going to long ways back to Ekalaka (SD). And we get good service need now and into the future. Plus, it’s been an extremely with Butte Electric. If our power goes off, they are right stable power system that you can count on. It’s nice to on it trying to figure out why. Being members of a co-op is get up at 2 a.m., turn on the lights and there they are. You a good thing, and the profits go back to the people rather don’t worry about it. than to somebody else.

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Basin Today

Elizabeth Redding, owner of Bloom in Color, a mobile floral business, is a member of Verendrye Electric Cooperative, Velva, ND.

Darin Larson, a farmer near Baltic, SD, is a member of Sioux Valley Energy, Colman, SD.

Darin Larson

How important is a reliable electrical system to you?

Electricity is crucial to our operation. For instance, harvest will be coming up and we’re anticipating a wet harvest, which means we’ll be drying corn in particular.

Electricity is what powers the dryer and powers the augers, and as well as lights and incidentals. It’s absolutely crucial to farming in the 21st century. Reliability is crucial because if we don’t have that power, the grain can’t be dried, which then causes spoilage issues and transportation issues and affects the price and efficiency on the farm. And really, we take the reliability of electricity for granted.

Talk about your relationship with yo ur electric co-op.

I’d have to go back to high school days, when I was a proponent of cooperatives and able to be on the National Rural Electric Cooperative Youth Advisory Board. We went to Washington, D.C., and learned more about our nation’s capital as well as the role rural electric co-ops have played in our nation’s history. I was able to learn a lot about the history and necessity for co-ops and how the electric co-ops, in particular, helped to build this state and fill needs that otherwise wouldn’t have been filled.

How do you feel being served by a cooperative may be different than another type of utility business?

I favor the cooperative model because I think it’s member-driven and its focus is on the needs of the members, as opposed to investor-owned operations, which have to be focused on the needs of the investors and serving the investors. You’ve got competing forces in the corporations between the needs of the investors and needs of the customers, and you just don’t have that pull in a co-op.

The mission of the co-op I think is clear: to serve members above all. It means to me that I’m part of the ownership and that my needs are being served by people who are focused on my needs and concerns. I take pride in being part of a co-op.

Elizabeth Redding

How important is a reliable electrical system to your business?

It’s extremely important. I have a floral cooler that has to remain at a specific temperature, and that has a lot of risks because of the way that I operate my business.

My cooler is an enclosed trailer I retrofitted to be a floral cooler, and it sits outside in the elements. So when it’s 90 degrees, I need to make sure my cooler is continually running to maintain a constant temperature because if, for some reason, my power goes out my flowers won’t last very long. Also, because I have a full-time job during the day, I’m not here to monitor everything all the time, so I need to be able to rely on constant power.

Talk about your relationship with your electric co-op.

My relationship with Verendrye, to be honest, has been short-lived. Before the flood [of the Mouse River in 2011], we were one of the only farmsteads outside of town serviced by another electrical provider. Unfortunately during the flood, the waters knocked down the electrical pole servicing our farmstead, and our electrical provider at the time wasn’t able to get out here. They kept telling us, “We don’t know when we’ll be able to get to you.” We lived off of generators for a while, and Verendrye was the one that got us back and running, and got us off generators. It was really nice to have Verendrye to be so willing and eager to help us!

How do you feel being served by a cooperative may be different than another type of utility business?

I hate to place emphasis on just that one particular situation, but I think the flood really highlighted, for me, what I’ve always thought of a co-op. And, that is community driven, the sense of family and the sense of support. During that situation, that’s what my cooperative really gave me and really reinforced in me is that they are focused and consciously thinking about the community they’re operating in and the members they’re supporting and what’s most beneficial for them.

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Retired law enforcement official Doug Pavel, who farms and raises boer goats near Whitewood, SD, is a member of Butte Electric Cooperative, Newell, SD.

Doug Pavel

How important is a reliable electrical system to your home and business?

We’re all electric here, and we don’t have natural gas or cable or some of those other things that a lot of people take for granted. Our primary need besides our household is in January and February when the goats give birth. We’re running a lot of tank heaters, and then when the little ones are born we’re out there with hair dryers drying them off to keep their ears from freezing and using heat lamps to warm them up. Between the water tanks making sure they’ve got constant water and the ability to keep those little critters warm, power is essential to us.

What do you enjoy about being a member of a cooperative?

They know you on a first-name basis, and that’s the nice thing about belonging to a co-op. For example, the board’s directors are your neighbors, your friends, your customers, you know them. It’s not like you’re calling some 1-800 number somewhere where they don’t even know where you are located. And being from my previous career with public safety, I can appreciate having to do a job in the worst of weather. If we lose power, we try to make it a point when everything is done to give them a call and thank them because they do a pretty darn good job.

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Is there more to electric cooperatives than providing electricity?

I’ve been on the credentials committee and I think I’ll be on the credentials committee again this year. Being a part of a co-op is who you are, it’s your business, it’s your company. When they’re talking about holding rates it’s not just because they’re trying to hold down rates for you as a customer, they’re trying to because it’s you, you’re part of that organization. And listen to them.

I have to confess I probably don’t do as much homework as I need to find out what’s going on with the rates and all the regulations. The EPA wants to shut down the coal power plants and I’m not sure how they – the people in Washington, and I’m pro-government – can shut down our power plants and provide us with reliable, dependable, inexpensive electricity. It doesn’t fit in the same sentence – or the same paragraph, anyway.

If there’s any message we get out to folks, pay attention to what’s going on with these regulations because your cooperative needs your backing. Talk is cheap, getting action going is hard. We’ve been to meetings at Butte Electric where they say, call your congressman, or sign up here and we’ll send it for you to let your representative know that you’re not for these regulations. Do your homework.

That’s all part of being a good member of the cooperative.

Good neighbors Basin Electric embraces cooperative way through United Way

By Dain Sullivan

Basin Electric employees Sheila Renner, administrative assistant II, and Dean Anderson, network engineer, volunteer at Papa’s Pumpkin Patch during the 2014 United Way Day of Caring.

Cooperative spirit is best exemplified by neighbors who unite to improve their community.

That’s why the people at Basin Electric have always taken great pride in supporting United Way. Every year, Basin Electric hosts numerous fundraisers that benefit the nonprofit organization. Whether it’s paintball tournaments, Dilly Bar sales or taco in a bag lunches, charitable giving comes in many forms here.

After all, commitment to community is part of what being a cooperative is all about. It’s part of Basin Electric’s mission to seek out neighboring organizations that value this principle.

United Way chapters are at work in many of the communities where Basin Electric provides service. They exist as a safe havens for those in need, and as organizations that thrive on promoting better health and community engagement.

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A team of volunteers from Basin Electric and Capital Electric Cooperative, Bismarck, ND, banded together as part of Missouri Slope Areawide United Way’s annual Day of Caring Aug. 13 to prepare Papa’s Pumpkin Patch for its 2014 season. Community-wide, more than 800 volunteers united to paint, fix, remodel, move, build, plant, clean, clear, sort, pack and mow – 41 service projects in total – as part of 2014 Day of Caring.

Generosity is alive at Basin Electric

“Jena gets the call when kids are abandoned. She takes Last year, Basin Electric’s level of United Way giving them in,” he says. “We’re very lucky to have her as our was met with multiple high fives from Jena Gullo, Missouri executive director.”

Slope Areawide United Way executive director.

Cash also says a common question raised through United Way is whether the money actually reaches those Gullo runs an office of four employees, with two addiit’s intended to help. tional workers who are grant-funded. The group works “If you donate $10 to an agency supported by United tirelessly, and is thankful when community leaders like Way, that agency gets the full $10. We don’t take anything Basin Electric step in to help. off the top,” Cash says. “This money stays in the community.”

“We rely so heavily on the support of companies like What makes the United Way thrive, he adds, is that the Basin and other volunteers,” Gullo says. “It’s overwhelming community recognizes the program’s need for support. when people show how much they care and want to give “Successful communities don’t back to the community.” hide from issues like abuse, neglect The cooperative’s fundraising It’s instilled in the culture and homelessness,” Cash says. “One efforts throughout the years have that we’re here as a cooperative of the great things about United encouraged United Way to increase to support the community and improve the lives of the people in Way is they deal with these issues monetary goals. With help from Basin that community. as they emerge.”

Electric and other local entities, the Ted Cash Cash has served on the board Missouri Slope Areawide chapter of directors for three years, and aims to raise $2.5 million by Jan. 29. participated in United Way events If you ask Ted Cash, Basin Elecfor the 16 years he’s worked at Basin Electric. He says tric manager of media and support services, it’s a goal community giving is a theme that seems to hit close to within reach. Cash also says helping programs like United home for everyone at the cooperative.

Way is just what good neighbors, like Basin Electric, do.

“All the employees here step up to the plate for almost “A good neighborhood is groups of families who support one another. If something happens, they’re all there to every type of philanthropic charitable event,” he says. “It’s help,” he says. instilled in the culture that we’re here as a cooperative to support the community and improve the lives of the people Cash serves on the local board of directors for United Way. in that community.”

He says Gullo and her staff make the money count When it comes to community service, United Way does when reaching out in the community. And when there more than reach out to those who are less fortunate. aren’t enough resources available, the United Way chapter “It also supports things that build the community,” members take it upon themselves to help others.

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Basin Today

United Way agencies in Basin Electric service area

Basin Electric employees Scott Rivinius (left), James Decker and Brock Schmeets were among those who participated on Basin Electric’s team for the United Way Bowling Fun Day.

says Cash, who mentioned YMCA, Cub Scouts and park construction as examples of projects often supported

by United Way.

Basin United Way of Williston, North Dakota Brookings Area United Way, South Dakota Campbell County United Way, Wyoming Missouri Slope Areawide United Way, North Dakota Mitchell United Way, South Dakota Souris Valley United Way, North Dakota United Way of Northeastern, South Dakota United Way Heartland Region, South Dakota United Way of Southwest Minnesota United Way of Vermillion, South Dakota

It’s just the cooperative way

United Way fundraisers are charitable opportunities Basin Electric employees engage in. But the giving has never stopped there.

Giving is fun at the cooperative “Everybody knows how incredibly generous Basin Basin Electric’s goal is to make charitable giving fun.

Electric is,” Cash says.

In addition to the paintball tournaments, Dilly He adds that the idea of community support is Bar sale, and taco in a bag lunch mentioned earlier, one the cooperative team wishes to pass down to other events tied with this year’s fundraising effort future generations. Being good role models is key, and included campaign kickwhen Basin Electric families see off breakfasts, bowling the work that’s being done for We rely so heavily on the support of and candy sales. programs like United Way they’re companies like Basin and other volunteers.

The cooperative encouraged to take up the service It’s overwhelming when people show how organizes fundraisers mantle in future years. much they care and want to give back to aimed at promoting an Support from senior managethe community. atmosphere of teamwork ment is another driver behind Jena Gullo and fellowship, which Basin Electric’s United Way employees are on board giving. Whether it’s through fundwith. United Way promotion events are successful raising or other volunteer efforts for local charities, the because of this reality. cooperative’s leaders simply make good decisions on Indeed, Basin Electric’s United Way giving has how to best improve the community through servant become an animal of its own. Gullo says she doesn’t leadership. have to do much to get cooperative employees fired In the end, the employees are the champions of up to give. community giving. What matters most to the coopera“They don’t just give money, they give of themselves,” tive family is being able to lend a helping hand to those she says. who make a community great.

Cash agrees.

“Basin Electric believes – and instills in its employees “A lot of people at Basin Electric give a lot more than – that we are here, not only to make a paycheck, but their income. They’re donating their time to be away to make life better for people,” Cash says. “That’s just from their families, or to volunteer with their families,” what the co-op does.” he says.

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Member Focus

Pulling in the young

EmPOWER Youth Leadership at Sioux Valley Energy

Jennie Patrick (far right), Sioux Valley Energy marketing specialist, talks with EmPOWER students during a cruise on the Missouri River near Bismarck, ND. The cruise wrapped up a day of tours that included Basin Electric’s Antelope Valley Station, Dakota Gasification Company’s Great Plains Synfuels Plant and The Coteau Properties Company’s Freedom Mine near Beulah, ND.

By Tracie Bettenhausen A group of high schoolers is standing together. There’s Sioux Valley Energy, a Basin Electric Class C member lots of excited chatter out of some and lots of quiet space cooperative headquartered in Colman, SD, hooked the around others. They’re joking, bursts of high school students with the laughter heard across the room. One girl promise of a year-long program We want these kids to see they stands with her hands on her hips; one that would help them meet will have made a mark on the world. guy keeps twisting his toe into the floor. friends, make contacts, and Being part of a cooperative makes It’s a scene that could take place pump up their college appliyou unique. It’s a different business at any high school basketball game or cations and resumes, while model and it’s something they can skate park or after prom party. learning about themselves, actually impact in the future.

But this is a scene straight from exploring their passions in Carrie Law Sioux Valley Energy’s 75 th Annual life, and developing leadership Meeting. skills such as communication It’s just what electric co-ops have and self-confidence. been talking about for years, the idea of getting young The EmPOWER Youth Leadership program is new this people to come to annual meeting. How did the cooperayear, and came about following the co-op board’s strategic tive do it? planning session.

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Member Focus “I thought it would be a fun way to meet new people, people who are curious about how things work. …

When I go home, I’m going to tell my family about how I stood at the top of the power plant (on tour at Antelope Valley Station). I’m afraid of heights but I still did it.

Mariah Burggraff, Tri-Valley High School, junior

I applied for the leadership program because I thought it would be a good opportunity to meet new people around our community and learn the valuable aspects of being a leader, to help me whether it’s sports or in the real world.

Matthew Eigenberg, Brandon Valley High School, sophomore

WHAT STUDENTS SAY ABOUT Leadership means that a person stands out, and other people look up to them. It means control, but helping each other and showing each other what to do.

Vanessa Renteric, Flandreau High School, junior

“We were asking those questions most cooperatives are asking themselves these days,” says Carrie Law, Sioux Valley director of Communications and Government Relations. “If our members could choose their power provider, would they choose us over another electric utility? Will the future generation of our members appreciate and understand what the co-op business model is all about?

Do they care if they are served by a cooperative?”

They questioned not only if members would care about the cooperative, but Law says, they also discussed who would one day work for the cooperative. “Will we have CEOs and other key personnel available as they retire? We have a lot of employees going through retirement right now and a lot of knowledge base leaves with that,” Law says. “Our board is affected too. Do we have strong and passionate leaders to fill those roles in the future?”

They decided, in very broad terms, to start a youth leadership program.

Law went back to the office to talk to Jennie Patrick, 16

Basin Today

I thought it was going to be a lot of fun. I didn’t know all the stuff we were going to do, like touring power plants and going on a riverboat cruise. … Learning about leadership will help me meet more people and be more confident.

Ashley Menor, Rutland High School, sophomore

Sioux Valley marketing specialist. “I said, ‘We have this really exciting opportunity to build a youth program and there’s no determination what it’s going to look like. Isn’t that great?’” Law says.

Patrick went into research mode. Among other things, she attended the Co-op Yes! Youth Leadership Conference in Eau Claire, WI, in March. About 150 students from a variety of cooperative businesses in Wisconsin and Minnesota attend “to learn about and appreciate the purpose, operation, and scope of cooperative business,” according to their website.

“Imagine these 17-year-old students. The speaker walked in, took everybody’s chairs away and we stood for three hours and it felt like 30 minutes,” Patrick says, describing the Yes! Conference’s approach. “I thought, I want people like that involved in this program, who can fire up these kids, have an enthusiasm.”

Patrick also visited area schools to get buy-in. “If you don’t have the backing from the schools, where is your program

I chose t he E m P OW ER program because both my parents are engineers, and I’m interested in engineering. I thought this would be a good way to explore career options. … Leadership is a thing where you have to learn how to do it.

I think being a leader is being in control of a situation. Like if you’re in a small group, you take the lead and talk to everyone. … My mom used to work for Sioux Valley Energy, and she thought it would be good for me to do this in case I ever wanted to work for the co-op one day.

Justin Nielson, Brookings High School, junior

Molly Hageman, Sioux Valley High School, junior

AND LEADERSHIP “I thought it sounded like a good program to gain leadership skills. … You have to have courage to step up to be a leader, for people to follow you.

I think it will help me break out of my shell a little bit because I feel like communication is a really big part of everything. … A person who is a leader is someone who is not selfish.

They try to put others before them and they know how to control a situation. And they aren’t persuaded easily, they control what they think and they’re in control of themselves.

Kelly McClain, Brookings High School, junior

going to go?” She talked to school counselors to get topic ideas, and went into classrooms to talk to students about the upcoming opportunity.

“You get these blank stares. They’re thinking, ‘Hey, what am I doing for summer break?’ And I’m saying, ‘How about you apply for this?’ It was a lot of face to face, going out to the schools, and hitting the ground with it,” Patrick says.

And so EmPOWER is under way, with 32 students in its first year. Each year, the students will first meet at Sioux Valley Energy’s annual meeting, and the year will end there as well. In between, there will be four one-day EmPOWER sessions, scheduled on days there is no school, such as Veteran’s Day. At the end of each year, the students will develop a junior Membership Advisory Council (MAC) to plan the next year’s EmPOWER sessions.

“The students will earn points throughout the year,” Patrick says. “If they come to a MAC meeting, if they want to come to a district meeting or take in any activity the

Jackson Dziedzic, Brandon Valley High School, junior

cooperative is throwing, those things will earn them bonus points toward their financial awards and different trip opportunities.”

Law says commitment to community is an important part of EmPOWER. “We want these kids to see they will have made a mark on the world. Being part of a cooperative makes you unique. It’s a different business model and it’s something they can actually impact in the future.”

Law says once Sioux Valley Energy has completed a year or two of EmPOWER, they hope to develop the program so other cooperatives can take the materials and recreate the program for their own cooperative.

There is even talk of expanding the program to college students. “Who is going to be working for the co-ops?”

Patrick says. “How about the 30-somethings who didn’t see the lights come on? We need to engage those members into the cooperative membership as well.”

Hear what the students think about EmPOWER at http://bit.ly/SiouxValleyEmPOWER. November - December 2014

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Feature Series

A day in the life of … Basin Electric Director

Gary Drost Basin Electric Director Gary Drost (center) takes part in a visit with Rep. Collin Peterson (D-MN) (far left).

By Chris Gessele Gary Drost and his co-op companions stepped into the Longworth House Office Building cafeteria – a noisy and bustling expanse of well-dressed people.

The cafeteria didn’t seem much different than the rest of Capitol Hill.

Drost represents Basin Electric’s District 2, L & O Power Cooperative, and serves as secretary/treasurer on the cooperative’s board of directors. He also serves on several Basin Electric subsidiary boards.

Drost’s cafeteria stop was part of a mid-September trip to Washington, D.C., with other cooperative colleagues to visit legislators and attend the annual Fall Fly-In reception for congressional staffers, which is coordinated by Basin Electric.

Drost and his wife, Debra, arrived in D.C. a few days early to take in some sights and sounds. Business began for Drost and others on Sept. 16 with visits to Sen. Al Franken (D-MN), Sen. Amy Klobuchar (D-MN), Rep. Tim Walz (D-MN) and Roger Johnson, National Farmers Union president.

The crew then embarked on a full day Sept. 17 that included visits with Rep. Kristi Noem (R-SD), Rep. Collin Peterson (D-MN), Sen. John Thune (R-SD), Sen. John 18

Basin Today

Hoeven (R-ND), Sen. Tim Johnson (D-SD) and Sen. Heidi Heitkamp (D-ND).

Major topics of discussion during the visits included the U.S. Environmental Protection Agency’s (EPA) proposed rules for Section 111(d) of the Clean Air Act, which addresses greenhouse gas standards for existing fossil fuel-based power plants, and lingering rail coal transport issues.

“To me, 111(d) is critical for the long-term,” Drost says.

“It’s going to cost our members money, so that’s where the focus has to be.”

Each legislator was joined by at least one staff member who would take notes and ask visitors questions about the issues they face.

Drost and a few Basin Electric employees started Sept.

17 visiting with Rep. Noem about several topics of interest to the cooperative, including 111(d), as well as what she’s been busy with in the legislative arena.

Then it was on to Rep. Peterson’s office, where it was standing room only for a diverse group of energy industry folks who spoke with Peterson about the EPA’s Waters of the United States rule, railroad congestion issues and possible reform of the U.S. Surface Transportation Board.

Basin Electric “We’ve been told by legislators, ‘When you folks come Director Gary in, we listen. You don’t come in with three or four people – Drost listens to discussion you come in with a delegation that’s much larger.’ There’s during a strength in numbers,” Drost says. stop in Sen. John Thune’s Next was a visit to Sen. Thune, who was a member of (R-SD) office. the House of Representatives the last time Drost visited him in D.C. Thune shared his displeasure with the EPA’s regulatory-development process.

It was warm outside as the group moved between buildings. That fact and the day’s frantic pace didn’t wear down real challenge here is that is there a real path for coal?

Drost: He’s busy enough on his farm near Luverne, MN, North Dakota must be technological leaders. Who’s going where he and Debra grow corn and soybeans. They farm to the next climate change meeting with a story to tell?” with their son, who also raises beef cattle and hogs. Gary That evening, the Drosts attended the Fall Fly-In Recepand Debra also have a daughter and three grandchildren. tion before flying home Sept. 18.

Drost’s life as a co-op director can take him far from It was a nonstop, tightly scheduled stay in D.C. for Drost home, but he knows the importance of these trips: co-ops and his cooperative counterparts, though well worth the were born in politics, linking co-op leaders and the nation’s effort to visit about topics that could have profound effects leaders. on the energy industry.

Next for the group was a stop in Sen. Hoeven’s office.

“The rural electric program was born in politics and Hoeven congratulated the Basin Electric delegation on will survive or die in politics,” Drost says. recent federal approval of the cooperative’s planned Drost, a former lineman and retired U.S. Navy Reserve transmission project running from Antelope Valley Station serviceman, has been a Basin Electric director since 1999 to northwestern North Dakota. and electric cooperative board member since 1987. He Basin Electric staff shared their hope of meeting EPA’s remembers his first visit to Basin Electric’s Annual Meeting regulatory limits by trading emission credits between of the Membership as a new cooperative board director. facilities. “This isn’t where they (EPA) will stop; this is “I was just awestruck by what Basin was and everything where they start,” Hoeven says.

Basin was doing. I wouldn’t Next, the group visited Sen. have dreamed that 12 years Johnson. Basin Electric staff We’ve been told by legislators, later I’d be a director on the shared their hopes for a multi-state ‘When you folks come in, we listen.

Basin board,” he says. option within the EPA’s impendYou don’t come in with three or In 1987, the cooperative ing carbon regulations. Johnson four people – you come in with a and its members were chalsaid he’d explore the possibility of delegation that’s much larger. There’s lenged by surplus generation. seeking support to push for delaystrength in numbers.

Drost and the other directors ing regulations until major legal Gary Drost face challenges of a different challenges are finalized. sort today.

The last visit of the day was “It’s a pretty exciting time to Sen. Heitkamp, an old friend of because of the challenges of growth and capacity shortages Drost and the cooperative. we face going forward. Everything is continually changing, “I speak of Dakota Gas as much as possible,” says and we must meet the membership’s needs while also Heitkamp, a former Dakota Gasification Company recognizing needs of the future member,” Drost says. director.

“I’m comfortable looking toward the future because we Regarding EPA’s carbon regulation efforts, she had have a committed staff and board at Basin, and a membersome words of advice for Basin Electric. ship that is committed to Basin and is very much a part “The fact that carbon dioxide will be regulated as a of our future.” pollutant has been decided,” Heitkamp says. “I think the

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News Briefs

Young Olivia (left) and Violet hold a Dala horse they came across during Norsk Høstfest 2014 in Minot, ND.

Celebrating Nordic culture at 2014 Norsk Høstfest

Norsk Høstfest, North America’s largest Scandinavian festival, was held Sept. 30 through Oct. 4 on the North Dakota State Fairgrounds in Minot, ND. The five-day event celebrated Scandinavian culture from Denmark, Finland, Iceland, Norway and Sweden.

In its 37th year, Norsk Høstfest attracted tens of thousands of people from the United States, Canada and Scandinavian countries to celebrate and partake in Norsk culture and a wide variety of entertainment. More than 200 internationally-recognized artisans, craftsmen and chefs participate every year.

This year marks the 16th year that Touchstone Energy® has been a major sponsor of Høstfest. Basin Electric employees and retirees play a major role in running the Touchstone Energy booth and other sponsored areas at the festival.

As part of Touchstone Energy’s sponsorship, cooperatives sponsored the main entertainment stage in the Hall of the Vikings, and gave away cookies, two TVs, conservation kits and more along with commemorative Høstfest buttons designed every year for Høstfest by Julie Ness, Basin Electric senior graphic designer.

Touchstone Energy also sponsored a radio booth where radio show hosts from across the state took turns broadcasting live throughout Høstfest. The shows’ guests included celebrities, food and craft vendors, local and statewide officials, and co-op members such as representatives from Verendrye Electric Cooperative, which has offices in Minot and Velva, ND. 20

Basin Today

U.S. Energy Secretary Ernest Moniz (right) talks with Mike Eggl, Basin Electric senior vice president of Communications & Administration, during a visit to the Synfuels Plant Aug. 8.

Energy Secretary Moniz talks carbon dioxide at Synfuels Plant

Following a full day of testimony at the Quadrennial Energy Review, a U.S. Department of Energy event held Aug. 8 at Bismarck State College’s National Energy Center of Excellence, U.S. Energy Secretary Ernest Moniz visited Dakota Gasification Company’s Great Plains Synfuels Plant near Beulah, ND, at the invitation of U.S. Sens. Heidi Heitkamp (D-ND) and John Hoeven (R-ND).

Moniz was interested in learning about and seeing the technology used at the Synfuels Plant to convert coal into natural gas and other products, including carbon dioxide.

Moniz said carbon has value in a more carbonconstrained environment. He also touted the technology at the Synfuels Plant. “It’s somewhat ironic to me, we’re here at a plant that started 30 years ago, and it’s got the technology of the future in terms of gasification. So, it took a little while for it to come, but this place has arrived. It is the premiere example of doing large-scale gasification and then enhanced recovery,” Moniz said.

Basin Electric board approves 2015 rate package

The Basin Electric board of directors approved the Class A member rate package for 2015 at the August meeting.

Sharon Lipetzky, Basin Electric supervisor of member rates and revenue, explained that the 2015 base rate structure, approved to meet the member revenue requirement, remains stable from 2014.

The average Class A rate for 2015 will be 53.7 mills per kilowatt-hour. The new rate schedule becomes effective Jan. 1, 2015.

Basin Electric presents at Fargo STB hearing

Basin Electric was one of many coal shippers who shared rail concerns with the Surface Transportation Board (STB) Sept. 4.

During the STB hearing, held at the Hilton Garden Inn Convention Center in Fargo, ND, Basin Electric representatives drove home such points as lost revenue, dwindling coal stockpiles, the importance of coal in the future energy mix and grid reliability.

The biggest point Basin Electric made during its presentation to the STB was that the rail car turnaround time for Dakota Gas’ tar oil is getting worse. Turnover was about 30 days a year ago, but has since peaked at more than 50 days, costing the cooperative millions in lost revenue.

Basin Electric often recognizes the need to build up stockpiles before Burlington Northern Santa Fe Railway does.

Motions to stay granted for Wyoming regional haze

On Sept. 9, the 10th Circuit Court of Appeals granted motions for stay regarding Wyoming regional haze.

The Environmental Protection Agency (EPA) responded to Wyoming’s state implementation plan Jan. 10 with a final ruling requiring the installation of selective catalytic reduction technology that would collectively cost Basin Electric and the other members of the Missouri Basin Power Project more than $1 billion.

The stay was requested by Basin Electric, PacifiCorp and the state of Wyoming, following their litigation efforts against EPA’s rule. It halts further legal processes regarding the regional haze fight until the court renders its final decision.

“Basin Electric was essentially expected to pay hundreds of millions of dollars in advance for SCR technology expected to be installed to Laramie River’s three units,” said Deborah Levchak, Basin Electric senior staff counsel. “The court’s granting of the motion to stay provides an opportunity to delay costs for the cooperative and its members.”

The court also granted Basin Electric’s and PacifiCorp’s request that the compliance deadline for EPA’s ederal implementation plan be extended for the duration of the stay.

Basin Electric celebrates National Cooperative Month

Basin Electric celebrated cooperatives and across America during National Cooperative Month.

Every October, cooperatives are recognized for the qualities that make the business model unique. Seven cooperative principles set cooperatives apart from other businesses: voluntary and open membership; democratic member control; member’s economic participation; autonomy and independence; education, training and information; cooperation among cooperatives; and concern for community.

This year’s Cooperative Month focus was “The Electric Co-op Connection: Discover the meaning of membership.”

Cooperatives exist to serve their members, but they also play a major role in their local communities.

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News Briefs

“Cooperative membership is unique,” said Curt Pearson, Basin Electric manager of media and community relations.

“Electric cooperatives are committed to providing members with safe, reliable and affordable electricity, but there’s more to it than that. We’re local, and that means we care about our community.”

Basin Electric is proud to be part of America’s cooperative network, which includes more than 47,000 cooperative businesses.

Basin Electric is one of more than 900 electric cooperatives, public utility districts and public power districts serving 42 million people in 47 states.

Directors approve financial forecasts

Ten-year financial forecasts were approved for Basin Electric, Dakota Gasification Company and Dakota Coal Company.

Basin Electric’s forecast includes the addition of 1,100 megawatts of new generating capacity and spending of $2.8 billion for capital projects.

Dakota Gas’ forecast is based on natural gas prices ranging from $4.11 (2015) to $4.40 (2024) per dekatherm, and average net plant production of 158 million cubic feet of synthetic natural gas per day.

Dakota Coal’s forecast predicts that average coal prices will range from $15.47 to $21.74 per ton.

The demand for electricity by Basin Electric’s member systems is expected to increase by an average of 3 percent annually throughout the forecast. Electricity sales to both members and nonmembers are expected to be more than 32 million megawatt-hours per year. The average member rate will range from 54 mills to 65.7 mills per kilowatt-hour.

Dakota Gas’ revenue and other income is predicted to range from $524 million to $744 million annually, while expenses are predicted to range from approximately $510 million to $746 million annually. Capital improvements

Find us on the web basinelectric.com basinmembers.com dakotagas.com 22

Basin Today

totaling $661 million will be added during the period, which includes the addition of a 1,100-ton-per-day urea facility.

Projected lignite coal deliveries from Freedom Mine range from 14.4 million to 15.3 million tons. Annual yearend profits after income taxes range from $1.5 million to $2.9 million.

Capital commitments are estimated to be $522 million for Dakota Coal’s coal, lime and limestone operations.

Planned outages under way at power plants

Basin Electric’s Leland Olds Station Unit 1, near Stanton, ND, and Laramie River Station Unit 2, near Wheatland, WY, are in the midst of planned maintenance outages.

The Leland Olds outage, expected to run Sept. 6 through Nov. 17, consists of more than 400 maintenance tasks.

Some of the more significant outage tasks at Leland Olds include replacement of a reheat header to avoid increased outages; a turbine overhaul to replace worn seals and damaged blades that decrease efficiency; and installation of selective non-catalytic reduction ports as part of the environmental control system that will reduce nitrous oxide emissions as a part of regional haze compliance.

Laramie River’s Unit 2 outage began Sept. 6 and is expected to end Dec. 8.

The outage will consist of about 400 work orders, including the overhaul of two low-pressure turbine assemblies, each weighing 50 tons, at General Electric’s facility in Schenectady, NY. The low-pressure turbine rotor work at Laramie River will address potential cracking in the blade supports, and prevent blade failure while the turbine is turning at 3,600 revolutions per minute.

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Employee Highlights

Raising money and building relationships with a paperclip Like a paperclip holds loose papers together, the paperclip has become a tool to bind some North Dakota electric co-ops in their quest to raise money for their communities.

With The Cooperative Paperclip Project ND, employees from several North Dakota electric co-ops are using a paperclip – or something similar – as the starting point to raise money.

This fundraising project is based on the book “One Red Paperclip,” the story of a man who, starting with a paperclip continued trading up for bigger and better items, until he ended up with a house in Saskatchewan.

Katie Ryan-Anderson with Northern Plains Electric Cooperative and Dakota Valley Electric Cooperative was inspired by a speaker at a North Dakota member services meeting, who talked about the book. Ryan-Anderson thought cooperative employees could do something similar and auction off their end result for charity. After some conversations with Erin Huntimer, project coordinations representative at Basin Electric, The Cooperative Paperclip Project began.

“It’s all grown out of an inspiration to serve the community,” Huntimer says. “We see it as an opportunity to build

relationships within our communities because of the outreach required to make the trades. Plus, should this grow in future years, it’s an opportunity for co-op employees to discover or re-discover their connection to their co-op.”

So far Huntimer is three trades into her fundraising goal. She started with a flashlight, traded for a cordless drill and now has a “Ghosts of North Dakota” book set and cards.

She plans to continue trading until the Annual Meeting in November, where participating co-ops’ treasures will be auctioned off for their chosen charities..

Employees from four cooperatives are participating in The Cooperative Paperclip Project ND. They each select a charity to benefit from the money their item raises. Huntimer chose a place near and dear to her: the Neonatal Intensive Care Unit (NICU) at St. Alexius Medical Center in Bismarck, ND, which is undergoing an expansion.

Both of her children spent time in the NICU when they were born, so she knows first-hand how cramped the facility is.

“They don’t have a lot of space for families to spend with their babies. Privacy is difficult in a time that’s already difficult,” Huntimer says. “So, I’m hoping I can give back to them for handing over my babies to me safe and healthy.”

Support the project at Basin Electric’s annual meeting

Silent auction items will be displayed in a booth at the following: • Nov. 4: Pre-annual meeting reception at the North Dakota Heritage Center • Nov. 5-6: Annual meeting, booth located in the courtyard Winners will be determined Thursday morning.

As of October, silent auction items include: The Founding Farmers cookbook, The Ghost of North Dakota book and postcards, and much more.

Erin Huntimer (left) and Katie Ryan-Anderson meet in Jamestown to brainstorm the Co-op Paperclip ND project.

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Employee Highlights

Miller selected president of ND State Board of Accountancy

Faye Miller, director of enterprise cost analysis at Basin Electric, was recently selected to serve as president of the North Dakota State Board of Accountancy (ND SBA).

She is one of five certified public accountants (CPA) appointed by North Dakota Gov. Jack Dalrymple to serve a five-year term on the board, and has served on the ND SBA since 2010.

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

The ND SBA reviews the entrance qualifications of CPA candidates, annually registers accountants, monitors continuing education, and addresses consumer concerns.

In doing this, they protect the public interest by ensuring the conduct of persons licensed as having special competence in accountancy be regulated in all aspects of their professional work.

Mange tak Tusen takk Takk Kiitoksia Tack så mycket Any way you say it, we couldn’t have done it without you. Thank you to all the volunteers at this year’s Norsk Høstfest!

New Employees

Anthony Bryan Jr., assistant construction inspector, started work at Headquarters Sept. 8. Originally from New Orleans, LA, he previously worked for Ampirical Solutions in Covington, LA, as a construction manager/ inspector.

Jason Halvorsen started his position as a mechanical operator apprentice at Transmission System Maintenance in Wheatland, WY, Sept. 7. Originally from Centralia, WA, Halvorsen previously worked for Alpha Coal West in Gillette, WY, as a maintenance technician.

Lawrence Lee began working as an operator/technician at Lonesome Creek Station Sept 8. Originally from Big Spring, TX, Lee previously worked as a government contractor in Afghanistan, Iraq. He has also worked for MidAmerican Energy in Yuma, AZ. Garrett Hooker began working at the Great Plains Synfuels Plant Aug. 18 as a protection services specialist. He served in the army and was stationed at Fort Riley, KS, before starting at the Synfuels Plant.

Jared Floyd, lineman-journeyman, started work at Transmission System Maintenance in Stegall, NE, Aug. 4. Originally from East Wenatchee, WA, Floyd previously worked for Willbros T&D Services in Denton, TX, as a lineman.

Justin Schmidt started his position as associate contract administrator at Headquarters Sept. 8. The Velva, ND, native previously worked for Hopfauf Custom Builders in Mandan, ND, as a construction manager.

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Loren Schaner began working as an instrument II at Leland Olds Station Aug. 25. The Mandan, ND, native previously worked for Red Trail Energy in Richardton, ND, as an electrical and instrumentation technician.

Schaner has associate degrees in power plant technology and instrumentation and control technology from Bismarck (ND) State College. He also has an associate degree in industrial electrical technology from North Dakota State College of Science, Wahpeton.

Josh Schank, instrument II, started work at Antelope Valley Station Aug. 25. The Beulah, ND, native previously worked for Alliance Pipeline in Minot, ND, as a maintenance technician. He has an associate degree in instrumentation and controls.

Matt Kopp began working as a protection services specialist Sept. 8 at the Great Plains Synfuels Plant. Originally from Devils Lake, ND, Kopp has been a co-op employee the past two years at the Synfuels Plant. He is certified in firefighting and is an emergency medical technician.

Kathy Jacobson began working as a payroll analyst I at Laramie River Station Aug. 25.

Originally from Minneapolis, MN, Jacobson previously worked for the Department of Corrections in Pierre, SD, as an accountant I. Terri Seyfang, administrative assistant I, started work at Laramie River Station Aug. 25. Originally from Guernsey, WY, Seyfang has an associate degree in business office technology from Eastern Wyoming College in Torrington.

Jon Schneider began working as an electrical and instrumentation field technician at the Great Plains Synfuels Plant Sept. 8.

Originally from Hazen, ND, he was working for Winn-Marion Companies in Watford City, ND, as an automation technician. Schneider has an associate degree in instrumentation and control from Bismarck (ND) State College.

Andy Telehey started his position as an assistant construction inspector at Headquarters Aug. 25. Originally from Voltaire, ND, Telehey previously worked for Capital City Construction in Bismarck, ND, as a project superintendent.

Jesse Huber began working as a draftsperson II at Headquarters Aug. 25. The Bismarck, ND, native previously worked for AE2S in Bismarck as an engineer technician.

Dustin Rothe, electrical engineer I, started work at Laramie River Station Aug. 11. Originally from Hazen, ND, Rothe has a bachelor’s degree in electrical engineering from South Dakota School of Mines and Technology in Rapid City.

Brian Gardner started his position as a generation/load quantitative analyst II at Headquarters Aug. 18. Originally from Jersey City, NJ, Gardner previously worked for Direct Energy Business in Woodbridge, NJ, as a load forecasting analyst. He has a bachelor’s degree in mechanical engineering.

Derek Dodds began working as a maintenance planner specialist at Transmission System Maintenance in Mandan, ND, Aug. 25. The Dickinson, ND, native previously worked as a maintenance manager at Trinity Health in Minot, ND.

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Employee Highlights

New Employees

Zachary Wager began working as a process operations field technician at the Great Plains Synfuels Plant Aug. 18. Originally from Hermosa, SD, he earned an associate degree in power plant technology from Bismarck (ND) State College.

Jon Madison started his position as an environmental project coordinator at Headquarters Aug. 18. Originally from Pine City, MN, Madison previously worked for Montana-Dakota Utilities in Bismarck, ND, as a senior environmental scientist. He has bachelor’s degrees in environmental science and geology from University of Minnesota Duluth.

Darren Haga began working as a system protection technician apprentice at Transmission System Maintenance in Beulah, ND, Aug. 25. The Hazen, ND, native previously worked for Minn-Dak Farmers Cooperative in Wahpeton, ND, as a control technician.

He has associate degrees in instrumentation and control, and electronics/telecommunications from Bismarck (ND) State College.

Robert “Bob” Kohler, land surveyor, started work at Headquarters Aug. 25. Originally from Frazee, MN, Kohler previously worked for Sambatek in Mandan, ND. He also worked for Ulteig in Bismarck, ND. He has an associate degree in civil engineering technology.

Kyle Meister started his position as a laborer at Laramie River Station Sept 8. The Wheatland, WY, native previously worked for the Air Force in Alamogordo, NM, as an E-5, staff sergeant. He has an associate degree in electronics system technology.

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Daniel Graham began working as a cyber security specialist at Transmission System Maintenance in Mandan, ND, Sept. 15. The Bismarck, ND, native previously worked for the U.S. Air Force in Colorado Springs, CO, as chief of operations of MATCOM communication coordination center.

Terrence Kizer began working at the Great Plains Synfuels Plant Aug. 18 as an environmental engineer. Originally from Wakonda, SD, he has an environmental engineering degree from South Dakota School of Mines and Technology in Rapid City. Kizer previously worked at Consolidated Analytical Systems in Cincinnati, OH, as a project engineer.

Leah Newberry began working at the Great Plains Synfuels Plant Sept. 8 as a process operations field technician. Originally from Pendleton, OR, she was previously employed at Matrix Service Company as a boilermaker/ safety attendant in Orange, CA. Newberry has a Petroleum Technology Certificate from the University of Alaska in Fairbanks, and an associate degree in process technology from Kenai Peninsula College, Soldotna, AK. Brent Ueckert began working at the Great Plains Synfuels Plant Sept. 8 as a process operations field technician. Originally from Bismarck, ND, he earned an associate degree in power plant technology from Bismarck (ND) State College.

Bryce Sichmeller began working as a laborer Sept. 22 at Antelope Valley Station. Originally from Webster, SD, Sichmeller previously worked for Dakota Gasification Company as a co-op intern field maintenance for Wastewater Treatment Department in Beulah, ND. He has an associate degree in energy technology from Lake Area Technical Institute in Watertown, SD.

Dave Faut, laborer, started work at Antelope Valley Station Sept 22. The Hazen, ND, native previously worked as a self-employed contractor in the Hazen/Beulah area.

Greg Batke started his position as a laborer at Antelope Valley Station Sept. 22. The Hazen, ND, native previously worked for Western Steel Builders in Hazen as a crane operator/house framer.

Brandin Lightsey began working as a laborer Sept. 22 at Antelope Valley Station.

Originally from Fairplay, CO, he worked for Industrial Contractors, Inc.

Brad McLaughlin, laborer, started work at Antelope Valley Station Sept. 22. The Hazen, ND, native previously worked in maintenance for Sakakawea Medical Center. He has an associate degree in power plant technology.

Nathan Folk started his position as a performance engineer at Antelope Valley Station Sept. 22. Originally from Hazen, ND, Folk previously worked for Sykes Enterprises as an account manager in Bismarck, ND. He has a bachelor’s degree in chemical engineering from University of North Dakota, Grand Forks, and an associate degree in power plant technology from Bismarck (ND) State College.

Stephen Lannoye, laborer, started work at Antelope Valley Station Sept. 22. The Bismarck, ND, native previously worked for Dakota Community Bank & Trust in Bismarck as a customer service representative. He has a bachelor’s degree in operations management form Minnesota State University Moorhead and an associate degree in power plant technology from Bismarck (ND) State College.

TiAnna Stevens started her position as a laborer at Antelope Valley Station Sept. 22.

Originally from Hazen, ND, Stevens previously worked for Quest Engineering in Mandan, ND, doing customer manager inventory. She has associate degrees in instrumentation and control technology and power plant operations from Bismarck (ND) State College.

Mitch Mattheis began working as a laborer Sept. 22 at Antelope Valley Station. The Beulah, ND, native previously worked as a temporary laborer at Antelope Valley Station.

He also worked for Winkler Construction.

Travis Roller began working as a laborer Sept. 22 at Antelope Valley Station. Originally from Bismarck, ND, Roller previously worked for Artistic Homes in Bismarck as a carpenter. He has an associate degree in power plant technology from Bismarck (ND) State College.

Tom Klein started his position as a laborer Aug. 11 at Antelope Valley Station. The Hazen, ND, native previously worked for Industrial Contractors, Inc. at various plants in North Dakota doing construction and plumbing. He has associate degrees in power plant and process plant technology from Bismarck (ND) State College.

Keri Schiferl, environmental coordinator, started work at Antelope Valley Station Aug. 11. Originally from Philip, SD, Schiferl previously worked as an environmental engineer for the North Dakota Dept. of Health in Bismarck. She has a bachelor’s degree in environmental engineering and a master’s degree in civil engineering both from South Dakota School of Mines and Technology, Rapid City.

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Employee Highlights

New Employees

John Schwab began working as a laborer Aug. 11 at Antelope Valley Station. Originally from Hannover, ND, Schwab previously worked for St. Alexius in Bismarck, ND, as a respiratory therapist. He has also worked as a temporary laborer since February 2014 and has an associate degree in power plant technology from Bismarck (ND) State College.

Service Awards

Brad Willier

Jerald Barker

Michael Haroldson

scrubber supervisor

water treatment operator

maintenance planner/scheduler

35 years

Laramie River Station

35 years

35 years

Laramie River Station

Laramie River Station

Bruce Ellwein

James Finnerty

Cary Ost

building and ground lead

control room operator

electrician I

Heidi Cochran started her position as an administrative assistant I Sept. 15 at Laramie River Station. The Wheatland, WY, native previously worked for Platte County School District #1 in Wheatland as a secretary.

Dena Becket, administrative assistant I, started work at Laramie River Station Sept. 15. She is originally from Peoria, IL.

Victoria Simonson, learning and development supervisor, started work at Headquarters Sept. 22. The Jamestown, ND, native previously worked for Dynamic Business Cultures in Fargo, ND, as a principal.

She has a bachelor’s degree from University of North Dakota, Grand Forks.

Mark Jenson began working as a mechanical engineer I Sept. 22 at Headquarters. Originally from Lake Park, MN, Jenson previously worked for Great River Energy in Underwood, ND, as an engineer intern. He has a bachelor’s degree in mechanical engineering from University of North Dakota, Grand Forks.

35 years

35 years

30 years

Laramie River Station

Antelope Valley Station

Kenneth Senske

Danny Hillerud

Karen Will

mechanic I

supervisor of electrical and instrumentation maintenance

multimedia specialist II

Headquarters

30 years

Antelope Valley Station

30 years

30 years

Headquarters

Dakota Gasification Company

Joseph Fiedler

Steven Pouliot

Kezia Zander

operations and maintenance supervisor

maintenance manager

settlements analyst II

25 years

25 years

25 years

Dakota Gasification Company

Headquarters

Larry Collins

Joyce Edwards

Sherry Wolff

mechanic supervisor

administrative assistant III

administrative assistant III

Culbertson Generation Station

Ronald Johnson, assistant construction inspector, started work at Headquarters Sept. 22. Originally from Watertown, SD, Johnson previously worked as a construction inspector in the Watertown area.

25 years

Laramie River Station

25 years

Dakota Gasification Company

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Basin Today

25 year

Dakota Gasification Company

Service Awards

Retirees

Leon Grosz

Steven Haider

Owen Price

senior enterprise storage administrator

control room operator

control room operator

25 years

25 years

25 years

Leland Olds Station

Leland Olds Station

William Rowe

Murray Snyder

Gregory McCarthy

shift supervisor

mechanic I

field technician

Dakota Gasification Company

25 years

Leland Olds Station

25 years

Leland Olds Station

20 years

Dakota Gasification Company

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

Loren Carson, pilot/aviation safety officer, retired from Headquarters Sept. 2 after 25 years of service. He began working as a temporary pilot/co-pilot in 1988 and became a full-time pilot four months later.

His title was changed to pilot/aviation safety officer in 1994.

In retirement, Carson is moving to Phoenix, AZ and plans to do some traveling. “I hope to fly at least part-time for some company there, or perhaps do some flight instructing. I don’t want to fly for a company that flies back to the frozen northland however,” Carson says.

Rhonda Thill, desktop applications analyst III, retired from Headquarters Sept. 5 after 25 years of service. She began working as a word processing operator in 1989. She worked her way up to administrative secretary II, administrative secretary III, lead administrative secretary, business applications assistant, desktop applications analyst I, desktop analyst II, and finally desktop applications III. Thill recalls working on every floor except first floor of Headquarters throughout her 25 years as an employee. “I won’t miss packing my office every few years to move to another office. At least now when I pack, it will be for a trip somewhere fun,” she says. “I became friends with many great people, and they are who I will miss.”

In retirement, Thill plans to craft, sew, garden and play with her dog. She also plans to travel with her husband.

David Peightal, environmental manager at the Great Plains Synfuels Plant, retired Sept. 5 after 29 years of service. Peightal’s career at the Synfuels Plant began in January 1985. He worked as an environmental engineer before assuming the environmental manager position.

“The environmental department at the Synfuels Plant has always promoted a good business practice for pollution prevention, waste minimization, recycling and common sense controls,” Peightal says. “The challenge has been working to define a very unique industry of gasification into the EPA values, and meet the ever-changing standards imposed on our industry in air, water, waste and TSCA (Toxic Substances Control Act).”

Peightal says he enjoyed working with the many good and talented people at the Synfuels Plant throughout his career. He plans to spend more time with his family and friends, travel, hunt, fish, teach university classes and will look later into part-time opportunities in the oil and gas industry. Peightal and his wife, Ligia, have two children and nine grandchildren.

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I was attracted to Basin Electric because I knew my position would be my career, not just a job. The endless career opportunities, support and resources the cooperative provides will help me continue my professional growth. The sky is the limit and I couldn’t pass it up. ~Erica Becker

Home of your dream job When you’re hired at Dakota Gas, you start by getting your dream job, but soon find yourself at home in your new career.

And, like home, we treat each other like family. We care about your health and well-being and we want you to achieve your goals. Outside of work, you’ll have plenty of opportunities to stay fit, meet new people and lend a hand in the community. Check out the career opportunities available to you now at http://bit.ly/DakotaGasJobs.

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