Electric co-ops powering next growth phase
More than 300 people were part of something Nov. 2 that hasn’t occurred at Basin Electric Power Cooperative for more than 25 years. It was the start of construction for a coal-based power plant, the Dry Fork Station, just north of Gillette, Wyo. Basin Electric, based in Bismarck, last held a groundbreaking ceremony for a new power plant in July 1978 for the Antelope Valley Station near Beulah. When completed in 2011, the $1.3 billion Dry Fork Station will be the fourth coal-based power plant in Basin Electric’s generating family.

Last month as well, Great River Energy cooperative, based in Elk River, Minn., held groundbreaking ceremonies for its Spiritwood Station, which is expected to be operational the first quarter of 2010. The Spiritwood Station will generate 62 megawatts of baseload electricity and 37 megawatts of peaking electricity to be exported to the regional transmission grid. During the generation process, about 550,000 pounds of steam per hour will be captured and used to operate Cargill Malt and a proposed 100-million-gallon ethanol plant. This Spiritwood project will be the first combined heat and power plant in North Dakota. The power plant will be fueled by beneficiated coal brought by rail from the Falkirk Mine near Underwood.

These two groundbreakings symbolize the start of the next growth phase of the electric cooperative program in this state and region. This growth phase in North Dakota is driven by increasing demand for electric power in the oil and gas industry; the ethanol and biofuels industry; a strong ag economy; continued growth in residential housing; and the general demand for electric power driven by everyday use of computers in our increasingly digital world.
As an example, Basin Electric reported at its annual meeting last month that its power use surveys show it will need to add about 1,900 megawatts (MW) of new generating capacity over the next 10 to 15 years to meet this demand. The Dry Fork Station is the beginning of a nearly $6 billion capital expenditure budget the cooperative will invest to bring the resources online to meet this demand. In addition to Dry Fork, Basin Electric intends to invest in more wind power, gas-fired peaking plants, a combined cycle natural gas generating plant, and one or two more coal-based generating plants. In addition, Basin Electric has announced two new high-voltage transmission lines in western North Dakota that will greatly improve the reliability of the system and help deliver more electricity to consumers in that part of the state.

What Basin Electric is experiencing is happening all across the state and nation. For example, Minnkota Power Cooperative, based in Grand Forks, is also planning to add a new coal-based generating plant to its Milton R. Young Station near Center. In addition, Minnkota Power, which provides wholesale power to three eastern North Dakota electric co-ops, has added wind generation to its resource mix via a purchased power contract from FPL’s Langdon wind farm and is studying the possibility of adding even more wind generated power.

Across the nation, the North American Reliability Council released a report in mid-October that projects demand for electricity in the United States will grow more than twice as fast as supply over the next 10 years. Peak demand for electricity in the United States is forecasted to increase by nearly 18 percent (135,000 MW) in the next decade, but committed resources to meet demand are projected to increase by only 8.5 percent. That means there is a lot of work to do in balancing electric supply with demand.

These projects announced and started by electric cooperatives show our commitment to you, our member-owners, to keep your lights on. Each of us can also do our part to balance supply with demand by conserving and using electric energy wisely. There are plenty of ways to do that, which can be found on the Touchstone Energy® Web site. Or, call your local electric cooperative to visit about ways to conserve.

Indeed, this is an exciting, challenging new chapter for electric cooperatives in this state and region. As you enjoy the warmth of this holiday season with your family and friends, rest assured that your electric cooperative network is working around the clock to make sure you have electric power now and in the future.