Here’s an update from Great River Energy that was part of our annual report to our members. Since we didn’t hold an annual meeting this year, we have provided the reports in video format. Visit our YouTube channel to view the report from board officers and our CEO.
Planning engineers anticipate more high-voltage power lines
Great River Energy, wholesale power provider to 28 member-owner distribution cooperatives (like Dakota Electric Association) in Minnesota, continuously studies the electric power grid to ensure the high-voltage power line system that delivers electricity to local cooperatives is always reliable, and ready to keep the power flowing and the lights on.
The addition of renewable energy, along with the retirement of coal plants and the increasing need for resilience to extreme weather, is spurring the need for power grid upgrades to maintain future reliability. Utilities across the region are significantly increasing the amount of renewable energy they provide to their customers. Great River Energy alone will nearly triple the amount of renewable energy, primarily wind energy, in its portfolio by 2025. To read more, see the full story on Great River Energy’s website.
Coal Creek sale approved by member cooperatives
At a special Feb. 9 meeting, Great River Energy’s member cooperatives approved the updated agreement for the sale of Coal Creek Station and the high voltage direct current (HVDC) system to Rainbow Energy Center, LLC and Nexus Line, LLC, respectively. Great River Energy’s allrequirements members also approved the purchase power agreement with Apex Clean Energy for the 400-megawatt Discovery Wind Project in McLean County, N.D. Read the full statement.
Great River Energy’s revised contract approved
Dakota Electric’s board of directors, after much discussion, voted to pass Great River Energy’s revised power supply contract. (The contract was revised since the other contract expired at the end of 2021. See more info below.) The contract provides for more than 400 MW of wind energy from the Discovery Wind project in North Dakota, while continuing the temporary purchase of baseload energy for reliable, low-cost wholesale power. The overall return on investment and timeline have not changed significantly from the previous contract approved in August. Dakota Electric is just one of 28 electric cooperatives who must vote on the plan. The final vote will take place when cooperative directors meet at Great River Energy on Feb. 9.
Great River Energy and Rainbow Energy contract extension
The negotiation period for the sale of Coal Creek Station and the HVDC transmission line was recently extended by both Rainbow Energy and Great River Energy. Changes to the contract were explained to cooperative board directors and key staff on January 13. Portions of the contract are confidential and are subject to nondisclosure agreements (NDA), which is typical of contracts between parties. There were relatively minor modifications made to the details in the revised contracts and nothing that significantly impacts costs or return on investments. Below are main points of the contract extension:
Power purchase agreement start date no sooner than May 1, 2022 to complete regulatory approvals (end dates remain unchanged)
Modifications to wind resources under consideration in Minnesota
Reduce purchases down to 328 MW of output from CCS beginning in 2023
While portions of the information are subject to NDAs, a redacted Powerpoint from Great River Energy’s January 13 briefing is available for download.
Dakota Electric’s board of directors will be hearing an update from Great River Energy personnel at the January 27 board meeting. Board members will ask questions, discuss the contract changes and vote on it at this board meeting.
Dakota Electric members may also attend this virtual meeting. Those who wish to attend the board meeting using Microsoft Teams may contact Melissa Cherney, executive assistant, 651-463-6252 or [email protected].
PUC approves transfer of HVDC construction permit
On January 6, 2022, the MN Public Utilities Commission voted to transfer from Great River Energy to Nexus Line the construction permit for the Minnesota portion of the high-voltage direct-current transmission system that spans between central North Dakota and the Twin Cities. Read more about it.
Great River Energy is holding a confidential informational meeting on January 13 for board and key staff members of its distribution cooperatives, including Dakota Electric, regarding an extension of the contract relating to the sale of Coal Creek Station and HVDC line. They are also providing updates on evolving contract terms since they remain active in negotiating details.
After the January 13 meeting, information available for public release regarding the contract extension will be posted on this page. Dakota Electric’s board will discuss and vote on the contract extension at the January 27 board meeting.
Great River Energy Update — Dec. 20,2021
Dakota Electric’s board of directors approved a new 25-year wholesale power wind contract in southwest Minnesota on the Buffalo Ridge for 100 megawatts (MW). After much discussion, an option to take an additional 68 MW from Coal Creek Station did not pass at the December board meeting. Dakota Electric is one of 28 cooperatives who voted on the proposed power purchase agreements. Regardless of the outcome of the Coal Creek Station purchase option, Great River Energy’s contract to purchase output from Coal Creek Station expires in 2030.
Great River Energy seeks to exercise additional 68MW option on contract
Great River Energy has decided to exercise their option to purchase an additional 68 MW of output from Coal Creek Station as part of the Rainbow Energy deal. This is not a new contract but an option that was part of the original contract to reduce reliance on this plant from the current 1100 MW down to 300 MW. The option will bring the total output purchased for a limited time up to 368 MW. The Great River Energy board has already approved the option, and Dakota Electric’s board will vote on its ratification at the December board meeting. The Rainbow Energy purchase is temporary, since it will decrease to zero in 2031. According to Great River Energy, this option provides stable rates in an unpredictable energy market, a reliability hedge for events like a polar vortex, and improved overall risk management for the next decade as Great River Energy looks out for their member-owners.
Great River Energy letter Read a letter from Great River Energy CEO David Saggau.
Strategic Portfolio Changes
Information on the PUC filing regarding the permit transfer of the transmission line On July 1, 2021, Great River Energy (GRE), on behalf of itself and Nexus Line, LLC filed a request with the Minnesota Public Utilities Commission (PUC) for a partial transfer of the Construction Permit issued by the Minnesota Environmental Quality Council in Docket No. CUTR-1 on June 3, 1976. The Construction Permit serves as the legacy “Route Permit” for Great River Energy’s 400 kV HVDC high voltage transmission line and other facilities in Minnesota. Minnesota Rule 7850.5000 governs the process for transferring permits for projects such as GRE’s HVDC line. This rule requires the PUC to determine whether the prospective owner of a large energy facility, in this case Nexus Line, LLC, will be able to comply with the conditions of the approved permit. As part of its review, the Commission may impose reasonable additional conditions on the permit and hold a public meeting to provide the public an opportunity to comment on the permit transfer. The PUC docket number for the permit transfer is ET2/TL-21-434 and all the information regarding this transfer, including the construction permit, may be found on the PUC’s eDockets website. The PUC is expected to decide on the permit transfer this fall.
Great River Energy sought a buyer for Coal Creek Station that was going to utilize carbon capture, which many environmentalists and the White House support as necessary technology for our future. Click here to download the article.
Powerpoint about Coal Creek sale A detailed Powerpoint (some parts redacted due to confidentiality agreements) about the sale of Coal Creek and the transmission line is available for download. Some highlights about the sale:
Provides better energy and capacity portfolio
Reduces coal exit costs
Selling HVDC system creates highest value at lowest risk
Dakota Electric sends out Circuits monthly newsletter to our members each month. Inside, members can find valuable money- and energy-saving tips, special event details, news about Dakota Electric and electric utility industry information that may impact electric bills.
Dakota Electric Association
4300 220th Street West
Farmington, Minnesota 55024