East River annual meeting focuses on challenges met, challenges ahead

"Cooperatives Meeting the Challenge" was the theme of the 57th annual meeting of East River Electric Power Cooperative today in Sioux Falls. Several hundred electric cooperative officials and utility industry colleagues attended the event at the Sioux Falls Convention Center.

In their annual report to members, Board President Wayne Wright and General Manager Jeff Nelson described how the power supplier and its 21 member distribution systems in eastern South Dakota and western Minnesota have addressed a variety of challenges during the past 12 months.

During 2006, East River delivered a record 2.4 million MWH of wholesale power to its member systems, nearly a 5 percent increase over 2005. Peak demand reached an all-time high of 436 megawatts (MW) in January 2007, compared to the previous peak of around 400 MW.

"Since 2001, energy sales to our member distribution systems and peak loads have grown by 33 percent, reflecting significant load growth," Nelson said, "which is well above the national average."

To meet the challenge of providing power for these new cooperative member-consumers, East River is embarked on a $30 million construction work plan this year. Crews began the construction this summer of three new substations and more than 50 miles of transmission lines to help local cooperatives serve a new ethanol plant, commercial facilities and residential load growth in their service areas. When the Millennium Ethanol Plant near Marion begins operations later this fall, East River cooperatives will serve seven ethanol plants in South Dakota.

During 2006, East River's financial position also improved, with total margins of nearly $6 million at year-end 2006. Despite this excellent financial performance, the regional power supplier is facing growing challenges that will dramatically affect future wholesale power rates. (See sidebar)

"To develop strategies for meeting the challenges we face, East River is working with the boards and employees of its member systems to renewing our current Strategic Plan," Nelson said.

A challenge is an opportunity to demonstrate an organization's core values. "As we face the future, East River will continue to follow its mission statement: “To Enhance the Value of Our Member Systems,” Nelson said. “We are also committed to providing a competitively-priced wholesale power supply -- supported by good business decisions, careful planning, and by practicing the Touchstone Energy Values and Cooperative Principles.”

Awards Ceremony/Energy Issues Forum

Following lunch, President Wright presented East River's 2007 Eminent Service Awards to the American Coalition for Ethanol and two long-time ethanol advocates. The award recognizes the advocacy group's 20 years of promoting, educating and marketing the benefits of ethanol as a homegrown, renewable fuel that boosts the local economy. Accepting the award on behalf of the ACE Board was President Bob Scott, Sioux Falls. Awards were also presented to Board Treasurer Owen Jones, Britton; and founding director Orrie Swayze, Wilmot in recognition of their efforts to advance the development and usage of ethanol.

"The efforts of ACE members and staff led to the development of 200 ethanol plants in the United States," Wright said. "Ethanol plants boost farm revenues, create good jobs, increase the local tax base and reduce our dependence upon imported oil.”

The afternoon session featured a panel discussion on energy issues. Regional experts discussed legislative issues that are impacting electric cooperatives and utilities in their states. The issues included Renewable Portfolio Standards, Energy Conservation and Energy Efficiency requirements. The panelists described ways cooperatives are working to help reduce the impact of these challenges on their co-op and the members' energy bills.

The final item on the agenda was the regional power supplier's Annual Business Meeting. Eight directors were elected to seats on the East River Board.