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Basin Electric and NextEra Energy sign agreement for Day County wind project

September 9, 2009

Bismarck, ND -- Basin Electric Power Cooperative and Next Era Energy Resources (formerly FPL Energy) have signed an agreement to develop another wind farm. The project will be located in Day County near Groton, S.D. East River Electric Power Cooperative, Madison, S.D., will provide the transmission interconnection for the project.

This is the fifth agreement between Basin Electric and NextEra Energy with NextEra Energy building, owning and operating a large wind project and Basin Electric purchasing the electricity. The other four wind projects are located near Wilton (two phases) and Edgeley, N.D., and Highmore, S.D.

Ron Harper, Basin Electric CEO and general manager, said this agreement is a perfect example of working together to accomplish goals. “Back in 2005, our members directed us to provide 10 percent of their electricity needs from renewable forms of energy. Since then, we’ve been working hard to accomplish that goal,” he said. “As wholesale power suppliers, we are obligated to develop facilities that will keep electricity rates affordable…and working with NextEra Energy, we’re able to accomplish that goal.”

The 99-megawatt capacity Day County Wind Farm will feature 66, 1.5-megawatt wind turbines; almost identical to the ones operating near Highmore, S.D. Construction will begin as soon as all permits and approvals are received. It’s anticipated the project will be ready for commercial operation by mid-2010.

For the first three years of commercial operation, Basin Electric has agreed to sell the output of the Day County project to the Western Area Power Administration, a Federal Power Marketing Administration. “The reservoir levels on the Missouri River are improving, however Western continues to expect less than normal generation for the next few years,” said Tim Meeks, Western’s Administrator. “This short-term purchase from Basin Electric fits our strategic goals for purchasing replacement power, and we are excited that this purchase is from a renewable resource. Western recognizes how valuable customer partnerships are as we seek to provide our customers with reliable, cost-based power and energy. This agreement is just one of many successful partnerships Western has with Basin Electric.”

Another important element of this project was the construction of necessary transmission to facilitate the generation’s delivery. East River is providing the transmission facilities for the Day County project. “As part of the cooperative delivery system, we look forward to adding new sources of renewable energy to our portfolio. Just as we provided transmission delivery for the Hyde County Wind Farm (near Highmore), East River will construct the necessary facilities to deliver power from this wind project,” East River Electric General Manager Jeff Nelson said.

“I greatly appreciate East River’s participation in this project. East River’s helpfulness and expertise in transmission delivery are a demonstration of the strength of the cooperative family,” Harper said.

John DiDonato, vice president of wind development for NextEra Energy said, “As the nation’s leader in wind energy generation we’re thrilled to once again be partnering with Basin Electric to bring the environmental and economic benefits of this renewable resource to the region.”

The cooperative family already has a presence near Groton. Basin Electric has developed a two-unit peaking station just south of Groton. Those units were placed in commercial operation in 2006 and 2008, respectively. The Groton Generation Station not only provides peaking capacity but also transmission stability for Western’s transmission lines in that part of South Dakota. “The wind project near Groton will connect into East River’s existing transmission system,” Harper said. “As the original power supplier to electric cooperatives in the region, Western built and maintains the backbone transmission grid to deliver electric power. As those cooperatives grew, Basin Electric and East River were formed to supplement that system, blending the hydro and thermal power for long-term power supply.”

Harper is excited to build on Basin Electric’s relationship with NextEra Energy to develop additional wind generation in the region. “This really provides a quadruple benefit for Basin Electric, NextEra Energy, East River and Western. Basin Electric has a new resource of renewable energy, NextEra Energy is able to develop the project because they have a buyer, East River provided the transmission facility, and the Western Area Power Administration can purchase another portion of renewable energy to meet its drought-related replacement energy needs,” Harper said.

Additionally, Basin Electric is constructing the nation’s largest cooperative-owned wind farm near Minot, N.D. The project, scheduled for completion in early 2010, will have a generating capacity of 115.5 megawatts. Basin Electric is planning another cooperative-owned 151.5-megawatt wind farm near Crow Lake, S.D. That project is scheduled to be complete in late 2010 or early 2011. With the addition of the Day County Wind Farm, the total wind energy produced in South Dakota will reach 387 megawatts.

 
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