2010 

Rep. Morrie Lanning recognized for service to Legislators Forum
Missouri River Energy Services recognizes state Rep. Morrie Lanning (R-Moorhead). Rep. Lanning sits on the Steering Committee of the annual Legislators Forum. The Legislators Forum meets annually and the meetings include legislators from Manitoba, Minnesota, North Dakota and South Dakota. The Forum is dedicated to discussing cross-border issues such as water quality, flood planning, drug enforcement and energy development.
This year, the Legislators Forum will be held in Moorhead, a member community of MRES. One of the primary topics of discussion will be the Red River Basin. This month, the Red River Basin Commission recommended the formation of an international task force to find a solution to the flooding that has plagued Devils Lake for 17 years. Rep. Lanning is one of the panel members who will be leading this discussion for the Forum. The Red River Valley has flooded the last two springs, bringing high waters to communities including MRES members Moorhead and Breckenridge. The flooding has resulted in road and infrastructure damage, damage to homes and property, and has had a negative economic impact on the area. The threat of continued flooding weighs heavily on the businesses and communities in the region and cross-border discussions such as the Legislators Forum are necessary steps towards a solution.
Energy development and sustainability are also on the agenda. In the past, the Legislators Forum has heard presentations by the Great Plains Institute and the Powering the Plains projects. The legislators have discussed transitioning to a low-carbon energy system, establishing public-private relationships and renewable energy projects, using the Midwest Renewable Energy Tracking System (MRETS) and expanding transmission needed for reliability and to support renewable energy development. The region continues to face many questions concerning the expansion of high-voltage transmission, the allocation of transmission costs, further development of both utility-owned and community-owned renewables, and meeting electric demand under low-carbon regulatory rules.
Rep. Lanning not only serves the City of Moorhead as a legislator, but as a long-time resident, he also serves on the city’s Charter Commission. In his four terms as a state legislator, Rep. Lanning has also met often with representatives of Moorhead Public Service to discuss electric utility issues.


Sen. Kettering's bill eases burden on cities that want to join joint action agencies
Missouri River Energy Services recognizes state Senator Steve Kettering of Iowa for his leadership on SF 2313, the bill clarifying the formation of joint action agencies by electric utility cities.
SF 2313 makes a technical correction by moving the formation of a municipal power agency from 476A to chapter 309. It clarifies that there does not need to be a separate election in each city to join a joint action agency or to jointly finance a power project under 28F.
Senator Kettering co-sponsored this bill. By taking leadership on this bill, he gave comfort to other Republicans, which allowed them to sign on as supporters. He is also one of the original “three musketeers” on the joint financing issue going back to 2001. The clarifications that add ease to cities joining joint action agencies would not have been accomplished without the Senator’s leadership and commitment.
Senator Kettering represents Senate District 26, which includes the MRES member community of Manilla.


Dorgan honored with APPA's Public Service Award
at 2010 Legislative Rally
During the American Public Power Association’s (APPA) 2010 Legislative Rally, Senator Byron Dorgan (D-ND), a long-time member of the Senate Energy and Natural Resources Committee and chairman of the Senate Energy-Water Appropriations Subcommittee, received APPA’s Public Service Award.
The Public Service Award recognizes exceptional leadership by public officials at the national or state level. Public officials whose activities have advanced the objectives of public power are eligible.
During his six terms in the U.S. House of Representatives and three terms in the Senate, Dorgan has fully embraced the public power model and the concept of public enterprise. He has been a prominent defender of the federal power marketing administrations and the preference principle, and a champion for captive customers of railroads. A strong supporter of energy efficienty, Dorgan is a long-serving honorary vice-chair of the Alliance to Save Energy. He also chairs the Democratic Policy Committee.
Senator Dorgan has also been a strong supporter of Missouri River Energy Services (MRES) and its members on many other issues. MRES is pleased that Senator Dorgan is being recognized with this well-deserved honor.
 

Senator Klobuchar recognized for serving on various Senate Committees
Missouri River Energy Services (MRES) recognizes Senator Amy Klobuchar (D-MN) for her position on the Senate Commerce, Science and Transportation Committee and the Judiciary Committee.
Senator Klobuchar is a co-sponsor of S. 146, the Railroad Antitrust Enforcement Act of 2009. With her position on the Judiciary Committee, she voted to report S. 146 out of that Committee to the full Senate in March 2009. Senator Klobuchar continues to use her position as a member of both committees to push for strong antitrust provisions in any captive shipping bill considered by the Senate.
The Commerce, Science, and Transportation Committee and its Subcommittees oversee a vast range of issues under its jurisdiction. One of the Committee’s main jurisdictions of interest to MRES and its members is its regulation of interstate common carriers, including railroads.
Klobuchar also serves on the Senate Committee on Environment and Public Works and the Agriculture, Nutrition and Forestry committee. The Environment and Public Works Committee has jurisdiction over climate change issues.
MRES and its members appreciate Senator Klobuchar’s position on these committees and her continued support on the many issues facing the electric utility industry.

2009

Representative Walz appointed Vice Chairman of the House Transportation & Infrastructure Subcommittee on Railroads, Pipelines, and Hazardous Materials
Missouri River Energy Services (MRES) recognizes Representative Tim Walz (D-MN) for his position as vice chairman of the Subcommittee on Railroads, Pipelines, and Hazardous Materials of the House Transportation & Infrastructure Committee. The subcommittee that Representative Walz serves on oversees regulation of railroads, including economic regulations, Amtrak, rail safety, and labor. This places Representative Walz in a key position to advocate and support the rail legislation MRES and others have been seeking for several years.
The jurisdiction of the Committee on Transportation and Infrastructure encompasses many duties including transportation, including civil aviation, railroads, water transportation, transportation safety (except automobile safety and transportation security functions of the Department of Homeland Security), transportation infrastructure, transportation labor, and railroad retirement and unemployment (except revenue measures related thereto) and water power.
Walz, a two-term Member of the T & I Committee, has been a tireless advocate for rail issues in his district. He is a sponsor of the H.R. 233 – Railroad Antitrust Enforcement Act of 2009 as he was in the last Congress. He was also a sponsor of H.R. 2125 – Railroad Competition and Service Improvement Act of 2007 in last Congress. H.R. 2125 has not yet been introduced in this Congress.
In addition to the Transportation & Infrastructure Committee, Walz also serves on the House Veterans Affairs Committee, Agriculture Committee and the Congressional Executive Commission on China.
MRES and its members appreciate Representative Walz’s active role on these committees and his continued support on the many issues facing MRES and the electric utility industry.


Senator Dorgan recognized for chairing Senate committees
Missouri River Energy Services (MRES) recognizes Senator Byron Dorgan (D-ND) for his position as chairman of the Senate Subcommittee on Energy and Water Appropriations, as well as his chairmanship of the Subcommittee on Energy.
The 17-member Energy and Water Subcommittee that is formed under the Senate Appropriations Committee is responsible for funding related to the Department of Energy as well as Corps of Engineers and Bureau of Reclamation water development projects in the United States. It oversees the Tennessee Valley Authority, the federal power marketing administrations, and non-defense nuclear power, including nuclear waste disposal and the Nuclear Regulatory Commission. As subcommittee chairman, Senator Dorgan has been a staunch and effective defender of the Western Area Power Administration and played a critical role in rejecting proposals to push costs of undeveloped Pick-Sloan water projects on power customers. Senator Dorgan has been instrumental in restoring monies to the WAPA construction budget.
Dorgan is also chairman of the 17-member Energy Subcommittee that is formed under the Senate Energy and Natural Resources Committee.
Jurisdiction of this Subcommittee includes oversight and legislative responsibilities for nuclear, coal, and synthetic fuels research and development; nuclear and non-nuclear energy commercialization projects; global climate change; federal energy conservation programs; coal conversion and more. Through this post, Senator Dorgan has advocated national transmission policies to promote construction, siting and equitable cost allocation of new transmission facilities.
Senator Dorgan also serves on the Senate Commerce, Science and Transportation Committee. This committee is actively involved in rail issues as is the Senator.
MRES and its members appreciate Senator Dorgan’s role on these committees, as well as his continued support on the many issues facing the electric utility industry.


Senator Conrad recognized for chairing Senate committees
Missouri River Energy Services recognizes Senator Kent Conrad (D-ND) for his position as chairman of the Senate Budget Committee and chairman of the Subcommittee on Energy, Science and Technology.
Senator Conrad has been chairman of the 24-member Budget Committee since 2007. He was also chairman of the Committee earlier in his career.
The Budget Committee was established in 1974 by the Congressional Budget and Impoundment Control Act. Along with the House Budget Committee, it is responsible for drafting Congress’ annual budget plan and monitoring action on the budget for the federal government. In addition, the Budget Committee has jurisdiction over the operation of the Congressional Budget Office. Earlier this year, Chairman Conrad used his post to reject the Administration’s proposal to use the budget process to implement a “cap-and-trade” greenhouse gas program and require the auctioning of all emission allowances. MRES also opposes the auction of all allowances. Senator Conrad’s position as chair of the budget panel has also been instrumental in defeating prior efforts to alter the policies of the federal power program.
Conrad also serves as chairman of the 11-member Subcommittee on Energy, Science and Technology that is formed under the Senate Agriculture, Nutrition and Forestry Committee and also serves on the Senate Finance Committee. These committees are intimately involved in the climate change debate.
MRES and its members appreciate Senator Conrad’s role on these committees, as well as his continued support on the many issues facing the electric utility industry.
Missouri River Energy Services recognizes Representative James Oberstar (D-MN) for his position as chairman of the House of Representatives Transportation and Infrastructure Committee.


Representative Oberstar recognized for chairing
Transportation and Infrastructure Committee
Representative Oberstar has been a member of the 76-member Transportation and Infrastructure Committee since his first term in 1975. As committee chairman since 2007 he serves as an ex-officio member of its six subcommittees.
The Committee’s jurisdiction includes numerous issues, including federal management of emergencies and natural disasters, flood control and improvement of rivers and harbors, water power, and, of course, transportation – including civil aviation, railroads, water transportation, transportation safety, infrastructure, labor, and railroad retirement and unemployment.
Representative Oberstar is a long-time advocate for railroad customers and has been a true champion for captive rail customers. During the last few years, his bill to reform the Surface Transportation Board for greater consumer protection has been gaining support among House members.
MRES and its members have relied on Representative Oberstar’s expertise on the captive rail issue over the years and appreciate his continued support on this issue as well as the many issues facing the electric utility industry.
 
 
Representative Peterson recognized for chairing Agriculture Committee
Missouri River Energy Services recognizes Representatives Collin Peterson (D-MN) for his position as chairman of the House of Representatives Agriculture Committee.
Representative Peterson has been chairman of the 46-member Agriculture Committee since 2007 and is an ex-officio member of its six subcommittees.
The Committee was created in 1820 and its jurisdiction not only includes numerous agriculture related issues, but also rural electrification and rural development.
As chair of this committee, Representative Peterson is a very important voice for captive shippers. In the 2008 Farm Bill, language included in the bill that required the USDA to study the impact of rail service on rural America as it relates to agriculture inputs and commodities, ethanol and other renewable fuels, and coal was successfully restored in the conference after being stripped out of the Senate version of the bill.
Also, as chair of the Agriculture Committee, Representative Peterson has been very influential in the discussions of the House passed energy and climate change bill now under consideration in the Senate.
MRES and its members appreciate Representative Peterson’s continued support on the many issues facing the electric utility industry.
 

Dale Christensen and Jack Powell earn MRES awards
During its annual meeting May 6-7, Missouri River Energy Services (MRES) honored two individuals for their outstanding contributions to their communities and to public power.
They are Dale V. Christensen of Watertown, S.D., and John “Jack” Powell of Vermillion, S.D., and MRES is pleased to acknowledge them as our featured lawmakers.
Mr. Christensen earned the Maurice A. Te Paske Public Official Award, which is named for one of the founders of MRES. The award was established in 2000 to honor public officials who have given years of distinguished leadership and dedicated service to their community, municipal utility, and in support of public power beyond their community as well.
Mr. Christensen served on the Watertown Municipal Utilities Board from 1999 through 2008, including two terms as president. He also served as a member of the American Public Power Association’s Policymakers Council from 2006 through 2008.
In addition, he has also been involved in a number of civic activities in the Watertown area for more than 25 years. This involvement includes service and leadership positions with the Watertown Community Foundation, the Zoological Society Board, the Boys and Girls Club, the Lake Area Technical Institute Foundation Board, and the Codington County Historical Society Board.
Mr. Powell earned the MRES Community Leader Award, which was established in 2003 to honor individuals who have provided many years of leadership and service to their community and their local electric utility.
Mr. Powell has served on the Vermillion City Council and as a member of the Council’s Utilities Committee since 2000.
He has regularly attended MRES and APPA meetings and he most recently served on the Election Committee for Vermillion’s Referred Measure to authorize the issuance of revenue bonds to help finance a necessary, but controversial, transmission project to serve the City.
He also served for 45 years as a professor at the University of South Dakota, during which time he was the first director of the USD Computer Center and the first instructor in the University’s Computer Science Department. He also served on the University Senate, and the Promotion and Tenure Committees of both the University and its School of Business. He was a member of the Information Systems / Information Technology Discipline Council and served as the Faculty Athletics Representative to the North Central Conference and the NCAA for nine years.
MRES extends our congratulations to these two gentlemen and our appreciation for their service to their respective communities and for their on-going support of MRES and public power.
 
 
Senator Thune recognized
for offering Cap and Trade Amendment
Missouri River Energy Services (MRES) is pleased to recognize Senator John Thune (R-SD) for offering the first amendment to the budget that would prohibit the collection of funds from any future cap and trade proposal if that proposal would increase electricity rates and gasoline prices for American households and businesses.
The amendment passed the Senate by an 89 – 8 vote.
In introducing his first budget, President Obama called for passage of legislation that places a market-based cap on carbon pollution and drives the production of more renewable energy in America. The Administration proposes to use most of the revenue from a 100% auction of emission allowances to finance an extension of the middle-class tax credit in the economic stimulus bill beyond its current two-year life. The remainder of the auction revenue would be used to fund the administration’s plan to spend $15 billion a year for the next 10 years to subsidize research and development of alternative energy resources.
The projected impact of this proposal on the citizens of South Dakota is a minimum of a 41 percent increase in electricity costs by 2015. If 100 percent of the cap and trade allowances are sold by auction, MRES is projecting an increase of 65 percent in its power costs by 2015 just to pay for the allowances for generation already included in its generation portfolio or planned for operation by 2015.
MRES believe decisions on this complex issue must be decided by Congress and not left to the bureaucrats. However Congress addresses this issue, the impact on the consumer must always be considered. We also believe the fairest way to distribute the allowances is to provide the majority of them at no cost to load serving entities.
Ultimately, both the House and Senate passed budget resolutions that did not include the Administration’s climate change auction proposal. MRES and its members sincerely appreciate Senator Thune’s amendment highlighting the impacts of this cap and trade proposal.
 
 
Senator Grassley recognized for committee vote
on Rail Antitrust Legislation
Missouri River Energy Services (MRES) is pleased to recognize Senator Charles Grassley (R-IA) for his recent vote on the Senate Judiciary Committee that passed S. 146, the Railroad Antitrust Enforcement Act of 2009, out of the committee and on to the full Senate.
The Judiciary Committee voted 14 – 0, with 5 members not voting, to pass S. 146 out of committee.
The bill responds directly to concerns that freight railroads are abusing their dominant market power and raising rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products. This legislation would place the rail industry under the same antitrust laws that apply to other industries, including trucking, aviation, telecommunications, and energy.
This issue continues to be a top priority for MRES and its members. We thank Senator Grassley for this important vote and we sincerely appreciate this significant show of support for the concerns of captive shippers.
  
 
Senator Thune recognized for letter
to EPA regarding BSII permitting process
Missouri River Energy Services (MRES) is pleased to recognize Sen. John Thune (R-SD) for his recent letter to the Environmental Protection Agency (EPA) regarding the permitting process for the Big Stone II project explaining that the plant is essential to meeting the area’s growing energy needs.
Some recent news articles have mischaracterized a communication between the U.S. EPA and the South Dakota Department of Environment and Natural Resources (SD DENR) regarding a South Dakota-approved air permit (Title V) for the existing Big Stone Plant. The EPA letter also contained questions related to similar permitting of the proposed Big Stone II project.
Sen. Thune sent a two-page letter to the Administrator of the EPA inquiring about the permitting objections and stating his support of the Big Stone II project. Thune pointed out that “while the addition of Big Stone II will more than double the plant’s generation capacity, it will also utilize new technologies so that emissions of sulfur dioxide, nitrogen oxides and mercury from the two plants will be cleaner than the current single plant.”
Thune also stated his commitment to wind energy development and the need for available transmission lines to transfer the wind energy to markets in need. “Transmission upgrades that coincide with the construction of Big Stone II will also provide opportunities for the expansion of renewable wind energy in the region,” Thune said.
“I am confident that the participating utilities and the DENR will provide sufficient adjustments to the permit so the project is completed in an environmentally responsible manner that provides the electrical power essential to the region.”
MRES and its members sincerely appreciate Sen. Thune’s letter to the EPA regarding the Big Stone II permitting process as well as the Senator’s support on numerous issues facing the electric industry.
 
 
Representatives Pomeroy and Walz recognized
for introducing Rail Antitrust Legislation
Missouri River Energy Services (MRES) is pleased to recognize Representative Earl Pomeroy (D-ND) and Representative Tim Walz (D-MN) for cosponsoring the new rail antitrust bill introduced in the 111th Congress.
Representative Tammy Baldwin (D-WI) introduced H.R. 233, the Railroad Antitrust Enforcement Act of 2009. The legislation is identical to the version of the legislation that was reported favorably from the House Judiciary Committee in the 110th Congress. Joining Representative Baldwin as original cosponsors were Representatives Pomeroy and Walz.
The bill responds directly to concerns that freight railroads are abusing their dominant market power and raising rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products. Their legislation would place the rail industry under the same antitrust laws that apply to other industries, including trucking, aviation, telecommunications, and energy.
This issue continues to be a top priority for MRES and its members. We sincerely thank Representatives Pomeroy and Walz for cosponsoring this bill and for their continued support on this and other issues facing the electricity industry.
 
   
Senators Dorgan and Klobuchar recognized
for co-sponsoring Rail Antitrust Legislation 
Missouri River Energy Services (MRES) is pleased to recognize Senator Byron Dorgan (D-ND) and Senator Amy Klobuchar (D-MN) for cosponsoring new the rail antitrust bill introduced in the 111th Congress which opened its session January 6.
Senator Herb Kohl (D-WI) introduced S.146, the Railroad Antitrust Enforcement Act of 2009. The legislation is identical to the version of the legislation that was reported favorably from the Senate Judiciary Committee in the 110th Congress. Joining Senator Kohl as original cosponsors were Senators Dorgan and Klobuchar, along with five other original cosponsors.
The bill responds directly to concerns that freight railroads are abusing their dominant market power and raising rates for those who rely on them to ship dozens of vital commodities, including coal and agricultural products. Their legislation would place the rail industry under the same antitrust laws that apply to other industries, including trucking, aviation, telecommunications, and energy.
This issue continues to be a top priority for MRES and its members. We sincerely thank Senators Dorgan and Klobuchar for once again being original cosponsors of this bill and for their continued support on this and other issues facing the electricity industry.
 
 
2008

Senators Conrad and Thune recognized
for work on bipartisan energy plan 
Missouri River Energy Services (MRES) is pleased to recognize Senator Kent Conrad (D-ND) and Senator John Thune (R-SD) for their role in the Senate’s Gang of Ten.
The Gang of Ten is a bipartisan group of senators (5 Democrats, 5 Republicans) that announced it has arrived at a compromise energy proposal meant to break the partisan logjam that exists on this issue.
The group has unveiled a broad energy plan that includes expanded oil and natural gas drilling, renewable energy tax incentives and funding of nuclear energy, clean coal, and biofuels. The package is intended to bust through an impasse on energy and gasoline prices that has been the focus of debate for the last few weeks.
The plan includes:
• A four-year extension of various renewable and energy efficiency tax credits, including both the production tax credit and clean renewable energy bonds program;
• $1.5 billion in tax credits for carbon capture and sequestration demonstration projects;
• A boost in funding for the weatherization assistance program
• Federal Energy Regulatory Commission transmission siting authority for transmission lines built for renewable projects (an idea previously advanced by Senator Thune);
• Oil and gas exploration off the cost of five Southeastern states; and
• Nuclear power loan guarantee program
MRES appreciates the dedication of Senators Conrad and Thune relating to this issue, as well as their continued support of issues of importance to public power.


Former Representative Steve Sviggum honored for legislative leadership
Missouri River Energy Services (MRES) is pleased to feature former Minnesota State Representative Steve Sviggum (R) for receiving the 2008 National Conference of State Legislators Excellence in Legislative Leadership Award. 
NCSL received many nominations for the Award from the various members of NCSL throughout the nation. Sviggum represented District 28B, which includes the City of Kenyon, an MRES associate community.
Sviggum was first elected to the Minnesota House of Representatives in 1978 and served until July 2007, when he was appointed Commissioner of the Department of Labor and Industry by Governor Tim Pawlenty. He served four terms as Speaker of the House and three terms as House Minority Leader.
On energy issues, Sviggum is known for supporting the development of renewable resources through incentives rather than mandates. MRES thanks former Representative Sviggum for his support of a balanced approach to energy issues and for his hard work and dedication during his career in Minnesota state government and congratulates him for receiving this prestigious award.
Sviggum has been honored by many business organizations, advocacy groups for various taxpayer watchdog groups. Sviggum and his family are beef and grain farmers in the Kenyon area and he is also a senior fellow in the Center for the Study of Politics and Governance at the Humphrey Institute of Public Affairs.

Senator Coleman and Senator Johnson recognized
for their efforts in watching over WAPA’s construction budget 
Missouri River Energy Services (MRES) recognizes Senator Norm Coleman (R-MN) and Senator Tim Johnson (D-SD) for circulating a letter to Senator Byron Dorgan (D-ND) and Senator Pete Domenici (R-NM) as the Chair and the Ranking Member of the Senate Energy and Water Development Subcommittee respectively regarding the Administration’s proposal to cut the Western Area Power Administration’s (WAPA) construction budget for fiscal year 2009.
The President’s 2009 budget proposal for WAPA includes less than $1.9 million in funding for WAPA’s proposed $74 million construction program. Senator Coleman and Senator Johnson are asking that language be included in the Energy and Water Appropriations bill restoring $45 million of WAPA construction budget funds. 
Last year, Congress restored $30 million in proposed fund cuts from WAPA’s construction budget. Senator’s Coleman and Johnson are leading the effort this year to restore the needed funding. 
As the circulated letter points out, “it would be a significant burden on many communities that utilize WAPA power to have to advance the funds necessary to make up this funding difference of $74 million.”
Eleven senators signed the letter including six from the MRES delegation. MRES sincerely appreciates the efforts of Senator Coleman and Senator Johnson. It is extremely important that the long term system reliability not be impaired through insufficient funding to maintain the federal power generation and transmission infrastructure.
 
 
   
Representative Peterson and Representative Walz
include important Rail Amendment in 2008 Farm Bill
Missouri River Energy Services (MRES) recognizes Representatives Collin Peterson (D-MN) and Tim Walz (D-MN) for successfully adding an amendment to the 2008 Farm Bill that represents a victory for captive shippers.
On May 14, both the United States House of Representatives and Senate approved the conference report for the 2008 Farm Bill – H.R. 2419, the Food, Conservation, and Energy Act of 2008 – and sent it on to the President.
The bill originated in the Agriculture Committee which Representative Peterson chairs.
Representative Walz, a member of the House Agriculture Committee, included language in the bill that requires the U.S. Department of Agriculture (USDA) to study the impact of rail service on rural America as it relates to agricultural inputs and commodities, ethanol and other renewable fuels, and coal. The USDA is also required to report back to Congress with recommendations for new federal policies to address any problems that the study identifies.
The railroads vigorously opposed this amendment and succeeded in stripping it from the Senate version of the bill. Thanks to Representatives Walz and Peterson, it was restored in conference.
Both Representatives Peterson and Walz are also co-sponsors of H.R. 1650 – the Railroad Antitrust Enforcement Act of 2007 and H.R. 2125 – the Railroad Competition and Service Improvement Act of 2007.
The rail issues are of the utmost importance to MRES and its members. We sincerely appreciate Representative Peterson’s and Representative Walz’s efforts and continued support. 
  
  
Minnesota Attorney General writes op ed in favor of Railroad Antitrust Bill
Missouri River Energy Services (MRES) recognizes Minnesota State Attorney General Lori Swanson (DFL-MN) for authoring an outstanding op ed piece in favor of the Railroad Antitrust Enforcement Act of 2007 (S. 772/H.R. 1650). The piece ran in the Bemidji, MN Pioneer and is titled “Commentary: Time to put railroads under anti-trust.”
In the letter, Attorney General Swanson outlines a brief history of the nation’s regulated and, eventually, deregulated rail system. Excellent examples of “bottleneck” situations, “paper barrier” agreements, and captive rail customers are sited throughout the letter. The case for this legislation is stated in a concise, clear, and compelling manner.
Attorney General Swanson states, “A bill introduced in Congress - the Railroad Antitrust Enforcement Act - would remove the antitrust exemptions for the railroads, and hopefully begin a process where our nation’s railways will become more responsive to the needs of our economy.”
The antitrust bill, along with another bill – the Railroad Competition and Service Improvement Act – is co-sponsored by a number of Minnesota’s Congressional delegation.
MRES and its members sincerely thank Attorney General Swanson for her support on this issue. 
  
  
Senator Klobuchar recognized for support on rail issues 
Senator Amy Klobuchar (D-MN) recently spoke at a Schwan Speaker Series event in Marshall, Minn., a Missouri River Energy Services member community. During her talk, she discussed, among other things, energy and captive rail issues.
The Schwan Speaker Series is hosted by the Schwan Food Company in Marshall and the event drew a sizeable crowd.
Senator Klobuchar said that energy and climate change legislation will be top priority issues this year.
Her talk also included discussion of transportation matters. A strong supporter of relief for captive rail shippers, Senator Klobuchar is a co-sponsor of S.953, the Railroad Competition and Service Improvement Act of 2007, and she serves on the Senate Commerce, Science and Transportation Committee, the Senate committee of origin for the bill.
MRES offers its sincere thanks to Senator Klobuchar for her support on the rail issues facing MRES and other captive shippers. Her remarks in Marshall were further evidence of her thorough understanding and reasoned approach on rail and energy issues.
    
 
2007
   
North Dakota Governor and Congressional Delegation commended for their help following Northwood tornado
Four North Dakota public officials, Governor John Hoeven, Senator Byron Dorgan, Senator Kent Conrad, and Representative Earl Pomeroy have been working together for the past several weeks to ensure that Northwood, N.D., gets the assistance it needs to rebuild following a devastating tornado Aug. 26 that left the town in ruins. The tornado killed one person, injured several others, and damaged or destroyed virtually every structure in the community. For their efforts, Governor Hoeven, Senators Dorgan and Conrad, and Representative Pomeroy are our Featured Lawmakers.
All four have visited the community several times since the tornado, according to Northwood City Administrator Marcy Douglas. “They have pushed hard for an individual assistance declaration,” Douglas said. This declaration is bringing money, through the Federal Emergency Management Administration (FEMA) and through the state government to citizens who need it to rebuild their homes. It also is helping with economic development efforts.
“These four officials presented a united front, without regard to political affiliations, to bring federal and state dollars that will help rebuild the community,” Douglas said. Governor Hoeven is a Republican, while Senators Dorgan and Conrad and Representative Pomeroy are all Democrats. However, all four signed onto documents calling for emergency relief.
While Northwood has a long way to go in the rebuilding process, the quick action and continuing follow-up by our four Featured Lawmakers are helping Northwood to get the job done.


Representative Walz includes
important Rail Amendment in Farm Bill 
Missouri River Energy Services recognizes Representative Tim Walz (D-MN) for successfully adding an amendment to the 2007 Farm Bill that represents a victory for captive shippers. The rail industry vigorously opposed the amendment and we applaud Representative Walz for his hard work and leadership on this issue.
Walz, a member of the House Agriculture Committee, included language in the bill that requires the USDA to study the impact of rail service on rural America as it relates to agricultural inputs and commodities, ethanol and other renewable fuels, and coal. The USDA is also required to report back to Congress with recommendations for new federal policies to address any problems that the study identifies.
Representative Walz is also a co-sponsor of H.R. 1650 – the Railroad Antitrust Enforcement Act of 2007 and H.R. 2125 – the Railroad Competition and Service Improvement Act of 2007.
The rail issues are of the utmost importance to MRES and its members. We sincerely appreciate Representative Walz’s efforts and continued support. 
  
 
Senator Dorgan's amendments on rail
included in Transportation Appropriations Bill 
Missouri River Energy Services (MRES) recognizes Senator Byron Dorgan (D-ND) for a number of actions of importance to MRES members.
Senator Dorgan successfully added two pertinent amendments to the Transportation Appropriations Bill regarding the rail issue.
One of the amendments included capping the filing fee for rate cases at the Surface Transportation Board (STB) at $350. This is the same level of filing fees in federal district courts. The filing fee is presently set at $178,200. By law, rail customers cannot challenge rail rates in the federal district courts, only at the STB. The exorbitant fees are one more sign of the disregard the STB shows to shipper interests.
The other, and more significant, amendment calls for the inspector general of the Department of Transportation to conduct a 90-day investigation of railroad service disruptions and timely delivery problems with the railroads. The inspector general is to file his report, with legislative and regulatory recommendations, with the Senate and House Transportation Committees, the House Appropriations Committee, and the Senate Commerce Committee.
Senator Dorgan is a strong supporter and leader regarding the rail issues we have experienced and continue to experience.
 
 
Senator Dorgan again prevents agency rate attack on PMAs and watches over WAPA’s construction budget
As reported in a previous Featured Lawmaker segment, Senator Dorgan, as Chairman of the Senate Energy & Water Development Appropriations Committee, included a provision in the fiscal year 2007 funding resolution that prevented implementation of the agency rate program. The Senator also vowed to stop implementation of the agency rate program for fiscal year 2008.
The agency rate program would require the Western Area Power Administration (WAPA) and the other federal power marketing administrations (PMAs) to pay higher interest rates on future capital investments. While this would not have a financial impact on WAPA’s Upper Great Plains customers, which include MRES members, it would set a bad precedent by allowing for administrative changes in WAPA's repayment program. The Office of Management and Budget (OMB) claimed that it did not need, nor did it want, congressional review or approval for this change. If OMB could increase interest rates without congressional approval, PMA customers and Congress feared OMB would seek to implement more costly programs in the future.
Senator Dorgan again has included language in the Senate Energy and Water Development Appropriations bill for fiscal year 2008 to prevent implementation of the agency rate proposal and was critical of the Administration for its annual use of “budget gimmicks” to increase the rates of federal power customers.
Senator Dorgan also restored $30 million to the WAPA construction budget by ($50 million was cut by OMB) and included report language noting the continued reduction in WAPA’s construction budget and limits on use of customer-advanced funding. The Committee expresses concern that if this continues, reliability of the transmission system may be impaired.
MRES and its members applaud and sincerely thank Senator Dorgan for his unwavering diligence and continued support for public power and its issues.


Senator Prettner Solon leads the way toward balanced energy bill in Minnesota 
Missouri River Energy Services recognizes Senator Yvonne Prettner Solon for her leadership on the Minnesota Next Generation Energy Act, SF 145. Under the climate change section of this legislation (Article 5), the state of Minnesota has set a goal of reducing statewide greenhouse gas emissions to a level 15 percent below 2005 levels by 2015, at least 30 percent by 2025, and at least 80 percent by 2050. The legislation requires that the Department of Commerce and several state agencies work in conjunction with industry, utility and environmental stakeholder groups to review and develop policies to meet the greenhouse gas reduction goals.
Initially, proposed climate change legislation sought to put a moratorium on the construction of any new fossil-fuel electric generation plants, particularly coal-fired, as well as ban the importation of electricity from such plants into Minnesota from other states. This would have jeopardized the planned Big Stone II power plant which is being planned to serve MRES member cities in Minnesota and neighboring states, resulting in an increase in the cost of meeting the electric needs of customers, potential shortages of available generation at peak times and reduced reliability of the transmission grid.
Senator Prettner Solon took the lead by introducing an alternative bill, SF 145, which sought to balance environmental concerns with the need to reliably meet the growing power demands of consumers. Although the House passed a different version of the bill, Senator Prettner Solon kept the conference committee focused on the need for a practical approach to the issue. As a result, the final bill allows a stakeholders group and the state legislature to first analyze the situation across all economic sectors, as well as weigh the feasibility of various greenhouse gas reduction options prior to making decisions that would halt development of electric generation needed to support the growing economy of the state of Minnesota and the region.
This would not have been accomplished without the Senator’s leadership and commitment.
 
  
Senator Thune Introduces Legislation to Increase Clean Renewable Energy Bond Funding
Missouri River Energy Services recognizes Senator John Thune (R-S.D.) for recently introducing The Wind Energy Development Act of 2007.
Under this legislation, the amount of Clean Renewable Energy Bonds (CREBs) would increase to $2.25 billion. This is up from $800 million previously allocated.
CREBs deliver an incentive for public power that is comparable to the Production Tax Credit that is available to private developers and investor-owned utilities. A CREB is a special type of bond, known as a “tax credit bond,” that offers municipals and cooperatives the equivalent of an interest-free loan for financing qualified energy projects for a limited term.
In addition to increasing the amount of bonds that are available for the expanded clean energy projects, a portion of the bond funding would be set aside for public power entities similar to the set-asides dedicated to rural electric cooperatives in the original legislation.
MRES has applied for the CREBs in the past and would be a strong supporter of the program with the modifications proposed by Senator Thune. We thank Senator Thune for introducing this important legislation.
 
 
Senator Harkin backs railroad antitrust legislation
Missouri River Energy Services (MRES) recognizes Senator Tom Harkin (D-IA) for cosponsoring “S. 772 - Railroad Antitrust Enforcement Act of 2007” along with Senators Norm Coleman (R-MN), Herb Kohl (D-WI), and others. While Senator Harkin has previously supported the efforts of MRES to receive fair and timely rate relief from the Surface Transportation Board (STB), this is the first time he has cosponsored legislation to provide captive shippers with meaningful opportunities to seek rate relief and redress anticompetitive behavior.
This legislation will repeal the obsolete antitrust exemptions protecting freight railroads from competition. These exemptions deny rail consumers the protections available to consumers in virtually every other industry.
MRES and the other owners of the Laramie River Station (LRS) are among the many rail customers across the U.S. who have been hit with dramatic increases in rail delivery charges and unreliable service in recent years.
Annual increased costs at LRS due to rail shipping amount to $8 million per year to MRES alone and have caused MRES to increase its wholesale electric rates to its members by 8 percent for 2007.
MRES strongly supports antitrust legislation, as well as legislation that would reform the STB, which is responsible for overseeing the actions of the railroads, along with hearing and ruling on cases concerning the railroad system. MRES, along with all the owners of the LRS, filed a case with the STB more than two years ago stemming from the LRS coal delivery and rail rate situation. That case is still pending.
MRES applauds Senator Harkin for his support of legislation extremely important to the MRES members and their electric consumers and for his continuing support for fair treatment of rail customers. 
 
 
Senator Coleman Cosponsors Railroad Antitrust Bill
Missouri River Energy Services (MRES) recognizes Senator Norm Coleman (R-MN) for introducing “S. 772 - Railroad Antitrust Enforcement Act of 2007” along with Senator Herb Kohl (D-WI).
This legislation will repeal the obsolete antitrust exemptions protecting freight railroads from competition. These exemptions deny rail consumers the protections available to consumers in virtually every other industry.
MRES and the other owners of the Laramie River Station (LRS) are among the many rail customers across the U.S. who have seen dramatic increases in rail delivery charges and unreliable service in recent years.
LRS is a coal-fired power plant located in eastern Wyoming. It is jointly owned by six consumer-owned electric utilities. The LRS project is a captive shipper, meaning that there is only one railroad – BNSF Railway Company – available to serve its coal transportation needs. When the project’s long-term coal delivery contract with BNSF expired in September 2004, LRS participants suddenly were faced with a doubling of the BNSF rate for coal delivery. Annual increased costs due to rail shipping amount to $8 million per year to MRES alone and have caused MRES to increase its wholesale electric rates to its members by 8 percent for 2007. In addition, deliveries became sporadic, which diminished the coal supply on hand at the plant and, at one point, placed the plant on the brink of curtailing operations.
MRES strongly supports antitrust legislation, as well as legislation that would reform the U.S. Surface Transportation Board (STB). The STB is responsible for overseeing the actions of the railroads, along with hearing and ruling on cases concerning the railroad system. MRES, along with all the owners of the LRS, presently have a case pending before the STB stemming from the LRS coal delivery and rail rate situation.
“Our nation’s utilities, who rely on the railroad to transport coal for electricity generation, are all too often subject to exorbitant fees and unreliable service, causing drastically higher energy costs for consumers,” said Coleman. “Similarly, our farmers and timber producers who depend on rail for the shipment of their products often shoulder the financial burden with no recourse, due to the antitrust exemptions on the books. By eliminating railroad antitrust laws, we can give those who suffer from anti-competitive practices a tool to fight to back.”
MRES is an organization of 60 communities in the states of Iowa, Minnesota, North Dakota, and South Dakota. Each of these member communities owns and operates a municipal electric utility. MRES applauds Senator Coleman for introducing legislation extremely important to the MRES members and their electric consumers. 
 

Senator Dorgan's efforts prevent unwarranted attack on PMAs
MRES recognizes Senator Byron Dorgan (D-ND) for once again defending the federal power program from unwarranted attack. Last year, the Office of Management and Budget (OMB) included a program called Agency Rate in the President's Fiscal Year 2007 Budget. This program would require the Western Area Power Administration (Western) and the other federal power marketing administrations (PMA) to pay higher interest rates on future capital investments. While this program would not have a financial impact on Western’s Upper Great Plains customers, which include MRES members, it would have set a bad precedent by allowing for administrative changes in Western's repayment program. OMB claimed that it did not need, nor did it want, congressional review or approval for this change. If OMB could increase interest rates without congressional approval, PMA customers and Congress feared OMB would seek to implement more costly programs in the future.
In his new role as Chairman of the Senate Energy & Water Development Appropriations Committee, Senator Dorgan included a provision in the Fiscal Year 2007 funding resolution that prevented implementation of the Agency Rate program. The Senator also vowed to stop implementation of the Agency Rate program for Fiscal Year 2008. He stated that he supports the federal power program and cited the benefits of low-cost federal power to his constituents.
Senator Dorgan has long been a champion for the federal power program, and MRES and its members appreciate his continued support.
 

2006

Governor Rounds makes Watertown “Capital for a Day” 
South Dakota Governor M. Michael “Mike” Rounds led a team of state officials to the City of Watertown September 20 to talk with citizens and local leaders and to get their input on how to improve state government.
The occasion was the governor’s most recent “Capital for a Day” event, a program that brings the governor and his cabinet to communities throughout the state to discuss state and local issues.
“Capital for a Day brings government to the people,” said Gov. Rounds. “Those who are unable to travel to Pierre on a regular basis have an opportunity to discuss their issues with representatives from the different departments in state government. It also gives state leaders a chance to learn more about activities in the regions. I’m looking forward to visiting the Watertown community and learning about topics important in the region.”
Members of the Missouri River Energy Services (MRES) staff attended the event and MRES sponsored a luncheon.
Watertown, an MRES member, is the 22^nd Capital for a Day in South Dakota. Other MRES member communities that have been named Capital for a Day are Brookings, Faith, and Vermillion.
 
 
State attorneys general from Iowa, Minnesota, North Dakota,
and South Dakota sign on to Railroad Antitrust Letter
Missouri River Energy Services (MRES) is pleased to recognize Attorneys General Tom Miller (IA), Mike Hatch (MN), Wayne Stenehjem (ND), and Larry Long (SD) for joining with several other state attorneys general in co-signing a letter encouraging Congress to remove current railroad antitrust exemptions and to subject the nation’s major railroads to laws that promote competition.
The Aug. 17, 2006 letter was sent to the chair and ranking members of the Judiciary Committee of both the United States Senate and House of Representatives.
In summary, the attorneys general letter said the railroads’ exemption to the antitrust laws should be taken away because freight rail service has deteriorated since the rail industry was regulated 26 years ago.
MRES is a co-owner of the Laramie River Station (LRS), a coal-fired power plant near Wheatland, Wyoming. The owners of the LRS have experienced a doubling of rail delivery rates and sporadic reliability on the delivery of coal since a long-term contract with Burlington Northern and Santa Fe Railway expired in late 2004.
This issue not only affects those in the coal industry, but also any industry that has limited rail access such as concrete, chemical, lumber, and agriculture products, as well as many others.
This issue is a top priority for MRES and its members, and the leadership shown by the four attorneys general is of significant importance. MRES greatly appreciates their effort in lending their voices to encourage congressional action on this matter.
 
 
South Dakota Governor Michael Rounds addresses MRES Annual Meeting
Missouri River Energy Services (MRES) and its members were honored to have South Dakota Governor Michael Rounds address its annual meeting on April 26^th.
Governor Rounds, a strong supporter of the Big Stone II Project, opened the annual meeting events as the keynote speaker.
When introducing the Governor, Don Johnston, MRES Board of Directors 1^st Vice Chairman from Flandreau, SD, stated, “Governor Rounds has been the single most visible and supportive state official of the Big Stone II project in which MRES is the single largest participant.”
“Energy development is economic development – the two cannot exist alone,” Governor Rounds said. “The goal for 2010 is that South Dakota becomes a net energy export state.”
The Governor reviewed the numerous bills that the State of South Dakota has enacted in recent years regarding energy development and incentives. He thanked MRES and its members for “your foresight and knowledge of technology” regarding the Big Stone II project and said, “Big Stone II looks to the future and sees opportunity, not just challenges.”
He also expressed his appreciation to the people of our industry for what they did to help get the power back on for people in South Dakota who lost electric service during a severe ice storm in November 2005.
In closing, Governor Rounds said, “We want energy production; we’re hungry for more energy production in our state and we’re looking forward to a very, very bright future.”
 

 
Representatives from two Member Communities appointed to the APPA Policy Makers Council
Missouri River Energy Services (MRES) is proud to announce that two of its member communities are represented on the American Public Power Association’s (APPA) Policy Makers Council.
Dale Christensen, utility board member from Watertown, S.D., was recently appointed to the Policy Makers Council. Christensen has been on the Watertown Utility Board since 1999 and has served as President of that Board.
Dennis Walstra, mayor of Sioux Center, IA, was appointed to his first term on the Council in 2003 and has recently been reappointed to a second term. Walstra served two years as a council member and has been mayor since 2004.
The Policy Makers Council’s mission is to assist APPA in promoting legislation of importance to its members, opposing harmful legislation, and providing advice on others issues of importance to the organization. The Council is comprised of 40 members who serve on utility boards or are elected officials in public power communities. The terms are three years in length, and Council members may be reappointed to a second term for a maximum consecutive service of six years. Members also are expected to participate in the Council’s two annual meetings.
Appointments such as these require additional commitment from individuals who are already dedicated to providing their time and services for their communities. MRES, APPA, and Public Power congratulate and sincerely thank Dale and Dennis for their continued loyalty and commitment to the public power industry.