 
December 11, 2009
Rugby Wind Project begins commercial operation
Sioux Falls, S.D. -- MRES added 40 megawatts of renewable energy to its portfolio as the Rugby Wind Project began commercial operation Dec. 1.
The facility is located north of Rugby in north central North Dakota. In all, the project includes 71 wind generators with a total capacity of 149 megawatts. MRES contracted for 40 megawatts of power from the facility, which was developed by Iberdrola Renewables, Inc., the world’s largest provider of wind energy.
“With the addition of the Rugby project, MRES now has 82.4 megawatts of wind power capacity,” said MRES Marketing and Development Director Jeff Peters. “That means about 12 percent of the energy we supply to our members is derived from non-hydroelectric renewable resources.” MRES also gets wind energy from facilities located at Worthington, Marshall, and Odin, all in the State of Minnesota.
Wanzek Construction of Fargo, N.D., began erecting the 2.1-megawatt Suzlon turbines in the spring of 2009. Each tower has a total height of 407 feet with a rotor diameter of about 289 feet. The project also includes eight miles of transmission line that connects the generators to the power grid.
“The 40-megawatt purchase from the Rugby Wind Project is the largest wind purchase in the MRES wind resource portfolio,” Peters said. “It will be a critical resource to help MRES meet future renewable standards or objectives.”
December 11, 2009
Fitch reaffirms WMMPA/MRES bond rating
Sioux Falls, S.D. -- Fitch Ratings, a New York-based financial rating agency, has affirmed its 'AA-' rating on the outstanding power supply revenue bonds of Western Minnesota Municipal Power Agency (WMMPA)/Missouri River Energy Services (MRES). Fitch also reaffirmed its stable outlook for WMMPA/MRES.
Bonds included in the rating are $203.7 million power supply revenue bonds, series 1996A, 2003A&B and 2006A. Fitch said its rating is supported by a range of factors including:
• Low cost power resources;
• Strong, long-term power sales contracts that extend to 2046;
• Financial strength provided by 57 member systems across four states that are obligated to purchase wholesale power from MRES;
• Solid management and a supportive board of directors;
• Recent rate increase designed to restore financial performance in fiscal 2009;
• Reasonable plan and adopted rate increases to replenish the discretionary funds by 2012;
• Recent cancellation of the Big Stone II coal-fired unit, which gives the company the opportunity to explore alternative (less carbon-emitting) generation options.
Fitch also reported that it incorporated credit concerns into its rating. A particular concern was the use over the past few years of reserve funds, mainly to cover the impact of external factors including a 2006 ice storm that destroyed hundreds of miles of key transmission facilities and a significant increase in rail rates that occurred for its principal generating facility, the Laramie River Station (LRS) from 2004 to 2009. Fitch noted that the use of reserves allowed MRES to remain in compliance with its rate covenant and that the organization implemented an 18.5-percent rate increase in January 2009, which was necessary to restore its financial performance.
MRES has adopted a detailed plan to restore its debt service coverage and its reserve funds. The plan assumes that the U.S. Surface Transportation Board (STB) ruling against BNSF Railway Co., which has resulted in a $19.1 reparation payment to MRES is not overturned. BNSF is appealing the STB ruling to the United States Court of Appeals and, during that appeal process, the reparations payment will remain in a separate fund.
MRES, in early November, announced the cancellation of the proposed 580-megawatt Big Stone II coal-fired power plant due to an inability of the four regional utilities participating in the project to replace Otter Tail Power Co., which had withdrawn from the project two months earlier. The current generating resource mix of MRES is heavily dependent upon carbon emitting resources and, “given the likelihood of new federal carbon legislation, Fitch believes that the Big Stone II cancellation should provide MRES the opportunity to explore alternative generation options,” a Fitch news release said.
“We are pleased that Fitch continues to show confidence in MRES, WMMPA, and the membership by affirming the AA- rating,” said MRES Director of Finance and CFO Merlin Sawyer. “While we have not met our financial targets the last couple of years, we are confident that we will meet or exceed those targets through the next few years. We believe that the affirmation of the AA- rating reflects the fiscally prudent policies of MRES and WMMPA, that the MRES membership has not been significantly affected by the economic slowdown that has severely stressed many other parts of the country, and that the MRES and WMMPA Boards do not shy away from or delay making difficult decisions.”
November 3, 2009
Big Stone II project winding down
Participants will not move forward with Big Stone II project
SIOUX FALLS, S.D. – After almost five years of planning and permitting efforts, the participating utilities in the proposed Big Stone II Project announced today that they will end their quest to build the project’s large coal-fired power plant and associated transmission facilities.
The power plant, which regional utilities planned to build adjacent to the existing Big Stone Plant in northeastern South Dakota, would have provided 500-600 megawatts of power for customers of the participating utilities.
Participants are Missouri River Energy Services, Montana-Dakota Utilities, Central Minnesota Municipal Power Agency, and Heartland Consumers Power District.
“On Sept. 11, Otter Tail Power Co., announced that it was withdrawing from the project,” said Missouri River Energy Services CEO Tom Heller. “At the same time, the remaining participants announced that they would need to get commitments from at least one additional utility or it was unlikely the project could proceed. No other utility was able to make that commitment within the established timeframe, so we have elected to wind down the project.”
Even with the likely possibility of federal legislation regarding carbon emissions, the participants’ analysis showed Big Stone II to be their least-cost option for providing base-load power to their customers.
“We are disappointed that Big Stone II will not be constructed after having received all its permits. After almost five years of work on the project, we were still unable to move forward, so it is time to move on,” Heller said. “Each participant will address its future needs in a way that it deems most appropriate. MRES is exploring several options to meet the need that would have been filled by Big Stone II.”
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For more information, please contact MRES Member and Public Relations Director Bill Radio, phone: 605-338-4042; e-mail bradio@mrenergy.com.
October 8, 2009
Public Power Utilities celebrate Public Power Week
 October 4-10 marks the weeklong celebration of Public Power Week for electric municipal utilities across the country. This year is the 23rd anniversary of Public Power Week--an event intended to convey the importance of public power to local communities, and other key publics.
More than 2,000 other electric utilities collectively provide electricity on a not-for-profit basis to 45 million Americans.
October 1, 2009
MRES members to promote energy efficiency--one light at a time
MRES and 52 of its participating member communities are gearing up to promote a national program that encourages customers to save energy and money with a twist of the wrist.
From Oct. 1 through Nov. 30, 2009, residential customers across the United States can change out their standard incandescent light bulbs for ENERGY STAR®-qualified compact fluorescent light bulbs (CFLs). As part of the promotion, local hardware stores are offering special pricing that will allow customers to receive instant rebates at the time of purchase--up to $2 per bulb. Some CFLs will be available for purchase for as little as 99 cents at local hardware stores.
MRES Energy Services Manager Joni Livingston said that lighting accounts for about 20 percent of the average homeowner's electric bill.
"Even small changes, like switching to CFLs, can make a difference for residential customers by putting more money in their pockets, while also increasing energy efficiency and protecting the environment," she said.
Just two years ago, Americans saved $1.5 billion by switching to ENERGY STAR-qualified CFLs through the Change a Light program.
"We wanted to take part in the nationwide promotion to help customers in our member communities save energy and save money at the same time," Livingston said. "Replacing just one incandescent bulb with a CFL can save a homeowner about $30 over the bulb's lifetime and pay for itself in about six months.
Taking part in the Change A Light campaign is just one tool MRES members are using to promote energy awareness in their communities, and to help consumers keep energy costs down, Livingston said. Members also offer cash rebates to residential and business customers when they install new energy efficient equipment through the Bright Energy SolutionsSM suite of programs.
Details about Bright Energy Solutions can be found by accessing the program's website, www.brightenergysolutions.com.
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