Annual meeting attendees hear that Great River Energy is building for the future
Hinckley, MN (September 6, 2000) - The volatile wholesale electric market during the summer of 1999 served as the driver for many of the changes Great River Energy has made in the past year, said board chair, Henry Hanson, at the company’s recent annual meeting. Great River Energy’s subsequent financial losses caused the company to raise its wholesale rate, implement a power cost adjustment, and enter into projects and alliances to help mitigate its risk in the future.
Headquartered in Elk River, Minnesota, Great River Energy is a consumer-owned generation and transmission cooperative and Minnesota’s second largest utility in terms of generating capacity. Great River Energy provides low-cost electrical energy and related services to its 29 member distribution cooperatives in Minnesota and Wisconsin.
The more than 400 cooperative directors, managers and guests attending the meeting were told Great River Energy is building one peaking power plant in southeastern Minnesota (Pleasant Valley Station), and purchasing another in southwestern Minnesota (Lakefield Junction), adding nearly 1000 MW of new peaking capacity by the summer of 2001. The company also created an LLC with Minnesota Power in Duluth named Split Rock Energy to pool generation resources and jointly serve customers, as well as buy and sell energy on the wholesale power market.
“I think we’ve proven we can conquer any challenge put before us,” said Hanson.
Following Mr. Hanson’s remarks, Jim Van Epps, Great River Energy’s president and CEO discussed the year as one of building and planning for the future. Van Epps said, “Great River Energy will continue to look for partnerships and alliances that will add value for our member-owners.”
Also speaking at the meeting were Cooperative Finance Corporation Governor, Sheldon Petersen and Deloitte & Touche partner Cliff Hoffman.
Financial highlights included an increase in revenue of $22 million on more than 8.6 billion kilowatt hours of electricity sold, but also an increase in purchase power costs of $24 million. Great River Energy’s Minnesota and North Dakota operations paid payroll, sales, property, coal conversion and severance taxes in 1999 of $18.9 million.
Following the meeting, Henry Hanson (Nobles Cooperative Electric, Worthington) was re-elected board chair and Don Holl (Connexus Energy, Ramsey) was elected vice chair. Other officers elected are Secretary Bill O’Brien (Runestone Electric Association, Alexandria), and Treasurer Russell Ege (Cooperative Light & Power, Two Harbors).
