Annual meeting highlights Great River Energy successes
Elk River, MN (June 22, 2005) - 2004 was another great year, Great River Energy’s new president and CEO, David Saggau, told the 300 electric cooperative leaders attending the organization’s annual meeting on June 15 in Hinckley.
“In the past, we built for our growth, grew into our new facilities and built for the next surge of growth. The future will be fast and furious when compared with the past. Our building projects will overlap,” he added. “Even with all of these new facilities, we will continue to have a competitive wholesale power rate, and our financial forecast shows a reasonable rate increase of 2.5 to 3 percent a year -- less than the rate of inflation.”
Although no one can predict the future for Great River Energy, Saggau told the audience that it will differ from the past.
“If growth propels us forward, then diversification gives us balance,” Saggau said. “Recently, we’ve embarked on projects that will clearly add value for our members.” Those projects include Blue Flint Ethanol, a 50-million-gallon-a-year ethanol plant to be built adjacent to Coal Creek Station. Another project -- a new coal-drying process -- partially funded by the U.S. Department of Energy and created by Great River Energy employees at Coal Creek Station -- will increase efficient use of lignite.
“You’ll see more of these projects in the future -- you’ll see us encourage, investigate and implement more ideas just like these,” Saggau added.
Great River Energy is able to pursue these opportunities because of its strengthening financial position. The organization earned a record margin (or profit) of $16.8 million on revenues of nearly $558 million in 2004, according to Larry Schmid, vice president and chief financial officer. “Great River Energy has two investment grade ratings and is well positioned to obtain future financing. We’re the fourth largest G&T in the country, and the G&T business model is viewed favorably by the capital markets,” Schmid adds. “The G&T model combines the financial strength of the power supplier and its distribution cooperatives.”
Great River Energy Board Chair Henry Hanson focused his remarks on the decisions the board of directors had made over the past year. “In 2004, this board of directors was faced with many different issues -- from governance to approving new power plants. Each time, they’ve shown their dedication to this G&T by making the decision that is the best for all members in the long-term,” Hanson said.
In 2004, the board approved a plan to elect a 13-member executive committee that will meet regularly to approve business activities. The 34-member board of directors will meet quarterly and remains responsible for approving Great River Energy’s budget and rates and selecting a CEO.
In May 2005, the Great River Energy board of directors named Saggau as president and CEO to succeed retiring CEO Jim Van Epps. Saggau had served as the organization’s vice president and general counsel since 1999. He previously was an attorney for the Federal Energy Regulatory Commission (FERC) in Washington, D.C. and a senior regulatory attorney for New England Electric Systems (NEES) in Massachusetts. Saggau also was Cooperative Power’s attorney for three years. He received his undergraduate and law degrees from the University of North Dakota.
Following the annual meeting, directors elected a new 13-member executive committee. Executive Committee members include:
Great River Energy’s 34-member board of directors also includes:
Great River Energy, the second largest power supplier in Minnesota, is a generation and transmission cooperative providing electric energy and related services to 28 distribution cooperatives in Minnesota and Wisconsin. It is the 4th largest G&T in the country, based on assets. Headquartered in Elk River, Great River Energy has 700 employees in Minnesota and North Dakota. www.GreatRiverEnergy.com
06/22/05
