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Great River Energy begins study for power plant in Dakota County

Elk River, MN (February 18, 2002) - Great River Energy, a Minnesota generation and transmission cooperative, will begin a feasibility study for an electric generating facility to be located in the Rosemount area of Dakota County. The proposed facility could possibly utilize petroleum coke, which is produced nearby at Flint Hills Resources’ (formerly Koch Petroleum Group’s) Pine Bend Refinery, or another fuel. It would generate electricity for Great River Energy’s 29 distribution cooperative members in Minnesota and Wisconsin.

The initial feasibility study will consider a plant size of 250 – 500 megawatts and will cover five primary areas. They are environmental, engineering, transmission, generation technologies, and community impact.

“Our preliminary analyses show that the proposed power plant in Dakota County could be one of the best alternatives we’ve encountered thus far in Minnesota,” said Tim Seck, Great River Energy baseload study project manager. “We feel this project could have several advantages, economically and environmentally, over other projects.”

Generation technology studies will focus on integrated gasification combined cycle (IGCC) and circulating fluidized bed (CFB) combustion using petroleum coke, natural gas or coal. Both technologies are considered environmentally sound ways of generating electricity, a primary goal for Great River Energy. The Dakota County area also has a well-developed transmission infrastructure already in place, minimizing transmission investment.

The feasibility study will take approximately a year to complete. If Great River Energy decides to proceed with the project, permitting and engineering activities will take place from 2003-2004 with construction beginning in 2005 and the plant operational in 2008. The plant would create approximately 600 jobs during plant construction and approximately 80 permanent jobs for plant operation.

The study is part of Great River Energy’s overall quest to identify an economically and environmentally sound source of energy to meet the growing needs of its distribution cooperative members, including Dakota Electric Association, a member-owned distribution cooperative that serves the Rosemount/Apple Valley/Farmington area. In addition to this study, Great River Energy is currently conducting a feasibility study for a baseload power plant under the Lignite Vision 21 Project in North Dakota. It is also considering options for purchasing energy from projects that are being proposed by other developers.

In the past three years, Great River Energy has added two natural gas-fired peaking power plants to its system with Pleasant Valley Station (418 megawatts) and Lakefield Junction Station (454 megawatts). These peaking plants serve Great River Energy customers on the hottest and coldest days of the year. The cooperative also developed the Chandler Hills Wind Farm in southwestern Minnesota and with its members, launched the first voluntary, customer-driven wind energy program in the upper Midwest. The company plans to add an additional 21 megawatts of wind energy to its resource mix this year.

Great River Energy is a non-profit wholesale generation and transmission cooperative providing electric energy and related services to 29 distribution cooperatives in Minnesota and Wisconsin. It is Minnesota’s second largest utility in terms of generation capacity, serving approximately 1.2 million people. Great River Energy is a Touchstone Energy® cooperative.

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