Seven utilities announce Big Stone Project to become a reality

Increasing electrical demand served as a catalyst for the decision

Milbank, S.D. (June 30, 2005)
Today officials from Otter Tail Power Company, Central Minnesota Municipal Power Agency, Great River Energy, Heartland Consumers Power District, Missouri River Energy Services, Montana-Dakota Utilities Co., and Southern Minnesota Municipal Power Agency jointly announced an agreement to build a new electric generating plant on the site of the existing Big Stone Plant near Milbank, South Dakota. Construction of the plant is still contingent on the approval of all necessary permits.

In making the announcement, Ward Uggerud Senior Vice President, Supply, of Otter Tail Power Company, the lead developer for this project, said that the decision to build a second unit at Big Stone is a responsible one. “Big Stone II will help these companies fulfill their commitment to meet their customers’ energy needs in an environmentally responsible and economical manner.” Additionally, Independent market analysts estimate energy consumption in the region will increase by approximately 15% during the next decade. Studies also indicate that within the Mid-continent Area Power Pool we could experience an energy shortfall by 2007.

The group plans to build a 600-megawatt coal-based generating unit. And subject to a final design and regulatory approval, emissions control equipment would likely include selective catalytic reduction for nitrogen oxide reduction, a fabric filter (baghouse) for particulate collection, followed by a wet scrubber for sulfur dioxide removal. The proposed emission control technologies are configured to provide the greatest mercury emission reductions.

Construction is scheduled to start in the spring of 2007 and with plant operation projected to be in the spring of 2011. Big Stone II will serve the participating utilities’ existing and future customer loads. Employing an average of 625 workers with a peak of 1500 during its four-year construction period, it will be the largest investment of private and public capital ever made in the State of South Dakota. The plant will require approximately 30-40 additional full-time workers when it comes on line in addition to those already employed at the Big Stone Plant.

“Big Stone II is a great example of utilities working together to solve their mutual need for baseload energy,” said Mark Rolfes, project manager. “The project has created a unique relationship among our companies, which include cooperatives, investor-owned utilities, and municipals.”

Otter Tail Power Company, a division of Otter Tail Corporation (Nasdaq: OTTR), is headquartered in Fergus Falls, Minnesota. It provides electricity and energy services to more than a quarter million people in Minnesota, North Dakota, and South Dakota. To learn more about Otter Tail Power Company visit www.otpco.com

Central Minnesota Municipal Power Agency, headquartered at Blue Earth, Minnesota, is a nonprofit municipal corporation and political subdivision of the State of Minnesota created in 1987. It is composed of 16 member municipals located in south central Minnesota. The majority own and operate an electric generation and distribution system. CMMPA provides members and nonmembers with low-cost, reliable electric energy and related services.

Great River Energy is a not-for-profit generation and transmission cooperative headquartered in Elk River, Minnesota. It provides energy and related services to 28 distribution cooperatives in Minnesota and Wisconsin, serving approximately 1.2 million people. Great River Energy is the second largest power supplier in Minnesota. To learn more, visit www.greatriverenergy.com.

Heartland Consumers Power District, headquartered in Madison, South Dakota, is a nonprofit public corporation and political subdivision of the State of South Dakota created in 1969. The District’s purpose is to supply electric energy and to encourage and extend its use. Heartland is currently supplying wholesale supplemental electric power and energy from a diverse mix of resources to 15 municipal electric systems and 1 cooperative in South Dakota, 2 municipal electric systems in Minnesota, and 1 municipal system in Iowa. For more information about Heartland, visit www.hcpd.com.

Missouri River Energy Services, headquartered in Sioux Falls, South Dakota, is a not-for-profit joint-action agency governed by the members it serves. Municipal electric utilities from 59 communities in Iowa, Minnesota, North Dakota, and South Dakota compose the MRES membership. MRES members have allocations of hydroelectricity from the Western Area Power Administration, accounting for an average of approximately 50 percent of their power needs. MRES provides the balance of its member power needs from other resources. For more information about MRES, visit www.mrenergy.com.

Montana-Dakota Utilities Co. – Montana-Dakota Utilities Co. distributes natural gas and generates, transmits and distributes electricity and provides related services in the northern Great Plains. Montana-Dakota is a division of MDU Resources Group, Inc., a multidimensional natural resources enterprise traded on the New York Stock Exchange as “MDU.” For more information about Montana-Dakota, visit the company’s Web site at www.mdu.com.

Southern Minnesota Municipal Power Agency, headquartered Rochester, Minnesota, is a not-for-profit municipal corporation and political subdivision of the state of Minnesota formed to supply electricity and related services to 18 municipally operated utilities that comprise the membership of the Agency. For more information about SMMPA, visit www.smmpa.com.

Otter Tail Power Company contact:
Steve Schultz
Public Relations Specialist
Phone:
701-320-1406
sschultz@otpco.com

Heartland Consumers Power District contact:
Tim Mullenberg,
Manager, Customer Relations
Phone:
605-256-6536
timmuell@hcpd.com

Central Minnesota Municipal Power Agency contact:
Steve Thompson
Director, Operations
Phone:
507-526-2193
stevet@utplus.com

Missouri River Energy Services contact:
Bill Radio
Director, Member and Public Relations
Phone:
605-338-4042
bradio@mrenergy.com

Great River Energy contact:
Kandace Olsen
Manager, Communications
Phone:
763-241-2293
Kolsen@GREnergy.com

Southern Minnesota Municipal Power Agency contact:
Dan Hayes
Manager of Agency Communications
Phone:
507-285-0478
dm.hayes@smmpa.org

Montana-Dakota Utilities Co. contact:
Dan Sharp
Public Relations Manager
Phone: (701)
222-7769
dan.sharp@mduresources.com