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Six utilities announce feasibility study for second plant at Big Stone Increasing electric demand cited as reason new generation is needed (October 11, 2004) In a joint announcement today officials from Otter Tail Power Company, Central Minnesota Municipal Power Agency, Great River Energy, Heartland Consumers Power District, Hutchinson Utilities Commission, and Missouri River Energy Services reported that the companies are investigating the feasibility of another electric generating plant on the site of the existing Big Stone Plant near Milbank, South Dakota. “Based on studies that point to a potential energy shortfall in the Mid-Continent Area Power Pool by 2007 and our long-standing commitment to meet our customers’ energy needs in a low-cost, environmentally responsible manner,” said Otter Tail Power Company president Chuck MacFarlane, “studying the potential of a second unit at Big Stone is prudent.” In making the announcement, MacFarlane said that area power pool and independent market analysts estimate that energy consumption in the region will increase by 15 to 25 percent during the next decade. “We think it’s essential to respond to that knowledge,” he said. The group is exploring the feasibility of building an approximately 600-megawatt, coal-based generating unit designed with the best available emissions technology as prescribed by federal and state environmental regulations. The decision whether to proceed with construction of the plant is expected by early next summer. If built, Big Stone II is projected to come online in 2011 and serve the utilities’ native customer loads. It would be the largest investment of private and public capital in the state, employing an average of 625 construction workers during its four-year construction period, with a peak work force of 1500. Once online the plant likely would require 30 to 40 operational workers in addition to those already employed at the combined Big Stone Plant and Big Stone II site. Tom Heller, CEO of Missouri River Energy Services, added that necessary transmission studies are being conducted through the Midwest Independent System Operator. “And we intend to continue our discussions with government officials, the local public, and other stakeholders as the study results become available,” he said. “We still are in the early phases of the project, but we think it is important to get timely information to interested parties.” MacFarlane agrees. “Otter Tail Power Company has been operating the existing Big Stone Plant since 1975. We always appreciate the relationship we’ve had with the local residents and town, county, and state officials,” he said. “We also appreciate the unique relationship this project has developed among our companies, which include investor-owned utilities, municipal electric utilities, and electric cooperatives,” added Heller. “We’re working together to resolve our potential mutual need for baseload energy.” In their joint statement, company officials pointed out that, during its more than 25 years of operation, Big Stone Plant has proven that a well-designed, well-maintained coal-fired plant can be a reliable, efficient, low-cost energy source and an environmentally friendly neighbor. “Big Stone II, which would use state-of-the-art coal-burning and environmental-control technologies, would offer further proof,” said MacFarlane. 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. To learn more about Otter Tail Corporation visit www.ottertail.com. Central Minnesota Municipal Power Agency, headquartered at Blue Earth, Minnesota, is a non-profit 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 non-profit 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. Hutchinson Utilities Commission, headquartered in Hutchinson, Minnesota, is a non-profit corporation and political subdivision of the City of Hutchinson. The commission’s purpose is to supply electric energy and natural gas to the City of Hutchinson, Minnesota, and its residents. 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 58 communities in Iowa, Minnesota, North Dakota, and South Dakota comprise 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.
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