Great River Energy joins Midwest ISO

Elk River, Minn. (October 22, 2004)

The Midwest Independent Transmission System Operator, Inc. (Midwest ISO) Board has accepted Great River Energy’s membership application at its October 21 meeting. This follows the Great River Energy Board of Directors vote at its September meeting to join the Midwest ISO. The generation and transmission cooperative joins the Midwest ISO as a transmission-owning member with integration to take place by year-end, and will participate in the start of the Midwest ISO’s Energy Market on March 1, 2005.

“We’re pleased to become a full member of the Midwest ISO,” said Will Kaul, Great River Energy’s vice president of transmission. “We believe it will mitigate our risk in the wholesale electric marketplace and give us other financial benefits, including lower transmission costs for our wholesale power transactions.”

“Great River Energy’s voluntary integration into the Midwest ISO brings most of Minnesota into our organization and increases system reliability within the region,” said James P. Torgerson, president and chief executive officer for the Midwest ISO.

“As a result, the Midwest ISO will have greater control over the facilities we oversee, allowing us to extend the benefits of a regional grid to more customers throughout the Midwest,” Torgerson said. “We’re pleased to have them as a member.”

Great River Energy first submitted its Midwest ISO membership application in July, 2001 stipulated on the satisfaction of 16 conditions. “This summer, we determined that most of the conditions had been satisfied,” said Kaul. “After an extensive effort to work out outstanding issues, the remaining conditions—including approval by the Great River Energy Board of Directors—were resolved.”

Great River Energy also conducted a comprehensive analysis of the costs, benefits and risks of membership. It became clear that joining the Midwest ISO is the best operational and financial decision for Great River Energy and its member cooperatives. In addition, Great River Energy and Split Rock Energy, its power marketing subsidiary and designated Market Participant, have met all milestones for market preparations and are on track for the March 1 launch of the Midwest ISO’s Energy Market.

About Great River Energy

Great River Energy, the second largest power supplier in Minnesota, is a generation and transmission (G&T) cooperative providing electric energy and related services to 28 distribution cooperatives in Minnesota and Wisconsin. Great River Energy, the nation’s fourth largest G&T, owns and maintains 4,474 miles of transmission line and 2400 megawatts of generation assets. Its member cooperatives serve 580,000 customers or 1.3 million people. www.GreatRiverEnergy.com

About Midwest ISO

The Federal Energy Regulatory Commission approved the Midwest ISO as the nation’s first Regional Transmission Organization (RTO) on December 20, 2001. Midwest ISO, in its role as a regional transmission organization, monitors electric reliability throughout much of the Midwest – an area that encompasses more than 97,000 miles of interconnected, high voltage transmission lines in 15 states and one Canadian province. Midwest ISO is responsible for more than 107,000 MW of peak load and 132,000 MW of generation. Midwest ISO is responsible for coordinating the operation of the wholesale electric transmission system and ensuring fair access to the grid. For more information on the Midwest ISO, visit www.midwestiso.org

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