Renewable Energy and Energy Efficiency

2005 and 2006 Success Stories

Emissions Accord Reached on North Dakota Plant; Coops to Also Finance $5 million in Renewable Energy Development Projects: Minnkota Power Cooperative (Minnkota) (ND-020), Grand Forks, North Dakota, and the U.S. Environmental Protection Agency have agreed on a plan that will reduce emissions at a North Dakota power plant and enable the G&T to add a third unit at the facility.

Under the agreement, the G&T, based in Grand Forks, North Dakota, will install additional emissions controls at its Milton R. Young lignite coal-based plant near Center, North Dakota.

"The settlement allows Minnkota and the State of North Dakota to jointly benefit," Minnkota President & CEO David Loer said. "Minnkota receives certainty that required future emission reductions will allow us to build Young 3, and the state of North Dakota reduces potential obstacles to lignite economic development in western North Dakota sooner than originally thought possible."

The new controls will reduce combined sulfur dioxide emissions from the two units by about 25,000 tons annually, Minnkota officials said. Loer estimated the cost of the improvements at about $135 million.

Nitrogen oxides will be reduced in two phases, officials said. The first phase should result in a combined reduction of 9,100 tons per year. In the second phase, additional reductions will be made in 2010 and 2011, after determining the best technology to achieve the task.

The agreement is the outgrowth of a 2002 action by the EPA concerning the plant's emission levels under the New Source Review program.

Minnkota owns and operates one unit at the plant, while the other is owned by Square Butte Electric Co-op (Square Butte) (ND-048), Grand Forks, North Dakota, and operated by Minnkota. Square Butte, a signatory to the settlement, is a subsidiary of Minnkota and deals only with the second unit.

Minnkota and Square Butte also will finance $5 million in renewable energy development projects.

Compliments of NRECA's "Electric Co-op TODAY", May 12, 2006 edition, Volume12, Number 18.

May 2006

Delta-Montrose Electric Association Home Energy Makeover Contest: Many of us braved this winter by slipping on gloves to keep our fingers warm as we dutifully wrote a check to the utility company. As energy rates continue to climb, is there really anything we can do but pay bigger utility bills?

What about turning up the heat and living more comfortably, while making your home work smarter to help you save money?

Energy-related home improvements are a one-time cost every month for as long as they own their homes. In order to drive this message into the homes of its member consumers, last fall Tri-State member system Delta-Montrose Electric Association (DMEA) (CO-020), Montrose, Colorado launched the Home Energy Makeover Contest.

The purpose of the contest was not only to demonstrate how those with higher-than-average home energy costs could cut their energy use, but also to teach all coop members how best to improve their homes in ways that reduce their overall utility bills. Everyone can be a winner with a few easy steps that make a home more energy efficient.

"When we talk to our members about high bill complaints, our goal has always been to arm them with all the information to be as energy efficient as possible," said Paul Bony, DMEA's member services and marketing manager. "We think energy efficiency is a key community issue - the more money members have in their pockets, the more they have to spend in the local economy."

"Home energy improvements don't cost, they pay," emphasized Ed Thomas, marketing director of Intermountain Energy, DMEA's subsidiary that implemented the contest. "For instance, the first thing homeowners can do is to change out their five most used light bulbs with compact fluorescent lamps (CFL) bulbs. Although CFLs cost more, they last 13 times longer and use 75 percent less electricity. At DMEA's rates today, a member is going to save $5 annually with three hours of daily use. It's not sexy, it's not a complete makeover - it's a $5 light bulb.

"We wanted to demonstrate the sorts of things you could do in a typical home," continued Thomas. "Not just talk about it, but to show how you go about looking at a house to figure out what solutions actually work."

DMEA's Home Energy Makeover Contest kicked off in August 2005 and received 130 entries. Typical DMEA member homes - 1,000 to 2,500 square feet, with no unusual types of major energy use - were eligible to participate. Entrants had the chance to win $25,000 in energy-related home improvements. In addition to the grand prize, two runners-up received $10,000 in improvements. Seven members won a free energy analysis of their homes to determine the best ways to cut their energy bills. All contestants also got a Home Energy Makeover Guide to help them make their own home improvements. The DMEA partnered with the Colorado Energy Science Center (CESC) to help select the 10 finalists. CESC, a Denver-based nonprofit energy education organization, conducted similar contests last year for Xcel Energy and Colorado Springs Utilities. Entrants gave CESC permission to review their total energy bills including electricity, gas and propane, for the last 12 months. Each utility bill was converted to British thermal units (Btus) to establish an across the board standard. The total Btus were divided by the home's square feet to get the Btu per square foot use. From those calculations, the 30 highest energy users were identified.

"It was DMEA's goal to select typical homeowners to make these improvements, so that others could say,'my house is like that and I could do that to my home,'" said Bony. Next,20 homes were visited to find candidates that could best demonstrate the savings, from which 10 homes received the comprehensive energy audits. "We went through each of the 10 homes and inventoried everything that used energy, explained Thomas. All the different appliances, their ages and their efficiency were examined. With the use of a blower door analysis, the air leakage of the building shell was determined - looking at houses that breathe versus houses that leak. From there, a pie chart was created that provided a visual of how each house uses energy. DMEA also sought local business support for the donation of systems and equipment. "By partnering with the window, insulation, and heating and cooling contractors, we were able to work together toward a common goal," said Thomas. "We wanted to create a collaborative process to ensure the house works together as a system. "It was critical to find a computer program that worked with real data and treated a house as a whole," continued Thomas. "TREAT software was good for that. It shows homeowners which investments pay for themselves. Factoring actual energy use, local weather data and contractor costs, Intermountain Energy was able to provide a menu of cost effective improvements that were grouped into price levels: "good (up to $2,500), better (up to $10,000) and best (up to $25,000)".

The grand prize winner was a 2,600 square foot home built in 1945 and expanded in 1959 that used 16,100 kilowatt hours annually and 1,200 gallons of propane for heating. An investment of $2,500 would call for cellulose insulation in the attic and crawlspace, sealing air leaks, installing low flow faucet aerators and showerheads and replacing 10 incandescent bulbs with CFLs. The next level would include all those measures, plus upgrading the boiler and water heater and installing Energy Star windows. The best package of $25,000 - the one the winning home received - replaced the propane furnace with a geothermal heat pump.

"If we assume that the owners refinanced their mortgage to borrow the money for the upgrades, these improvements would save more money monthly than the loan added resulting in positive cash flow," said Thomas. "And, not only do we focus on energy savings, but we also want to ensure the residents will be more comfortable and live in a healthier house." "We think energy efficiency is good for business," noted Bony. "DMEA and Intermountain Energy want to provide a comprehensive service to help our members improve their homes' energy performance. If a measure like an energy makeover contest encourages members to conserve, it's worth the investment to us to have a working example.

May 2006

Co-op Pitches in With Financing for Ethanol Plant: Minnesota co-op has tapped into a popular federal loan program to help boost the local economy and the growing market for alternative energy sources.

Federated Rural Electric Association (Federated) (MN-037), Jackson, Minnesota, will use a $740,000 loan from the United States Department of Agriculture (USDA) to help finance construction of a new 50-million gallon ethanol plant.

The plant will add about 70 jobs to the local economy and help meet a state requirement - the most stringent in the nation-that all gasoline supplies in Minnesota eventually include a 20 percent ethanol blend.

The money comes from USDA's Rural Economic Development Loans and Grants program, which helps co ops underwrite community development and job creation projects through zero-interest loans.

"Thanks to USDA Rural Development and the Federated Rural Electric Association, Jackson County will continue to prosper," said Rep. Gil Gutknecht, D-Minnesota., who represents the area in Congress. "The real winners here are the local citizens who benefit from the economic development this project provides."

The $104 million project is being built by Heron Lake BioEnergy in Jackson County in the southwestern part of the state. After an extensive series of hearings, the project passed regulatory muster, and workers broke ground last November.

When completed in spring 2007, the plant will be a boon to local grain producers - it will require 19 million bushels of corn annually to help generate 50 millions gallons of ethanol per year.

It also will produce 160,000 tons of distiller grains annually as a by-product to be sold to livestock producers for use as a nutritional supplement.

Andrea Christoffer, marketing and communications manager for Federated, said the co-op was delighted to be able to help with financing of the project.

She noted the plant, designed and constructed by Fagen Inc. of Granite Falls, Minn., is a bit unusual because it relies on coal for fuel, instead of more expensive natural gas.

A plant near Goldfield, Iowa, was the first in the nation to use coal power to help produce ethanol, and the Minnesota plant is similar to that facility.

Heron Lake BioEnergy officials estimate the energy savings from using coal will amount to several million dollars annually.

Compliments of NRECA's "Electric Co-op TODAY", March 31, 2006, edition, Volume 12, Number 13, 2006.

April 2006

Construction Underway on North Dakota Ethanol Plant - (Management team named to direct operations at 50 million gallon-a-year facility.) A state-of-the-art ethanol plant that eventually will produce 50 million gallons of ethanol annually is under construction in North Dakota.

Great River Energy (MN-110), a G&T located in Elk River, Minnesota, and Headwaters Inc. of South Jordan, Utah, held a groundbreaking ceremony March 17, 2006, on the $85 million facility near Underwood.

The Blue Flint Ethanol plant, which could begin operations in early 2007, will rely on waste steam from Great River Energy's nearby Coal Creek Station as energy to keep electricity costs low and reduce emissions. Officials said the steam will eliminate the need for a separate boiler and control construction costs.

"Our strong incentives for biodiesel and value-added agriculture and aggressive marketing of the state's energy potential are getting results, and we are working on more new projects," North Dakota Govenor John Hoeven said at the ceremony.

The plant, which derives its name from blue flint corn grown by Native Americans who once lived in the area, will require 18 million bushels of corn per year, much of it from area farms.

The plant also will produce enough dried or wet distillers grain to feed 225,000 cattle annually.

Officials estimated that construction will add 300 jobs to the local rolls and 37 full-time positions upon completion. The economic impact of the plant is expected to be about $160 million annually.

The companies also announced that John Baird of Headwaters Energy Services Corp. and John Weeda of Great River Energy will serve as a two-person executive committee that will govern activities for the joint venture.

Baird currently is vice president of liquid fuels for Headwaters Energy Services. Weeda is plant manager for Great River Energy at Coal Creek Station.

Headwaters Inc. also announced that Jeff Zueger has been named general manager of Blue Flint Ethanol.

Compliments of NRECA's "Electric Co-op TODAY", March 24, 2006, edition, Volume 12, Number 12.

April 2006

2006 Energy Star Award: Delta-Montrose Electric Association (DMEA) (CO-020), Delta, Colorado, is the recipient of the U.S. Environmental Protection Agency's 2006 Energy Star Award

Basin Electric Wind-hydrogen project moves forward: Thanks to two grants from the U.S. Department of Energy (DOE), and contributions from a consortium of energy companies and research institutions in North Dakota, a research and economic development program will be getting under way in the next couple of months.

In September 2004, the DOE awarded $497,050 to the consortium, led by Basin Electric Power Cooperative (Basin Electric) (ND-045), Bismarck, North Dakota, who has been assigned the grants. Last month another $500,000 was also added to undertake an innovative pilot program to produce, store and distribute hydrogen fuel.

At the February board meeting, Basin Electric's directors gave the go-ahead to sign contracts with DOE and members of the consortium to begin purchasing equipment and developing infrastructure to produce hydrogen using electricity from nearby wind turbines.

Ron Rebenitsch, Basin Electric manager of member marketing, said with the two DOE grants and in-kind contributions from the consortium members, almost $1.3 million is available for the project, which is planned to be located in Minot, ND.

The grants were made possible through the efforts of North Dakota U.S. Senator Byron Dorgan, who is a member of the Senate Energy and Water Appropriations Subcommittee. The consortium members include Basin Electric; Verendrye Electric Power Cooperative, Velva; the University of North Dakota Energy and Environmental Research Center (EERC), Grand Forks; and the North Dakota State University (NDSU) North Central Research Extension Center, Minot.

Rebenitsch said the project would use electricity from local wind generators at a regional hydrogen production site. The wind energy will be dynamically scheduled over the local electrical system from the wind turbines to the NDSU Experiment Station near Minot.

The wind energy would power an electrolyzer - a commercial generator that separates the hydrogen and oxygen contained in water. The hydrogen would then be stored and used either as a transportation fuel, a fuel to provide firm (non-intermittent) power that can be scheduled from fuel cells or small generators, or other applications.

The project consists of two parts. Rebenitsch said the initial phase, which began last September, analyzes the economics and environmental impacts associated with the production of hydrogen fuel using electricity from wind turbines. The second phase, scheduled to begin in a couple months, will include placement of the hydrogen electrolyzer in a location where electricity from Basin Electric's wind energy farms in North Dakota can be used. The hydrogen electrolyzer would be constructed at the NDSU North Central Research Extension Center with the support of Verendrye Electric, he said.

"The electrolyzer would be one of the nation's first production sources of hydrogen from a renewable resource," Rebenitsch said. "The hydrogen that's produced could be used as a fuel for both adapted internal combustion engines and fuel cell vehicles, as well as for electrical generation. The consortium is working with a number of entities to determine the best use of the hydrogen."

Negotiations have already begun with a supplier to install an electrolyzer and to construct the necessary facilities for using wind-generated electricity, Rebenitsch said. "We hope to have this demonstration project in operation in about 12 months."

Story by Daryl Hill, news media coordinator, Basin Electric.

March 2006

South Carolina Electric Co-op Aids Hydrogen Research -- Grant, loans from Aiken Electric will help establish advanced laboratory. If there should ever be a quantum-leap breakthrough in the use of hydrogen as a fuel for vehicles, Aiken Electric Co-op (SC-014) (Aiken) might have itself to thank.

The Aiken, South Carolina-based co-op, which has supported hydrogen research initiatives since 2004 with grants and loans, participated in the February 13, 2006, opening of the Center for Hydrogen Research. The $9.2 million center is designed to accommodate scientific exploration of the gas, the most abundant element in the universe.

"Studies show hydrogen will be a multi-billion dollar market by 2020," said Aiken CEO Gary Stooksbury. "Our continued involvement in the Center for Hydrogen Research and associated projects shows the openness we have to alternative fuels and our commitment to education in this community."

Aiken supported the center with a $219,000 grant last summer to aid in construction of the Hydrogen Education Outreach Center, which will be housed in the new laboratory. It will provide professional training to create regional opportunities for economic development in the hydrogen arena. The center will also educate students on hydrogen technology and its impact on our future.

Aiken also provided the county with a $380,000 low-interest loan in 2004 to fund the laboratory.

Supporting the laboratory helps fulfill Aiken's goals of seeking ways to improve quality of life and creating local jobs, Stooksbury added.

"Aiken's investment in the Center for Hydrogen Research is visionary," said Senator Lindsey Graham, R-S.C. "The hydrogen economy of the future could very well be developed in Aiken."

The 60,000-square foot laboratory is designed to bring together top scientists, chemists and engineers from Savannah River National Laboratory, universities and industry, said Clay Sell, Deputy S ecretary, Department of Energy.

Toyota is among the first industry groups to conduct research at the hydrogen laboratory. At the opening ceremony, James W. Griffith, vice president of the Toyota Technical Center, donated a Toyota Prius to the laboratory, saying that it will be a model for the next generation of fuel cell-powered vehicles.

"We believe the fuel tank in the car of the future will be a hydrogen storage system," Griffith said.

Hydrogen research initiatives also received a boost from the White House, which proposed $289 million in fiscal year 2007 funding. The request would an 18 percent increase over the $236 million appropriated by Congress for spending in fiscal 2006.

Compliments of NRECA's "Electric Co-op TODAY", February 24, 2006 edition, Volume 12, Number 8.

March 2006

DMEA Hosts USDA Renewable Energy and Value Added Agriculture Meeting: Delta-Montrose Electric Association, CO-020), Montrose, Colorado, hosted an informational meeting on February 15, 2006, at which representatives from the United States Department of Agriculture Rural Development met with area business owners, representatives from banks and local chamber offices, and government representatives from local, state and national legislators' offices, to discuss resources available in Colorado for Renewable Energy and Value Added Agriculture projects.

Among those who attended the meeting were (l to r) Pablo Galvan from Congressman John Salazar's office; Pattie Snidow, USDA Area Director and program presenter; Nancy Hovde, DMEA Board Member; and Matthew McCombs, of U.S. Senator Ken Salazar's office.

For more information about the USDA Rural Development program, log on to http://www.rurdev.usda.gov/rbs.

February 2006

DMEA Co-Sponsors 2006 Colorado Renewable Energy Summit: More than 500 people interested in greater energy independence through the development and use of domestic renewable energy resources attended the 2006 Colorado Renewable Energy Summit, held January 11, 2006, in Denver.

"DMEA is known statewide as a strong advocate of renewable energy and I'm pleased we were invited to co-sponsor this important public forum," said Dan McClendon, DMEA's General Manager. "We were able to inform hundreds of Colorado's energy leaders about the contribution GeoExchange technology can make to U.S. energy independence as well as note DMEA's support of Green Power, Net Metering, BioEnergy and emerging technologies such as fuel cells."

United States Senator Ken Salazar's office coordinated the January 11th Renewable Energy Summit to discuss the great and immediate potential for the production of renewable energy through wind, solar and biofuel production in Colorado and the United States. "Our national security depends on greater energy independence," Senator Salazar explained. "We can turn that obligation into an opportunity for Colorado and our nation. Renewable energy will be a cornerstone of our future independence."

Go to www.dmea.com to read more about how DMEA is helping our members, state and nation plug into renewable earth energy and how we encourage the development of a broad array of renewable energy technologies.

February 2006

Winning Is a Breeze for Ill. Co-op: The Department of Energy (DOE), in conjunction with NRECA and the Cooperative Research Network, honored Illinois Rural Electric Co-op (IL-018) (Illinois REC) with its 2005 wind Cooperative of the Year Award, in recognition of Illinois REC's leadership, success and innovation in wind power. The award was presented recently, during NRECA's TechAdvantage Conference and Expo in Orlando, Florida.

Illinois REC has "demonstrated that wind power can contribute to a cleaner environment, a stronger local economy and act as a hedge against rising fuel costs," said Douglas Fowler, DOE acting assistant secretary for energy efficiency and renewable energy, as he announced the award.

The Winchester-based Illinois REC was the first in the state to install wind capacity, completing a 1.65 MW turbine-sufficient to power some 500 homes-on a site 35 miles east of the Mississippi River in May 2005.

According to DOE, Illinois REC's service territory is one of the state's best sites for wind energy development.

Accepting the award, Bruce Giffin, Illinois REC's general manager, thanked DOE and other federal and state agencies that extended financial support for construction of the $1.89 million project. CRN, the Illinois statewide and others also provided key support, he said.

"If we can utilize renewables to generate electricity, and do it at the right price, that is the right thing to do", added Sean Middleton, Illinois REC's manager of engineering.

The Pike County Wind Project's turbine, with a hub 235 feet above the ground and a height of 365 feet with the blades straight up, transmits its power into Illinois REC's distribution lines for use by members, offsetting wholesale power purchase.

According to Illinois REC, turbines of this scale produce power at full capacity about 30 percent of the time, and their blades run about 80 percent of the time.

Wind levels in Pike County could support as many as 100 turbines, adding ad much as $7 million to the local tax base, the co-op said.

Compliments of NRECA's "Electric Co-op TODAY", March 10, 2006, edition, Volume12, No. 10.

March 2006

Tower of Power Goes On-Line in Illinois: Electricity started flowing in May from a 365-foot wind turbine in Pike County, Illinois to some of the Illinois Rural Electric Cooperative (IL-018) (IREC) members. The turbine was the first in the county, but the expectation is that scores more will eventually line the ridge. IREC members had been looking for a way to harness a natural resource, use it in a way that was beneficial to the environment and benefit their membership.

The updrafts rising from the Mississippi River 35 miles away create utility scale winds just west of Pittsfield. IREC saw that as a real opportunity, but the up-front costs to purchase and install a wind turbine were prohibitive. The price tag for the 1.65 MW wind turbine was $1.88 million. "We had to do it for the right price," said Manager of Engineering Shaun Middleton. Without government investment, customers couldn't afford to use the wind generated electricity.

USDA Rural Development provided a $1.02 million loan and a $483,544 energy grant to make the project feasible. The blades of the turbine make a quiet whooshing noise, just barely disturbing the environment, as it produces enough energy to light and cool 500 homes from an endlessly renewable resource.

May 2005

Landfill gas renewable energy plant to be built in Hardin County: East Kentucky Power Cooperative (EKPC) (KY-059), Winchester, Kentucky, is making preparations to build Kentucky's newest renewable energy plant at the Pearl Hollow Landfill, located south of the Bluegrass Parkway in eastern Hardin County, near the Nelson County line.

The new plant, which would produce electric power from decaying trash, joins EKPC's three landfill gas-to-electric plants (in Greenup, Laurel and Boone counties) and is located in Nolin Rural Electric Cooperative's service territory.

Prior to the announcement of the Pearl Hollow project, EKPC already ranked as one of the leaders in renewable energy production in the Southeastern United States. Each plant costs about $4 million to build.

"The Pearl Hollow plant will be another step forward in developing renewable energy in Kentucky," said Ralph Tyree, EKPC's manager of non-traditional power production. "When this plant goes commercial at the end of this year, it will provide enough clean, renewable energy for our member systems to supply electricity to more than 2,000 Kentucky homes."

At most landfills, gas from decaying trash is emitted into the atmosphere or burned off. Tapping the methane from a landfill to produce electricity, a process that has been used in other areas of the country for years, is relatively new to Kentucky.

The Hardin County plant will be almost identical to the first three renewable plants EKPC built in 2003, and includes a 5,000-square-foot building and three Caterpillar low-emission engine/generators.

The transmission design of this project will be somewhat different than the previous three projects. EKPC and Elizabethtown-based Nolin RECC engineers are working closely to interconnect this project into an existing Nolin distribution feeder serving the site.

"In addition to being an environmental asset, this plant will provide an added level of electric reliability to the area," said Vince Heuser, vice president of System Operations at Nolin RECC. "The amount of power generated by this facility will serve the present and future needs of every Nolin member in the Colesburg and Youngers Creek area."

Pending regulatory approvals, construction will take place this year and include three engines, producing approximately 2.4 megawatts of power. Two additional engines are expected to be added within five years, bringing total output from the plant to four megawatts of power. Approvals are needed from the Kentucky Public Service Commission, the Kentucky Division of Air Quality and the federal Rural Utilities Service.

Fourteen electric cooperatives sell the renewable energy produced from the landfill gas plants to retail customers through a program called EnviroWatts. With EnviroWatts, customers pay only $2.75 more per month for each 100-kilowatt block of green power. The customer has the option to enroll for all or just a portion of their electric bill.

Participating EnviroWatts co-ops include: Big Sandy RECC of Paintsville, Blue Grass Energy of Nicholasville, Clark Energy in Winchester, Cumberland Valley Electric in Gray, Fleming-Mason Energy in Flemingsburg, Grayson RECC of Grayson, Inter-County Energy of Danville, Jackson Energy of McKee, Licking Valley RECC in West Liberty, Nolin RECC of Elizabethtown, Owen Electric in Owenton, Salt River Electric of Bardstown, Shelby Energy of Shelbyville and South Kentucky Rural Electric in Somerset.

Of the 6,000 landfills across the U.S., there are about 340 with landfill gas-to-electric projects currently in operation. The Environmental Protection Agency estimates as many as 500 additional landfills could cost effectively tap methane as an energy source, producing enough electricity to power one million homes across the country.

September 2005

REDL&G Loan Fuels Biodiesel Plant in Minnesota: Co-op uses USDA program to help finance project that will add jobs, expand markets and farmers. A Minnesota co-op is providing some of the financial energy - a $400,000 loan - for a plant that will produce a clean-burning alternative to petroleum-based diesel fuel.

Freeborn-Mower Co-op Services (MN-061) (Freeborn-Mower), Albert Lea, is helping SoyMor, a farmers' cooperative in southern Minnesota and northern Iowa, construct the largest biodiesel plant in the country.

The facility, located in Glenville, Minnesota, is on track to open in June and will produce about 30 million gallons of biodiesel annually, said Jim Blair, chief financial officer of SoyMor.

As an added benefit, the burgeoning biodiesel market in Minnesota is likely to increase the price that farmers-many of whom belong to both Freeborn-Mower and SoyMor-receive for soybean production, officials said.

"It's a very exciting project because the market for biodiesel is just starting to take off. It'll add jobs and provide opportunities for farmers in our area," said Tim Thompson, president and CEO of Freeborn-Mower.

The loan is from the U.S. Department of Agriculture's Rural Economic Development Loans and Grants program, which provides support for co-ops to underwrite worthwhile community development and job creation projects.

Biodiesel, made from soy, can be blended with any level of petroleum fuel to create an alternative fuel for trucks, automobiles and vehicles with diesel engines. Unlike petroleum-based diesel, it has virtually no sulfur-related emissions.

Freeborn-Mower has been a valuable partner during planning and construction of the $30 million plant, in addition to the loan, Blair said.

"Tim and the co-op have been fabulous to work with. The fact is, in rural areas, you have to develop cooperative opportunities with other entities, or you'll struggle getting your business off the ground," he said.

Blair estimated that the state's budding biodiesel industry could see a rise in soybean prices for farmers by 30 cents a bushel, noting that the plant will use more than 200 million pounds of soy oil annually.

"The philosophy is to give soybean growers control of their own destiny by creating markets for their production," Blair said. Minnesota also will require that all diesel fuel generated in the state contain 2 percent biodiesel by July.

Compliments of NRECA's "Electric Co-op TODAY", April 22, 2005 edition.

May 2005

Missouri Co-ops Plan to Harvest Wind: Some of Missouri's most bountiful farm fields will soon be sown with wind turbines that will enable Associated Electric Cooperative, MO-073, to reap a renewable harvest of electricity.

The Springfield, Missouri, based G&T, joined developers and investors January 31, 2006, in a signing ceremony with Matt Blunt at the state capitol.

The G&T will buy all the electricity generated from a 50 MW project near King City, Missouri. Named Bluegrass Ridge in tribute to the farming community's historical role in bluegrass seed harvesting, the project is being funded and constructed by Missouri based developer Wind Capital Group and John Deere Wind Energy.

"Associated Electric Cooperative is committed to providing affordable, renewable energy options to our customers," said Jim Jura, CEO. "We are particularly pleased that the wind energy we are purchasing is harvested in our service area and that this investment will be staying here in our own communities."

When completed in late 2006, the project will consist of 24 turbines, and will produce enough power for up to 30,000 homes.

"Wind is a clean, renewable source of affordable electricity, which has the added benefit of strengthening rural communities and helping Missouri farmers," said Tom Carnahan, the project developer and president of Wind Capital Group. "I am very proud to be working with Missouri's electric cooperatives and John Deere Wind Energy to bring this first project to our state."

Compliments of NRECA's "Electric Co-op TODAY", February 3, 2006 edition, Volume 12

February 2006

A Positive Spin: Construction of the Wilton Wind Energy Center, which at 49.5 MW will be North Dakota's largest wind farm, will set 33 additional wind turbines spinning on the Upper Great Plains. The energy will benefit members of Basin Electric Power Co-op, (Basin) (ND-045), Bismarck, North Dakota, which will take the full output of the farm, to be constructed, owned and operated by FPL Energy, Juno Beach. Fla. At the September 19 groundbreaking, Basin CEO and General Manager Ron Harper attributed the G&T's ability to develop wind resources to its working relationship with FPL Energy. Wilton is the third joint wind effort by the two organizations, and will boost Basin's wind capacity to almost 135 MW. Harper cited the co-op's commitment to renewable energy, reporting that Basin's membership will consider a resolution at its 2005 annual meeting to set a goal of 10 percent voluntary renewable energy by 2010. If the resolution is adopted, he noted, Basin will be one of only a handful of utilities in the United States to have made such a commitment.

Compliments of NRECA's "Electric Co-op TODAY", September 30, 2005 edition, Volume 11.

October 2005

Ferry County Public Utilities District (PUD) (WA-046): These "High Energy Cost Communities" funds established an in-house resource to extend long term subsidized financing to consumers living in remote areas not currently served by PUD. Ferry County Community Services' local office estimated at the start of our program that there are currently 175-200 households in the County that currently had no access to electrical service. The majority of these households were using small gasoline generators for their electrical needs. PUD has documented a fully-burdened $/kWh cost for these systems at between $.237 and $.308. Others use solar PV at a fully burdened cost of $.42/kWh, according to our documentation.

This program was made available to those consumers whose present amortized cost of electricity exceeded $.23/kWh. These funds covered the installation costs for conventional distribution line extensions or solar photovoltaic systems. The customer will pay the cost of these services through a surcharge to our standard facility charge that would see the installation repaid over the system life, which would be 30 years for a conventional line extension or 20 years for a solar photovoltaic installation.

PUD is responsible for the maintenance of the Solar PV systems, treating them as a part of PUD's distribution system.

These installations receive the same subsidy as our conventional line extensions. Presently PUD subsidizes the $9.50/foot installation cost at $3.00/foot, leaving a final customer cost to the customer of $6.50/foot.

Our High-Energy Cost Community Service Cost Assistance program has enabled us to provide power to customers who would otherwise have to continue meeting their energy needs with gasoline-fueled generation or undersized, but affordable, PV systems of their own. PUD has extended service to more than 50 residences, and placed these facilities within economical reach of hundreds of others.

October 2005

FIRST DPC "COW POWER" RENEWABLE FACILITY COMES ONLINE: Dairyland Power Cooperative (WI-064), in partnership with Microgy, Inc., (a subsidiary of Environmental Power Corp.) celebrated bringing its first anaerobic digester "cow power" facility online with a ribbon cutting at Five Star Dairy in Elk Mound, Wisconsin. Five Star Dairy is served by Dunn Energy Cooperative, a member of the Dairyland system.

The Five Star Dairy facility is expected to generate 775 kilowatts of renewable energy, capable of powering 600 homes throughout Dairyland's four-state service area.

Cow manure is collected and heated in the digester tank, a process that creates methane gas. This biogas is used to generate renewable electricity.

Microgy designed and constructed the anaerobic digester facility, and will take care of its operation and maintenance. The electric generating equipment is owned by Dairyland. The farmer sells the methane gas to Dairyland.

A significant benefit of the renewable energy facility is the reduction of animal waste problems associated with manure disposal on farms. Odor is reduced, and weed seeds and pathogens are killed during the digestion process, thus reducing the need for herbicides and pesticides on the farm.

"This 'green' alliance Dairyland and Microgy have formed is a win-win for energy consumers and the environment. We are very excited to see this first facility begin producing power, and look forward to bringing more digester plants online in the future," said Dairyland President and CEO William Berg.

With headquarters in La Crosse, Wisconsin, Dairyland is a generation and transmission cooperative (G&T) that provides the wholesale electrical requirements and other services for 25 electric distribution cooperatives and 20 municipal utilities in the Upper Midwest.

Dairyland was formed in December 1941. Today, the cooperative's generating stations (coal, hydro, natural gas, landfill gas) have more than 1,100 megawatt capacity. Dairyland delivers electricity via more than 3,100 miles of transmission lines and nearly 300 substations located throughout the system's 44,500 square mile service area.

Dairyland's service area encompasses 62 counties in four states (Wisconsin, Minnesota, Iowa and Illinois). Dairyland has provided low-cost, reliable electrical energy and related services for over 63 years.

July 2005

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