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Coal is fuel of choice for future power plants

Bismarck, N.D. - Ron Harper, CEO and general manager of Basin Electric Power Cooperative, said meeting an increasing demand for electricity by the Cooperative's members will be a challenging endeavor.

He made these comments today at Basin Electric's 2006 annual meeting in reference to the theme of "Creating our Energy Future."

Harper reported that growth within the Basin Electric membership has been fairly steady - about 70 megawatts (MW) annually -- during the past several years. "However, load growth this year was more than 200 MW," he said. "We have seen significant industrial and commercial growth in rural areas as well as residential growth around suburban areas, along with a push to develop ethanol and other renewable resources, which have added to an increasing demand for electricity.

"The Basin Electric board of directors firmly believes that coal is still the best way to accomplish our mission (of providing electricity for our member systems in nine states)," Harper said. "We feel this natural resource is still best suited to meet our growing member needs. But the probability of increased regulations on the use of fossil fuels, particularly with respect to carbon dioxide, gives me a lot to think about every day."

Regardless, Harper said Basin Electric is forging ahead with new base load projects (that will be fueled by coal), even with the uncertainties of the regulatory and technology landscapes. "It is difficult for us to sit on the side lines and wait for the transition time to new technology, when our members need the power now," he said.

Harper said Basin Electric is in the process now of developing two power plants and adding environmental controls to an existing power plant. One of the new plants is the Dry Fork Station, a coal-based power plant to be constructed north of Gillette, Wyo. Construction is planned to begin in late 2007. Another plant being investigated is another base-load facility in either North Dakota or South Dakota, which could use Integrated Gasification Combined Cycle technology. And, by 2009, a project to install additional environmental controls at the Leland Olds Station, Stanton, N.D., will be completed.

"These projects will make coal a part of our energy future for a long time. We want to be in the forefront by finding solutions to make burning coal for energy production not only acceptable, but desirable," Harper said. "Whatever we can do to hasten the progress in cleaner coal technology will be worth the effort. I think all of us feel strongly that we must develop all of our generation assets in an environmentally conscious manner and understand the consequences of not doing so on our environment."

Harper is excited about Basin Electric�s accomplishments during the past few years. "We have diversified our generation portfolio and we are continually raising the bar with our involvement in new technologies,

"The fact that coal represents more than 50 percent of this nation's electric generation production, should give us all adequate incentive to move forward as a country, to develop the technologies to decrease our dependency on foreign energy sources," Harper said. "As a country, we must be in the forefront of finding solutions that assist us in using coal more cleanly and efficiently."

The annual meeting continues through tomorrow.
Basin Electric is a consumer-owned, regional cooperative headquartered in Bismarck. It generates and transmits electricity to 120 member rural electric systems in nine states: Colorado, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, South Dakota, and Wyoming. These member systems distribute electricity to about 1.8 million consumers.

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For more information about items in this section contact Ann Foster, IAEC director of communications, (515) 727-8945 or afoster@iowarec.org.

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