Mark your calendar with our Littlefork and Baudette member appreciation open house dates! They will be held on Thursday, June 12, in Littlefork, and Friday, June 13, in Baudette, each day from 11 am to 2 pm. The linemen will be grilling brats for lunch, and we will have door prizes for both kids and adults! Hope to see you there!
The 2025 Knowledge Scholarship competition has been completed! Thank you to all who participated and congratulations to these winners!
(MAPLE GROVE, MINN) – The Minnesota Rural Electric Association, along with Minnesota’s electric cooperatives, celebrates the inclusion of solar reform legislation in the Senate energy budget bill, sponsored by Senator Nick Frentz (DFL-North Mankato). The proposed bill seeks to update outdated legislation designed to help launch the solar industry in the 1980s.
The legislation has bipartisan support and has been heard in both chambers. The bill aims to modernize what is known as “net metering” to ensure co-op and municipal consumers are not overpaying for solar electricity.
MREA seeks sustainable solar reform so that individuals who wish to install solar to offset their own energy use can continue to do so. The payback period for those who install a system sized to meet their energy needs will not change under the legislation. The proposed bill aims to change the compensation individuals receive when they build energy systems larger than needed and sell the excess back to local utilities.
Currently, a person can build a system many times larger than their home needs, and the utility is required to pay them retail prices for all the excess electricity they sell back to the utility.
According to a Berkeley Lab study, those who install solar systems are typically higher-income consumers. The money paid for their solar energy comes from all other utlity consumers at not-for-profit electric cooperatives and municipals.
“Utilities can purchase the same energy at about half the cost by buying or building systems at utility scale,” said MREA CEO Darrick Moe. “And that means, we can get twice as much carbon reduction for the same price.”
“As it stands now, a person on a fixed income is helping to pay for their neighbor’s $80,000 passive-income generating solar system through their higher electric bills,” Moe said. “Our current net metering laws are outdated, expensive and inequitable, and we thank the legislators who have authored these thoughtful bills in both chambers to reform legislation that was designed to help launch the solar industry.”
Last year, solar energy was 84% of all new generation capacity added, according to the Solar Energy Industries Association. Also, Minnesota law requires that all electricity consumed in the state must be carbon free by 2040. Utilities are obligated to move toward carbon free generation, so paying additional costs for net metered systems raises rates without bringing any more environmental benefit.
Minnesota is the only state in the nation that continues to pay out excess generation at full retail rates. Many other states have modified their net metering laws, and California has already made changes and is seeking further reforms as it faces rising energy costs due to net metering.
The Minnesota Rural Electric Association (MREA) is a not-for-profit trade association serving Minnesota’s electric cooperatives. MREA provides legislative and regulatory representation, director and employee education programs, technical training for electric cooperative line workers, and serves as the focal point for cooperation among cooperatives. Minnesota’s 44 distribution cooperatives serve approximately 1.7 million Minnesotans in all 87 counties and operate the largest distribution network in the state with more than 135,000 miles of electric lines.
Minnkota Power Cooperative does not expect Canadian tariffs to impact electric reliability, affordability or overall service to our members. While international trade dynamics may cause minor shifts in the broader energy market, Minnkota is well-positioned to manage these changes without disruption.
All of Minnkota’s electric generation facilities are located in North Dakota, ensuring that tariffs on Canadian power imports will not directly impact our energy supply or costs. Minnkota does not rely on Canadian electricity purchases, further insulating our members from potential price increases or power availability.
GRAND FORKS, N.D. (January 15, 2025) – Minnkota Power Cooperative and PRC Wind today announced plans for the development of Flickertail Wind Farm near New Rockford, North Dakota. The new 370-megawatt (MW) wind project will be owned and operated by PRC Wind, while Minnkota will purchase all energy produced under a long-term agreement.
With construction scheduled to start by 2027, the project is a cornerstone of Minnkota’s long-term strategy to diversify its energy portfolio while ensuring the continued delivery of cost-effective and sustainable electricity to its member cooperatives.
“Flickertail Wind Farm represents a tremendous opportunity to enhance our energy portfolio with a carbon-free resource, fulfill the vision of local landowners and harness North Dakota’s abundant energy potential,” said Mac McLennan, Minnkota President and CEO. “As the demand for electricity continues to grow in our region and across the nation, it’s critical for us to develop new energy resources and continue to diversify our power supply strategy.”
Flickertail Wind Farm originated as a collaborative effort between local community members and the New Rockford economic development board. To turn their vision into reality, they engaged with PRC Wind as a strategic partner to drive development, secure commercial agreements and bring the project to fruition.
“Flickertail Wind Farm exemplifies the power of collaboration, combining community-driven vision with strong utility partnership to meet the growing demand for electric power,” said Paul White, PRC Wind CEO. “We’re proud to work alongside Minnkota and its member cooperatives to bring this community-initiated project to life, delivering a cost-effective and homegrown energy source for the long term.”
Flickertail Wind Farm is being developed in Wells and Eddy counties on nearly 43,000 acres. The project is expected to inject approximately $100 million directly into the local community and create 300 jobs during construction.
“As a lifelong resident and landowner in our rural North Dakota community, I’ve often wondered how we could secure a steady source of revenue to sustain our way of life,” said Eric Myhre, a local landowner. “Through our partnership with the dedicated team at PRC Wind, I am confident the Flickertail Wind project will bring lasting renewable energy opportunities to our local economy. This project not only provides a stable revenue stream but also opens the door to new possibilities for growth, ensuring a bright future for our community.”
The project will feature up to 112 wind turbines, along with a dedicated substation, 15 miles of transmission line, access roads, and an operations and maintenance facility. It has been carefully planned to support local agricultural activities and protect the surrounding natural environment.
Energy produced will be integrated onto the electric grid on Minnkota’s existing 345,000-volt transmission line, which delivers energy to a substation in Grand Forks. From there, the energy will be sent to communities throughout eastern North Dakota and northwestern Minnesota.
The project is scheduled to initiate the permitting process at the state and local levels in 2025. Upon securing the necessary approvals, detailed engineering, procurement and construction activities are planned to begin by 2027.
About Minnkota Power Cooperative
Website: Minnkota.com
Minnkota Power Cooperative is a not-for-profit electric generation and transmission cooperative headquartered in Grand Forks, N.D. Formed in 1940, Minnkota provides wholesale electric energy to 11 member-owner distribution cooperatives located in eastern North Dakota and northwestern Minnesota. These members serve more than 151,000 consumer accounts in a 34,500 square-mile area, including many of the region’s homes, farms, schools and businesses. Minnkota is committed to delivering safe, reliable, cost-effective and sustainable electricity to its membership.
About PRC Wind
Website: PRCWind.com
PRC Wind (PRC stands for “Project Resources Company”) is a locally-owned Midwest energy development company with over 27 years of experience successfully delivering cost-effective, community-based and ag-friendly projects designed to meet the energy needs of electrical utilities. PRC Wind specializes in providing development solutions for greenfield and repower energy projects and currently is working on energy projects with five North Dakota communities.
North Star Electric Cooperative’s board of directors approved an overall rate increase of 7.8% at the January 2025 board meeting.
This was necessary to address the impact of Minnkota Power Cooperative’s wholesale rate increase of 8.6% and the rising costs of electrical distribution equipment. For the last six months, North Star has taken an extensive look at all rate classes with outside consultants and our management team. We have not had a detailed rate review performed since 2008. Needless to say, many things have changed since then. Whether it’s the cost of a dozen eggs or a pound of hamburger, everything has been impacted, and your electric cooperative is not immune to these increases.
We do not take rate increases lightly. That’s why Minnkota and North Star Electric Cooperative work together to ensure rate adjustments are thoroughly vetted and assessed before action is taken by the member-governed boards.
Minnkota has worked alongside its membership to keep electric rates stable since 2017, even as prices on the materials to generate and transmit power began to skyrocket. Since 2020, the cost to build a mile of 69-kilovolt power line has risen 40%, and we’ve seen a 67% increase in the cost of transformers. And that’s just the start. Some material costs have risen more than 200%. For the sake of our members, we found efficiencies to ease that extra burden through the most volatile times. However, Minnkota has reached the point where a rate increase is the only way they can balance reliable service and financial responsibility.
North Star and Minnkota aren’t alone in facing supply chain and inflationary pressures. Many utilities in our region and across our nation are considering or implementing rate increases to recover the higher cost of materials, equipment and services.
North Star remains a competitive power supplier, and we are well positioned to continue providing safe, reliable and sustainable electricity.
As your general manager, I will always remember that we are driven by service, not profit. We only raise rates when necessary to be able to continue to provide
quality service to you, our member-owners. We will continue providing more details on the changes.
As always, our commitment to transparency continues. Feel free to contact your cooperative with any questions.
Stay safe, Kevin
This fall, the board of directors for Minnkota Power Cooperative (North Star’s wholesale power provider) approved the cooperative’s capital and operating budgets for 2025. The budgets include a rate increase for Class A member cooperatives – the first adjustment to rates since 2017.
“Persistent supply chain and inflationary pressures are impacting almost every aspect of our business,” said Mac McLennan, Minnkota president and CEO. “The cost increases for materials and equipment have been significant, forcing us to adapt our strategies and prioritize projects carefully to ensure we continue delivering reliable service to our members while maintaining financial stability.”
As a not-for-profit cooperative, Minnkota collects enough revenue to cover its costs as well as a small margin to operate the business. At the same time, it makes investments to ensure safe, reliable and sustainable electricity is available for its members well into the future.
In 2025, Minnkota has budgeted operating revenues of $479.2 million and expenses of $474.8 million. The cooperative anticipates using its Revenue Deferral Fund to meet its target margin level of $14.2 million. The 2025 average rate change of approximately 8.3% will be implemented on April 1. Minnkota’s capital budget includes $101.7 million in projects, tools and equipment. Of that total, approximately $23.3 million is reimbursable to the cooperative through other
entities.
The capital budget is highlighted by Minnkota’s ongoing commitment to addressing aging infrastructure and improving service to the members. Approximately two-thirds of the budget is focused on power delivery system improvements or additions. The cooperative plans to start and/or complete work on five distribution substation rebuild projects and complete reconstruction of three major sections of 69-kilovolt transmission line. Upgrades to demand response infrastructure and the addition of distribution automation technology to improve power delivery system visibility at 14 substations will continue.
From a power supply standpoint, Unit 2 at the Milton R. Young Station will undergo a 44-day scheduled maintenance outage to complete projects and conduct thorough inspections in an effort to keep the coal-based unit operating reliably and efficiently. Major outages are scheduled on both Young Station units every three years.
“We have major projects planned, including important upgrades at our power plants and across our entire power delivery system,” McLennan said. “While these investments come at a time of rising costs, they are essential to maintaining and strengthening the reliability of the power we provide to
our members. The scope of these projects will demand an extraordinary level of focus, dedication and hard work from our employees, ensuring that
we are well prepared to meet the evolving needs of our membership now and for years to come.”
Minnkota’s financial position is supported by previous years of strong operational performance. The cooperative has a Revenue Deferral Fund in place to
manage shortfalls and rising expenses, as well as a Resource Transition Fund to address extraordinary market events and future power supply needs.
Minnkota is rated as an investment-grade utility in 2024. The cooperative currently has an A- rating and stable outlook from Standard and Poor’s. Fitch
Rating Services rates Minnkota at BBB+ with a stable outlook.
“We’re faced with a significant amount of industry change that may require major investments in the not-too-distant future,” McLennan said. “Maintaining
financial stability is crucial as we navigate future power supply opportunities, while continuing to address aging infrastructure needs spread throughout our power delivery system. We remain grateful for the support and guidance from our membership as we continue forward in the energy transition.”
The North American Electric Reliability Corporation (NERC), the nation’s grid watchdog, found that more than half the country is at risk of energy shortfalls under extreme weather conditions this winter. Prolonged cold snaps, freezing temperatures and the retirement of existing always-available power will increase the likelihood of blackouts this winter.
Safe, affordable, reliable energy is essential to American families and businesses, especially during the cold winter months. Voices for Cooperative Power has been educating members on the threats to dependable sources of energy, and this official report emphasizes what we already know: reliable energy is at risk this winter.
The map below outlines which regions of the country are most at risk of rolling blackouts.
NERC’s 2024-2025 Winter Reliability Assessment also warns that demand for power is projected to skyrocket this winter to power heating, transportation systems and new data centers. Keeping up with this demand is becoming more challenging as existing power plants are being taken offline.
Americans deserve safe, reliable and affordable energy year-round. Decision makers need to prioritize smart energy policies that will keep the lights on in our communities, regardless of the weather.
Our 2024 Annual Meeting will be held on October 4, 2024, at the Lake of the Woods School in Baudette.
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In an effort to help our northern Minnesota communities, North Star Electric Cooperative is strongly encouraging all employees and consumer-members to register to vote and to vote with co-op issues in mind.
With the goal of boosting voter turnout, North Star is participating in a national, non-partisan program called “Co-ops Vote.” This campaign also serves to inform both our consumer-members and the candidates about issues important to America’s electric cooperatives and the communities they serve. It is important for the cooperative community’s voice to be heard on all our issues, especially for safe, affordable, and reliable electricity.
The Co-ops Vote website, Vote.coop, provides a wealth of voter resources, including five simple steps to becoming a Co-op Voter: ensure your voter registration is current; learn your state’s voter details; understand key electricity issues; know the candidates’ energy policies; and share your story to encourage others to vote. Co-op Voters have the power to educate lawmakers, build awareness about our issues and concerns, and support legislative issues that are important to our communities.
Co-ops Vote is a program of America’s Electric Cooperatives developed by the National Rural Electric Cooperative Association (NRECA), the service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives. With 42 million members in 48 states, electric co-ops can stand together as a powerful voice in each and every election.
