Lake Region Electric Cooperative
District Meetings in February
I always enjoy this time of the year because it allows members to connect with each other at district meetings, and this year we can hold them in-person. By the time you receive this newsletter, Districts 3, 6, and 9 have had their district meetings this month. If you were not able to attend a district meeting, I want to share with you the various topics covered.
Member Engagement
The district meetings included updates on our continued desire to increase member engagement through events such as Coffee with the Co-op and Brews + Your Views. Last year was the first year we put these events on. I believe they provided a fresh and unique option for members and LREC employees to engage in great discussions. We also reached our goal of coordinating a Virtual Member Advisory Committee (VMAC) that allows members to interact and engage with each other on specific topics through Facebook. VMAC is off and running and we are excited to learn from and engage with our members through this platform.
Continued Rate Stability
We have experienced rate stability for several years and know that rate stability is important to our members, so we continue to work hard and be creative to develop ways to sustain our rate stability. I think our efforts have paid off. We anticipate no rate increases this year because of our robust rate stabilization plan, which includes:
- A standby generator program that generates revenue and assists LREC in maintaining rate stability
- LREC being one of the owners of Carr’s Tree Service
- Lake Region Energy Services (LRES) provides an improved quality of life for its customers, while providing benefits to electric rate payers
- Local renewable energy that provides our members with low-cost electricity
Continued Focus On Reliability
Reliability is always a priority. We have utilized new technology, innovation, and enhanced employee engagement to prevent outages. We are always looking to find new ways to improve reliability. Our Distribution Grid Improvement Plan (DGIP) has greatly and positively impacted a lot of members. Recent large projects that were completed include:
- A new GRE transmission substation northwest of Perham completed in 2019
- Lake Eunice substation upgrade completed in October 2021
- Upgraded GRE Frazee transmission substation completed in 2021 (and new transmission line anticipated to be completed in 2023)
- Upgraded GRE transmission system near Henning completed in 2021
- Ten Mile Lake substation upgrade and installation of new underground 3 phase line
Financial Stability
LREC continues to be in a strong financial position. LREC’s equity continues to increase and a total amount of $1,838,490 of capital credits were retired (paid out to members) in 2021. Our financial stability is the result of all of us working together on a grassroots level, to make decisions that are in the best interests of our membership.
Great River Energy (GRE) Update
Recent approvals by the Minnesota Public Utilities Commission (MPUC) and the Federal Energy Regulatory Commission will help facilitate GRE’s sale of Coal Creek Station and its high-voltage direct-current (HVDC) system to Rainbow Energy Center (REC) and Nexus Line, respectively. The MPUC recently approved the transfer (from GRE to Nexus Line) of the construction permit for the Minnesota portion of the HVDC system that is located between central North Dakota and the Twin Cities. We anticipate that the MPUC will issue a final order confirming its approval in the near future.
I am happy to report that part of the agreement will include an arrangement for REC and Nexus Line to provide GRE with the right to interconnect with the HVDC transmission system, using it to transmit 400 MW of wind energy that will be delivered to Minnesota. I believe the closing of this transaction will allow for increased renewable energy and continued reliability. GRE will operate and maintain the HVDC system under a 20-year contract with Nexus Line. The closing of the transaction is expected no earlier than May 1st and is subject to the approval of GRE’s members.
