GRE Energy Transition Update

In August of this year, we announced that Great River Energy (GRE) entered into a power purchase agreement with Rainbow Energy Center, LLC (Rainbow Energy) for the sale of Coal Creek Station.  The terms of the power purchase agreement allow GRE to purchase 1,050 MW of power from Rainbow Energy for approximately two years after the closing of the transaction, followed by a huge reduction, resulting in the purchase of 300 MW for approximately 8 years. That same power purchase agreement allows GRE to exercise an option to purchase up to 68 MW of additional output from Rainbow Energy as part of the original Rainbow Energy transaction.  Last month, the GRE board approved this option which was made available to GRE pursuant to the original power purchase agreement between GRE and Rainbow Energy.  GRE is now waiting on its all-requirements contract members to vote on this matter.  Lake Region Electric Cooperative, an all-requirements contract member, at its November 23, 2021, regular board meeting, voted in favor of GRE exercising the option.   

GRE will still purchase 1,050 MW of power from Rainbow Energy until early 2023 after the closing of the transaction.  However, exercising this option will bring the total output purchased from Rainbow Energy up to 368 MW starting in mid-2023 for approximately 8.5 years.  GRE will stop purchasing output from Rainbow Energy in approximately 9-10 years, and exercising this option provides stable rates and reliability in the event of extreme weather conditions and helps manage risks for GRE’s Members.  GRE remains committed to renewable energy and has set a goal of 50% renewables by 2030.  GRE will proceed with its planned wind projects, including:

• Deuel Harvest Wind Farm: 200 MW, Deuel County, South Dakota, effective 2023
• Buffalo Ridge Wind: 109 MW, Lincoln County, Minnesota, effective 2023
• Dodge County Wind: 259 MW, Dodge and Steele counties in Minnesota, effective 2023
• Three Waters Wind: 280-340 MW (TBD), Jackson County, Minnesota, effective 2024