Lake Region Electric Cooperative
2020 Annual Meeting
We hosted our 83rd annual meeting on Thursday evening, June 4th, 2020, through a live YouTube webcast to over 575 registered members and guests. Read the press release here: LREC Holds First Ever Virtual Annual Meeting and view the meeting via YouTube below.
2020 Annual Meeting Q&A
As discussed during the meeting, we are making available to all members the questions we received via chat, as well as their answers.
I feel it is imperative that the directors be voted in the district that they live in and serve. They better understand the needs of their district verses being from outside the area.
Your comment summarizes the thinking of the LREC Board of Directors and confirmed by the LREC membership when the by-laws were amended and passed back in 2006. Prior to that, directors of individual districts were voted upon by the full membership.
I LOVED having this meeting electronically. Thank you!
We are please you enjoyed the presentation of our annual meeting in a live YouTube webcast. We hope that making a meeting available like this will increase participation in the co-ops annual meeting and governance.
Will you ever offer natural gas to members outside of city limits? And how does one enroll in the round up program?
Thank you for your interest in natural gas-feel free to call me directly and at your convenience. You can enroll in Operation Round-Up here – thank you! Operation Round Up
When will another solar project start?
LREC has had internal discussions regarding what type of renewable project might make sense as a next step. We have even had conversations with a developer around specific strategies. Whatever type of project (if any) that we decide on will have to provide energy/power cost savings to LREC. By 2023, our power supplier, Great River Energy will have a generation portfolio that is almost 95% carbon free and very low cost. Energy storage strategies could take the forefront. Stay tuned.
Please comment on LREC’s AMI program specifically member metering options.
LREC owns and operates an Aclara TWACS AMI system. The complete rollout of the AMR system for reading residential meters was completed in 2006. The TWACS system and associated switches are also used to operate the GRE/LREC DSM programs. Can you elaborate further on your question regarding member metering options?
Will natural gas from LREC come to Pelican Lake Area in the future?
GMG and LRES work together to expand natural gas service to more rural areas in Otter Tail, Becker and Douglas counties. Right now, there is no discussion of LREC/LRES purchasing the GMG facilities near Pelican Lake. Thank you for your participation in the LREC Annual Meeting.
What is going to create the base load in your wind and solar projects? We will still be at the behest of the government subsidies?
I’ve attached a press release from GRE that does a good job of explaining the details of their new generation portfolio. IN the release, GRE states that the “capacity” or power formerly provided by Coal Creek Station will be supplied by upgrades to is fleet of natural gas peaking plants, natural gas operation of Spiritwood Station and through purchases from the MISO energy market. To my knowledge, there are no government subsidies for natural gas generation facilities or for purchases from other firm power suppliers in the MISO energy market. Thank for you question and participating in the annual meeting.
With the closing of Coal Creek Power station, where are we going to get out power?
Please see the press release from GRE that provides a great summary of future GRE power supply plans. Thank you for participating in LREC’s 2020 Annual Meeting.
Information in the CEO report presentation was well presented, and I appreciate the forward thinking the Coop is doing.
On behalf of CEO Tim Thompson and the LREC Board of Directors, we thank you for your kind comments and participation in the annual meeting. Tim works hard to deliver the message about all the co-ops doing to improve service to its members.
We have 380 acres in Ottertail Count. Do you have any interest in land to put a solar farm?
LREC does not have any current plan to build a solar project. However, across the nation, there are developers looking for very specific types of properties. Generally large solar farms are built adjacent to high voltage transmission lines that provide access to the market and purchaser(s) of that energy. Close proximity to transmission lowers costs to the developer/energy seller to interconnect the solar farm to the grid.
I am wondering what the effect of the closing of the Great River Energy plant in Underwood, ND will have on LREC?
Please see this press release from GRE regarding the closing. LREC anticipates lower power supply costs in the coming years which will help maintain low cost retail rates. GRE state that the “capacity” or power provide by Coal Creek Station to be supplied by upgrades to its fleet of natural gas peaking plants, natural gas operation of Spiritwood Station and through purchases from the MISO energy market. Thanks for your questions.
Capital credits statements – when would this become available to me. Thank you.
The Allocation Notice you receive in the mail last month was related to Great River Energy’s capital credit allocation. This allocation was for the years 2004-2018 and done to assign these GRE capital credits to each membership account. Now that GRE has achieved its financial goals, they have started retiring capital credits back to LREC. As these capital credits are retired to the Coop, we will pass these through to our members for designated years. Later this year, we will be retiring GRE capital credits for the years 1984-1987. GRE is currently on a 33-year retirement rotation and project to be closer to a 20-year rotation by 2024. The LREC capital credits from your cumulative balance are currently on an 18 to 20-year rotation.
Do you anticipate providing natural gas to Fergus Falls? Is so, when?
Although I am unable to make any commitment or provide a timeline, we are studying possibility of providing gas service to Underwood and developed areas like yours east of Fergus Falls. Thank you for your interest in natural gas.
How much energy is produced at the solar farm and how does this compare to the amount of energy sold by Lake Region?
The wind solar hybrid project connected to our rural Erhard substation produces about 0 million kWh per year. Approximately 19 million kWh per year are sold to member loads connected to the Erhard Substation. LREC sold about 460 million kWh in 2019, so the hybrid provides just under 2% of LREC energy needs. Thanks for your question.
What will be happening with the retired dividends? We received a letter about these?
The Allocation Notice you receive in the mail last month was related to Great River Energy’s capital credit allocation. This allocation was for the years 2004- 2018 and done to assign these GRE capital credits to each membership account. Now that GRE has achieved its financial goals, they have started retiring capital credits back to LREC. As these capital credits are retired to the Coop, we will pass these through to our members for designated years. Later this year, we will be retiring GRE capital credits for the years 1984-1987. GRE is currently on a 33- year retirement rotation and project to be closer to a 20-year rotation by 2024. The LREC capital credits from your cumulative balance are currently on an 18-20- year rotation.
Following are answers to your questions about Spiritwood, HVDC transmission, and the Falkirk Coal Mine. Answers supplied by Mark Fagan, Vice President, Corporate & Member Services of Great River Energy.
Will the repower of Spiritwood modify the capacity of the plant?
The maximum capacity of Spiritwood Station will remain the same once the primary fuel source is natural gas.
Is GRE going ahead with the updates to the HVDC line?
The updates to the ND and MN HVDC terminals were completed in 2019.
If so how will the HVDC be used going forward?
GRE is exploring opportunities to sell the HVDC system or to integrate it in the MISO market as an open access transmission asset.
Does GRE own the Coal mines at Coal Creek?
GRE does not own the coal mine adjacent to Coal Creek Station. The mine is owned by North American Coal Corporation and is operated by their subsidiary, The Falkirk Mining Corporation.
Will there be a market for that coal going forward?
It is unknown if there are alternate markets for the lignite coal at The Falkirk Mine. Historically, lignite is a type of coal that has not been shipped over long distances due to its high moisture content.