Bon Homme Yankton Electric March 2018 Vol. 18 No. 11
Where Renewable Energy Gets Its Power Page 8-9
Sensing a Healthy Electric Grid Page 12
MANAGER’S COLUMN
The value of electricity continues to shine:
Electricity Rates Holding How many of us remember dropping into the Bon Homme Yankton Electric office with our parents and grandparents to pay the light bill? Whether you do that in person, by mail or online today, paying your monthly bill does a lot more than just keep the lights on. Electricity keeps us connected to our modern world. Consider all the necessities and conveniences we enjoy in part because of the power lines running to the electric meter outside your home.
Stephanie Horst horst@byelectric.com
Count up your televisions, desktop, laptop and tablet computers, printers, your gaming consoles, music and video players and personal assistant devices. Whether they get used every day or just occasionally, the electricity that keeps them working comes from Bon Homme Yankton Electric. Have you looked around your kitchen lately? In addition to the standard large and small appliances, a lot of us have added several other modern conveniences. Look around the craft nook or workshop at all the items that you use electricity to run either directly or by recharging the batteries. The good news is, even as we rely more on electricity, it’s still a bargain, especially compared to other things we pay for regularly.
The good news is, even as we rely more on electricity, it’s still a bargain, especially compared to other things we pay for regularly.
Since 2011, medical care, residential rental rates and education have increased at rates of 3 percent or more per year. Butter, meat and egg costs have been up by more than one to 2 percent annually, and even bread costs have risen better than a half point on average. Electricity costs rise about 1 percent a year, but co-ops across the country have reported a decline in average residential use per household since 2010. That means we’re doing more things with less energy. Kilowatt hour use per households served by co-ops dropped by 8 percent between 2010 and 2016, slightly less than the 9 percent decline reported by all electric utilities, nationwide. When it comes to value, electricity is a clear winner, and we’re always looking for ways to work with you to make it even better. That’s why Bon Homme Yankton Electric urges energy efficiency, encourages you to look for ENERGY STAR® appliances, participate in the load control program, and promotes technology designed to give members more control over their electricity use which help reduce the co-op’s overall power demand. That’s good for families, couples and individuals trying to live within their budgets. And it’s going to become even more important as digital devices and internet-connected technologies become even more important in our lives. The average home now has 10 Wi-Fi connected devices. That number is expected to explode to 50 by 2020. Technology and the gateways that keep it working use electricity, so you’ll depend upon Bon Homme Yankton Electric for more than the power that keeps the lights on. That’s why we’re always working to provide service that’s reliable, keep it affordable, and make it even more valuable to our member— you, your family and your neighbors.
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Cooperative Connections | March 2018
CO-OP NEWS
Bon Homme Yankton Electric
(USPS No. 018-973)
Bon Homme Yankton Elecric Assocation, Inc PO Box 158 134 S Lidice St Tabor, SD 57063 Office Hours: Monday through Friday 7:30am - 4:30pm To report an outage call: Local call from Tabor, Tyndall and Yankton: 605-463-2507 Toll Free in South Dakota: 1-800-925-2929 NOTICE: Electric bills must be paid by 10:00am on the 20th of each month to avoid a $10 late fee. Bon Homme Yankton Electric Cooperative Connections is published monthly by Bon Homme Yankton Electric Association, Inc., PO Box 158, 134 S. Lidice St., Tabor, SD 57063-0158 for its members. Families subscribe to Bon Homme Yankton Electric Cooperative Connections as part of their electric cooperative membership. Bon Homme Yankton Electric Cooperative Connection’s purpose is to provide reliable, helpful information to electric cooperative members on matters pertaining to rural electrification and better rural living. Subscription information: Electric cooperative members devote $6.00 from their electric payments annually for a subscription. Nonmember subscriptions are available for $12 annually. Periodicals Postage Paid at Tabor, SD 57063 and at additional mailing offices. POSTMASTER: Send address changes to Bon Homme Yankton Electric Cooperative Connections, Bon Homme Yankton Electric, PO Box 158, Tabor, S.D. 57063 TELEPHONE (605)463-2507: FAX (605) 463-2419. Design assistance by TDG Communications, Deadwood, S.D.
Update Your Digits If you need to report a power outage, you just call our regular office number at 605-4632507. After working hours, this number is forwarded to a dispatch center. If your phone number is in our records, the dispatcher will automatically be able to pull up your account and then verify the service address if you have multiple accounts. If all dispatchers are busy, you may have the option to use the automatic function to report your outage based on the phone number you are calling from. Even if your phone number is not in our database, you should be able to enter your home phone number or account number to log your outage. It doesn't hurt to check back later just to make sure your outage is being addressed. Many of our members are dropping their land-line or just using their cell phone as their primary form of communication. The next time you send in your payment coupon, just take a few seconds and write your main phone number on the stub. We will update our files making reporting your outage much easier.
Statement of non-discrimination
This institution is an equal opportunity provider and employer. If you wish to file a Civil Rights program complaint of discrimination, complete the USDA Program Discrimination Complaint Form, found online at http://www.ascr.usda.gov/complaint_filing_cust. html, or at any USDA office, or call (866) 632-9992 to request the form. You may also write a letter containing all of the information requested in the form. Send your completed complaint form or letter to us by mail at U.S. Department of Agriculture, Director, Office of Adjudication, 1400 independence Avenue, S.W., Washington, D.C. 20250-9410, by fax (202) 690-7442 or email at program.intake@usda.gov.
March 2018 | Cooperative Connections
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SAFETY TIPS
Generator Safety Portable or permanently installed standby generators can come in handy during long-term power outages. However, if you do not know how to use them properly, they can be dangerous. Contact a qualified vendor or electrician to help you determine what generator is best suited to your needs. Before using, be sure to read and follow manufacturer’s instructions. If you are installing a permanent generator, it must have a transfer switch. The transfer switch prevents energy from leaving your generator and going back onto the utility electrical equipment when it could be dangerous to a lineman or others near downed power lines, a process known as “back feed.” A qualified electrician should install your generator and transfer switch.
Safe Electricity has the following tips to use portable generators safely: Operate it outdoors in an area with plenty of ventilation. Never run a generator in a home or garage. Generators give off deadly carbon monoxide. Do not plug a generator into the wall to avoid back feed. Use heavy-duty extension cords to connect appliances to the outlets on the generator itself. Turn the generator on before plugging appliances to it. Once the generator is running, turn your appliances and lights on one at a time to avoid overloading the unit. Remember, generators are for temporary usage, prioritize your needs. Generators pose electrical risks especially when operated in wet conditions. Use a generator only when necessary when the weather creates wet or moist conditions. Protect the generator by operating it under an open, canopy-like structure on a dry surface where water cannot form puddles or drain under it. Always ensure that your hands are dry before touching the generator. Be sure the generator is turned off and cool before fueling it. Keep children and pets away from portable generators at all times. Many generator components are hot enough to burn you during operation. Safe Electricity suggests that these safety guidelines as well as basic operating instructions be posted in the home and with the generator. Source: safeelectricity.org 4
Cooperative Connections | March 2018
March 18-24, 2018
National Ag Week
Each American farmer feeds about 144 people! America needs agriculture…and we need our farmers, who provide Food for Life. This is why we’re celebrating all things Ag on National Ag Day, March 20. Find out more: https://www.agday.org/
KIDS CORNER SAFETY POSTER
“Don’t touch power lines.” Christopher Barranco, 5 years old
Christopher is the son of David and Catherine Barranco, Brandon, S.D. They are members of Sioux Valley Energy, Colman. Kids, send your drawing with an electrical safety tip to your local electric cooperative (address found on Page 3). If your poster is published, you’ll receive a prize. All entries must include your name, age, mailing address and the names of your parents. Colored drawings are encouraged.
RECIPES
Seafood Sensations Seafood Quiche 1 (6 oz.) can crab, salmon or tuna, drained 1 cup shredded Cheddar cheese
Spaghetti Squash Shrimp Lo Mein 1 cup milk 1/2 tsp. salt Pepper to taste
Onions
Fresh chives, optional
4 eggs
Paprika
Spray a 10-inch pie plate with vegetable cooking spray. Combine seafood, cheese and onions. Press into bottom and up sides of pie plate. Beat eggs, milk, salt and pepper; pour over all. Sprinkle with paprika, if desired. Bake at 350°F. for about 30 minutes or until eggs are set. Let set a few minutes before cutting. Elaine Rowett, Sturgis
Broiled Salmon with Lemon 1 T. extra-virgin olive oil 1 tsp. grated lemon rind plus 1 T. fresh juice (from 1 lemon) 1 tsp. Worcestershire sauce
4 (6 oz.) center-cut salmon fillets (about 1-inch thick) 1/4 tsp. kosher salt 1/4 tsp. black pepper
Combine oil, rind, juice and Worcestershire sauce in a shallow dish. Place fillets, skin side up, in dish. Let stand 15 minutes. Preheat broiler with oven rack 6 inches from heat. Place fillets, skin side down, on a foil-lined baking sheet. Sprinkle with salt and pepper. Broil to desired degree of doneness, 8 to 10 minutes. Remove fillets from foil using a metal spatula. Tina Haug, Pierre
Freeze Ahead Crab Appetizers 1 jar Old English cheese spread 1/2 c. soft butter 1/4 tsp. garlic salt/powder
2 tsp. vegetable oil, divided
2 tsp. McCormick® Garlic Powder, divided
1 lb. shrimp, peeled and deveined
1-1/4 tsp. McCormick® Ginger, Ground, divided
1/4 cup thinly sliced green onions
1-1/2 cups matchstick 1/4 cup reduced sodium soy carrots sauce 1 medium red bell pepper, thinly sliced 2 T. honey
Cut spaghetti squash crosswise into 1-inch thick rings. Remove seeds. Place rings on microwavable plate. Pour 1/4 cup water in the plate. Cover with plastic wrap. Microwave on HIGH 7 minutes or until tender. Let stand in microwave 10 minutes. Carefully remove from microwave. Peel the skin off the squash, then shred the flesh, using fingers or a fork, into long thin strands. Place squash noodles in large bowl. Discard the skin. (Should yield about 5 cups of squash noodles.) Meanwhile, mix soy sauce, honey, 1-1/2 tsp. of the garlic powder and 1 tsp. of the ginger in small bowl until well blended. Set aside. Heat 1 T. of the oil in large skillet on medium-high heat. Add carrots and pepper; stir-fry 3 minutes. Add shrimp and sauce mixture; stir-fry 2 minutes or just until shrimp turn pink. Remove shrimp mixture from skillet. Heat remaining 1 T. oil in skillet on medium-high heat. Add squash noodles, remaining 1/2 tsp. garlic powder and 1/4 tsp. ginger; cook and stir gently 1 minute to heat through. Return shrimp mixture to skillet; toss gently with squash noodles. Remove from heat. Sprinkle with green onions. Makes 7 (1 cup) servings Nutritional Information Per Serving: Calories 165, Total Fat 5g, Saturated Fat 1g, Sodium 479mg, Cholesterol 96mg, Carbohydrates 18g, Protein 12g, Dietary Fiber 3g, Pictured, Cooperative Connections
1/2 tsp. seasoned salt 1 T. mayonnaise 1 (7 oz.) can crab meat 6 English muffins, separated
Mix first 5 ingredients together well; stir in crab. Spread on each half muffin. Cut each half muffin into 6 wedges. Place in ziplock bag and freeze. When ready to serve, don’t thaw. Bake at 400°F. for 10 minutes. Ginny Jensen, Volga
1 spaghetti squash, (about 2-1/2 lbs.)
Please send your favorite appetizer, beverage and casserole recipes to your local electric cooperative (address found on Page 3). Each recipe printed will be entered into a drawing for a prize in June 2018. All entries must include your name, mailing address, telephone number and cooperative name. March 2018 | Cooperative Connections
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CO-OP NEWS
WELCOME MEMBERS Avon Allen R & Kathleen Ridgway Irene Nancy Hlavac Tabor Glenda K Iverson Tabor Self Storager Utica Marla & Tomi Williams Jessica Goeken
Feel the power of data in your hands with SmartHub mobile and web apps. SmartHub allows you to view your usage data and manage your account right from your mobile device in a secure environment. Go to www.byelectric.coop and follow the link to the SmartHub site or download the free app on Google Play or iTunes.
Yankton Amber Tucker John & Darcy Kleinschmit John Labute Thomas & Viki Hladky Stolz Richard Brett Hacecky Tammy Meng Tim Gednalske Angela Fowler Bob & Santos Ausdemore Allan Schmitt
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With SmartHub you can: Pay your bill Check your usage Compare bills with prior months or the same month last year Sign up for recurring automatic payments Edit your online payment methods Manage notifications by email and text
Cooperative Connections | March 2018
SAFETY TRAINING
Working on live wires:
Rubber Gloves Save Lives A layer of rubber is all that stands between our lineman and 7,200 volts of energized line during hot line work. This type of work is performed to minimize outage time and reduce inconveniences to our members. It is commonly used to replace existing poles but is also required when opening those green boxes when working on underground equipment.
Floyd Burbach demonstrates the inflation and inspection of a rubber glove.
The January safety meeting was presented by Cashier/ Receptionist Linda Bares, Lead Lineman Floyd Burbach, Electrician Wes Kloucek and Materials/Meterman Joe Renner. Each lineman must be able to trust that the personal protective equipment will do its job when he grabs onto that energized line. Linemen rely on their training and equipment testing program to reduce the anxiety of performing hot line work. When working on live lines, the lineman will put on rubber gloves, protective leather gloves and sleeves. The area around the top of the pole is covered Protective Equipment up with protective sheets and tubes or line hoses that go around the wire. These items Testing Type are all tested on a regular basis. Period The thick rubber gloves are tested in-house on a daily basis to check for nicks, scuffs and holes. The gloves have a layer of yellow on the inside making damage more noticeable when it is inflated to 1 1/2 times its normal size. In addition to the daily inspection, the gloves are sent out to a laboratory every two months to be cleaned and tested. The gloves that fail the test are marked, returned and are replaced with new gloves. The employees were treated to a behind the scenes video tour of the extensive testing process.
Testing Voltage
Voltage Rating for Use
Local System Voltage
Lineman Gloves
2 months
20,000
17,000
7,200
Electrician Gloves
2 months
5,000
1,000
120/240/480
Sleeves
4 months
20,000
17,000
7,200
Cover Up
6 months
20,000
17,000
7,200
Line Hose
6 months
20,000
17,000
7,200
There are different sizes and styles of gloves rated for different voltages. The electricians use gloves rated for a lower voltage when working on the members side of the transformer. The transformer is the device that converts 7,200 volts to the volts needed at the site of the electric service. Irrigation systems or commercial services may run at 480 volts where a normal household will be set up for 120/240 volts. While hot line work is commonplace for the line crew, all of the employees found the testing process extremely interesting and have a new appreciation for the work that is performed using the bulky gloves that are cold in the winter and hot in the summer.
Kara Zomer shows off her dexterity by performing common tasks while wearing rubber and leather gloves. Presenters Linda Bares, Joe Renner and Wes Kloucek gave everyone the opportunity to experience what it’s like to use heavy gloves for fine motor skills normally complicated by weather and being up in the air. March 2018 | Cooperative Connections
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YOUR ENERGY
Solar energy generates about 1 percent of the nation’s electricity.
WHERE RENEWABLE ENERGY GETS ITS POWER Here are the basics of a small but fast-growing source of your electricity. Paul Wesslund NRECA Contributing Writer
Solar energy and wind power may not seem like a big deal. Unless you’re talking about the future. Or maybe even the present. For all today’s talk about renewable energy, it still makes up a pretty small portion of the energy sources that generate our electricity. But it’s coming on fast, and it’s picking up speed. Here’s your crash course in how wind, the sun and water generate electricity.
Solar energy Solar energy generates only about 1 percent of the nation’s electricity, but that’s a stunning increase from just five years ago, when the number was too small to report for the U.S. Department of Energy. Solar growth will continue as costs fall, technology improves and people figure out better ways to use solar energy. There are lots of ways to use energy from the sun. You can hang your washed clothes outside to dry, and you can open curtains to warm your home on a sunny day. More ambitious projects use the sun to warm pipes full of water that is pumped around a building for heat. But what most people mean when they talk about solar energy is photovoltaic electricity. When certain materials get hit by sunlight, their atoms spit out an electron, and electricity is just 8
Cooperative Connections | March 2018
a stream of electrons. Over the decades, scientists and engineers experimented with solar-sensitive materials to make them into lighter, longer-lasting and more affordable wafers called photovoltaic cells, which are combined and integrated into solar photovoltaic modules. One of their first uses was space travel, and continued improvements are allowing solar to become a more down-to-earth kind of energy. One of those improvements is cost. Solar panel prices dropped 85 percent in the past seven years with improvements in materials and larger-scale production methods. Another technological advance is about to give the industry an
YOUR ENERGY extra boost, says Dale Bradshaw, a technical consultant with the National Rural Electric Cooperative Association (NRECA). He says solar panels can now track the sun as it moves across the sky rather than sitting fixed in place, raising their productivity by collecting more sunlight throughout the day. This year, the U.S. Department of Energy’s Energy Information Administration reported that half the large solar installations in the country already use some kind of sun-tracking technology. It’s also worth knowing that the solar industry is maturing with different forms of ownership: utility, industrial, commercial and residential scale, and community solar installations. Utility scale is what you might expect – large banks of solar panels owned and operated by an electric utility or other large organization, producing many megawatts of solar energy. Industrial and commercial solar installations can range from kilowatts up to multi-megawatts and be placed on rooftops, over parking lots or on land near industrial and commercial enterprises. Industrial and commercial installations are beginning to increase as the price for solar continues to drop. Residential solar installations are also being installed primarily on rooftops, especially in the southwestern United States. NRECA’s Bradshaw says community solar can ease the higher expense of self-owned rooftop solar. With community solar, a utility builds a large solar installation and sells shares in the project to customers interested in an investment in renewable energy. That style of ownership and development is especially suited to consumer-owned electric co-ops, and many are offering solar shares to their members.
not cost-effective for small-scale home use when compared to utility scale wind turbines,” says Bradshaw.
Hydroelectric power Another way to turn an electricity-generating turbine is to store water behind a dam then harness its power as it flows from the reservoir to the river below. Specialists disagree on whether to count hydroelectric power as renewable energy. On the one hand, it doesn’t create greenhouse gas or other chemical pollutants by burning fossil fuel. On the other hand, large-scale hydro typically calls for building a permanent dam across a river valley and flooding the area behind it. Another option is to put hydroelectric generators directly in rapidly flowing rivers to capture power, but this is a significantly more expensive option than using hydroelectric power from water stored behind a permanent dam. Then there’s the question of whether you consider flowing water renewable, or something that can be used up. Hydroelectric power generates nearly 7 percent of the electricity in the United States. Although that number changes a bit during times of drought or heavy rain, the amount of electricity produced by hydro power has been relatively stable during the past several years. Paul Wesslund writes on cooperative issues for the National Rural Electric Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives.
“Co-ops are doing a great job of building community-scale solar,” says Bradshaw. “They’re going full blast on that.” Bradshaw also notes that community solar allows a homeowner to avoid both maintenance of their own system, and the hassle of sorting out different offers from rooftop solar vendors.
Wind power Wind power has increased significantly as costs continue to decrease. Wind power generates nearly 6 percent of the nation’s electricity, and it is growing at a pretty good clip, with an increase of about 35 percent during the past four years. In a way, wind generates electricity the same way as coal, natural gas and nuclear – by spinning a turbine that creates an electricity-producing magnetic field. The huge difference is that the turbine is turned by enormous propeller-like blades designed to catch the wind. It’s the size of those blades, and the height of the turbine towers (as much as 300 feet in the air) that makes the difference, says NRECA’s Bradshaw. “Wind is a really useful renewable, but it has to be utility scale,” he says. A tall utility-scale tower can capture as much as 50 percent of the wind, but there’s not a practical, personal alternative to compare with rooftop solar. A rural residential customer or a rural commercial customer with a 50 to 100-foot tower will probably generate electricity only about 25 percent of the time. “It’s really
Nationally, wind accounts for nearly 6 percent of the nation’s electricity. For electric cooperatives in the Dakotas and Minnesota, the percentage is higher. March 2018 | Cooperative Connections
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YOUTH PROGRAMS
CLASSIFIEDS April Issue Deadline: March 1, 2018. Email your classified ad to: by@ byelectric.com. Members can post one free ad per year. Repeats or longer ads are $1/column inch.
Youth Tour to Washington DC #WhiteHouse #POTUSLivesHere
FOR RENT: 1 bedroom apartment. Tabor Manor. Contact Gary at 605-463-2209 or Ron at 605-463-2256. Thinking about building a home? Don’t pick a floor plan or a builder until you’ve talked with the area’s ONLY Certified Aging-inPlace specialist, Certified Green Professional Builder and ENERGY STAR Partner Builder. Call 4 Life Homes today. 605-661-4488. Beseda Hall, Tabor, SD for rent for any special occasion such as weddings, anniversaries, graduation or birthdays! For more information contact Linda Bares at 605-661-6220 or snlbares@ gmail.com.
A
FOR RENT: Tabor Self Storage. Call 605-660-0274 or 605-6603497. WANTED: Vintage South Dakota license plates from 1970. Must be in good condition. Call Joel Finck at 605-760-4701.
#WaMo
Bon Homme Yankton Electric is sponsoring one high school sophomore or junior to attend the 2018 Youth Tour to Washington DC June 7-14, 2018. Applicants must be a dependent of a current electric member. Applications available at school or online at www. byelectric.coop.
Registration Deadline: March 16, 2018 10
Cooperative Connections | March 2018
#YTDCSD18 One week you’ll never forget!
June 7-14, 2018 (did we mention it is FREE?)
Contact Member Service Advisor Bob Felber for more information at 605-463-2507 or email: bfelber@byelectric.com
MARKETPLACE Haase Heating & Cooling
Adventures of a Lifetime Travel and Cruise
Suzanne Stemper
Dan Haase
605-661-9319
Heating, Cooling, Heat Pumps We sell the best and service the rest
Scotland, SD 57059
605-583-4490 GT Repair & Autobody
www.AdventuresOfALifetimeTravels.com AdventuresTravelAndCruise@gmail.com
Koranda Well Company LLC Tabor, SD 57063
Glenn Tycz Tyndall, SD 57066
605-463-2244 Well drilling, repairing and cleaning
605-589-3018
Water Systems – Artesian Wells Sales and Installation Earth-Coupled Heat Pump
Marine Boat Repair Aluminum & Fiberglass We Repair and Install Windshields
BOHEMIAN FARMERS R. Martin Koch, Secretary PO Box 206 Tabor, SD 57063
MUTUAL
605-463-2558 605-589-3572
If only the future was predictable. Farming is always a gamble. You never know when bad weather or other problems will strike. The only thing you can be sure of—you need quality insurance protection. Call our office today for a competitive quote.
Emergency Service Free Estimates
ART & ANTIQUE GALLERY Custom Matting & Framing Original Art/Gifts/Cards Handmade Glass Beads & Jewelry
1610 Main St Tyndall, SD
605-589-4050
Open Wednesday through Saturday
Handicap and Accessible Home Modifications
Yankton, Tabor, Tyndall, Menno
605-665-9679
Preplanning will give you peace of mind and may save money
• • • • •
Ramps Grab Bars Stair Lifts Walk-in Showers Kitchen and Bathroom Remodels
www.4lifehomes.net
605-463-2786 INSURANCE CLAIM SPECIALIST
GENERAL CONTRACTOR • Roofing • Gutters • Siding • Painting • Windows • Doors
Tabor, SD 57063
605-660-3204
Call us to find a Medicare supplement plan that’s right for you. CAMERON
This is a solicitation of Insurance. Wellmark Medicare supplement insurance plans are not affiliated with any government agency. To be eligible, you must reside in the service area of the plan. Wellmark Blue Cross and Blue Shield of South Dakota is an Independent Licensee of the Blue Cross and Blue Shield Association.
INSURANCE, LLC Brad Cameron Tyndall, SD 57066
605-589-4176 W-3018047 08-15
HEATING & COOLING
2401 Broadway Suite #3 Yankton, SD 57078
6 0 5 -6 6 5-9 461 800-491-9461
Warm Air, Air to Air, Geothermal Heat Pumps
Sanders Heating & Cooling
K CONSTRUCTION AND PAINTING
Jason Finck
Cameron Insurance, LLC makes it easy.
An Authorized Independent Agent For
FREE HOME DAMAGE ASSESSMENT following a storm
New Construction Remodel - Roofing Flooring
Medicare can be complicated.
300 W 17th Tyndall, SD 57066
HOME REPAIR HOTLINE
605-661-4488
WE DO EMERGENCY HOME REPAIRS
605-589-3228 1-800-894-3228 Furnaces, Heat Pumps and Air Conditioners Free Estimates
March 2018 | Cooperative Connections
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INNOVATION
Robots and Sensors Electric co-ops use innovative technologies for real-time feedback on the health of the grid. Thomas Kirk NRECA Associate Analyst
Today, electric cooperatives may choose from a wide array of technologies that give them near real-time feedback on the health of the grid. Electric grids are immense machines that span counties, and often entire states, bringing power to many homes and businesses. So how do the electric companies know what’s happening on their lines? How much power is being delivered? What equipment needs to be replaced? These are important questions that electric cooperatives spend a lot of time and money to answer. For many years, electric co-ops relied entirely on in-person inspections to determine asset conditions and calls from members to discover power outages. During and after storms, this could mean lengthy recovery times as supervisors evaluated the available information and decided where to send line crews, who then searched for damaged lines in order to make repairs and restore electric service. Even normal operations required personnel to be sent into the field constantly to perform manual inspections. Today, electric co-ops may choose from a wide array of technologies that give them near real-time feedback on the health of the grid. Monitoring and automation tech12
Electric cooperatives maintain 2.5 million miles of power lines across the United States. In South Dakota alone, electric cooperatives have more than 65,000 miles of distribution power lines.
nologies are becoming more affordable and gaining more functionality leading to greater use in the field. Two of the most common technologies in this space are Supervisory Control and Data Acquisition (SCADA) and
Cooperative Connections | March 2018
Automated Meter Infrastructure (AMI). SCADA systems have greatly evolved since their original development in the 1920s. Modern systems take advantage of communication, monitoring and automation technologies to give utilities a
INNOVATION
Photo Caption
Electric cooperatives are exploring a host of innovative technologies, such as smart meters and special sensors placed on power lines for niche applications, including fault location, power theft detection and asset management. real-time picture of how substations are performing and make changes as needed. At the end of the line, AMI, also known as smart meters, report back to the utility how much energy consumers use, often on a 15-minute basis. Utilities can “ping” these meters to determine if they’re still receiving power during storms or other types of outages. Beyond AMI and SCADA, utilities are exploring a host of other sensor technologies for niche applications including fault location, power theft detection and asset management. These applications are being enabled by a new wave of inexpensive sensors that cost one-tenth of what they did a decade ago. When a fault occurs on a transmission line (the large power lines that carry power from plants to substations), they create transient waves on the lines. By placing special sensors on transmission lines and measuring the time that a wave reaches two of these sensors, the location of a fault can be accurately and quickly determined. This lets the utility know exactly where to send repair crews.
Across the whole U.S. electric industry, roughly $6 billion worth of electricity is stolen annually, which leads to higher prices for everyone. Traditionally, one of the best tools for identifying power theft
For members, these technologies provide three primary benefits: increased reliability, reduced outage times and lower prices. is visual inspection of meters for signs of tampering, but with AMI systems, utility personnel aren’t visiting meters in-person as often. Load-monitoring sensors – often called current transformers (CTs) or current sensors – can be placed on distri-
bution power lines to help catch significant losses along a line, from theft or for other reasons. Data gathered by CTs can be reconciled with meter readings to investigate discrepancies between the electricity passed through the line and the electricity measured by the meters. CT devices are also valuable for diagnosing excessive line loss due to other problems, such as conductor damage or aging transformers. For members, these technologies provide three primary benefits: increased reliability, reduced outage times and lower prices as the utility manages employee time and resources more efficiently. As sensors continue to improve and drop in price, expect to see more real-time grid monitoring. Thomas Kirk is an associate analyst of distributed energy resources for the Arlington, Va.-based National Rural Electric Cooperative Association’s Business & Technology Strategies (BTS) division.
March 2018 | Cooperative Connections
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YOUR ENERGY
Dakota Gasifcation Company’s Great Plains Synfuels Plant is located near Beulah, N.D., and is adjacent to Basin Electric’s Antelope Valley Station.
VALUE OF AN ASSET Why Basin Electric will continue to operate Dakota Gasification Company Tracie Bettenhausen Basin Electric Senior Editor
Here is a high-level look at why the decision to continue to operate Dakota Gas makes sense for Basin Electric’s members.
Spend a bit of time thinking about your hardest business decision. Was it always clear it was the right thing to do? What about the moments you questioned yourself, or outside forces made the decision seem foolish? Did you stick it out? Has it paid off? The nature of the business surrounding Dakota Gasification Company’s Great Plains Synfuels Plant is based on commodity prices. The price of oil and natural gas, the prices that crops are selling for, the price of fertilizer and, though less so, the price of other products like carbon dioxide. When commodity prices were higher, profits meant Basin Electric was able to return a lot of money to its members. The Great Plains Synfuels Plant has served as a $1.4 billion benefit to its members since 1988, and continues to provide benefits. However, the most recent 10-year financial forecast shows losses every year. Basin Electric directors and senior staff have decided the cooperative needs to hang steady with Dakota Gasification Company while maintaining its focus on strategic cost management and continuing to look at other options. The decision was explained to Basin Electric members during a Members Strategic Direction Meeting in November. “We wanted to be able to have an open dialogue with our 14
Cooperative Connections | March 2018
members, where they could ask specific questions we just can’t answer in an open meeting,” says Paul Sukut, Basin Electric CEO and general manager. “We were pleased with how that meeting turned out. It was very well attended, and we took as much time as everyone needed to get questions answered. There is still work to do on this, but I know by going to our cooperative roots, using the business model’s best attributes of transparency and democracy, we are making the best decisions we can.” Here is a high-level look at why this decision makes sense for Basin Electric’s members.
History of the purchase Basin Electric bought the Great Plains Synfuels Plant from the U.S. Department of Energy (DOE) as a way to salvage the synergies that had been built between the Synfuels Plant and Antelope Valley Station. The DOE had acquired the plant after the original owners failed. “At the time the DOE announced its intent to close the plant, Basin Electric was under a great deal of financial stress,” says Mark Foss, Basin Electric senior vice president and general counsel. “The load growth the cooperative had forecasted was not materializing, and Basin Electric had about 2,000 megawatts (MW) of generation. Our peak loads were only at 1,000 MW.” Basin Electric formed two subsidiaries to make the deal: Dakota Coal Company paid $69 million for the coal rights, Dakota Gas paid $16 million for the natural gas pipeline that reaches to the Northern Border Pipeline, and Basin Electric paid $0. As part of the deal, Basin Electric agreed to forgo production tax credits and go through with a profit-sharing agreement for 15 years.
Basin Electric had interest in keeping the plant operating for several reasons, including those related to member rates. The Synfuels Plant used about 90 MW of electricity when operating at full load. If the plant had closed down at that time, Basin Electric would have had to increase rates by 14 percent, Foss says. From 1988-2014, Dakota Gas invested $845 million into the plant in capital improvements, all funded with self-generated cash, including the proceeds from a legal settlement concerning the gas pipeline, according to Foss.
Bottom line impacts While the decision to buy the Synfuels Plant paid off initially, the benefits proved themselves year after year when commodity prices were high. Of the $1.4 billion in benefit Dakota Gas has had to Basin Electric since 1988, $300 million has been through dividends and bill credits paid to members, and $1.1 billion is in synergies in operations between the various facilities, according to Susan Sorensen, Basin Electric vice president and treasurer. Sorensen explains that the shared coal supply keeps costs down for other Basin Electric facilities. If the Synfuels Plant would be shut down, the cost of mining coal would need to be absorbed by other users. A shutdown of the Synfuels Plant would increase coal prices for Leland Olds Station and Antelope Valley Station, coal-based power plants near Stanton, N.D., and Beulah, N.D., respectively. Also, because the Synfuels Plant shares water and rail services with Antelope Valley Station, those benefits would be shifted over to the power plant. “Dakota Gas currently pays about 30 percent of the overhead costs at Basin Electric Headquarters,” Sorensen says. “That percentage that is already netted down when considering some costs, like a haul road or computer mainframe, cannot be reduced by selling the asset.” The Synfuels Plant uses a large amount of electricity, which supports Basin Electric’s margins. Also, the Freedom Mine, which supplies coal to the North Dakota facilities, is a large electricity consumer of Roughrider Electric Cooperative, a Basin Electric Class C member.
Rates and projects The urea production facility at the Synfuels Plant has had financial challenges for some of the membership. The budget increased over the course of construction due to increases in quantity of materials and costs of labor required to build the facility. The project was further challenged by the quality and timeliness of engineering, and
ultimately, staff released the general contractor for sustained poor performance. Once those issues were resolved, the project has consistently met its targets and is set to go into production by the end of January 2018. Despite those struggles, recent rate increases can’t be attributed to the construction project’s budget. “Basin Electric’s average member rate went up through 2016 due to several factors,” says Dave Raatz, senior vice president of Resource Planning. “Member growth was increasing across the entire membership, and we were building infrastructure to support that. Especially in the Bakken oil region of western North Dakota and eastern Montana, the growth meant Basin Electric was building generation and transmission to support the reliability of the transmission system.” The plant will produce 360,000 tons of urea each year. According to Ken Rutter, Basin Electric senior vice president of Marketing and Asset Management, there is 2.2 million tons of demand each year within a 200-mile radius of the plant.
Backing up the decision While these factors may be enough on their own for Basin Electric to keep the Synfuels Plant operating, staff knows more action needs to be taken. Through September 2017, Dakota Gas employees have been able to find ways to reduce expenses by $24.5 million. Once the urea production facility is operating, the Synfuels Plant will need 160 MW of electricity, and is expected to run at a 93-percent capacity factor, according to Dave Sauer, Dakota Gas senior vice president and chief operating officer. A creative tactic would change the way the power contract between Dakota Gas and Basin Electric is written. Currently, the Synfuels Plant pays a higher-than-market rate. Having the plant pay market rates wouldn’t impact Basin Electric. Also, a plant write-down is being considered, which wouldn’t affect operation of the plant. Employees of Dakota Gas and Basin Electric continue to search for ways to reduce costs and operate the plant more efficiently. Normal staff attrition has helped reduce the workforce as employees leave due to retirement and other opportunities. On the Basin Electric side, directors are looking at a revenue deferral plan, which would allow for financial flexibility for future instances like what is happening today. Staff is working to optimize the generation fleet, focus on market exposure, and work on a coal asset strategy.
YOUR ENERGY
Urea Plant Starts Up North Dakota’s first urea fertilizer production facility, located at Dakota Gasification Company’s Great Plains Synfuels Plant near Beulah, N.D., is successfully making product and was declared commercial Feb. 1. Urea is a dry, granular fertilizer commonly used in agricultural applications, and has the highest nitrogen content of all solid fertilizers. The facility produced urea for the first time Jan. 19. Employees are currently working toward the goal of producing up to 1,100 tons of product per day. “I want to thank the employees of Dakota Gasification Company and Basin Electric for working safely and efficiently to achieve this major milestone,” said Paul Sukut, Basin Electric CEO and general manager. “Hard work and innovation are hallmarks of America’s Heartland, and I’m proud that the completion of this project carries on that tradition. The plant has the ability to shift a portion of the urea production to produce diesel exhaust fluid, used to reduce emissions of nitrogen oxides from diesel engines. Additionally, the new facility has the capability of producing liquefied carbon dioxide, which is expected to be used in the oil production industry. The products bring the Synfuels Plants total product count to 13. Construction on the project started in July 2014.
March 2018 | Cooperative Connections
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DATELINE
March 3-6
2018 Summit League Basketball Championship, Sioux Falls, SD, 605-367-7288
March 9-10
Holiday Arts Spring Craft Show, Masonic Temple, Mitchell, SD, 605-359-2049
March 10
March 10-11
2018 Gun Show, American Legion Hall, Saturday 9 a.m. to 5 p.m., Sunday 9 a.m. to 3 p.m. MST, Philip, SD, 605-859-2280 or 605-441-8466
March 15-17
South Dakota High School State B Boys Basketball Tournament, Barnett Center, Aberdeen, SD
February 24: Annual Outhouse Races and Chili Cook-off Contest, Nemo, SD, 605-578-2708 March 24
April 7-8
May 18-20
April 5
April 25-29
May 18-20
April 28-29
July 7
May 10
July 10-15
Milltones Spring Show, 7 p.m., High School Theatre, Milbank, SD
South Dakota High School State A Boys Basketball Tournament, Rushmore Plaza Civic Center, Rapid City, SD
McCrossan’s Wildest Banquet Auction in the Midwest featuring A Night Out with the PBR, 5:30 p.m., Arena, Sioux Falls, SD, Tickets: $75 each, 605-339-1203, www.mccrossan.org
March 15-17
April 6
March 15-17
South Dakota High School State AA Boys Basketball Tournament, Premier Center, Sioux Falls, SD
March 16-17, 23-24
60th Annual Schmeckfest, Freeman, SD, 605-925-4237
March 17
Annual Ag Day at the Washington Pavilion, Sioux Falls, SD, 605-367-6000
March 24
Spring Craft Fair/Flea Market, American Legion Hall, Wagner, SD, 605-384-3543
SPURS Spring Dance, Dakota Events Center, Aberdeen, SD, Tickets available at the Hitch ‘N Post or by calling 605-226-1099
April 6-7
Forks, Corks and Kegs Food, Wine and Beer Festival, Deadwood, SD, 605-578-1876
April 6-8
Professional Bull Riders Built Ford Tough Series, Sioux Falls, SD, 605-367-7288
Hats Off to the Artists Art Show, Faulkton, SD, 605-598-4160 Black Hills Film Festival, Hill City, SD, 605-574-9454 Bike Show, Ramkota Convention Center, Aberdeen, SD, 605-290-0908 Chris Young, Don Barnett Arena, Rushmore Plaza Civic Center, Rapid City, SD, 605-394-4115
May 13
1880 Train Mother’s Day Express, Hill City, SD, 605-574-2222
May 18
Turkey Races, Huron, SD, 605-352-0000
May 18-19
Sioux Empire Film Festival, Sioux Falls, SD, 605-367-6000
State Parks Open House and Free Fishing Weekend, Pierre, SD, 605-773-3391 Tesla Road Trip Rally, Custer, SD, 605-673-2244 Hedahls Auto Value Car Show, Hav-A-Rest Campground, Redfield, SD, 605-380-9985 4th Annual 3 Wheeler Rally, Deadwood, SD, 605-717-7174, www.d3wr.com To have your event listed on this page, send complete information, including date, event, place and contact to your local electric cooperative. Include your name, address and daytime telephone number. Information must be submitted at least eight weeks prior to your event. Please call ahead to confirm date, time and location of event.
Photo courtesy: travelsd.com
Farm and Home Show, 10 a.m. to 5 p.m., Auditorium, Gregory, SD, 605-830-9778