MRES Today January-February 2026

TORONTO POWER PLANT PROPOSAL CONTINUES THROUGH REVIEW PROCESS

Missouri River Energy Services (MRES) continues to move through the regulatory process for the proposed Toronto Power Plant north of Toronto in Deuel County, South Dakota, while awaiting a final decision from the South Dakota (SD) Public Utilities Commission (PUC).

The facility permit application for the proposed plant was submitted to the SD PUC on Aug. 7, 2025, by MRES and Western Minnesota Municipal Power Agency. The proposal includes a 145-megawatt natural gas-fired generating facility, along with a high-voltage transmission line connecting the plant to the regional grid. Natural gas would serve as the primary fuel, with fuel oil available as a backup.

Prior to the close of 2025, MRES staff responded to questions from SD PUC staff and additional data requests could potentially be forthcoming.

MRES continues to work with landowners in the area and equipment suppliers to support a targeted commercial operating date of October 2029.

The project is designed to provide fast-start, dispatchable generation to support system reliability and energy demand. Upon approval by the respective governing bodies, construction is scheduled to begin in the spring of 2027.

A public meeting was held by the SD PUC in September 2025. The meeting provided an opportunity for community members to hear directly from project representatives and provide feedback. During the regulatory process, MRES has continued to work on other aspects of the project.

This includes coordinating with partners and staff on planning activities and early project development, as well as supporting the Local Review Committee’s work evaluating potential local impacts.

Artist rendering of proposed Toronto Power Plant

Learn more about the project: mrenergy.com/energyresources/generation

X New 145-megawatt dual-fuel power plant (natural gas with fuel oil backup)

X Located near Toronto, South Dakota, on 20 acres

X Includes a 4.9-mile transmission line to the substation

FROM THE EXECUTIVE TEAM: GUIDED BY OUR MISSION, NOT BY STRAIGHT LINES

As we begin a new year, it’s a good time to step back and reflect on why Missouri River Energy Services (MRES) exists. Our mission remains clear and unchanged: to enhance the value of member utilities to their communities by supplying reliable, cost-effective, long-term energy and energy services in a fiscally responsible and environmentally sensitive manner. That mission continues to guide our work and our priorities as we move into 2026.

One thing is certain: uncertainty is now a constant we must be prepared to manage. The political and regulatory environment rarely moves in a straight line, and as I shared at last year’s annual meeting, the pace and direction of change can feel like a whipsaw at times.

At the same time, each of our 61 member communities faces its own set of challenges and opportunities. Serving those diverse needs requires thoughtful planning and a clear focus on long-term reliability and affordability. That is why MRES remains committed to sustainability with an “all-of-the-above” resource strategy balancing various types of generation, power purchase agreements and transmission investment. This flexible approach allows us to adapt to changing conditions while ensuring that the unique needs of every member is considered as we plan for the future.

Affordability remains central. As utilities across the region make long-term investments in infrastructure to meet the changing needs of the electric grid and its customers, state and federal policy decisions can have real impacts on our customers’ energy bills. Local control and flexibility matter. They allow you, our members, to make decisions that reflect the needs and priorities of the communities you serve.

Reliability also continues to be a top priority. In addition to stable generation, transmission and distribution systems, investment in technology solutions, cybersecurity, and physical security are critically important, and MRES remains committed to supporting members as these issues evolve.

Advocacy is the thread that ties it all together, and the engagement of our members truly makes a difference. We encourage each of you to build and strengthen relationships with your state and federal lawmakers. Now more than ever, making connections and sitting down for meaningful conversations helps foster open, honest dialogue about the needs and priorities of our member communities.

MRES is here to support you in that effort. If you need assistance making those connections or navigating the process, please reach out to us at info@mrenergy.com.

The year ahead will bring opportunities as well as challenges. By staying focused on our mission and by working together we can continue delivering the value our communities expect from public power.

Thank you for your continued partnership and engagement

OUR MISSION

To enhance the value of member utilities to their communities by supplying reliable, cost-effective, long-term energy and energy services in a fiscally responsible and environmentally sensitive manner.

MAKING ROOM FOR OPPORTUNITY IN WATERTOWN

Preparing for the future doesn’t always mean building something new. Sometimes, it starts by creating space and keeping options open.

That’s the approach behind recent work at the Watertown Power Plant, where Missouri River Energy Services (MRES) has taken deliberate steps to prepare the site for potential future opportunities. By purchasing and clearing properties adjacent to the plant, MRES has removed physical constraints and preserved long-term flexibility.

Two nearby properties, the former Hubbard Feed Mill and the Davis Digital Property, were acquired as part of this effort, adding more than five acres directly next to the plant. Demolition of both properties took place in 2025 and is now complete, including removal of structures, underground foundations and site utilities. The work also included extensive fill placement, grading and seeding, leaving the area level, stable and ready for future use, with a new gravel parking area improving access and functionality.

“What they did preserve was a piece of local history.”

— Nick Fanning, MRES resource engineer supervisor

And for those wondering, crews did not uncover a time capsule thought to be buried on the site. “What they did preserve was a piece of local history. Stone from the former feed mill was carefully saved and will soon be given a new home,” said Nick Fanning, MRES resource engineer supervisor. The Watertown Power Plant continues to serve MRES as a valuable resource. By clearing space around the site now, MRES ensures the Watertown site is ready for tomorrow.

KWIK TRIP & BRIGHT ENERGY SOLUTIONS® REBATES

When a new building is being planned, the choices made early, like lighting, heating and cooling, and insulation, can affect energy bills for years to come. That’s where Bright Energy Solutions (BES) comes in. The program helps businesses find smart energy-saving options and earn rebates for proven savings, lowering both upfront costs and long-term expenses.

One company that has made energy efficiency part of its standard playbook is Kwik Trip, Inc. Since 2011, the family-owned company has built 19 Kwik Trip or Kwik Star stores in communities served by Missouri River Energy Services (MRES) member utilities. Over the last several years alone, 14 new Kwik Trip or Kwik Star locations used BES rebates, earning nearly $100,000 while saving 361.69 kilowatts of demand and, each year, saving over 2 million kilowatt-hours of energy. Several more projects have recently been completed, with another store currently under construction in Moorhead, Minnesota.

For any business, the options for saving money and energy, especially with new construction, are significant, since BES offers more than one way for a project to qualify

for incentives, depending on when energy efficiency is considered during construction.

For the Kwik Trip projects, a design review was done. This option evaluates energy efficiency at the whole-building level. Through this process, the building owner and design team work with an MRES partner to model the proposed building against a baseline code-built facility.

During this review, key systems like lighting, heating and cooling, windows, roofing and the building shell are evaluated together. The team then looks at different options, showing how each choice affects construction costs and long-term energy savings. The company then ultimately decides which upgrades to include.

Once the new building is complete, actual energy use is verified, savings are confirmed and the rebate is calculated. Because this approach looks at the whole building, it often leads to larger rebates, especially for bigger facilities.

However, a full design review isn’t necessary to earn rebates on a newly constructed building. According to Darlene Weber-Scott, MRES energy services technical specialist,

Share your Bright Energy Solutions stories at info@mrenergy.com. For already constructed buildings, Bright Energy Solutions provides no-cost energy walk-throughs, helping member businesses better understand their electric use and identify opportunities for long-term savings. To learn more about how your business or organization can benefit from BES, visit brightenergysolutions.com .

new projects can still qualify for prescriptive rebates.

“These rebates apply to specific energy-efficient items, such as high-efficiency lighting or HVAC equipment.”

Each approved item earns a set rebate amount. While this option is simple and straightforward, it focuses on individual systems rather than total building performance.

For Kwik Trip, efficiency is key. As a vertically integrated company, it operates its own bakery, dairy, kitchens, food-safety lab, distribution center, transportation company and even a health clinic. About 80% of the products sold in its stores are Kwik Trip–branded, made, shipped, and sold by the company itself. Opportunities for efficiency aren’t merely added benefits for the company; they are core to its operational strategy.

BES is designed to support this kind of forward thinking. Whether through a full design review or targeted prescriptive rebates, BES provides the data, verification and financial incentives businesses need to make energysmart choices that pay off for years to come.

Operational efficiency across all aspects of the business is foundational for

BRIGHT ENERGY SOLUTIONS REBATES BY THE NUMBERS

Bright Energy Solutions helps homeowners and businesses cut energy costs and run more efficiently through valuable rebate programs. Available to customers of municipal utilities that are members of Missouri River Energy Services, these rebates make it easier to invest in smarter, energy-saving upgrades.

The impact speaks for itself. As of the end of 2025, Bright Energy Solutions has paid $31.7 million in rebates, issuing 60,783 rebates to residential and commercial customers and saving 508,377 megawatt/hours of energy.

$31.7

MILLION

60,783

508,377 Rebates paid through 2025

Missouri River Energy Services (MRES) cost-share programs helped member utilities turn everyday outreach into high-impact community connections.

Through three sponsorship opportunities – Bright Energy Solutions (BES), Value of Public Power (VPP) and Community Co-Sponsorships – members used cost-share dollars to support events, advertising and promotional materials that told their local stories while receiving up to 50% reimbursement on eligible expenses from MRES. From print and digital ads promoting energy efficiency to community events, these tools made it easier for utilities to stay visible in the communities they serve.

MRES invested more than $75,000 in member communities in 2025 using cost-share programs, in the end doubling the impact back to communities of more than $150,000.

Check out how a few MRES members put these options to work with events, customized materials and co-branded messaging that reinforced public power values and energy efficiency. By taking advantage of these cost-share opportunities, members were able to stretch marketing budgets further.

As 2026 gets underway, MRES encourages each utility to participate. More information is available on the members-only site on mrenergy.com. For more information, contact info@mrenergy.com

Sauk Centre Public Utilities

In Sauk Centre, co-branded flex travel mugs and hot/cold packs helped keep energy efficiency and the Bright Energy Solutions rebate program visible. MRES also provided co-sponsorship support for two community events, Sinclair Lewis Days in mid-July and Night to Unite on Aug. 5.

Willmar Municipal Utilities

MRES provided cost-sharing support for Willmar Municipal Utilities through the Value of Public Power by creating co-branded calendars and other practical items. These materials help highlight the role of the municipal utility in everyday life, providing useful resources for residents while reinforcing the reliability and local ownership of public power in Willmar.

On Oct. 13, 2025, ALP Utilities welcomed the Alexandria community to an open house at its new operations center during Public Power Week. Co-sponsored by MRES, the event featured guided tours, food and family-friendly activities, giving neighbors the opportunity to meet the people behind their power and water while celebrating local public power service and community investment.

City of Barnesville

On July 24, 2025, the City of Barnesville hosted its annual Community Picnic at Blue Eagle Lake, bringing residents together for an evening of summer fun and community pride. Co-sponsored by MRES, the event included dinner, inflatable games and a giant water slide for kids, live music and a fireworks finale connect with neighbors and celebrate Barnesville.

Detroit Lakes Public Utilities

MRES provided cost-sharing support for Detroit Lakes Public Utilities through support for the Detroit Lakes Community & Cultural Center Discovery Series, Community Theater performances at the historic Holmes Theatre and Tuesdays in the Park summer concerts. Through the BES cost-share option, MRES also partnered on a co-branded promotional blanket, giving Detroit Lakes a tangible, reusable way to promote energy efficiency and public power.

Utilities

Throughout summer 2025, MRES co-sponsored with Denison Municipal Utilities a series of events in Denison that brought energy and community pride to Uptown and the fairgrounds. From Hot Summer Nights on July 10 to the Crawford County Fair, Best in the West Showdown on July 30 and the Tri-City BBQ Fest in September, Denison Municipal Utilities made sure to help sponsor these events so residents and visitors could gather for music, food and family-friendly fun. Together, these events highlighted Denison’s commitment to creating memorable community experiences and connection.

City of Jackson

In 2025, MRES provided cost-sharing support for the City of Jackson with community-focused events that brought residents together. From Public Works Day on June 10, where kids received work gloves and ice cream, to the homecoming parade on Oct. 2 and Trunk or Treat on Oct. 30, these co-sponsored activities combined fun and community connection. A highlight of the Trunk or Treat included a bucket truck appearance complete with “Spiderman” dropping candy.

City of Lake Park

In late September 2025, City of Lake Park, Minnesota, welcomed residents and visitors to its annual Pumpkin Fest, held in late September, celebrating fall with parades, crafts, food and pumpkin-

Municipal Utilities

The City of Sanborn’s Railroad Days featured Cruise Night on Main Street, antique tractor rides, cook-offs, youth activities and a fireworks finale at Miller Park. With cost-sharing support from MRES, the city helped sponsor multiple days of events that celebrated local history and encouraged community participation.

SUPPORTING MEMBERS THROUGH EXPERIENCE

Change can be challenging for any utility, especially when decades of experience walk out the door at once. For Missouri River Energy Services (MRES) member Rock Rapids Municipal Utilities (RRMU), the retirement of two longtime linemen with nearly 50 years of combined service, along with a utility coordinator who had served the community for 35 years, marked a major transition for the electric department.

“With that many years of experience retiring at the same time, we knew we needed to be intentional about how we supported the new crew,” said Jennifer Wippert, general manager of RRMU. “We wanted to make sure they had the tools and confidence to succeed.”

As a supplemental distribution maintenance (DM) community, RRMU turned to MRES for support. Jeff Bechtold, now retired MRES distribution maintenance superintendent, volunteered to sponsor two apprentices in the Denny Merchant Journeyman Lineman Program, administering the four-year program locally.

“This was the first time we had formally enrolled employees in the Denny Merchant program,” Wippert said. “In the past, our linemen earned their journeyman status through years on the job, but this approach gave our new crew more structure.”

Becthold traveled to Rock Rapids monthly to administer testing, review coursework and offer guidance on projects.

“Jeff didn’t just give the tests and leave,” Wippert said. “He

spent time with the crew, answered questions and built relationships, not just with electric, but with our water, wastewater and gas teams as well.”

In November 2025, both the utility coordinator and lead lineman completed their “books,” officially finishing the Denny Merchant program. While RRMU could have completed the training independently, Wippert said the added support made a meaningful difference. “Jeff wanted to help, and having someone with his experience involved added a lot of value beyond the coursework.”

The collaboration extended beyond Rock Rapids. Through the DM program, RRMU worked alongside other MRES member communities, including the Luverne, Minnesota, crew, on major efforts such as a substation transfer to temporary gear in December 2023 and recovery work during the 2024 flood.

“We really enjoyed working with those crews and truly appreciated the help,” Wippert said. “Our team hopes to be there for other communities if the need ever arises.”

Today, the Rock Rapids legacy continues with a new generation of trained professionals, supported by collaboration and shared expertise across the MRES membership.

A LEADERSHIP TRANSITION AT MRES

After more than four decades of service, Jeff Bechtold retired from his role as MRES distribution maintenance superintendent on Jan. 2. Over his career, Jeff supported member utilities across the MRES footprint by sharing his knowledge, mentoring crews and stepping in when extra hands were needed.

Stepping into the role is Sam Jones, who brings strong distribution maintenance experience and a commitment to continuing the MRES tradition of member-focused support.

MRES BOARD FORMALIZES COMMITTEE ASSIGNMENTS

During its January meeting, the MRES board of directors finalized its committee appointments for 2026.

EXECUTIVE COMMITTEE

• Vernell Roberts, Chair

MRES BOARD OF DIRECTORS

• Chair: Vernell Roberts, Detroit Lakes, Minnesota

• First Vice Chair: Steve Meyer, Brookings, South Dakota

• Second Vice Chair: Scott Hain, Worthington, Minnesota

• Third Vice Chair: Murray Hulstein, Sioux Center, Iowa

• Fourth Vice Chair: Dave Carlsrud, Valley City, North Dakota

• Secretary/Treasurer: Steve Lehner, Watertown, South Dakota

• Director: Ted Cash, Alexandria, Minnesota

• Director: Kevin Georgius, Denison, Iowa

• Director: Brad Palmer, Pierre, South Dakota

• Director: John Prescott, Vermillion, South Dakota

• Director: Travis Schmidt, Moorhead, Minnesota

• Director: Matt Van Schouwen, Orange City, Iowa

• Director: Rob Wolfington, Benson, Minnesota

WMMPA BOARD OF DIRECTORS

• President: Scott Hain

• Vice President: Ted Cash

• Secretary: Travis Schmidt

• Treasurer: Rob Wolfington

• Director: Scott Grabe, Staples, Minnesota

• Director: Vernell Roberts

• Director: Pete Wyffels, Marshall, Minnesota

• Steve Meyer, First Vice Chair

• Scott Hain, Second Vice Chair

• Murray Hulstein, Third Vice Chair

• David Carlsrud, Fourth Vice Chair

• Steve Lehner, Secretary / Treasurer

FINANCE COMMITTEE

• Steve Meyer, Chair

• Murray Hulstein

• Steve Lehner

• Matt Van Schouwen

• Rob Wolfington

• Vernell Roberts, Ex-officio

PERSONNEL COMMITTEE

• Scott Hain, Chair

• David Carlsrud

• Ted Cash

• Brad Palmer

• John Prescott

• Vernell Roberts, Ex-officio

NOMINATING COMMITTEE

• Ted Cash, Chair

• Steve Lehner

• John Prescott

• Matt Van Schouwen

• Vernell Roberts, Ex-officio

THE POWER OF A PLAN

With the start of a new year, planning and goal setting are top of mind. For member municipalities, strategic planning provides an opportunity to broaden the lens of service to customers — to see what’s working, brainstorm where opportunities for improvement exist, align priorities and define a plan for several years into the future. As part of its member services, Missouri River Energy Services (MRES) supports members through a guided strategic planning process. Strategic planning is about building consensus, setting direction and being intentional. Things don’t always unfold exactly as expected, but having a plan provides clarity.

With a facilitation partner, MRES assists each member through the process by bringing key participants together to define strategic priorities and measurable goals that help guide decision-making and budgeting. Strategic planning helps members answer critical questions: Where do we want to be in five years? Are we aligned on priorities? Are resources being used effectively to support long-term goals? The guided process translates vision into actionable strategies that support utility and community needs.

MRES offers its members special discounted rates to minimize cost barriers for cities and utilities. As the new year begins, MRES encourages member utilities to consider how these services could help position their organization for long-term success.

For more information, contact info@mrenergy.com. 1 2 3 4

TOOLS & TRAINING TO HELP MEMBERS SECURE FUNDING

As funding opportunities evolve, Missouri River Energy Services (MRES) is committed to helping members and their communities navigate an increasingly complex grant landscape. One way is through practical, no-cost grant-training and research.

In December, MRES partnered with Baker Tilly to offer Grant Writing 101: How to Find & Win Federal, State and Private Grants, a one-hour training tailored to member utilities and communities.

The session focused on more than just writing skills. As federal programs shift or sunset, the ability to identify and pursue alternative funding sources has become increasingly important. The training focused on several key elements of the grant-writing process: how to look beyond federal grants to opportunities offered by state and local governments, private foundations and companies with regional or local ties; how to determine which grants are the best fit for a project; how to write compelling applications for different types of funders; and how to reduce administrative burden after an award is received.

Led by experts from Baker Tilly with extensive experience, the webinar provided real-world insights and practical tools that members can apply right away, whether as lead writers or support staff.

For members who were unable to attend live, or who want to watch again, the full webinar recording and presentation slide deck are now available on the members-only website: mrenergy.com/members-only.

In addition, MRES has compiled an extensive library of grant-related resources, including guidance on grant-writing best practices, application tips, compliance and post-award management as well as links to key state and federal funding resources. Members with questions or who would like help accessing these resources are encouraged to contact MRES Member Programs staff at info@mrenergy.com.

MEMBER MILESTONE ANNIVERSARIES

Each municipal member forms the foundation of Missouri River Energy Services and each membership milestone anniversary reflects decades of working together to provide reliable, community-owned energy that strengthens both individual communities and public power.

PO Box 88920

Sioux Falls, SD 57109-8920 Phone: 605-338-4042 | Fax: 605-978-9360