• News Releases
• Annual Report
• Associated Publications

East River Electric Embraces Challenges for 2008

East River Electric Power Cooperative will continue to address challenges for the upcoming year which includes meeting the significant load growth of its members, continuing to develop renewable power resources and ensuring that electric rates remain cost-effective.

To meet the growing demands for electricity, East River has been proactive in developing necessary infrastructure for consumer demand. During 2007, East River invested $30 million for the construction of new transmission lines and substation facilities. 

In 2008, construction will total $40 million.  "East River will be focused on completing the largest expansion in its electric system in its history," East River General Manager Jeff Nelson said.

"As part of meeting this expansion, we intend to complete a large new Service Center west of town, and begin substantial refurbishing and additions to our existing headquarters complex," Nelson said.

Energy consumption from East River members increased 11.7% from 2007 to 2008 and new energy demands are projected to increase 4.6% during 2008-2009.  A growth of both farm and residential areas, new energy developments in our service area and a progressive ethanol industry have driven this expansion of the existing transmission system.

Currently, renewable hydroelectric power resources from the Missouri River dams provide members approximately 30% of the total wholesale power need.  However, years of drought have forced the Western Area Power Administration to secure power supply on the open market to meet its power applications and this cost is significantly higher than the cost of hydropower.

Wind energy, waste heat recovery, and methane digesters also contribute to East River's renewable portfolio.  These methods of producing electricity are beneficial for the environment, helping to reduce the effects of climate change. However, a current shortage of transmission lines prohibits widespread expansion of wind farm development. Though transmission line construction is expensive, East River will continue to pursue ways to incorporate more environmentally-friendly resources into the overall energy portfolio.

As a way to balance these added costs and to meet the current electricity demands, baseload coal is a vital resource that East River will continue to utilize.  Coal-based generation is still by far the most cost-effective resource to meet the needs of consumers, and new technologies are being developed to minimize the discharge of carbon. However, this research is expensive and will not be fully developed for at least another decade.

East River’s wholesale provider, Basin Electric, has recently named Selby, SD as the “owners preferred site” for a much-needed 700 MW coal-based powerplant.  If chosen, the plant would be operational by 2014. Basin Electric is also planning to add 500-600 MW of renewables to their generation portfolio within the next seven years. 

Nelson explained the necessity of constructing a coal-based power plant when so much recent public discussion has been renewable energy such as wind. "To meet the standard of reliable and affordable service which is a hallmark of East River member owners, new, clean coal-based power plants are essential. A single source or fuel type will not be adequate.  For our region, hydropower, coal and new renewables supplemented by natural gas fueled resources will all be required," Nelson said.

With an ongoing commitment to community, East River has been involved in numerous projects that benefit many throughout its service area.  Some of these include Bicycle Safety Day, the annual Oyster and Ham Feed to benefit the Children’s Care Hospital and School and the Kid’s Voting project.  

Though facing many challenges for the future, one item is very clear:  with its values of innovation, accountability, integrity, and commitment to community, East River will continue to provide safe, reliable and cost-effective electricity to its members.

East River Electric Power Cooperative is a wholesale electric power supply cooperative serving 20 rural electric cooperatives and one municipally-owned electric system, which in turn serve more than 84,000 homes and businesses and about 250,000 consumers. Their 36,000 square mile service area covers the rural areas of 41 counties in eastern South Dakota and nine counties in western Minnesota.