A POSITIVE, CREDIBLE AND INDEPENDENT VOICE FOR MINNESOTA UTILITY INVESTORS

In yourIn yourInterestSEPTEMBER 2014

VOL. 24 NO. 3

Monday, October 13, 2014Earle Brown Heritage Center, Brooklyn Center, MN

In this issueMUI Annual Meeting Schedule 2

Company Quarterly Updates 3

MUI Summer Tours 6

Primary Election Results 7

Action Team Meeting Review 8

Candidate Survey Results 8

News Briefs 9

Membership Accolades 10

Fall Calendar 11

Motor Coach Schedulefor Annual Meeting 11

Membership Form 12

Annual Meeting

SEMINARS • TRADE SHOW • LUNCHEON

Join nearly 700 people at the MUI Annual Meeting to meet company executives, learn about energy issues that impact your investments, and enjoy the camaraderie of other utility shareholders and maybe, just maybe, win one of the many bingo or door prizes.

SEE PAGE 2 FOR MORE INFORMATION

Join us!

In your INTERESTSEPTEMBER 20142

Monday, October 13, 2014 Earle Brown Heritage Center in Brooklyn Center, MN

Timeline

Session 1 - 9:45 a.m.

8:00 a.m. Registration, Exhibits, and Coffee9:45 a.m. – 10:45 a.m. Session 111:10 a.m. – 12:00 p.m. Session 212:15 p.m. – 2:30 p.m. Lunch and Speakers

SEMINAR A Utilities Sector Outlook: Learn from Edward Jones' senior utilities analyst, Andy Pusateri, what their outlook is for the energy industry.

SEMINAR B The Grid: The super highway of the electric industry. Hear from an expert about how they make sure the lights turn on.

SEMINAR C Solar Energy: Does it work in Minnesota and what does it mean to our energy industry?

SEMINAR D Nuclear Energy Update: The Nuclear Energy Institute will update attendees about what is happening in the industry.

Session 2 - 11:10 a.m.

Need a ride? Catch a complimentary ride on a Motor Coach

18 departure locations to choose from. See page 11 for more details.

If you have questions or would like more information, please contact MUI toll free at 1-888-850-5171 or e-mail at mui@mnutilityinvestors.org

Luncheon Speakers

Spin the “Wheel of Energy” for a prize! Play MUI BINGO during the Luncheon Meeting!

MUI has negotiated a HOTEL RATE of $109 for all MUI members at the Embassy Suites immediately next to the Earle Brown Heritage Center for Sunday, October 12.

Call the Embassy Suites by October 1 at 1-763-560-2700 to make your reservation.

Annual Meeting YOU ARE INVITED TO THE

Earle Brown Heritage Center in Brooklyn Center, MN

Registration, Exhibits,

Annual MeetingEarle Brown Heritage Center in Brooklyn Center, MN

Annual MeetingEarle Brown Heritage Center in Brooklyn Center, MN

Luncheon Speakers

Annual MeetingAnnual MeetingAnnual MeetingAnnual Meeting

EXHIBITORS: ALLETE, Alliant Energy, CenterPoint Energy, Integrys Energy Group, MDU Resources, Otter Tail Corporation, Xcel Energy, Edward Jones, MN Solar Energy Industry Assn, Nuclear Energy Information, MUI, We Stand for Energy

Benjamin Fowke, III Chairman, President & CEO of Xcel Energy

Mike Franklin Political Analyst, Weber Johnson

"Energy Minnesota" An initiative to educate Minnesotans about the utility industry you have invested in.

If you have questions or would like more information, please contact MUI

Numerousdoor prizes!All attendees eligible

VOL. 24 NO. 3 3

Strong revenue growth drives ALLETE's second quarter resultsFull year earnings guidance is reaffirmedALLETE, Inc. reported second quarter 2014 earnings of 40 cents per share on net income of $16.8 million compared to 35 cents per share on net income of $14.0 million during the same period last year. Included in this quarter's results was a $2.5 million after-tax, or 6 cents per share, non-recurring charge associated with a settlement agreement with the Environmental Protection Agency (EPA).

Revenue for the second quarter of 2014 rose by 10.7 percent to $260.7 million versus $235.6 million a year ago. �is quarter's earnings per share included 2 cents per share of dilution due to an increase in common shares year over year.

Net income at ALLETE's Regulated Operations segment, which includes Minnesota Power, Superior Water, Light and Power and the company's investment in the American Transmission Co., rose to $17.5 million compared to $16.3 million in the same period of 2013, despite the inclusion of the aforementioned non-recurring charge in this quarter's results. �e net income increase was primarily due to higher cost recovery revenue as a result of ongoing work on the Boswell 4 environmental retro�t and Bison 4 wind energy projects. Electric sales were similar to the second quarter of 2013, and re�ected continued strong demand from Minnesota Power's industrial customers.

�e Investments and Other segment, which includes BNI Coal, ALLETE Clean Energy, ALLETE Properties, and miscellaneous corporate income and expense, reported a net loss of $0.7 million for the quarter, an improvement of $1.6 million from the same period in 2013. ALLETE Clean Energy posted a pro�t from its newly acquired wind energy facilities in Minnesota, Iowa and Oregon. Results at BNI Coal and ALLETE Properties were similar to the second quarter of last year.

"Demand nominations we've just received indicate our taconite customers will continue to operate at full demand levels through the remainder of 2014," said ALLETE Chairman, President and CEO Al Hodnik. "We're pleased to be on track with the earnings projections we made earlier this year." Hodnik said the 2014 full year earnings guidance range remains unchanged at $2.75 to $2.95, excluding 3 cents per share of costs recorded in the �rst quarter associated with an ALLETE Clean Energy acquisition, and this quarter's non-recurring 6 cents per share charge associated with the EPA settlement. ALLETE: NYSE: ALE

To see a full report, visit ALLETE's website www.allete.com

Alliant Energy announces Second Quarter 2014 resultsReaffirms 2014 earnings guidance “I am pleased with the consistent �nancial performance of our company,” said Patricia Kampling, Alliant Energy Chairman, President and CEO. “�e positive weather impacts included in our year-to-date results will be largely o¨set by the mild weather experienced so far in the third quarter. �erefore, we are forecasting that 2014 earnings are trending toward the mid-point of our current earnings guidance range.”

Drivers for Alliant Energy’s 2014 earnings guidance include, but are not limited to:

• AppropriateregulatoryoutcomestoallowIPLtheability to earn its authorized rate of return

• AbilityofWPLtocontinuetoearnitsauthorized rate of return

• Stableeconomyandresultingimplicationsonutilitysales

• Normalweatherandoperatingconditionsfortheremainder of the year in its utility service territories

• Continuingcostcontrolsandoperationalefficiencies• ExecutionofIPL’sandWPL’scapitalexpenditureplans• Consolidatedeffectivetaxrateof16%

Utilities and Corporate Services - Alliant Energy’s Utilities and Alliant Energy Corporate Services, Inc. (Corporate Services) operations generated $0.50 per share of EPS from continuing operations in the second quarter of 2014, which was $0.02 per share lower than the second quarter of 2013. �e primary drivers of lower EPS in the second quarter of 2014 when compared to the second quarter of 2013 were electric customer billing credits at Interstate Power and LightCompany(IPL),higherenergyefficiencycostrecoveryamortizations at Wisconsin Power and Light Company (WPL), higher generation operation and maintenance expense and interest expense at IPL, and higher depreciation expense at both IPL and WPL. �ese negative earnings drivers were partially o¨set by lower capacity charges related to the Duane Arnold Energy Center (DAEC) and Kewaunee Nuclear Power Plant (Kewaunee) purchased power agreements.

Non-regulated and Parent - Alliant Energy’s non-regulated and parent operations generated $0.06 per share of EPS from

Company Quarterly Updates

Quarterly Updates cont. on page 4

In your INTERESTSEPTEMBER 20144

continuing operations in the second quarter of 2014, which was $0.01 per share lower than the second quarter of 2013.

Alliant Energy: NYSE: LNT

To see a full report visit Alliant Energy's website www.alliantenergy.com

CenterPoint Energy reports second quarter 2014 earnings of $0.25 per diluted share• Utilityperformancein-linewithexpectationsdespite

milder weather• $1.4billionannualcapitalinvestmentprogramontrack• Continuedrobustcustomergrowth• Reaffirms2014UtilityOperationsguidanceof$0.72to

$0.76 and increases full year consolidated guidance to $1.14 to $1.21

CenterPoint Energy, Inc. reported net income of $107 million, or $0.25 per diluted share, for the second quarter of 2014, compared to a net loss of $100 million, or $0.23 per diluted share the previous year. Second quarter 2013 results included two unusual items related to the May 1, 2013, formation of the midstream partnership: (i) a $225 million, non-cash deferred tax charge and (ii) $10 million of partnership formation expenses. Excluding these items, the second quarter 2013 net income would have been $131 million, or $0.30 per diluted share.

Operating income for the second quarter and for the six months ended June 30, 2014 was $186 million and $481 million, respectively. Following the May 1, 2013, formation of Enable Midstream Partners, CenterPoint Energy reports its investment in midstream operations as equity income rather than operating income. As a result, operating income for the second quarter of 2014 is not comparable to prior results.

“I am pleased with our company’s strong operating and �nancial performance for the quarter despite milder weather,” said Scott M. Prochazka, president and chief executive officer of CenterPoint Energy. “We continueto execute our strategy focused on robust organic utility capital investment which supports the strong growth in our service territories, enhanced system reliability and

ongoing system upgrades, positioning us well for future earnings growth.”

CenterPoint Energy: NSYE: CNP

To see a full report visit CenterPoint Energy's website www.centerpointenergy.com

Integrys Energy Group, Inc. reports second quarter 2014 earningsAdjusted earnings decreased $19.2 million from the second quarter of 2013 to the second quarter of 2014. Higher operating expenses at both the natural gas and electric utility segments drove the decrease.

Operating expenses at the natural gas utility segment increased mainly due to higher natural gas distribution costs. �ese costs were up due to higher repairs and maintenance expense for �e Peoples Gas Light and Coke Company due to higher costs to meet existing compliance requirements and to repair leaks. Higher depreciation and amortization expense across the natural gas utilities also contributed to the increase in operating expenses.

Increased maintenance costs drove an increase in operating expenses at the electric utility segment, primarily due to planned major outages at Wisconsin Public Service Corporation's Fox Energy Center and Weston 4 plant in 2014.

An increase in Integrys Energy Services' adjusted earnings partially o¨set the decreases at the utilities, mainly due to the acquisition of Compass Energy Services in May of 2013, as well as growth in existing markets.

Earnings forcastIntegrys Energy Group's guidance range for 2014 diluted earnings per share on a GAAP basis is $3.77 to $3.91. �is guidance assumes the availability of generation units, normal weather conditions for the rest of the year, and ownership of Integrys Energy Services' retail energy business through December 31, 2014. Integrys Energy Group is not estimating the impact of derivative and inventory fair value accounting activities for 2014. �e company's guidance range for 2014 diluted earnings per share – adjusted is $3.33 to $3.47.

Integrys Energy Group: NSYE: TEG

To see a full report visit Integrys Energy Group's website www.integrysgroup.com

Quarterly Updates cont. from page 3

Quarterly Updates cont. on page 5

Company Quarterly Updates

VOL. 24 NO. 3 5

MDU Resources reports higher second quarter earnings• Constructionservicesbusinesshasrecordsecond

quarter earnings.• Constructionmaterialshashigherbacklogof$764

million; combined construction business backlog totaled $1.15 billion.

• Oilproductiongrows14percent;Fidelityrecentlyannounced pending sale of certain Mountrail County, North Dakota production assets.

• Pipelineandenergyservicesmorethandoublesearnings; diesel topping plant construction on schedule, approximately 75 percent complete.

• Utilityearningsimprove$4.8milliondespite mild weather.

• Earningspershareguidancereaffirmedinrangeof$1.50 to $1.65.

MDU Resources Group, Inc reported second quarter consolidated adjusted earnings of $56.7 million, or 29 cents per common share, compared to $47.2 million, or 25 cents per common share for the second quarter of 2013. Consolidated GAAP earnings were $53.9 million, or 28 cents per common share, compared to $46.3 million, or 24 cents per common share for the second quarter of 2013. Adjusted earnings for the six months ended June 30 were $117.4 million, or 61 cents per share, compared to $107.3 million, or 57 cents per share a year ago. Consolidated year-to-date GAAP earnings were $110.4 million, or 58 cents per share, compared to $102.7 million, or 54 cents per share in 2013."We are pleased to continue our strong 2014 performance with another good quarter," said David L. Goodin, president and CEO of MDU Resources. "In fact, this is our strongest �rst half since 2008. It re�ects the focus our businesses have on performance and execution of their strategic growth plans."�e construction services business had a record second quarter, led by continuing strong performance by the outside electric group. At the construction materials business, higher aggregate margins and volumes o¨set lower construction margins including weather-related delays, resulting in the strongest second quarter since 2009. �e combined construction business backlog is $1.15 billion.MDU Resources: NYSE: MDU

To see a full report visit MDU Resources website www.mduresources.com

Otter Tail Corp. announces second quarter earningsOtter Tail Corporation announced �nancial results for the quarter ended June 30, 2014.

• Consolidated revenues were $234.6 million comparedwith $212.4 million for the second quarter of 2013.

• Consolidated net income and diluted earnings fromcontinuing operations totaled $10.0 million and $0.27 per share, respectively, compared with $7.5 million and $0.21 per share for the second quarter of 2013.

• Thecorporationisnarrowingits2014earningsguidancerange to $1.65 to $1.80 per diluted share from its previously announced range of $1.60 to $1.80, based on its strong performance in the �rst half of 2014.

CEO overview "Our strong 2014 �rst quarter performance has continued in the second quarter," said Otter Tail Corporation CEO Jim McIntyre. "�is quarter's consolidated revenues are upmorethan10%comparedwithsecondquarterlastyearand consolidated net income from continuing operations is up33%."

"We continue to see earnings growth from our capital investments at the utility. Regulatory mechanisms in North Dakota, South Dakota, and Minnesota allow for a return on the funds we've invested in �ve large regional transmission projects and the environmental upgrade at Big Stone Plant. �ose earnings were augmented this quarter by increased electricity sales to pipeline and commercial customers.

"We also continue to see positive results from our focus on operational excellence at our manufacturing and infrastructure companies. I'm especially pleased that pro�tability at both Foley and Aevenia continued to improve this quarter, thanks to better project management aligned with increased construction activity.

"On the strength of our year-to-date results, we are narrowing our overall guidance range for 2014 diluted earnings per share to $1.65 to $1.80 from our previously announced range of $1.60 to $1.80."

Otter Tail Corp.: Nasdaq: OTTR

To see a full report visit Otter Tail Corp.'s website www.ottertail.com

Company Quarterly Updates

Quarterly Updates cont. from page 4

Quarterly Updates cont. on page 6

In your INTERESTSEPTEMBER 20146

Tour Scrapbook

Xcel Energy second quarter 2014 earnings report• GAAP(generallyacceptedaccountingprinciples)2014

second quarter diluted earnings per share were $0.39 compared with $0.40 per share in 2013.

• XcelEnergy reaffirms2014ongoingearningsguidanceof $1.90 to $2.05 per share.

Xcel Energy Inc. reported 2014 second quarter GAAPearnings of $195 million, or $0.39 per share, compared with $197 million, or $0.40 per share, in the same period in 2013.

Electric and gas margins rose in the second quarter of 2014 primarily driven by new rates in various jurisdictions. �is positive factor, along with lower interest expense, was more than o¨set by higher operating and maintenance expenses, property taxes, and depreciation and amortization expense as well as less favorable weather.

“Our second quarter �nancial results were in line with our projections and we are pleased with our performance through the �rst six months,” stated Chairman, President andChiefExecutiveOfficerBenFowke.“Notably,weare

encouraged to see the continuation of better-than-expected weather-normalized sales growth. In addition, our year-to-date operating and maintenance expenses are consistent with our plan and we are on track to meet our guidance of a 2 to 3 percent annual increase over 2013 levels.

“During the second quarter, we �led rate cases in Colorado, Wisconsin and South Dakota and continued settlement discussions in Texas. We also received initial recommendations from the intervenors for the Minnesota electric rate case and the Minnesota Department of Commerce regarding the Monticello prudence review. We believe our request in Minnesota is warranted and the costs associated with Monticello uprate and life extension project were prudent. We will continue to provide support for our positions and expect to reach constructive outcomes in each of these regulatory proceedings.

“Wearereaffirmingour2014ongoingearningsguidanceof $1.90 to $2.05 per share, which is based on several key assumptions, including constructive outcomes of our regulatory proceedings,” said Fowke.

XcelEnergy:NYSE:XEL

To see a full report visit Xcel Energy's website www.xcelenergy.com

Quarterly Updates cont. from page 5

Dues-paying members enjoy MUI Summer Tours

SLAYTON SOLAR FARM

ALLIANT ENERGY BENT TREE WIND FARM

VOL. 24 NO. 3 7

On a beautiful summer day in August, Minnesota’s primary election came and went without many Minnesotans blinking. Secretary of State Ritchie had predicted a 10 to 15 percent voter turnout and early results indicate it was slightly below 10 percent.

�ere were 13 MN House of Representatives primary races; 3 Congressional seat primaries; 1 US Senate primary; contested primaries in the Gubernatorial race as well as severalstatewideofficesincludingStateAuditor.

U.S. Senate RaceBusinessman Mike McFadden won with 71 percent over his challengers for the right to face incumbent Senator Al Franken. McFadden’s top primary challenger was state Rep. Jim Abeler.

Governor’s RaceGOP endorsed candidate Je¨ Johnson won with 30 percent of the vote. Kurt Zellers �nished in second place with 23 percent, followed by Marty Seifert at 21 percent and Scott Honour at 20 percent. Over 180,000 voters were cast in this Republican race.

Over 190,000 Minnesotans voted in the DFL Gubernatorial primarycontestandoverwhelming(90%)GovernorMarkDayton won the opportunity to face re-election. Also running in the Governor’s race in November will be Hannah Nicollet under the Independence political party banner.

State AuditorIncumbent DFL endorsed candidate Rebecca Otto had no problems �ghting o¨ a challenge from former state Rep. Matt Entenza. She won with 81 percent of the vote.

Secretary of StateCurrent Secretary of State Mark Ritchie is retiring. DFL endorsed Steve Simon beat out the competition with 43 percent of the vote over perennial candidate Dick Franson who captured 29 percent and Gregg Iverson with 28 percent. Simon will face former Republican legislator Dan Severson.

Crucial General Election – November 4thWhile this is not a Presidential election year, there is a lot at stake for Minnesota voters this November. All 134 MN House of Representatives are up for re-election as well as a USSenateSeatandtheGovernor’soffice.

If you are not able to get to the Polls on November there is a lot of opportunities to cast your vote prior to that date.

How to Vote AbsenteeYou can vote early by using an absentee ballot, instead of voting in person at the polling place on Election Day. You can vote absentee by mail, in person, or by having a person you know pick up and deliver your ballot for you.

Absentee ballots are available 46 days before an election. In 2014, ballots will be ready September 19 for the General Election (November 4).

Vote Absentee By Mailu You can complete and submit an absentee ballot

application online from the Minnesota Secretary of State’soffice(www.sos.state.mn.us)orcallforaballot(1-877-600-VOTE (8683), then mail, fax or email it to your localelectionsoffice.

uOnce you receive your ballot in the mail, follow the instructions carefully. You will need a witness to sign the absentee ballot signature envelope to con�rm your ballot was delivered blank and that you marked the ballot in private. �e witness must be another registered Minnesota voter, or a notary from any state.

u Return the ballot on or before Election Day. Delivery options: Mail it in the provided pre-paid envelope or by package

delivery service. �e ballot must arrive on or before Election Day.

Deliveritin-persontotheofficethatsenttheabsenteeballot by 5 p.m. on the day before the election.

Have someone else return your ballot before 3 p.m. on Election Day. �is person cannot deliver more than three ballots.

You may not hand deliver your own absentee ballot on Election Day.

Vote Absentee In Person You can request, receive and cast an absentee ballot in one visittoyourcountyelectionoffice.Somecitiesandtownsalsoprovideabsenteeballotsattheiroffices. G

Primary Election Results

Low turnout on Primary Election NightGeneral Election on November 4th is crucial

VOTE November 4!

In your INTERESTSEPTEMBER 20148

Action Team Meetings

MUI Candidate Survey Results

Nearly 600 members participated in MUI’s summer Action Team meetings.

All of the Gubernatorial candidates (Republican & Democrat) were invited to speak at the meetings. Republican Governor candidate Scott Honour & Lt. Governor candidate Dean Simpson participated in several of these member meetings.

At many of the meetings, Joe Scipioni, Chief Operating Officer of Polymet spoke to MUI members about theirproposed copper, nickel & precious metals mining project in Northern Minnesota. Scipioni gave a presentation to members and answered their questions about the mining process, the environmental protections in place as well as the

stringent regulatory approval process they are in the middle of complying with.

Also speaking at several meetings (Little Falls, Bemidji & Brainerd) were representatives from Enbridge. Meghan Shea & Lorraine Little addressed the signi�cant impact the Enbridge projects and upgrades have on Minnesota’s utilities and the investments they are making to their systems in Minnesota and nationwide.

We have invited all of the candidates for Minnesota’s House of Representative to the MUI Fall Action Team meetings. Please see Page 11 for a complete schedule of our upcoming meetings. G

Immediately after the candidate �lings closed in early June, MUI sent our Candidate Survey to 281 candidates to the Minnesota House of Representatives (the MN Senate is not up for re-election until 2016). It was a survey of 9 questions, asking candidates their thoughts on the energy utility industry and energy issues. �e deadline was August 1st, prior to the August 12th primary. Over 37% of theHouse legislative candidates responded to the MUI survey.

�e results of the survey were distributed to MUI members in districts (13 districts) where there was an August

primary race. �e rest of the consolidated survey results were distributed by Labor Day. If you did not receive the candidate survey results for your district, please contact the MUIofficeat651-227-7902or1-888-850-5171.

All legislative candidates have been invited to attend the upcoming MUI Action Team meeting in their legislative district. G

REMINDER Election Day is Tuesday, November 4th!

Action Teams – a vital part of MUI’s success

Legislative candidates respond to questions about energy

MUI members at the Action Team Meeting in Duluth.

MUI Action Team Meeting

MUI members at the Action Team Meeting in the NW metro.

Joe Scipioni, COO of Polymet, speaks about copper, nickel and precious metal mining in Northern Minnesota.

VOL. 24 NO. 3 9

News Briefs

Diversity of future US power supply could be significantly reducedDiversity in the US power supply—the most cost-e¨ective means of managing the inherent risks in fuel costs and technology performance in generating power—could be dramatically reduced in coming decades. Fuel and technology decisions on new supply that will determine as much as one-third of US power supply will be required in the coming decades.A combination of factors—chronically depressed wholesale power prices, proposed environmental regulations and a focus on renewables and natural gas over coal, oil, nuclear and hydroelectric power plants—is currently moving the United States toward a signi�cant reduction in power supply diversity.

Incidents such as last winter’s polar vortex demonstrate the value of power supply diversity. Greater demand for natural gas and electricity to heat homes and businesses in the US Northeast strained the capability of pipeline systems, which led to localized price spikes. At some points for brief periods, additional natural gas was not available at any price. Oil-�red power generation—although accounting for only 0.35 percent of generation in the Northeast in 2012—provided a critical alternate supplement to the over-strained natural gas supply system during this time. In the Midwest, the increased utilization of coal-�red power plants played a similar role providing a necessary substitute for constrained natural gas-�red power plants during the cold snap.

Source: US Power Diversity Report: IHS Corporation

Big batteries are starting to boost the electric grid By John Roach Long hailed as a game changer that will allow unlimited amounts of wind and solar energy onto the electric power grid, big rechargeable batteries are beginning to move out of research labs and �nd a home amid the real-world tangle of smokestacks, turbines and power lines. Today, the reality falls short of the hype about fossil-fuel-free electricity — but experts say that future could be in store.

For the foreseeable future, electric utilities will rely on coal, gas and nuclear power plants to provide a steady base of power, according to Paul Denholm, a senior analyst at the National Renewable Energy Laboratory in Golden, Colorado. But batteries can help balance the �ow of electricity as demand ramps up and down throughout the day.

"�at is where the hot applications are right now for energy storage," he told NBC News.

Traditionally, utilities maintain a little "wiggle room" on their system, he explained. For example, they might run power plants at 90 percent capacity, so that extra juice can be made available when a dark cloud passes overhead and thousands of people �ick on their lights.

Operating power plants that way is hard on a system. It's inefficient, and expensive. Batteries, which can add extrajuicenearly instantaneously,areamorecost-efficientwayto keep the grid humming. What's more, this load leveling usually only requires 15 to 30 minutes' worth of energy. "You can have a relatively small storage device and make a decent amount of money on it," Denholm said.

While the market for this type of battery usage is limited, it is an entry point for a technology in need of experience on the grid, he explained.

Balancing the loadLoad leveling is precisely what Avista Corp. in the Paci�c Northwest plans to do with the 3.6-megawatt capacity vanadium �ow battery it is purchasing for its grid in Pullman, Washington, with the help of a $3.2 million matching grant it received in July from Washington state to advance energy storage technology. In theory, the battery from Mukilteo, Wash.,-based UniEnergy Technologies could be installed next to a wind farm to store excess generated electricity, for occasions when wind speeds go so high that turbines are shut down to prevent damage, or when the wind suddenly dies out.

"But that carries with it a lot of cost [for] a single purpose … and you still have to send it across the transmission lines to get it to the load," Curt Kirkeby, a senior electrical engineer and technical strategist with Avista in Spokane, Washington, told NBC News.

Instead, the company will put the battery at a substation to help balance the load on the entire distribution system, he explained. "�at doesn't preclude it, of course, from being used in aggregation with other storage to take care of that wind farm problem or to take care of a solar panel problem."

Solar panel problems may grow particularly acute in California, which leads the country in installed solar capacity with 7,136 megawatts, enough to power about 1.7 million average homes. Sensing a growing need to balance the intermittent nature of solar energy, the California

News Briefs cont. on page 10

In your INTERESTSEPTEMBER 201410

News Briefs

News Briefs cont. from page 9

Public Utilities Commission told the state's three largest utilities to add a total of 1,325 megawatts of storage to their systems by 2020.

"We are trying to get to the stage where we have a robust set of options, storage being one of them, for addressing renewable integration and grid stability issues," said Julie Fitch, chief of sta¨ for CPUC Commissioner Carla Peterman, who led the California initiative.

Poised for growth State grants and mandates "will certainly have a huge impact on the energy storage market, because you are providing some long-term expectation of potential customers for energy storage companies to build a business around," Logan Goldie-Scot, an energy storage analyst with Bloomberg New Energy Finance in London, told NBC News. He forecasts the stationary storage market will grow ninefold to more than 11 gigawatts of capacity by 2020 from 1.2 gigawatts in 2013.

As the market grows, costs could be driven down by efficiencies of scale in manufacturing such as at TeslaMotors' Gigafactory, as well as continued improvements in storage technology such as a recent breakthrough in lithium batteries. �at should help utilities "manage the grid in scenarios with increased renewable energy penetration," Goldie-Scot said.

But for now, using storage purely to manage renewable integration doesn't make �nancial sense, according to Denholm. "It's not like we've got a lot of spare wind or solar capacity that can't be used," he explained. "�at value proposition will have to increase. We are going to need a lot more renewables before you see the point where it makes sense to store it." Source: NBC news; August 5th 2014

US spends billions on post-Fukushima upgradesSteven Dolley, steven.dolley@platts.com Edited by Caitlin Laird, caitlin.laird@platts.com

�e US nuclear power industry has so far spent about $3 billion taking actions and making plant modi�cations to address lessons learned from the 2011 Fukushima I accident inJapan,autilityofficialtoldtheUSNuclearRegulatoryCommission during a brie�ng �ursday.

NRC ordered US nuclear power plant operators in March 2012, almost exactly a year after the accident, to comply

with new requirements designed to strengthen their ability to keep reactors and spent fuel cooled during severe external events, such as the earthquake and tsunami that hit the station in Japan.

�e Nuclear Energy Institute, which represents the US nuclear industry, developed a plan, dubbed FLEX andeventually endorsed by NRC, which would use portable equipment deployed around the plants and in regional centers, to help respond to such an emergency and meet the new requirements. Most nuclear industry actions to comply with those orders must be completed by the end of 2016.

Jim Scarola, executive director at NEI and co-chair of the industry's Fukushima response steering committee, said during the brie�ng that the industry "does not look at this task as �nished. It is a continuous improvement."

Both NRC and nuclear industry reviews concluded after the Fukushima I accident that US power reactors were safe to operate but various improvements can and should be made. Source: Washington (Platts)--31 Jul 2014

Accolades to recent MUI dues-paying members

Accolades

MUI extends a sincere thank you to its recent dues-paying members for their support. �e following members represent those who submitted dues payments May 21, 2014 – August 11, 2014. Members are listed by state and alphabetized by �rst name. �e italicized names are three-year dues-paying members. Your support is crucial to our continued advocacy! �ank you!

MN: Adeline Kohman, Clarence and Gail Ek, Claudia Johnson, Constance Ahrens, Dorothy Spiering, Gladys Biltonen, Greg and Joyce Walters, Harold and Sharon Brunn, James and Marilyn Anderson, James Schoettler, John and Alice Lundquist, Judie and Alvin Valerius, Julie Cohen, Katherine Dols and Al Stevenson, Larry and Diane Kubiak, Larry Cordes, Lee and Patricia Hutchins, Linda Lueck, Lloyd C. and Dorothy J. Anderson, Margaret Pribula, Marian Snelling, Martin Barke and Mare Sa�e, Orville and Jenny Jette, Richard A and Carol A Olson, Richard L. and Betty R. �ompson, Richard Scanlon; PA: Grace Clarke Wright; SD: Mildred O'Neill.

VOL. 24 NO. 3 11

Upcoming MUI Member Meetings

Need a ride?Mark Your Calendar

Motor Coach Schedule MUI’s Annual Meeting – October 13, 2014

Complimentary Transportation from these locations

CITY LOCATION MEET TIME

DEPART TIME

Albert LeaShopko parking lot2610 Bridge Ave.

5:55 a.m. 6:00 a.m.

Alexandria Holiday Inn – 5637 Hwy 29 S. 6:35 a.m. 6:45 a.m.

BaxterTarget parking lot 700 Dell Wood Dr. N.

6:35 a.m. 6:45 a.m.

BloomingtonWalMart parking lot 715 East 78th St.

8:00 a.m. 8:10 a.m.

CloquetScanlon Exit Park & Ride Exit #239 – Hwy 45

6:30 a.m. 6:40 a.m.

DuluthHobby Lobby (Miller Hill) parking lot –1734 Mall Drive

5:55 a.m. 6:00 a.m.

Eden PrairieWalMart parking lot 12195 Singletree Lane

8:00 a.m. 8:10 a.m.

FaribaultWalMart parking lot 150 Western Ave NW

6:35 a.m. 6:45 a.m.

Fergus FallsWalMart parking lot 3300 Hwy 210 W.

5:55 a.m. 6:00 a.m.

HinckleyToby's parking lot 404 Fire Monument Rd.

7:20 a.m. 7:30 p.m.

LakevilleTarget parking lot 18275 Kenrick Ave.

7:25 a.m. 7:35 a.m.

Little FallsCoborn's parking lot 1101 2nd Ave. NE

7:10 a.m. 7:15 a.m.

MankatoHome Depot south end pkg lot 375 St. Andrews Dr

6:40 a.m. 6:45 a.m.

RochesterKohl's parking lot 20 – 25th St. SE

6:25 a.m. 6:30 a.m.

St. Cloud (East)Shopko East parking lot 501 Hwy 10 S

7:40 a.m. 7:50 a.m.

St. Cloud (West)Holiday Inn parking lot 75 South 37th Ave.

7:45 a.m. 7:55 a.m.

South St. PaulClarion S. St. Paul Hotel 701 S. Concord Street

7:35 a.m. 7:45 a.m.

Vadnais HeightsWalMart parking lot 850 East County Rd. E.

8:20 a.m. 8:30 a.m.

DATE CITY TIME

Tuesday, September 9 Duluth 11:30 a.m.

Tuesday, September 9 Chisholm 5:30 p.m.

Wednesday, September 10 Grand Rapids 11:30 a.m.

Wednesday, September 10 Bemidji 5:30 p.m.

Thursday, September 11 Little Falls 11:30 p.m.

Monday, September 22 Alexandria 5:30 p.m.

Tuesday, September 23 Fergus Falls 11:30 a.m.

Tuesday, September 23 Moorhead 5:30 p.m.

Wednesday, September 24 NorthEast Metro 11:30 a.m.

Monday, September 29 Baxter/Brainerd 5:30 p.m.

Tuesday, September 30 Mankato 5:30 p.m.

Wednesday, October 1 Albert Lea 5:30 p.m.

Thursday, October 2 Rochester 11:30 a.m.

Thursday, October 2 Winona 5:30 p.m.

Monday, October 13 MUI Annual Meeting see pg. 2 for details — EVERYONE IS WELCOME! —

Monday, October 20 St. Paul 5:30 p.m.

Tuesday, October 21 Woodbury 5:30 p.m.

Wednesday, October 22 Owatonna 11:30 a.m.

Wednesday, October 22 Bloomington 5:30 p.m.

Thursday, October 23WI Utility Investors and MN Utility Investors Joint Meeting

Thursday, October 23 West Metro 5:30 p.m.

Monday, October 27 St. Cloud 5:00 p.m.

Note: These meetings dates are subject to change. Please watch your mail for the meeting notice for the meeting nearest to you.

In Your Interest is a publication of Minnesota Utility Investors, and is published four times each year in March, June, September and December.

Phone: 651-227-7902 Toll Free: 1-888-850-5171

Email: mui@mnutilityinvestors.org www.mnutilityinvestors.org

President: Annette P. Henkel

Manager of Member Services: Zachary Forschler

Office Manager: Lana Leonard

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The Cass Gilbert Building 413 Wacouta Street, Suite 230 St. Paul, MN 55101

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Minnesota Utility InvestorsThe Cass Gilbert Building 413 Wacouta Street, Suite 230 St. Paul, MN 55101Phone: 651-227-7902 Toll Free: 1-888-850-5171Email: mui@mnutilityinvestors.org

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