ELECTRIC COOPERATIVES LEAD MINNESOTA INNOVATION

7 Cooperative Principles

Voluntary And Open Membership

Democratic Member Control

Member Economic Participation

Autonomy And Independence

Education, Training, And Information

Cooperation Among Cooperatives

Concern For Community

Rural Electric Cooperatives in Minnesota

45 member-owned electric cooperatives serve: 85% of Minnesota’s geography – 1.8 million residents

Electric cooperatives maintain over 124,000 miles of

line, more than all other electric utilities (Xcel,

Minnesota Power, Municipals, etc.) combined.

Minnesota electric cooperatives employ 5,500 people.

Rural electric cooperative member-owners: 92% are residential consumers (few commercial or

industrial businesses).

Majority of co-op consumers have a per capita

income below the state average.

Minnesota Co-ops Keep Energy Affordable

Annual Member-owner surveys across Minnesota

tell co-ops that affordability is the top priority.

Investor-owned utilities are focused on maximizing

the rate of return for investors, electric

cooperatives are focused on minimizing costs for

the member-owner of the utility.

Keeping Minnesota Co-ops out of one-size–fits–all

mandates has allowed for innovation while

keeping costs low and service reliable. Ex. Solar

Mandate

Economic Development

Minnesota Co-ops are more than just electric

energy service provides, they are economic development engines in the communities they

serve. Minnesota co-ops create jobs, support

local businesses and attract new businesses to

rural communities.

Minnesota co-ops manage revolving loan funds,

grants and other programs that support and

attract business in Greater Minnesota.

Local Decisions = Local Innovation

Local community wants and needs drive the

service and innovation Minnesota co-ops provide.

Local democratically elected boards of directors balance the needs of their communities.

Local boards and their local employees drive

innovation while providing affordable, safe, reliable and green energy service.

Cooperative Opportunities

“Customer Choice” led to the development of

electric cooperatives and members continue to

drive the innovation within their cooperatives.

Innovation will vary widely amongst cooperatives

in Minnesota and nationwide as they respond to

the needs of their unique communities.

Distribution cooperatives are service providers,

not commodity sellers. Providing service requires

infrastructure and people to maintain it. The cost of that service needs to be fairly collected.

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MVEC Overview

Based in Jordan

Distribution Cooperative

Purchase wholesale power

from:

Great River Energy

Basin Electric Cooperative

Alliant Energy

82 employees

41,000 members

49,000 meters

MVEC Board of Directors

Innovation Through

Information and Programs

Daily Electric Usage on Back of Electric Bill

WiFi Thermostat Program

Beat the Peak Energy Challenge

Energy reduction in a game format 1

2

Members compete as individuals and

some banded together as teams:

$25,000 in cash prizes

3

Future

Implementing Demand

Response Management

System from OATI

Applied for Department of

Energy Grant

Utilizing and Optimizing DERs

DOE Grant Concept

Data Analytics & Visualization

• Engage Customers: Display meter data and usage

in more a meaningful/engaging format

• Develop Customer Insights: Utilize data to

determine program effectiveness and achieve

marketing objectives

Ryan Hentges

952-492-8202

ryanh@mvec.net

Thank You

Mt. Ayer, Iowa Circa 1960

Grandpa Jim Burdette

Est. 1894

Southwest Rural Electric Cooperative Circa 1935

Great Grandpa Truman Burdette

Innovation

• Transformed communities in the past

• Central to success of communities

• Technological Evolution

• Challenges and Opportunities

• Looking ahead