by Brad Dolinski, CEO
Good afternoon NIECI,
I am saddened by the loss of our Director Bruce Leino. I have had the honor of working with Bruce since I started my career with North Itasca Electric. Bruce was my Great River Energy representative, we spent more time together because of that with meetings and discussions about GRE. This grew into a great friendship and Bruce will always be one of the great foundational influences in my life.
I recently attended two meetings with GRE. The first was our Regional Meeting. Once a year GRE invites all directors to attend the Regional Meeting. They give us updates from each divisional VP and open the floor for questions. This is the opportunity to share how the previous year turned out and what they are expecting for the year to come.
2023 at GRE was a fantastic year financially. Great River experienced lower than expected costs in several areas. Natural gas was one of the biggest savings. Electricity pricing in the market is directly affected by natural gas pricing. Lower gas price is lower market energy pricing. This saved GRE substantially over the course of 2023.
We heard from the professionals in the industry what the year looked like and what the outlook is for power supply. The current fleet and power supply portfolio did perform well in 2023. We were able to capitalize on low market pricing when it was available. Our peaking plants ran when called upon in times of need; this also adds to the bottom line in the finances. The contracts executed for power purchases over the past several years were the hedge needed against times of high market pricing.
2023 was a great year for the power portfolio, we are expecting the same in 2024. Jon and his team will continue to explore the best contracts and opportunities to provide the power necessary to keep our lights on.
I get asked from time to time, what can I do to help the future of North Itasca Electric? Yeah, OK, maybe it’s not worded quite like that. You have an opportunity to weigh in on something that could help our communities and our power grid out. The Minnesota Public Utilities Commission is looking for comments on Docket E-999/CI-23-151. We are asking the PUC to consider woody biomass, without limitations, as a qualifying renewable energy source for carbon-free eligible energy technologies. MN Statutes section 216B.1691 subdivision 1(c) lists biomass as a qualifying renewable energy source for eligible energy technologies to generate carbon free electricity. We simply want to include woody biomass in this same section.
Please consider sending an email to consumer.puc@state.mn.us with your comments. If you have any questions about this, please contact me in the office or send me an email at Bradd@nieci.com.
Minnesota’s forests produce an abundance of under-utilized renewable biomass materials in the form of mill residues, treetops/limbs, salvage from fires/insect damage, and under-utilized species. This abundance of renewable woody biomass available in Minnesota provides many benefits in finding uses for these waste materials. Replacing carbon-intensive fossil fuel energy sources, like coal, with renewable biofuels will provide a greater opportunity to reduce carbon emissions. This would be a tool to use to meet our carbon-free by 2040 standard passed last year.
I took a glance at the forecast this morning. There are more days in the 40s coming. This is the first winter I remember not seeing a steady diet of 20° below zero. I know we will somehow pay for this, but I’m sure enjoying it today. I’m crossing my fingers we don’t have extreme fire danger this spring; with a few timely placed rain showers, we won’t have a thing to worry about.
We might even get an early golf season! We’ve been practicing golf on the old Nintendo Wii with my friends Eric and Kelly. Unfortunately the Wii died recently. We’re already on the hunt to replace that gem in the garage.
By your side! Miigwech
Brad
