CEO Report

By Brad Dolinski, CEO

JULY 2026

Thank you for attending your Annual Meeting of North Itasca Electric Cooperative, Inc.
I always start out my presentation with a lot of well-deserved thanks. Our office department led by Dan just finished our yearly audit. This went smoothly due to the hard work of the professionals in our office. Right as we finished the yearly audit, we were informed by Rural Utility Services that we were chosen for a RUS audit. Our office professionals jumped into action to provide the necessary information for that process. We are waiting for the outcomes from our RUS auditor currently. Our office works very hard on our behalf, and I want to say thank you.
Daryl Pederson runs our line department. Daryl and our talented line crew have been busy with the start of the construction season. This season starts long before we ever bury a line or set a pole. Dick Lind is out designing line and meeting with landowners while Chris Larson is procuring materials for the jobs to come. This team is well oiled and adapts to the crazy prices and availability of materials in the new normal we’re finding ourselves in. Our entire group of linemen lead with safety and professionalism. I need to call out two of them at this meeting, Trevor and Eli. These gentlemen, like the rest of our crew, are now Journeymen linemen. They put in the work and study time to pass necessary tests to perform their jobs safely and to obtain the knowledge to be proficient in their daily work.
As Trevor and Eli advanced in their career, Mr. Chuck Peck advanced also. After almost 30 years Chuck hung up his hooks and belt for retirement. Congratulations Chuck and thank you for your service. Thank you to our line crew.
Drew oversees our Member-Services Department. Drew has excelled in his position working with members. He bounces from high bill complaints, ordering HVAC equipment, managing our Off-Peak system and a host of other duties. Drew and Roxanne are the friendly faces you turn to in a time of need. Thank you to all our employees!
Our Board of Directors and Attorney help me to navigate these shifting seas. Our Board of Directors is prepared to set policy and oversee the strategic direction of your cooperative. They invest in classes and training, building knowledge in the boardroom. Our board is active across the State of Minnesota, Wes Waller is leading a Minnesota Rural Electric Association meeting today and cannot be here with us. Our board is engaged with our legislators and knows the issues we are facing so they can best represent our cooperative. Thank you to our Board of Directors and Attorney for your due diligence.
So, what is news at your cooperative? We are stuck in an era of rising rates. With legislative changes that have happened, GRE will be one of the most affected G&T companies by “carbon free by 2040.” GRE has load almost strictly in Minnesota. Other generation and transmission companies have load in other states without mandates; they can shift resources on paper where we do not have the ability to do so.
GRE has the responsibility to serve our load. Without coal resources we have had to redesign our approach. GRE has been focused on this redesign for several years. Today we are securing wind contracts to serve the members of GRE. Additionally, wind is an intermittent resource. If the wind isn’t blowing you need another power source. Thankfully, there is language in the 2040 mandate to allow for peaking plants.
GRE is in the process of building a peaking plant just outside Grand Rapids, Minnesota. Most likely this will be a 49.9 kW peaking plant that runs off natural gas. Without firm resources, we are exposed to the market prices in MISO. On a normal day this is fine, often we see pricing very favorable compared to owning a large plant. On days where there is scarce power, the pricing can exceed $900/MWh. That equates to $.90/kWh, and we sell it for about $.15 cents. These conditions make peaking plants very valuable. We lean on our peaking fleet when pricing is high or power is needed. This is flexible and a good mix during difficult times.
Shifting gears: There have been a lot of discussions about data centers over the past couple of years and in the news. I will assure you, we have not been approached to serve a data center. I will also share; I would love to serve one if we had the chance to do it responsibly. They use a ton of power and that could help to offset the operating cost for all members of NIECI. There are multiple players in the data center world. There are centers that use water, and ones that cool these facilities with other means. I would like to bring in professionals to discuss what a data center is and what are the pros and cons of having a facility in the region. Would you be interested in attending that type of community meeting? I will be clear; I am not seeking interest from a company to come to our service territory. I would like to learn more about these facilities together.
Another exciting topic on the watch list is that our legislators passed a nuclear study bill in Minnesota this year. Representative Igo led the charge on this bill. He put in the work to meet with constituents and interested parties. Spencer worked very closely with the Prairie Island Indian Community to draft the bill passed in Minnesota. This would be a comprehensive study covering everything about nuclear power. Based on this study, there may be future legislation to consider lifting the nuclear moratorium in Minnesota.
I’m getting close to wrapping up here, another hour should cover it (sarcasm intended). How many of you have been south of Talmoon on Hwy 6 lately? GRE is investing in our transmission reliability along that corridor. The existing transmission line was due to upgrade because of age and condition. The decision was made to bring the line out to Hwy 6 because the current route was not accessible. If problems arose, we couldn’t get the necessary equipment to the line. This construction will improve transmission outages on our system. There will be a few shorter outages on the Jesse Lake Substation throughout the project as they tie the line to our system.
Finally, before I open it up to questions, there are a lot of transmission projects being built in Minnesota. There are new lines and upgrades happening across the state. All of this is to carry power in a newer fashion than we have had in the past. These lines come at a growing cost. When the lines were designed, equipment was, frankly, less money. The Northland Reliability line running from the cities to Grand Rapids area was bid at roughly $900 million. The last time I heard, this line is over $1.5 billion. These necessary transmission lines will be split across MISO, but we will still see impacts on rates at North Itasca Electric.

By your side!
Miigwech, Brad

JUNE 2026

Good afternoon, North Itasca!
I am pretty sure the ice is off most of the water we fish. Lake of the Woods had a little floating around last weekend, but Mother Nature helped us out with a little wind.
I’m gearing up to head to Canada. It’s that time of the year and I couldn’t be more excited. I have a ton to do before we head out but that’s ok. We’ll relax when we get there.
This Thursday we have the Member-Owner Appreciation Day. Sounds like Andrew has a good variety of business partners coming to share information with all of us. I’m looking forward to visiting with the air-source heat pump professional. I have an idea; I just want to see if I can accomplish it. I’m crossing my fingers I can get one outdoor unit to run both my house and garage. This would cut down on my expenses and make the space more comfortable. Daryl and I will be busy cooking for the event. I’ll try to catch this gentleman before we start cooking.
I met with my office professionals this morning. We are getting ready to host the 86th Annual Meeting of North Itasca on June 18th at 2:00 p.m. in Bigfork, MN.
We will hold the Annual Meeting at our office. Our line crew is preparing a safety demonstration for the event. The office and I are ensuring we are following the protocols set by our by-laws. We need to ensure mailings are sent per the by-laws. We will provide $25 bill credit for attending the Annual Meeting. There is a Zoom option you will receive if you cannot make the meeting in person. Watch your mailbox around the first of June for your ticket to the show.
This year Dan, our Office Manager, will present the financials at the Annual Meeting. I am pleased to report that our Board of Directors approved the 2025 audit at our April meeting. The finances turned out very positive for 2025. One line to point out is our allocation from Great River Energy. In 2025 Great River Energy had a great year financially. This turned into an allocation much larger than what we budgeted in 2025. This is the biggest driver of our significant margins for the end of the year. Dan or I can go into further details about this at the meeting or if you want to, give us a call. The allocation is not physical money. This will be paid to today’s members in roughly twenty plus years from GRE.
I want to close today by telling you how proud I am of Trevor and Eli. These two gentlemen come to work daily with a great attitude, work safely, and work hard for the Member-Owners of North Itasca Electric. Recently Trevor Michienzi and Eli Rahier received their Journeyman Lineman status. There are many books and tests these professionals need to study and pass along with learning the skills necessary to perform the work safely.
Congratulations and thank you to our operations Department. Stay safe out there!
By your side!
Miigwech
Brad

May 2026

Good afternoon, NIECI!
I don’t want to push my luck; it’s currently looking like a nice stretch of weather coming. This should mean open water fishing is close! I’m sure there are many hands working on summer preparation. I try to replace several reels of line before the big one gets away because I failed to inspect my equipment.
With the turn of the season, we find ourselves in the wildfire danger zone. This is a major concern for North Itasca. We never want to be the cause of harm or damage to your family or property. This is the reason we worked with partners to develop a wildfire mitigation plan.
Once adopted this month by our Board of Directors, the plan is essentially a playbook and set of rules to prevent starting wildfires. This plan was developed through cooperation with Star Energy Services. Star took wildfire data from FEMA and other sources and overlaid our service territory into the map data. We analyzed where the threats are the highest across our system. We will use this data to ensure the highest level of care to prevent NECI from being an ignition source.
We worked with the Minnesota Department of Commerce to secure a grant to start this process. North Itasca was awarded a $100,000 grant to develop a wildfire mitigation plan and to carry out the tasks called out in the plan. I am happy to report that we are well under way. Right of way clearing is top of the list to prevent wildfires. There will be more attention to dead and unhealthy trees along our powerlines.
Our wildfire plan will be available to our Member-Owners on our website next month. You can see the depths Star took to ensure we are prepared.
In some areas of the United States of America, utilities are expected to shut lines off in fire risk situations. Thankfully, this was not yet a recommendation in our plan. I would encourage you to look at the document once it is posted. Feel free to call me with suggestions or concerns regarding the wildfire mitigation plan.
On May 14th I’m looking forward to Member Appreciation Day at the community center. Andrew has been working hard to provide some additional information to all. He has invited several of our vendors to be with us. If you are interested in heating, generator, battery, or other projects, this might be a great opportunity to learn more about what we have to offer.
Also, Daryl and I will be slinging burgers and brats out on the grill for everyone that attends.
Our nominating committee meets in the first week of May. Thank you to the volunteers that stepped forward to ensure we meet your expectations and bylaw requirements for director’s elections.
Also, a huge thank you to our Operation Round-Up Board that met in April. This caring group always does a great job thoughtfully reviewing all applications. With limited resources, we are always left wishing we could give more.
By your side! Miigwech
Brad

June 2026

Good afternoon, NIECI!
I don’t want to push my luck; it’s currently looking like a nice stretch of weather coming. This should mean open
water fishing is close! I’m sure there are many hands working on summer preparation. I try to replace several reels of line before the big one gets away because I failed to inspect my equipment.
With the turn of the season, we find ourselves in the wildfire danger zone. This is a major concern for North Itasca.
We never want to be the cause of harm or damage to your family or property. This is the reason we worked with partners to develop a wildfire mitigation plan. Once adopted this month by our Board of Directors, the plan is essentially a playbook and set of rules to prevent starting wildfires. This plan was developed through cooperation with Star Energy Services. Star took wildfire data from FEMA and other sources and overlaid our service territory into the map data. We analyzed where the threats are the highest across our system. We will use this data to ensure the highest level of care to prevent NECI from being an ignition source. We worked with the Minnesota Department of Commerce to secure a grant to start this process. North Itasca was awarded a $100,000 grant to develop a wildfire mitigation plan and to carry out the tasks called out in the plan. I am happy to report that we are well under way. Right of way clearing is top of the list to prevent wildfires. There will be more attention to dead and unhealthy trees along our powerlines. Our wildfire plan will be available to our Member-Owners on our website next month. You can see the depths Star took to ensure we are prepared. In some areas of the United States of America, utilities are expected to shut lines off in fire risk situations. Thankfully, this was not yet a recommendation in our plan. I would encourage you to look at the document once it is posted. Feel
free to call me with suggestions or concerns regarding the wildfire mitigation plan. On May 14th I’m looking forward to Member Appreciation Day at the community center. Andrew has been working hard to provide some additional information to all. He has invited several of our vendors to be with us. If you are interested in heating, generator, battery, or other projects, this might be a great opportunity to learn more about what we have to offer.
Also, Daryl and I will be slinging burgers and brats out on the grill for everyone that attends.
Our nominating committee meets in the first week of May. Thank you to the volunteers that stepped forward to ensure we meet your expectations and bylaw requirements for director’s elections.
Also, a huge thank you to our Operation Round-Up Board that met in April. This caring group always does a great
job thoughtfully reviewing all applications. With limited resources, we are always left wishing we could give more.

By your side! Miigwech- Brad

May 2026

April 2026

Good afternoon NIECI!
With a little luck spring might just hang in there this time. We’ve had some glimmers of hope and I’m ready to transition. I want the open water season. I am ready for the side by sides to come out in force. I’m ready for what is to come. Our Board of Directors and I traveled down to the Capitol this week. We visited with our legislators and friends. I was extremely excited to see Senator John Hoffman. John and I have become friends over the past several years. He doesn’t represent our area, but he represents Minnesota. John was attacked this past summer; shot nine times. He is still serving in the Minnesota Senate and wishes to run in the upcoming election. John cares about Minnesota and improving the lives of all Minnesotans. Extremely nice to see Senator Hoffman! We were fortunate enough to have several of our legislators join us for supper. We team with Lake Country Power, Arrowhead, Co-op Light and Power, Mille Lacs, and North Star Electric. This team approach allows us to combine forces and visit with legislators we otherwise may not have a chance to spend time with. We were able to visit about net metering. If solar installations are not sized to load, we have cost shifting between members. We don’t have an issue with solar. If Member-Owners want to install it, great! I do not like when North Itasca Electric is forced to purchase the power from a system that is overbuilt for more than I must pay Great River Energy for the same power. Solar power has a place in our mix of resources; it does not pencil out at utility scale currently. Mr. Mark Bakk told us a riveting story about resources in general. He talked to us about a battlefield. The opposition is the electric load coming at us. Our knights in fancy uniforms were solar resources and wind. At night half of them disappeared from the battle; the sun went down. During the cold snap in January, the wind didn’t blow and we lost all our wind soldiers. We have other soldiers; they come and go at will. These are off-peak programs; we can call on them to slow the attack from load when needed. Our front line is still hardened by coal, natural gas, and nuclear power. This is the wall of resources that have been fighting the good fight for years. We need them to continue to win against a growing load. Sorry, Mark, if I butchered a great speech. I spent my time talking about transmission investments being made today, along with nuclear power. It was a sight to see at the Capitol. There were bucket trucks out front with a huge American Flag hoisted between them. We were able to take part in a nuclear energy discussion where Representative Igo and Senator Hauschild both spoke in favor of nuclear energy. We are close to passing a bill for a nuclear energy study in Minnesota. This is a very thoughtful approach prior to asking to lift the nuclear moratorium. I just want to thank Minnesota Rural Electric Association. They put together a great meeting and a great opportunity to engage with our legislators. Job well done!
By your side! Miigwech
Brad

March 2026

Good afternoon NIECI,
We had a serious blast of winter followed by a glimpse of spring. This swing in temperatures and winter conditions had some serious effects on our industry. I will dive into this shortly.
On the positive side, all our snowmobilers out there are grinning ear to ear with the arrival of snow. I know a group of anglers excited for a lucrative annual fishing event happening this weekend. Events like these bring out the fun winter in Talmoon has to offer. Thanks Jim, your efforts put smiles on many faces! During January we had ten days of extreme cold conditions. So, we say it gets cold in northern Minnesota every year. This event was important because the cold spread across the nation. When the temperature drops across the nation the demand for natural gas increases dramatically. Many power supply peaking plants operate off this same supply of natural gas, very large amounts of natural gas. This will cause dramatic supply and demand pricing spikes in MISO. Along with the limitations of natural gas there were other significant impacts to note. The DC line from North Dakota to Minneapolis had an issue. This led to one of the circuits remaining down during the freeze. The wind did not blow significantly during this time either. We have a large reliance on wind power in Minnesota: when the wind doesn’t blow, we need power from other sources. Thankfully our peaking fleet responded to the need for reliability. The fleet was forced to run on fuel oil during the cold snap because of the price and availability of natural gas. This came at a cost in MISO. Local market pricing in our MISO Zone hit an average of $265/MWh with a peak of $704/MWh. In context we expect to pay in the range of roughly $25-$57/MWh for the same power costs. This leads me to the point that I need to make. I need to discuss the Power Cost Adjustment with our Board of Directors this month. NIECI received a PCA of roughly $120,000 from the cold snap in January. This PCA is charged to us when events outside the control of GRE happen. Our Board of Directors has the decision to pass these charges back to members or hold them depending on the situation. NIECI used to pass the PCA, no matter the amount, monthly back to the member. We haven’t done this for several years. We may need to pull this lever once again. If the board chooses to pass the PCA to members, I will recommend spreading it over several months. Possibly with favorable conditions in MISO we could see reduced charges. Worst case scenario, we will have to pay about $.02/kWh more for the power we consumed in January. I will keep you posted on the results of this situation as I know more.
By your side! Miigwech
Brad

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