Basin Electric works to protect members from volatility

In recent years, the energy industry has been challenged by market price volatility. Power markets, natural gas markets, and commodity markets have all seen their ups and downs. There are several primary causes for this volatility, including more renewable generation, an increase in natural gas prices, and more coal generation retirements. 

Because Basin Electric is dedicated to providing reliable, affordable, and responsible electricity to its members, there are several ways the cooperative is working to protect its members from this volatility. 

ALL-OF-THE-ABOVE ENERGY STRATEGY

The cooperative's all-of-the-above energy portfolio, which includes several different types of generation sources, including coal, natural gas, wind, waste heat, and others, is one of the most effective strategies.

MARKET PURCHASES

Being a part of a regional transmission organization (RTO) also allows Basin Electric to continue serving its load reliably and affordably. Basin Electric is a member of two RTOs: Southwest Power Pool (SPP) and Midcontinent Independent System Operator (MISO). Basin Electric also participates in SPP's Western Energy Imbalance Service (WEIS). 

Basin Electric's membership is spread across a nine-state territory, giving it the opportunity to participate in four primary market areas. 

To learn more about the various strategies Basin Electric uses to protect its members from the ongoing volatility, including hedging, financial strength, and cooperative family, read Value during volatility: protecting the membership in times of uncertainty in the Winter 2023 issue of Basin Today.