The Basin Electric board of directors approved the 2024-2033 long-range engineering plan (LREP), as presented by Matt Ehrman, Basin Electric vice president of Engineering and Construction, during the August meeting.
The 2024-2033 LREP includes a preliminary look at both Basin Electric and Dakota Gas projects that may be considered for approval in the next 10 years, with increased detail available for the first three years of the plan.
More than $3.8 billion is expected to be spent on all facilities over the next 10 years, with more than $2.7 billion going toward new renewable and natural gas-based generation, refurbishments of existing renewable generation, and new transmission projects. The cost of the renewable projects is anticipated to be reduced by incentives made available by the Inflation Reduction Act. More than $475 million is expected to be spent on existing coal generation facilities, and $175 million to be spent on existing transmission facilities.
“A cross-departmental team prepares the Long-Range Engineering Plan, and it includes anticipated project commitments for all of Basin Electric's assets,” Ehrman said. “The anticipated projects included in the plan are not yet approved by the board of directors. Our focus continues to be providing reliable, affordable, and responsible electricity to our membership.”
The projects in the plan are integrated into the financial forecast and capital budget.
The LREP is completed for the benefit of the cooperative's members. When Basin Electric borrowed money from Rural Utilities Service, the plan was used as reporting for that purpose as well. Basin Electric bought out of Rural Utilities Service in 2015, but has elected to continue to prepare the LREP as a planning tool.
