At their December meetings, the boards of directors approved the 2025 operating and capital budgets for Basin Electric and subsidiaries.
Darla Jensen, Basin Electric director of Financial Reporting and Planning, said the 2025 budgets were developed to achieve Basin Electric’s strategic objective of financial performance and agility. That objective involves designing and implementing forecasts and rates that help support “A” category senior secured credit ratings and sustaining a healthy balance sheet and financial agility.
Similar to the long-term financial forecast developed in mid-2024, the 2025 budget includes an approximate $4 per megawatt hour (MWh) average rate increase effective Jan. 1, 2025, with amortization of approximately $45 million of deferred revenue from the Rate Stability Fund to assist in offsetting a portion of the rate increase.
Basin Electric’s 2025 operating budget includes a total cost of electric service of $2.3 billion. Approximately 50% of the cost of electric service is composed of purchased power and fuel expenses and around 20% can be attributed to depreciation and interest. Basin Electric's average member rate for the 2025 budget is $63.59 per MWh.
Total capital expenditures of $1.2 billion are included in the 2025 budget resulting in increased financing costs. “The anticipated cash flow for capital projects in 2025 amounts to $1.2 billion. About $750 million of that can be attributed to new generation, specifically natural gas generation, and $250 million to new transmission,” Jensen said. “We are also looking to invest more in our existing generation facilities in 2025.”
For Dakota Gasification Company, a subsidiary of Basin Electric, the 2025 budget includes operating revenue of $543 million. “A little less than half of that comes from the fertilizer products and diesel exhaust fluid with revenue from carbon capture and sequestration being a large contributor to revenue and the expected financial results. Natural gas sales make up 23% of the total revenues budgeted in 2025,” Jensen said.
The budget includes operating expenses of $622 million and Dakota Gas’ capital budget includes expenditures of $45 million, with a continued focus on the infrastructure improvement plan.
Dakota Gas’ budgeted net loss after tax is estimated at approximately $55 million.
The consolidated net income after-tax, after amortization out of deferred revenue from the Rate Stability Fund, for Basin Electric and its subsidiaries is estimated at $143 million.
