Panelist slides from CEE's Policy forum on electric co-op innovation. Jim Horan, MN Rural Electric Association Beth Soholt, Wind on the Wires Ryan Hentges, MN Valley Electric Cooperative Jessica Burdette, MN Department of Commerce

1. ELECTRIC COOPERATIVES LEAD MINNESOTA INNOVATION

3. 7 Cooperative Principles
 Voluntary And Open Membership
 Democratic Member Control
 Member Economic Participation
 Autonomy And Independence
 Education, Training, And Information
 Cooperation Among Cooperatives
 Concern For Community

5. Rural Electric Cooperatives in Minnesota
 45 member-owned electric cooperatives serve:
 85% of Minnesota’s geography – 1.8 million residents
 Electric cooperatives maintain over 124,000 miles of
line, more than all other electric utilities (Xcel,
Minnesota Power, Municipals, etc.) combined.
 Minnesota electric cooperatives employ 5,500 people.
 Rural electric cooperative member-owners:
 92% are residential consumers (few commercial or
industrial businesses).
 Majority of co-op consumers have a per capita
income below the state average.

6. Minnesota Co-ops Keep Energy Affordable
 Annual Member-owner surveys across Minnesota
tell co-ops that affordability is the top priority.
 Investor-owned utilities are focused on maximizing
the rate of return for investors, electric
cooperatives are focused on minimizing costs for
the member-owner of the utility.
 Keeping Minnesota Co-ops out of one-size–fits–all
mandates has allowed for innovation while
keeping costs low and service reliable. Ex. Solar
Mandate

7. Economic Development
 Minnesota Co-ops are more than just electric
energy service provides, they are economic
development engines in the communities they
serve. Minnesota co-ops create jobs, support
local businesses and attract new businesses to
rural communities.
 Minnesota co-ops manage revolving loan funds,
grants and other programs that support and
attract business in Greater Minnesota.

8. Local Decisions = Local Innovation
 Local community wants and needs drive the
service and innovation Minnesota co-ops provide.
 Local democratically elected boards of directors
balance the needs of their communities.
 Local boards and their local employees drive
innovation while providing affordable, safe,
reliable and green energy service.

9. Cooperative Opportunities
 “Customer Choice” led to the development of
electric cooperatives and members continue to
drive the innovation within their cooperatives.
 Innovation will vary widely amongst cooperatives
in Minnesota and nationwide as they respond to
the needs of their unique communities.
 Distribution cooperatives are service providers,
not commodity sellers. Providing service requires
infrastructure and people to maintain it. The cost
of that service needs to be fairly collected.

11. •
•
•
–
–
–
•
11

12. •
–
–
•
–
–
•
–
•

13. •
•
•
•
•
•

14. •
–
–
–
•
–
•
–
•
–

15. •
•
•
•

16. •
•
•

18. MVEC Overview
 Based in Jordan
 Distribution Cooperative
 Purchase wholesale power
from:
 Great River Energy
 Basin Electric Cooperative
 Alliant Energy
 82 employees
 41,000 members
 49,000 meters

19. MVEC Board of Directors

20. Innovation Through
Information and Programs

21. Daily Electric
Usage on Back
of Electric Bill

23. WiFi Thermostat Program

24. Beat the Peak Energy Challenge
Energy reduction in a game format1
2
Members compete as individuals and
some banded together as teams:
$25,000 in cash prizes
3

25. Future

26.  Implementing Demand
Response Management
System from OATI
 Applied for Department of
Energy Grant
Utilizing and Optimizing DERs

27. DOE Grant Concept

28. Data Analytics & Visualization
• Engage Customers: Display meter data and usage
in more a meaningful/engaging format
• Develop Customer Insights: Utilize data to
determine program effectiveness and achieve
marketing objectives

31. Ryan Hentges
952-492-8202
ryanh@mvec.net
Thank You

33. Mt. Ayer, Iowa Circa 1960
Grandpa Jim Burdette
Est. 1894
Southwest Rural Electric Cooperative Circa 1935
Great Grandpa Truman Burdette

34. Innovation
• Transformed communities in the past
• Central to success of communities
• Technological Evolution
• Challenges and Opportunities
• Looking ahead