Minnkota members extend wholesale power contracts
Minnkota and its member cooperatives have reached agreements to extend their contracts by three years to 2058.
Minnkota Power Cooperative and its 11 Class A member cooperatives reached agreements in January to extend their wholesale power contracts by three years to 2058. The contracts are foundational documents that establish Minnkota as the all-requirements wholesale power provider for the Class A members, who collectively own Minnkota.
“It is encouraging to see us work together as Minnkota members toward a common goal,” said Les Windjue, Minnkota board chair. “While each member is unique, there is a recognition that we are all best served when Minnkota is strong.”
The new contract length provides flexibility for Minnkota to secure optimal financing for the projects in its current and future Construction Work Plans. In addition, the contracts help demonstrate financial health and stability to potential lenders and rating agencies.
Wholesale power contracts have a long history with electric cooperatives dating back to their formation. Minnkota’s original contracts were signed 1956 and have been renewed several times throughout the years.
Minnkota and its members have an initiative in 2022 to develop a process for future wholesale power contract discussions and potential renewals. Input from the distribution cooperative boards and management will be gathered in the coming year to determine the best path forward.
“Our goal is to have the membership engaged in the process,” Windjue said. “We know the energy industry is changing, but we believe the cooperative business model is well-equipped to meet this change – just as it has for the last 80 years.”