ML20004F371

Annual Financial Rept 1980

ML20004F371
Person / Time
Site:	05000484
Issue date:	03/24/1981
From:	Anderson C, Lennick T, Ulbricht C COOPERATIVE POWER ASSOCIATION
To:
References
NUDOCS 8106180245
Download: ML20004F371 (35)

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Tho Environment: c ' ' 's members to provide them with An Issue - ine most reiiabie. ;owest cost power available. For us to meet Of the 80s .

inis cnanenge. nowever, ou,

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members must recognize their responsibility as owners of the 4 ,

w M 1 organization. Our members must become fully aware of l Lj ,

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CPA's activities, remain sen-

, During the '70s, many environ- - 9 , sitive to the financial challenges mental laws were passed in an ,

facing the organization, and become involved in the political effort to reduce air and water '

! pollution from coal fired ,

'g process to preserve the l ger,erating plants. It was a cooperative structure. In ad-l period that forced rapid and {i dition, our members must gain i revolutionary changes in I the support of their consumer-generating plant technology and owners for the policies and j

i operating practices. The regulatory maze created by the h ,

O c

,, programs which are vital to the cooperatives.

l new laws was difficult for the A . . . , if the cooperative structure is i new environmental departments to survive, all member owners l within the utilities and costly for must do their share to support i the consumers of electricity. In their organizations. During the short, it was a period of adjust- past year, however, there has 4 ment.

p been a move to place some of j

'ne contro's members inherently Cooperative Power Associa-tion came into its own during Report have over the.ir co-ops into the l the 1970s and felt the impact of hands of regulatory agencies.  !

these new laws perhaps even As the price of electricity r ses,  !

I more than other mature utilities. In our continuing effort to keep some feel that regulation will  !

In 1979, we created our En- pace with the responsiblities of somehow reduce or eliminate  ;

vironmental Affairs department a generation and transmission costs and expenses from being at a time when we were cooperative, the Cooperative included in the power bill. A  ;

assuming operational control of Power Association Board of cooperative is by definition a  !

i Coal Creek Station in Under- Directors dedicated much of the non profit organizatien. CPA and l wood, N.D. Today, this 1,000 past year to improving the inter- its distribution cooperatives }

megawatt generating station nal functions of the operate at cost, and any excess l represents the most modern organization. revenue is returned to the mem-example of state of the art During 1980, the Directors bers in the form of capital pollution control on any power reviewed the board policies of credits, which in CPA's case, are plant operating in the country. the Association to update our retired in 15 years. l We recognize the need to organization and keep us The increases in your electric  !

preserve our environment for responsive to our members. bill can be directly traced to the future generations while we With the assistance if the rising price of fuel, inflationary produce electrical power for National Rural Eactric cost of materials, added costs of today's necessities and con- Cooperatiye Association operating environmental control veriences. We look forward to (N R EC A), many policies equipment. and high interest the '80s as a period of less con- outlining the functions of the rates. As much as we would all fusion, greater cooperation and directors, distribution coop like to harness these costs, mutual understanding among managers, and staff were placing a co-on in the hands of a the utilitics and the regulatory developed, revised, and a p- regulatory agency to control agencies. This year's annual proved last fall. costs would be self-defeating.

report highlights CPA's efforts As we continue to strive for The cost of regulation itself l to protect the environment improvement in operating our would only add to the already l surrounding Coal Creek Station. Cooperative, we have become high price of power.

acutely aware of the need for our CPA re':ognizes the stra n members to take an interest in high energy costs place on the the activities of CPA. As elected profitability of farms and directors, we are aware of the business and on the househcid responsibilities given us by our b"dget. Therefore, we are con-1

stantly striving for ways to lower . - resulting in lower data our costs. One approach in te ,

~ processing costs, but we are l

l keepi'ng the cost of power down * -

1 able to do much more with our is to sell surplus electricity from # ~

own equipment.

In short,1980 was a good year Coal Creek Station to other ,' "y ) operationally. It was, however, utilities. These sales are con '  !

ducted at a margin above our the year in which high inflation, cost to produce the power. high interest rates, increased l '

regulation and delays have sur-j During the times our memoers ( faced in the form of increased I

do not require the full capacity of Coal Creek, power sales can power costs.

help cover the ownership and We have exerted a large ef fort, i

operating expenses of the plant. collectively -- distribution In addition to reducing these cooperatives as well as CPA - in expenses for our members,it is

f. _

an attempt to prepare our con-j possible that our surplus power . .

sumer owners for pending L t helps another utility avoid using

- higher electrical costs. Being an expensive oil burning J what it is, however, humx

,4 peaking plant. Not only do CPA nature sometimes prevents the and its members benefit finan- message of increased costs to cially from these sales, but the .

be realized until the power bill entire country also benefits arrives.

When a utility does not have to Coal Creek Station was built burn a non-renewable source General at interest rates equai to tne Federal Government's cost of such as oil to produce power.

This year we will be asking our Manager,s money, pius one.eigntn of one  ;

percent. Two percent money members to participate in a Load Management Program.

RODOrtr was not available as a source of l When the Supervisory Control funds for CPA. The shock of l and Data Acquisition (SCADA) Nineteen-eighty was a year of paying a blended rate of 8.51 i computer system is installed great progress for Cooperative percent, the fact that inflation this summer, CPA will have the Power Associat8on (CPA). Coal was eating up 1215 percent for i capability of monitoring elec. Creek Station operated excep- each year of delay, and that $145 (

trical loads to control peak tionally well and we anticipate million was needed for environ. ,

periods. The consumers' use of continued good performance in merdal equipment, out us face-dual furnaces, timers, and other the future. The success of Coal to-face with the hard, cold fact  !

load shedding devices will con- Creek is a result of the com- that nothing, not even elec- '

tribute significantly to our goal bined efforts of the design tricity, can escape the continual, of efficient energy use. engint.ers, contractors, United relentless march of increasing I Nineteen eighty was a Power Association (UPA) as costs.

productive and rewarding year construction agent, and the fine Furthermore, high as the cost for CPA. The dedication of our employees of Cooperative of constructing Coal Creek directors, distribution Power Association who are Station was, it would be much managers, and CPA manage. responsible for the day to-day more expensive to build the ment and staff during the year operation of the plant. same plant today. Again, in- l I

reassures us that 1981 will also During the past year, our terest is one of the primary prove to be another year of ac. microwave communication culprits with present rates over complishment. system was completed, and, it 13 percent as compared to 8.5 too is functioning as planned. percent for Coal Creek. i This system was designed d I believe we must all begin to l Installed by CPA personnel who demand some fiscal respon- '

• will continue to operate and sibility in all phases of gov-I b/.,r E p

,r e maintain the system. Although ernment. We need to get the l the SCADA program has been message across to the " powers l delayed due to software that be" that energy costs, l problems, it is being installed which include 30 cents on every {

and will soon be gathering data.

Charles L Anderson Our in house computer is President Cooperative Power Association being programmed, thereby i reducir.g our need for time }

sharing. Not only is this  ;

i 2 i

[

The CPA dit:ctors, di:trihu-

' WJ do see, how;ver, an cf f;f t ti:n min g:r cnd st'_ff h v]

dollar for I:terest, are nit accep- by s:ma m mb:rs Cf thD been r:sp:nsibl] cnd r:spon-table. Prc:ld:nt's stif f to tot lly siv2 to th] ch:ll:ng:s cnd WJ need to get the message eliminate the REA program as changes in the past, and we look across that each increment of we now know it. Subsequently, to to the future with the same additi:nal cost due the cooperatives would die as determination to meet our regul tion, delay, studies and- well. We have had these attacks restudi:s - while not large in-member's needs with an constitutes a before (President Nixon ter- adequate and reliable supply of dividu:lly -

minated the progrrn in 19/3), but power at the lowest possible significant increase in power each time an attempt was mac'e cost.

costs when combined at the It has la led because the people I thank the CPA staff, direc-compl:tionof aproject. recogh 'ed the need for the REA tors and member managers for Rural electric cooperatives progrea and, when apprised of their dedication and support.

h:v? continually faced the the true facts, would not allow struggle of adequate financing the REA program to be crippled.

Et rz sonable rates. We are in We need the same strong ef-that s:ruggle again today, with fort today that was launched in th ^; current administration #973 to save the program. Some %j thre:tening immediate with- C of the leaders of 1973 are no drawal of our use of the Federal longer with us today, but we Financing Bank and casting must move in to fill that gap if d ubt on our future use of we are to prevail. We need an all T. v. Lennick fed:r:Iloan guarantees. out effort by every manager, General Manager WJ do not see these etforts as director and consumer owner of Cooperative Power Association cn ctiempt to reduce the federal the rural electric program to ex.

budgit. In fact, our use of the press his, or her concern, and Federal Financing Bank raises their congressional ask m:nly for the government when representatives to support the w] p:y cost plus one-eighth of a cause.

Similarly, the percant. Nineteen.eighty was a suc-ph: nominal history of the ability cessful year.We look forward to cf rural cooperatives to repay th' future with confidence, but loans should dlminish the con- not without concern. Where will c;rn over federal guarantees as inflation and interest rates take being a cost to the government us? What effect will the energy to practically zero. situation have on us? Will con-servation continue and, thus, hold our annual load growth to 4-5 percent? Will shortages in petroleum products, or their continued high costs, result in conversion to electrical heating and transportation? These are some of the questions we face ahead.

3

e cambin: tion cf Et:r, lime En3 th; cnvironm:nt, it is ci:imed Air (u'u _litye, ,,,,,nin,,,n ,,,o3gosos no,;,2 ins, so,pno, e,oxie , cne A Major Effort they leave the stacks. The Coal Creek Stat;on scrut,bers are so nitrogen oxide emissions from coal combustion are a major Pays Off ~

successful in removing sulphur cause of acid rain.

- dioxide, they are considered in- Federal and North Dakota Air pollution control at the Coal dustry models, state scientists say the Creek Station is CPA's rnajor CPA continuously monitors emissions from power plants c;ncern and represents the stack emissions at Coal Creck in North Dakota add a com-m:Jor investment in environ- Station to demonstrate that its paratively small amount of mental protection. emissions are below the stan- sulphur dioxide to the at-During 1980, CPA suc- dards established to protect mot.phere. At the Coal C#eek c:ssfully demonstrated that the public health. Sensitive instru- Station, the use of low sulphur Coal Creek Station is in com- mentation has been installed coal and scrubbers help reduce pil nce with strict air quality 350 feet above ground in both emissions that might contribute st:ndards of the Environmental stacks and will remain in to acid rain.

Pr;tection Agency and the Nar- operation until the plant is A study sponsored by the th Dakota State Department of retired. A reading of the air Minnesota / Wisconsin Power Health. Air 9amples taken frem chemistry is taken once per Suppliers, of which CPA is a thJ stacks throughout the year minute and ana!yzed in a com- member, is expected to provide have proven that emissions from puter to determine whether more information on acid rain in th2 plant are consistently below stack emissions are remaining this region. As more information accepted levels. within permissible levels. becomes available, CPA will Pollutants from the Coal During 1980, the continuous continue to report findings to its Creek Station are controlled by emission monitors were tested member systems as part of its two major devices, the elec- for accuracy. While the equip- ongoing environmental com-trostatic precipitators and the ment on Unit 1 was certified to munications program.

flug gas desulfurization equip- be accurate, there were some m:nt, or " scrubbers." Strict difficulties with the Unit 2 in-federal and North Dakota state strumentation. Additional ac-Cir quality standards require the curacy tests are being perfor-r:moval of more than 99 percent med on the Unit 2 system.

cf the fly ash from the plant's cxhaust or flur gases. The elec-eMW@

trostatic precipitators remove g more than 99.5 pe: cent of the fly ago at the Coal Creek Station to csh by attracting the ash par- g ticles with electrically charged ollutants in the air in the ore than 50 percent of the vicinity of the plant. Data is sulphur dioxide from the flue collected from three sites in the vicinity of the plant. At these g:ses which exit from the twin sites,12 monitors measure such 650-feet chimneys or " stacks, factors as gas concentrations must also be removed. The Coal and meteorological conditions Cr:ek scrubbers, which are every two to three minutes.

designed to remove 90 percent cf the sulphur dioxide from 60 From this data, a mathemat-ical model will be developed percent of the flue gases, spray that will predict the maximum ground level concentrations of pollutants near the plant at any given time. Thic model will help predict air chemistry in tb Coal Creek Station - Both natural future. and man-made ponds coexist har-The phenomenon known as moniously at this coat-fired power acid rain is prompting a closer plant thanks to a carefu/Iy con-look at power plant emissions. ceive t water quality monitoring Although little is known about program. Samuelson Slough in the

'.ow acid rain is formed, how it is foreground awaits the annual spring transported in the atmosphere migration of waterfowl through the and how serious a threat it is to prairie pothole flyway.

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'n reducino op:ritino costs rad Fly Ash: ths cmount of solid wast:s Putt,mg Waste produced at ine piant. Some of the captured fly ash is used as TO Work .

an additive in the Coal Creek Station scrubbing system. A Innovative technology at the mixture of water, time and fly Coat Creek Station has turned ash is sprayed into the flue fly ash, a major waste product of gases before they leave the lignite combustion, into a stack to remove sulphur dioxide.

productive material. The high natural lime content of About 80 percent of lignite the fly ash greatly reduces lime Esh is fly ash, a very fine and purchases for the system.

light material that remains The chemical constituents of suspended in the flue gas fly ash from lignite coal lend stream. About 48 tons of fly ash themselves to may other uses.

Cr3 produced hourly when both For example,80,000 tons of fly units are generating at 80 per- ash were used to line the rijkes cInt capacity. of the ash ponds at the plant last Fly ash, which is captured by year, to protect the dikes from th) electrostatic precipitators, erosion. Nearly 11,000 tons of hrs become an important factor the fly ash from the Coal Creek Station were sold during 1980 to be used as an additive in con-crete. Concrete made with fly ash has proven to have a strong bond and is used throughout North Dakota for such things as

• roads, buildings and floors.

Fly ash wNch cannot be put to use is dispc5ed of during the reclamation process at the Falkirk Mine. Mine pits are filled with the ash and then covered with overburden, subsoil and topsoil.

Many in the electrical industry feel that there are other poten-tial uses of fly ash Fly ash is being extensively researched to discover new and varied uses for the material.

Fly ash for concrete - The unique chemical composition of lignite coal l fly ash makes it ideal for replacing a portion of more expensive portland cement in concrete, especially in North Dakota where portland cement is ofter' in short supply.

Large cement trucks can be seen almost daily filing up with the grey powder for use by the North Dakota concrete industry and for shipment to states as far away as Cahtornia.

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A SSOC sa t,on F ROS T Bf NC [:n

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the area. mostly water, is then used as a Protecting A Surface water sampies are collected from nearby sloughs spurry to move tne sludge and bottom ash through a pipeline to Vital Resource -

on a quarteriy basis to eeter- two soiid waste eisposai ponds.

mine whether any con- When the sludge and ash A comprehensive whter quality tamination from the ponds has reach the ash ponds the solids monitoring program was occured. Such factors as tem- settle to the bottom of the pond.

cstab4shed during the past year perature and oxygen content The liquid at the surface is ct the Coal Creek Station to and chemical composition are reused for slurry.

d ;tect changes in surface and routinely measured. Excess water f rom the surface ground water quality on and near A network of 39 groundwater of the ash ponds is stored in th;i plant site. This program, wells has been installed on the shallow ponds for evaporation, which was developed in plant site to test the chemical cooperation with the North composition of groundwater in D:kota State Geological Survey the plant area. CPA's environ-cnd the State Department of mental staff routine!y tests the Hralth, has demonstrated that water from the wells and Coal Creek Station has had no analyses it to detect con-significant impact on the water tamination.

qu!!ity in North Dakota. The water monitoring program Waste water and sludge from will continue indefinitely to en-ths plant are sluiced in a sure that the Coal Creek Station pipeline system to the two solid remains in compliance with wrste disposal ponds at the strict environmental standards plant site. When the sluice for water pollution.

rriches the ponds, the solids Beginning this summer, all gr: dual;y settle to the bottom. A sampling and analysis will be compacted clay lining at the done in the plant's laboratories bottom of the ponds prevents to increase our inhouse exper-tha waste frnm teaching into tne tise and to reduce costs.

Coal Creek Station: A Zero Discharge Plant

~

An important concept in the en-vironmentally-sound design of Coal Creek Station is zero discharge. This is accomplished by using and reusing the water in the cooling system and then recycling it for other uses.

Water that is pumped six Cooling Towers - Water, circulated miles from the Missouri River to through these cooling towers, is

-the generating station is used to condense the spent steam recycled for as long as possible from the turbo-generator back into in the plant's circulating water liquid so it can be returned to the or cooling system. When this boiler. About three percent of the water becomes too concen- cooling water is lost through evapor-trated with minerals it is " blown ation and is replenished with water down" for use as make-up water piped from the Missouri River, six in the scrubbers. The resulting miles away.

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Coal,* rain. a high moisture content which Coai deposits found west of make it iess economicai io naui A Unique the Mississippi River are con- great distances. But those fac-Energy Resource ' siderably lower in sulphur con- tors pose no special problems at Coal Creek because of proper tent than Eastern coals, and Environmental issues played a lignite supplied to Coal Creek boiler design and the plant's vital role in the original Station has one of the lowest close proximity to the mine.

concentrations of sulphur of any Coal dust, also a concern in all decisions to locate Coal Creek coal mining operations, is St tion in the western North of theWestern coals.

carefulsy controlled at the mine D;kota lignite coal fields and to The sulphur content of lignite d;velop the Falkirk Mine as a from the Falkirk Mine averages and along the conveyor system source of fuel for the power 0.6 percent by weight. Some into the plant.

pl!nt. Eastern coats may contain as North Dakota's abundant The decision to transmit the much as 10 times that amount. lignite coai resource will con-energy to Minnesota on a direct That means for every ton of coal tinue to play an important role in current power line instead of burned, an Eastern coal would Minnesota's energy supply in h:uling the coal in trains was produce up to 10 times more the years to come. Its based on the fact that power sulphur dioxide than would availability, its relatively low lines have a smaller overall im- lignite. cost and its unique chemical pict on the environment than do Today's coal fired power plan- characteristics all help to make coal trains. And, of course, coal ts require the use of " scrub- it an ideal fuel for today . . . and trains consume prodigious bers," devices that remove tomorrow, emounts of fueloil. sulphur dioxide from the chim-Sulphur dioxide emissions ney gases before they enter the from coal burning plants is a atmosphere. Because of m;jor concern for environmen- lignite's low sulphur content, ttfists. A considerable amount Coal Creek Station is able to of legislation passed over the meet or exceed all state and list 10 years has dealt with con- federal air pollution standards trolling the release of this sub- by " scrubbing" only 60 percent strnce. In high concentrations, of the chimr 'y gases. And since sulphur dioxide can be injurious the scrubbing process itself to crops, livestock and people. consumes a considerable in addition, some scientists amount of electrical energy, low-suspect that sulphur dioxide is a sulphur lignite contributes to major contributor to the greater power plant efficiency while still protecting the en-vironment.

There is rule in pollution con-trol that "pollutdnts that no longer go up the chimney have to go somewhere else," and Coal Creek Station is no excep-tion. But here, too, the unique features of lignite coal create an advantage. Because of lignite's high lime (calcium oxide) con-tent, the fly ash captured by the electrostatic precipitators loading coal - A 17 cubic yard makes it useful in the scrubbing loading shovel fills a 160-ton coal process. In addition, the low r hWe Im W Mm sodium content of the ash of the pit. Although each coalhauler makes it ideal as a concrete ad- holds 60 percent more coal than a ditive. (See page 6.) railroad car, it's only enough fuel to Lignite is unique in other Aeep the twin boilers fired for 12 ways, which until recently were minutes when generating at tull considered severe disadvan- cat.acity. However, lignite is a vast tages for using the coal as a resource with deposits underlying boiler fuel. For instance, lignite l virtually all ot western North Dakota.

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Reclamation: nMng indusky to soM tha dif-ficult technolog, i cal problems, Fin l NstJ Restoring nas enanges tne cnaracter of strip mining in North Dakota. ,,,,,y , g,g, ,3 , ,,,,, ,,

the Land '

Now, wnen we are done mining, Direc'o's 8dov'ed da enviro"~

mental po#cy that "recognues the land is fully restored to its Vast amounts of earth are role as productive farmland. the need to balance the moved each day at the Falkirk Reclaiming the land is a provis/on of re#able and economical elecuic enugy to Mine to reach the lignite coal costly and time-consuming its member systems with the seams. For every ten feet of process. The land must be need to adequately protect the lignite mined, nearly 60 teet of returned to its original contours,

"" N#0 " # 8' 0r op# mum use overburden must be removed, with the topsoil returned to the and enjoyment. ,, The policy /ur-tnd over the life of the mine, same area from which it was ther states that CPA will strive cbout 18,000 acres of land will removed. t operate an eUicient power be disturbed. In less environ- The reclamation process mentally sensitive times, the starts with careful studies of the supply system, avod imqact on recrea#onal or scenic re-mined land would have been lef t land before, during and af ter s urces, minimke a& and wate permanently scarred, unusable mining to guarantee that the po#udon, and inaintain a cnd unproductive. Iand is returned to its original wot ng te ationsNp wdh en-Today, however, things are productive state. The North different. New state and federal vironmentalagencies.

Dakota Public Service Com-I:nd reclamation laws and a mission (PSC) inspects nearly 0##CN"9 #^# #" # "* *" #

willingness on the part of the wh#e producing elecuic#y is a every phase of mining to ensure cos#y and comph process. But that soil productivity, land con- '8 #U* *'" ' ###""9 tour and the general ecology of that responsMH#y, and we the area are not destroyed.

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Af ter the coal is removed from are w##ng to bear Me una &

a pit, the overburden is replaced pense t see Mat cornm# ment and leveled. The topsoil is spread and reseeded while the canied out. W look /wwad to 80s as a #me of greatu PSC continues to monitor the stab ##y and cutainly_a time land for changes in characteris-tics.

'" #"U"E "# '**5"9 *' 9' The surface mining laws provide that about ten years af-ter the topsoil is reseeded, the land can be leased back to the original owner. About three years will pass between the start of mining and completed reclamation.

About 477 acres of land have i been disturbed since the Falkirk Mine began mining operations in 1977. During 1980, 224 acres were mined. Approximately 194 acres were grad.sd last year and reclamation was completed ori 49 acres, which were seeded with grasses and oats. Early test The Prairie Rose -- After the topsoil results on the restored land in. and subsoil have been removed and dicated that there will be little if s tockpiled, the 105 cubic yard any long term impact on the dragline " Prairie Rose" strips the land's agricultural productivity. rest of the overburden to expose the coal seam. When it is digging, the electrically powered dagli e will disw 25 megawatts - enough energy to supply a small city! The housing is as tall as a five-story building and the boom is 50 feet longer than a football field.

14

--- - - - . .- . . _ - - ~ . _ .

l Mombor System General Managers -

of Cooperative l Power Association l

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Donald John Bellgowan Francis Steven Flo Duane Cecil Holsing Amundson Todd-Wadena Fiebelkorn Wells Henkelman Goodhue FROSTBENCO Minnesota Meeker Valley l

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e k i id L LeRoy Nelson Richard Clarence Leslie Schrupp Eugene aallivan Douglas Wallace l South Central Okerberg Peterson Brown County Stearns Nobles Dakota Lake Region l 16 P00R OR M l

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FINANCIAL STATEMENTS 1980 ANNUAL REPORT ,

COOPERATIVE POWER ASSOCIATION r

FINANCIAL HIGHLIGHTS  :

(DOLLARS IN THOUSANDS) i

% 1 1980 1979 CHANGE Operatior:s:

Operating Revenues.- . S 87,232 5 66,909 + 30.4%

kWh Delivered (in millions). 2,320 2,382 - 2.6 % '

kW Peak Demand (in thousands). 507 523 - 3.19'.

Power Cost. . $ 74,739 $ 57,918 + 29.0%

Net Margins. $ 1,274 $ 1,966 - 35.2 %

Financial Position:

Electric Utility Plant. $629,387 $577,562 + 9.0 % .

Coat Mine. $ 57,349 $ 71,885 - 20.2 % l Outstanding Long. term Debt. $691,101 $650,811 + 6.2 % l Member and Patron Equities. $ 11,625 $ 10,351 + 12.3% '

l I

1 17

TREASURER'S REPORT The financial statements of Cooperative Power 1980, down from $69 million of additions in 1979. Ex-Association (CPA) together with the auditors' penditures on coal faciltities and equipment reflect opinion from Deloitte Haskins '& Sells appear on the completior of a second 105 cubic yard dragline p:ges 22 to 29. costing approximately $42 million. That dragune was Energy sales to CPA's 18 member systems financed by a leveragt.J lease which will reSutr in a ,

d: creased 2.6% in 1980, the first decrease in substantial savings in intercst or financing costs kilowatt hours sold since 1964. This decrease is at- over the long term lease.

tributable primarily to the mild seasonal weather A currert effort by the Federal Government to conditions throughout the year, but higher rates and reduce budget expenditures and cut taxes may lead the consumers' determination to conserve also had to significant changes in the financing programs a significant impact. While the energy usage per available to rural electrics even though all loan f unds consumer decreased 5.1% in 1900, the number of presently available through REA are "off budget" connected consumers maintainer 4 a 2.4% increase, Those proposals make it imperative that CPA ex-the same as in 1979. plore all available financing alternatives in an effort Net revenues rose $20 million as a result of rate to keep cost increases down for present and future increases put into effect in the first half of 1980. Our consumers.

wholesale rates to our member systems were in-creased to offset increased costs of $17 million for Sincerely, generated or purchased power and to anticipate completion of Coal Creek Unit 2. Subsequently, the - -

scheduled completion and commercial operation / '//f -

date for Unit 2 was def erred from November 1970 to Clemens Ulbricht July 1981 to allow for revisions and modifications to the boiler.

Total margins for 1980 were $1,274,000, down f rom tt? $1,966,000 earned in 1979. A deficit of $243,000 was recorded from operations, but nonoperating margins of $1,517,000 were earned through interest 4 l on investments, Cooperative Finance Corporation (CFC) capital credits, and credits for CPA funds in- k - >Y .

vested in construction projects. .(

[

The cr:ntinued high level of inflation and interest 7' rates has had a significant impact on larger projects ,

such as our Coal Creek project during a period of [

construction. With high interest rate levels prevailing in 1979 and 1980, CPA increased its ef- '

forts to either substitute alternative financing or to , ; .,

i shif t to Rural Electrification Administration (REA) insured loan funds or shorter term loans in place of ,/ g ,

the existing long term rates that were available from c.[ '

the Federal Financing Bank. Expenditures for plant ,T additions including transmission, generation, and headquarters facilities totalled $52 million during 1. . .

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COOPERATIVE POWER ASSOCI ATION 18

% OF ENERGY SALES INCREASE A i2 reu mi AVG -ess

. - _ .u- - - - - - - - - - _ -rg_ . ---

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-RATE OF GROWTH IN kWh DELIVERED FOR YEAR o

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}Cs 19

10 YEAR

SUMMARY

POWER SUPPLY SYSTEM:

1980 1979 1978 1977 For the Yean 5 80,989 $ 62,646 $40,928 $37,938 R venue from member systems (c).

Total operating margin (deficit)(c). . $ (243) $ 125 $ 1,548 $ 1,476 2,320 2,382 2,259 2,081 kWh delivered (in millions).

34.9 26.3 18.1 18.2 Cost per kWh delivered (in mills).

307 523 489 488 kW peak demand (in thousands)(a). .

At Year End: ,

1,754 1,722 1,232 1,223 Miles of transmission line (d).

$440,130 $433,110 $41,756 $31,248 Cost of utility plant in service (c).

361 289 218 141 Numberof employees.

MEMBER DISTRIBUTION SYSTEMS:

For the Year.

Number of member systems. 18 19 19 19

$118,435 $ 94,260 $70,239 $62,083 Combi .ed revenues (c). . .

16,892 17,797 17,374 16,522 Average kWh per consumer (b). ..

l At Year End:

37,117 36,730 36.349 35,947 Miles of distribution line. .

227 226 221 215 Number of substations. .

139,009 135,728 131,954 128,084 Numberof connected consumers. .

668 672 646 646 Number of employees. .

NOTES:

(a) Based on demand billed to member systems.

(b) Based on average number of consumers at beginnincland end of year.

(c) Dollars in thousands.

(d) includes 478 miles of CU Project transmission-56% owned.

20

l I

i.

I r

1976 1975 1974 1973 1972 1971 1970

$30,892 $24,332 $17,913 $16,247 $13,875 $12,276 $10,529

$ 1,975 $ 872 $ 753 $ (2) $ (22) $ 195 $ (1) 1,975 1,795 1,623 1,505 1,455 1,311 1,224 15.6 13.6 11.0 10.8 9.5 9.4 8.6 .

438 412 363 334 335 300 282 -

• +

t-1,206 1,180 1,141 1,060 979 964 854

$28,815 $26,620 $24,351 $20,587 $19,043 $17,885 $14,139 ,

50 28 17 11 10 10 9 [

l I

19 19 19 19 19 19 19

$52,395 $42,579 $35,265 $30,701 $28,047 $25,585 $23,120 16,217 15,218 14,221 13,695 13,818 13,014 12,648 35,522 35,087 34,740 34,351 34,088 33,854 33,371 i

210 206 203 192 181 174 170 123,814 119,753 116,150 112,112 107,681 102,908 98,570 605 591 586 562 555 541 556 p

21

AUDITORS' OPINION To the Board of Directors of Cooperative Power Association:

We have examinedihe balance sheets of Cooperative P;wer Association as of December 31,1980 and 1979, and the related statements of revenues and members' patronage c pital and changes in financial position for the years then inded. Our examinations were made in accordance with g?,nerally accepted auditing standards and, accordingly, in-cluded such tests of the accounting records and such other tuditing procedures as we considered necessary in the cir-cumstances.

In our opinion, the above financial statements present fairly the financial position of the Association at D:cember 31,1980 and 1979, and the results of its operations and changes in its financial position for the y ars then ended,in conformity with generally accepted ac-counting principles applied on a consistent basis.

Deloitte Haskins & Sells Minneapolis, Minnesota March 24,1981 COOPERATIVE POWER ASSOCIATION 22

BALANCE SHEETS December 31 ASSETS 1980 1979 ELECTRIC UTILITY PLANT (notes 1 and 3):

Plant in service. . . . . $440,130,217 $433,110,205 Construction work in progress . . . ... 189,256,668 144,451,623 Less accumulated provision for depreciation and amortization. . .. .

(25,918,780) (13,090,689)

Electric utility plant, net. .

603,468,105 564,471,139 COAL MINE (notes 3 and 6):

Deferred development costs and coal leaseholds. 10,649,500 8,856,094 Equipment under construction. . 15,921,213 Advances to coal mining company. . 25,973,955 25.519,135 Leased equipme 1t. . . . 21,588,809 21,588,809 Less accumulated amortization . (863.551) -

Coal Mine . . . 57,348,712 71,885,251 OTHER ASSETS ANDINVESTMENTS:

Funds held by trustee- Pollution Control Revenue Bonds (note 5):

Construction f und. . . . . . 4,472,535 5,807,007 Debt service reserve f und. . 5,974,358 5,975.865 lovestments, at cost (note 4).. .... ... ... 35,505,436 26,407,957 Deferred charges from abandoned project (note 7). 12,892,287 11,165,686 Less accumulated amortization. ... (647,363) (155,709)

Deferred charges f rom CU Droject (note 3). _18,800,984 6,232,457 Total other asaets and investments. 76,998,237 55,433.263 UN AMORTIZED DEBT EXPENSE . 954,158 1,008.495 CURRENT ASSETS:

Cash. .... ... 842.474 3,475,102 Restricted cash . . . . . . . .... 350,739 363,726 Accounts receivable f rom members . 7,865.769 7,124,663 Accounts receivable f rom others . 2,924,042 2,436,578 Coal inventory (note 3). 3,771,944 3,403,576 Fuel oil inventory, at average cost . 692,364 664,752 Materials and supplies. 3,282,926 1,903,776 Deferred power costs (note 2)..... 1,869,051 777,060 Prepaid expenses . . .. .

1,406,604 691,269 Total current assets. 23,005,913 20,840,502 TOTAL ASSETS (note 5). $761,775,125 $713,638,650 LIABILITIES MEMBER AND PATRON EQUITIES:

Memberships. .. $ 2,000 $ 2,100 Patronage capital. ......... 11,548,340 10,274,050 Members' contributions for debt service. 74,866 74,866 Total member and patron equities. 11,625,206 10,351,016 LONG. TERM DEBT (note 5). . . 691,100,995 650,811,380 LEASE OBLIG ATIONS (note G). 20,985,589 21,406,759 CURRENT Ll/ {" ITIES:

Long term o n.gations due within one year (notes 5 and 6). . 1,657,660 1,390,888 Accounts payable . . .... 12,733,325 10,768,882 Contruction retainages payable . . . . ... 7,760,877 C,531,820 Due members, billings in excess of power costs and members' deposits. .. . 10,543,656 5,619,770 Accrued taxes. . , .... . 3,577,828 2,220,088 Interest and other accrued expenses. 1,789,989 2,538,047 Total current liabilities . 38,063,335 31,069,495 TOTAL LIABILITIES. . $761,775,125 $713,638,650 See accompanying Notes to FinancialStatements.

23

STATEMENT OF REVENUES AND MEMBERS' PATRONAGE CAPITAL Year ended December 31 1980 1979 REVENUES AND PATRONAGE CAPITAL:

Revenues billed to members. .. . $86,669,164 $64,616,042 Less billed revenues in excess of power costs (note 2). .

(5,674,743) 11,969,717)

Other revenues. 6,237,576 4,262,926 Net revenues.

87,231,997 66,909,251 OPERATING EXPENSES:

Purchased power. 22,639,129 35,827,895 Generation costs:

Fuel, .

11,508,703 6,098,593 Depreciation. . 8,449,278 3,425,863 Interest. 22,796,500 9,636,981 Other. . .

9,345,091 2,928,255 Transmission expense. ... 2,818,027 2,019,690 Administrative and general expense. 2,336,787 2,049,018 Depreciation and amortization. 1,949,903 1,270,933 Property and other taxes. ....... . 1,844,949 1,484,963 Interest and amortization of debt expense, net of interest earned on construction funds held by trustee. . .. ...

17,855,301 33,208,987 Interest to construction (note 1). . (14,098,465) (31,167,068)

Total operating expenses. 87,475,203 66,784,110 OPERATING MARGIN (LOSS). . (243,206) 125,141 OTHER INCOME:

Allowance for funds used during construction (note 1) 401,544 870,783 Interest and other income. . . ... ... 714,171 725,702 Distribution and financing cooperative capital credits (note 4). .. 401,781 244,734 l

Total other income. 1,517,496 1,841,219 NET M ARGIN. .

1,274,290 1,966,360 PATRONAGE CAPITAL AT BEGINNING OF YEAR. 10,274,050 8,307,690 PATRONAGE Co nlTAL AT END OF YEAR. $11,548,340 $10,274,050 S1e accompanying Notes to financialStatements.

24

STATEMENT OF CHANGES IN FINANCIAL POSITION Years ended December 31 1980 1979 FUNDS WERE PROVIDED BY:

Net margin. . . .. .. ... ... $ 1,274,290 $ 1,966,360 items not requiring outlay of working capital in current period:

Depreciation mad amortization. . 10,399,181 4,980.613 Allowance for funds used during construction. . . (401,544) (870,783)

Distribution and financing cooperative capital credits. ... ... . . ............ (401,781) (244,734)

Interest earned on debt service reserve fund held by trustee. . . . (184,982) (186,194)

Funds provided by operations. 10.685,164 5,645,262 Sale of draglines. . . . . . ... . 23,464,027 21,130,000 investment of dragline proceeds. . . . . . . . (23,288,195) (21,130,000)

Increase in deferred depreciation, CU Project. 3,838,453 1,200.000 Proceeds from issuance of:

Pollution control advances. . . . . . . . . 1,520,961 16,307,828 Long-term debt (net of funds held by trustee). 53,811,000 118,677,573 Sale of investments. 16,187,443 -

Total. 86,218,853 141,830.663 FUNDS WERE USED FOR: .

Dragline capitalized lease. -

21,588.809 Capitalized lease obligation. . . ... . (217,610) (21,406,759)

Electric utility plant and coal mine expenditures (net of allowance fer funds). ....... 61,214,551 94,618,678 Increase in deferre d charges, CU Project. .... .. 12,568,529 6,232,457 Reductions of long term debt, notes payable and lease obligations. 14,160,165 18,257,218 Increase in other investments. . 326,127 Purchases of Capital Term Certificates. 1,594,946 288,315 Increase in charges to Abandoned Project. 1,726,601 -

Retirement of membership. 100 -

Total. 91,047,282 119,904,845 INCREASE (DECREASE) IN WORKING CAPITAL. $ (4,828,429) $ 21,925,818 DETAll OF INCREASE (DECREASE) IN WORKING CAPITAL:

Cash. .. .... $ (2,645,615) $ 3,227,775 Accounts receivable. . 1,228,570 3,041,134 inventories. . . . . . . 1,775,130 4,996,390 Deferred power costs. 1,091,991 (645,419)

Prepayments. . . .... ... 715,335 518,508 Long. term obligations due within one year. (266,772) (665.888)

Accounts payable. . .... (1,964,443) 6.165,686 Construction retainages payable. 770,943 8,176,377 Interest and cther accrued expenses. 748,058 (221,512)

Accrued taxes. . . . . . ... . ... , (1,357,740) (968,043)

Due members, billing in excess of power costs and members' depcsits. (4,923,886) (1,699,190)

TOTAL. . $ (4,328,429) $ 21,925.818 See accompanyong Notes to Financial Statements COOPERATIVE POWER ASSOCIATION 25

NOTES TO FINANCIAL STATEMENTS

~

1.

SUMMARY

OF SIGNIF lCANTACCOUNTING POLIClES System cf Accounts - The accounting records of Cooperative Power Association (the Association) con-form to the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission and the Rural Electrification Administration (REA).

The system requires that utility plant be stated at original cost and the cost of additions includes contract-ed work. direct labor and materials, allocable overheads, interest charged to construction, and allowance for funds used during construction.

Interest charged to construction (borrowed funds) and allowance for funds (other than borrowed funds) used for construction are included in construction work in progress and credited to operating expenses and other income, respectively. The rates applied to construction work in progress reflect the actual interest rates for borrowed funds (reduced by the effect of interest earned on construction funds held by trustee) and the prevailing short term investment rates for other than borrowed funds.

The Association is exempt from Federal and state income taxes.

Dapreciation and Amortization - The provisions for depreciation and amortization of the electric utility plant are provided on the straight line method based on estimated service lives of the property.These provisions as a percent of the average balance of depreciable property were 2.94% in 1980 and 2.95% in 1979.

Pension Plan - The Association has a mandatory contibutory pension plan which provides for guaranteed contributions by the Association for a group annuity contract which covers substantially all of its employees.

Total pension cos: was approximately $231,000 in 1980 and $109,000 in 1979. The Association's policy is to fund pension costs as incurred.

Reclassifications - Certain reclassifications have been made to 1979 financial statements to conform to the 1980 presentation.

2. MEMBER SERVICE CONTRACTS The Association has long term wholesale power contracts with each of its Class A members whereby it agrees to provide all of the power required by the member system to the extent that the Association has elec-tric power available. Power is provided to the members at cost and, accordingly, any variation between cost (defined as power costs i 1 curred less certain deferred power costs incurred in December af ter the billing date to its members) and the aggregate amounts billed is included in accounts receivable or accounts payable.

The members agree to pay a billing rate which is projected to cover all other costs and necessary reserves (operating margins),in addition to the cost of power.

The increase in billed revenues in excess of power costs for 1980 resulted primarily from a rate increase which anticipated cost increases due to Unit 2 of Coal Creek Station, and related transmission facilities becoming commercially operational in late 1980. Commercial operation of Unit 2 was postponed until mid 1981.

3. CU PROJECT AND COAL MINE CU Project - The Association is participating to the extent of 56% in the construction and operation of two 500 megawatt generation units in North Dakota and related transmission facilities (CU Project). The unused financing commitment from REA for either insured or guaranteed loans for the Association's share of the CU Project is $110 million at December 31,1980.

One half of the interest, depreciation and property taxes associated with the common plant and trans-mission system is being deferred until Unit 2 is completed.The deferral of these costs has been approved by REA, ar'd will be amortized to expense on a straight line basis over approximately 20 years.

Transmission Line Sale Leaseback - During 1980 the Association and United Power Association (UPA),

the Co-owners transferred ownership of the Minnes0ta portion of the 400 KV DC transmission line to the REA through a sale-leassback transaction. At the end of the four and one half year lease term, ownership will be transferred back to the Co-owners. For financial statement purposes the leased transmission f acilities are in-cluded in plant in service and construction work in progress.

26

~

4 Coal Mine - The Association and UPA, have entered into an agreement with The Falkirk Mining Company (Falkirk) for the development of a lignite coal mine adjacent to Coal Creek Station which will supply the plant's fuel requirements.

Coal Mine Deferred Development - Deferred development cost is principally interest capitalized on ad-vances to Falkirk and deferred amortization and interest on the leased dragline. These cost deferrals have +

received REA approval and will be charged to the cost of coal generally on a units-of-production method over the first 100 million tons of coal mineo af ter the development period.

Coal Mine Advances - The Co-owners are required to provide financing for all costs associated with the development of the mine. The Association's advances at December 31,1980 have been used by Falkirk as follows:

$ 1.032,646 Coal lands and leaseholds. . . .. . . . . . . . . . . . . ...

22,968,794 Coal mine equipment ... . ... . . . . . .. . .. . . . . .. ..

Less allowance for depreciation, depletion and amortization. . . (2,086,827) 281,870 Construction in progress. . . . . . . . . . . . . .

2,192,752 Mine development costs. . . . . . . . .

Working capital. , . . . . .. . . . . . 1.584.720 Total advances. . ... . . . . . .

$25.973.955 Coal will De purchased from Falkirk at the cost of production (including depreciation, depletion and amor-tization) plus ar' agreed profit. Price of coal during the development period is set based on the per ton cost of production estimated to be incurred af ter the development period plus an agreed profit. Production costs in excess of this price (less an agreed profit) are included in mine development costs.

Coal mine equipment is amortized on a straight line method over the estimated useful lives. Amortization e of coal' lands is calculated on the units of-production method based on estimated recoverable tonnages.

Mine development costs will also be amortized, after the development period, on the units-of production method.

The Co-owners have unconditionally guaranteed two leveraged leases entered into by Falkirk. The Association's share of the lease guarantees is approximately $26.4 million.

4. INVESTMENTS The Association Joined the National Rural Utilities Cooperative Finance Corporation (CFC) in 1970 and initially agreed to purchase 3% Capital Term Certificates through 1984. Future annual purchases, which are based on operating revenues, are estimated by manag'ement to aggregate $2,800,000. Investments in 3%

Capital Term Certificates amounted to $5,879,024 at December 31,1980 and $4,284,078 at December 31, 1979.

Also included in investments is approximately $28.9 million and $21.1 million in 1980 and 1979, respec-tively, from the sale of draglines used in coal mine operations. As the investments are sold the proceeds are used to pay for CU Project construction.

f COOPERATIVE POWER ASSOCIATION ,

27

NOTES TO FINANCIAL STATEMENTS CONTJNUED

.' 9 December 31

5. LONG. TERM DEBT 1980 1979 Mortgage notes payable to United States of America:

$ 22,106,144 $ 22,917,860 2% due through 2011. . . . . . . . . . . . . . . . . . . . . . . . . .

47,306,592 28,191,358 5 % due 1981 t hrou gh 2011. . . . . . . . . . . . . . . . . . . . . . . . . . .

Federal Financing Bank (FFB) Promissory Notes:

Due 1981,9.11 to 12.28% . . . . . . . . . . . . . . . . . . . . . . . . .

89,123,000 89.123.000 Due 2009 2012,7.42 to 8.89% . . . . . . . . . . . . . . 430,638,000 430,638,000 National Rural Utilities Cooperative Finance Corporation (CFC):

12,730,000 12,000,000*

9.25% due 1995. .. ......... ... . . .. . ..... . . . . . .

I 9.50% due 2015. . .. . ... .. . . . . . . . . . . . . . . . . . .

6,546,000 City of Underwood, North Dakota, Pollution Control Revenue Bonds:

Serial Bonds, f rom 5.15% to 6.75% due 1981 tbrough 1999. . 20,685,000 20,995,000 29,305,000 29,305.000 Term Bonds 7.00% due 2008. . . . . . . . . . . . . . . . . . .

Notes payable, to be refinanced. . . . . . .

33,885.000 18.850.000 692,324,736 652,020,218 Total . . . . . . . . .. . ... ... . .

1,223.741 1,208.838 Less due within one year. . . . . . . . . .

Total . . . . . ...... . . . .

$691,100.995 5650.811.380 _

Obligation bearing interest at 1/2% over prime was refinanaced during 1980.

The Association has lines of credit of $70 million with CFC for interim financing for its power supply projects. Outstanding notes payable and FFB notes due in 1981 have been classified as long term debt since commitments have been obtained from the REA and FFB for long term finarming of the major power supply projects under construction.

The Pollution Control Revenue Bonds are unconditionally guaranteed by CFC. The bond agreement requires that the unexpended portion of the bond proceeds be held in escrow by a trustee in a construction fund to reimburse the Association for costs when incurred in construction of the pollution control f acilities at the CU Project. The agreement also requires that a debt service reserve fund be established for the last principal and interest payment of the term bonds. The term bonds are subject to sinking fund redemption at 100% of the principal amount prior to their stated maturity date beginning in 1999 through 2008.

All of the Association's assets are pledged as collat 9ral to the long term debt.

6. CAPITAL LEASES The Association and UPA are the lessors of a dragline to be used in coal mining operations. The lease agreement provides for semi annual lease payments over 25 years plus two five year renewal options. The agreement provides that the Association and UPA will have the right of first refusal should a disposition of property occur.

The Association has entered into a lease of a computer during 1980. The lease agreement calls for mon-thly lease payments over a five year period. The lease agreement provides that the Association will have the first opportunity to buy the equipment for fair market value at the end of the lease term. The leased computer (approx!mately $217,000)is included in plant in service in the financial statements.

The following is a schedule by years of the future minimum lease payments under the capital leases together with the present value of the minimum lease payments as of December 31,1980.

l 28

Year Ending December 31:

1981. ..... . .... . .. .......... ........ . .. ... . $ 1,793.909 1982. . . . . . . . ..... ...... ..... . ....... ... ... .. ... .. 1,789,167 1983.... ............ . . . . . ...... .. .. ..... . . 1,789,167 ,

1984..... . ..... . . ..... .. ... .. .. . . . . .. .. . 1,789,167 l 1985. ... .. ........ . ..... . . .... .. ... .. .... . .. . 1,755,966 Later years. . . ... . . . ...... ... . .. . .. . . 33.778.90s Total minimum lease payments . . . . ... .. . . . . . . 42,696,282 Less: Amount representing interest. . . . . . .. .. 21,276.774 Present Value of Lease Payments.. .. . . .. .... .. . 21,419,508 Less: Current maturities . . . . . . . . . . . . .. . . 433.919  ;

Total. . .. .. .. . .. . .. . .. $20,985.589 ,

7. DEFERRED CHARGES FROM ABANDONED PROJECT in 1977 the Association entered into a participation agreement with three other electric utilities for a 17.4% ownership in the Tyrone Energy Park project in the State of Wisconsin. In 1979 a certificate of need was denied by the Wisconsin Public Service Commission, and the project was canceled by the participants.

The Association estimates that their share of costs, net of recoverable cancellation costs could amount to approximately $14,000.000.The Association has obtained a $14,600,00015 year loan from CFC to finance the cost of the abandoned project.

The costs are being deferred and amortized to expense, and recovered through billings to member i cooperatives over a 15 year period as approved by the Association's Board of Directors.

8. CONTINGENCIES AND LITIGATION A lawsuit has been instituted by opponents of the CU Project against the Minnesota Energy Agency (MEA) seeking to set aside the certificate of need for the CU Project transmission line and related facilities within the State of Minnesota. The facilities which are being called into question, with exception of the Dickinson-Wilmarth line, are already constructed. The Association and UPA (the Co-owners) are participating inasmuch as they are the real parties of interest. The opinion of the Associations management and legal counsel is that the plaintiff will not prevailin this lawsuit.

The Co-owners have initiated eminent domain proceedings to acquire right of way easements which could not be obtained through negotiation for the construction of the Dickinson-Wilmarth segment of the CU transmission line. Certain property owners have objected to the taking of easements on the grounds '

that the certificate of need issued by the MEA for the line segment was improperly issued. After extensive litigation the Minnesota Supreme Court determined that MEA had not provided the required public notices '

of hearings prior to the issuance of the certificate of need. The Supreme Court remanded the need question to a special three judge district court panel and directed that they order supplementary hearings before the MEA on the certificate of need question. If the Co-owners do not receive a certificate of need the eminent domain proceedings which have been instituted would be dismissed. The expenses incurred thus far in conr.ection with the Dickinson Wilmarth line would be recoverable through the billing rates of the Association.

COOPERATIVE POWER ASSOCIATION 29

A REVIEW OF COOPERATIVE POWER ASSOCIATION'S 18 MEMBER SYSTEMS

% of kWh kWh increase Miles of Number of Purchased (decrease)

Line Consumers Durino 1980 over1979 Agralite Cooperative, Benson Ramon Millett, General Manager. 2,868 4,537 94,607,368 (2 2)%

Brown County Rural Electric Ass'n., Sleepy Eye Leslie R. Schrupp, Jr., General Manager. 1,314 3.327 75.892.200 (4.1)%

Dakota Electric Ass'n., Farmington Richard Okerberg. Genera! Manager. 1,983 30,095 477,574.024 3.3 %

Federated Rural Electric Ass'n., Jackson Marvin Johnson, General Manager. 2,069 4.732 100,807,244 (4 9)%

FROST.BENCO Electric, Mankato Donald Amundson, General Manager. 2,580 8,102 133.603.101 (5 5)%

Goodhue County Co-op Electrie Ass'n.,Zumbrota Cecil Holsing, General Manager.. 1,033 3,466 67.259,491 (2.8)%

Lrke Region Co-op Electrical Ass'n., Pelican Rapids Clarence Peterson, General Manager. . 5.061 17.558 210.013,911 (4.4)%

McLeod Co op Power Ass'n.,Glencoe Bernard Janowski, General Manager. . 1,738 5,127 103,245,336 (4.6)%

Meeker Co op Light & Power Ass'n., Litchfield Duane Henkelman, General Manager. . 1,612 6,051 101.733.891 (6.0)%

Minnesota Valley Electric Co op, Jordan Francis Fiebelkorn, General Manager.. 2,120 10,941 171,088.620 (4.0)%

Nobles Cooperative Electric, Worthington Douglas Wallace General Manager.. 2,083 4,881 90.270,901 (4 2)%

Redwood Electric Cooperative, Clements Albert Lennick, General Manager. 1,1 % 2,472 52,277,489 (4.2)%

Runestone Electric Ass *n., Alexandria Vernon Jutila, General Manager. 2,588 8,551 119,889.014 (4.6)%

South Central Electric Ass'n.,St James LeRoy Nelson, General Manager. 1,986 4,082 107.007.120 (3.1)%

Stearns Co-op Electric Ass'n., Melrose Eugene Sullivan, General Manager. 2,932 12,759 212,076.220 (1.8)%

Steele Waseca Co-op Electric, Owatonna Donald Larson, General Manager. 1,805 6.061 95.076,880 (4.1)%

Todd Wadena Electric Co op,Wadena Jon Bellgowan, General Manager. 1,892 5,658 96,902,808 (3 9)%

Wells Electric Ass'n., Wells Steve Flo, General Manager. 257 609 11,140.348 (6 9)%

Total. . . . . .... . ... . ., . . 37,117 139.009 2,320,465.966 (2.6)%

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