1. Energy Utility Basics: The Cooperative Model October 1, 2012
Nathan Franklin
Government Relations
Dairyland Power Cooperative

2. 1930 - 11% of farms had electricity
Depression limited development options
Growing population demanded better rural economy

3. 1935 Executive Order created the Rural Electrification Administration
Congress formalized in 1936
Local cooperatives built system

4. First system in Wisconsin was Richland Electric in 1937
By 1945, today's network of 24 Wisconsin cooperatives in place
520,000 residents served

6. 930 cooperatives in 47 states
42 million people, 11% of the population
10% of kilowatt hours
43% of all power lines in country
Rural Utilities Service (RUS) available funding

8. Cooperative Model Owned & controlled by consumers
Governed by board of directors; elected at annual meeting
One member; one vote
Not for profit
Revenues over budget called "margins" are returned to customers

9. Cooperative Principles
Voluntary and open membership
Democratic member control
Members' economic participation
Autonomy and independence
Education, training, and information
Cooperation among cooperatives
Concern for community

10. Organization of the Industry
864 distribution cooperatives associated w/ G&Ts
Some buy from other sources (TVA, IOUs, etc.)
66 Generation and transmission cooperatives (G&Ts)

11. Touchstone Energy Branding

12. Wisconsin Six cooperatives purchase from other sources
Mainly Alliant
18 are members of Dairyland Power Cooperative
Wisconsin’s only cooperative G&T

13. Dairyland headquartered in La Crosse
Generating facilities in Alma, Genoa, Ladysmith, Elk Mound, and Eau Claire, Wisconsin and Adams, Minnesota
Serve 253,000 meters/600,000 people in four states

14. Renewables on the Dairyland System
Wind (Iowa and Minnesota) 44 MW
Landfill gas (Iowa and Wisconsin) 15 MW
Manure digesters (Wisconsin) 4 MW
Hydroelectric (Wisconsin) 24 MW
Biomass (Wisconsin) 40 MW

15. Renewables on the Dairyland System (cont.)
~300 installations in DPC territory
200+ in Wisconsin (over half of state total)
Solar installations on the rise
Up 1000% since 2006
60/70 installs in 2011

16. Dairyland Power Cooperative Service TerritoryMN WI IA IL
Dairyland Power Cooperative Service Territory

17. Our Mission…
"To provide competitively priced energy and services to our customers and maximum value to our owners, consistent with the wise use of resources. We will work with our members to improve the quality of life of their customers and the economic and social well-being of the region."

18. Challenges Facing the Industry
EPA rules, e.g. coal ash designation
One size fits all environmental upgrades to existing plants
Cost of fuel & transportation
New renewable facilities in face of energy surplus
New transmission facilities for growth, renewables