1. Electric Energy Resources Chris Nelson Commissioner SD Public Utilities Commission October 2012

2. The SD Public Utilities Commission  The Commissioners  Chris Nelson – Chairman  Kristie Fiegen – Vice Chairman  Gary Hanson – Commissioner  Staggered, six-year terms.  Staff of analysts, attorneys, consumer representatives and other professionals work with the Commissioners to carry out the duties of the PUC.

3. Utility Regulation  Ensure safe, reliable service at fair and reasonable rates.  Regulate investor-owned electric, natural gas and telephone utilities.  Limited regulatory role: wireless communication companies and cooperative, independent and municipal utilities.

4. Electricity in South Dakota  Average Residential Electric Rates per kWh  SD: 9.35 ¢  US: 11.4 ¢  Brookings October through June: 7.0 ¢ July through September: 8.0 ¢  Rural SD 9.55 ¢

5. Demand and Energy  Energy = kWh  Demand = kW

6. ElectricityDemand Electricity Demand

7. Member Load Peaking Surplus Sales Surplus Sales Time Load Combined Cycle Base Load Generation Base Load Generation Electric Load vs. Generation

8. Wind Energy  Benefits  Sustainable  Environmentally-friendly  Economic Development  Limitations  Cost  Subsidy  Intermittency  Generation profile vs. load needs  Lack of (cost-effective) storage mechanism

9. Inside a Wind Turbine

10. Wind Potential  SD ranks in the top 5 states

12. Total Bus Bar Costs in Cents/kWh 11.1 9.7 7.7 12.8 6.3 Wind Turbine Combined Cycle

13. Existing Coal Plants (2010)

14. Crow Lake Project Cost $308 Million Basin Electric $124 Basin Electric $124 Tax Recovery $92 Tax Recovery $92 Grant $92

15.  9200 MW Capacity (92 million light bulbs)  First 40 days of 2011  2900 MW Generated – 32%  February 28  5500 to 1500 in 12 hours  Forecast 6000 – Actual 4400  Difference is equal to Oahe, Big Bend, Fort Randall  Shut off 16 million light bulbs?? Wind Variability - MISO Area

16. Wind Generation April 2010 Crow Lake

17. Generation Profile vs. Load Profile

18. Recent Development  Tatanka Wind Project – 88.5MW McPherson County  Wessington Springs Wind Project – 51MW Jerauld County  Buffalo Ridge I – 50.4MW Brookings County  Titan Wind Project – 25MW Hand County  Day County Wind Farm – 99MW Day County  Buffalo Ridge II – 210MW Brookings and Deuel Counties  PrairieWinds SD1 – 165MW Jeruald, Aurora and Brule Counties

19. Successful Wind Development  3 Ingredients for Success:  An excellent wind resource  Transmission  A buyer for the electricity

21. Hydroelectric Power  Advantages  Minimum pollution  Low operations and maintenance costs  Reliable and proven over time  Renewable  Disadvantages  High investment costs  Can impact the environment and natural habitats  Large area of land needed, change in elevation  Reliability on rainfall - variable

22. Hydroelectric Dam

24. Hydroelectric Power in SD  55% of Electric Generation is Hydro  Oahe Dam (1962) – 786 MW  Big Bend Dam (1966) – 493 MW  Fort Randall Dam (1956) – 320 MW  Gavins Point Dam (1957) – 132 MW

25.  New Hydro  Missouri River Energy Services  Red Rock Reservoir, Pella, Iowa  36 MW up to 55 MW

26. Hydroelectric and Wind Interaction  Hydro can regulate wind  Hydro can shut down wind  2011 Story  Missouri River Dams average annual production – 10,000 GWh  May 1, 2011 forecast – 14,000 GWh  September 30, 2011 forecast – 11,800 GWh  18% above average

27. Solar Power  Advantages  Renewable  No pollution  “Fuel” is free  Disadvantages  Initial Costs  Amount of sunlight is not constant  Current Issues  Technologies and materials are changing and getting cheaper  Competition from China  Solyndra

29. Source: EIA Renewable Electric Power Plants

30. Nuclear Power  20% of electricity generated in US  Most widely used fuel is uranium  Advantages  Large amount of energy produced, No emissions  Disadvantages  Safety concerns, waste storage, fuel limited, permits  Nuclear Power Plants Serving SD  Xcel Energy 3 Nuclear Power Plants in MN  Fukushima, Japan  Virginia Earthquake

31. Source: NRC Nuclear Power Plants

32. Energy Resources Used in SD

33. Energy Resources Generated in SD

34. Recent Siting Dockets  CapEx 2020 Power Line  White, SD to Twin Cities  Future Siting Dockets  White, SD to Big Stone  Big Stone to Ellendale, ND

35. Which Resource is Best?  Best Solution: A Mix of Generation Resources

36. Energy Efficiency  How can we Save Energy?  No Cost Ways  Low-Costs Ways  Investments

37. Thanks for your Questions! www.puc.sd.gov