Basin Electric’s Response to President Trump’s Clean Power Plan Executive Order

BISMARCK – Basin Electric CEO and General Manager Paul Sukut today issued the following statement on President Trump’s executive order on the Clean Power Plan (CPP): “President Trump’s announcement today is a positive step forward in our efforts to seek time and flexibility when it comes to developing a carbon management plan, hopefully, in the context of a national energy policy.

“EPA’s Clean Power Plan would have significant impacts on Basin Electric and our membership. Of the 13 states hit the hardest by this rule, eight are in Basin Electric’s service territory. Financially, Basin Electric would have to spend billions of dollars to comply. These dollars would simply cover adding new generation and potentially impact the operations of our existing facilities. This does not even include the expense of additional electric, gas or transmission infrastructure to support the new generation required to meet the proposed mandates of the CPP. These costs would be unfairly borne by our membership.

“Over the last decade, Basin Electric and our membership have taken a leadership role in the development of renewable generation. We’ve added more than 1,500 megawatts of wind generation to our system (which represents approximately 23 percent of our generation capacity), invested more than $1 billion in natural gas generation resources and have invested more than $1.6 billion in emissions control technology to make our already clean generation fleet even cleaner. Even more, our Dakota Gasification Company’s Great Plains Synfuels Plant is home to North America’s largest carbon capture and sequestration project – capturing more than 30 million tons of carbon dioxide (CO2). Our most recent project to add urea production to the Synfuels Plant continues that tradition by capturing CO2 to make urea and for sale as a food grade product. It’s important to note that the CPP, as proposed, did not allow Basin Electric credit for our current investments in natural gas generation or renewables, nor our carbon sequestration efforts through Dakota Gas.

“President Trump’s action today does not, however, impact Basin Electric’s efforts to seek a viable path forward in a carbon constrained future. We are actively seeking solutions that reduce our carbon footprint while keeping coal as part of our energy portfolio, preserving both the reliability and cost competitiveness of our members energy supply. In addition to our wind and natural gas investments, we are actively working to advance clean coal technology. Examples include hosting the Integrated Test Center at our Dry Fork Station, Gillette, Wyo., and our investments in research, most recently, in the development of a high efficiency power generation technology that generates high quality CO2 as a product stream, along with participation in DOE’s CarbonSAFE program to further the science of CO2 sequestration in saline aquifers.”

In November 2015, utilities across the country, including Basin Electric, filed a Motion to Stay with the D.C. Circuit Court of Appeals, which was denied. On Feb. 9, 2016, the U.S. Supreme Court granted Basin Electric and several other petitioners’ Motion to Stay the Environmental Protection Agency’s Clean Power Plan, giving the current administration time to review the rule and issue today’s executive order.

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