Strategic decisions to position its power supply portfolio and control costs have Great River Energy poised to begin 2021 in a strong financial position while reducing rates to member-owner cooperatives.
Great River Energy’s average 2021 wholesale rate is projected to decrease 0.2% from the 2020 budgeted rate. The cooperative’s 2021 revenue requirement is budgeted to be $943.1 million, down more than $32.2 million from the 2020 budget.
“Great River Energy employees have found creative ways to reduce expenses and stabilize wholesale rates while keeping electric service safe and reliable,” said Great River Energy Vice President and Chief Financial Officer Michelle Strobel.
Great River Energy’s 2021 budget includes approximately $95 million of spending for new capital projects. The cooperative budgeted for a margin of $23.0 million in 2021 and expects to return more than $20 million to its member-owners through patronage capital retirements.
Great River Energy projects wholesale electric rates to decline significantly over the next 20 years, driven primarily by strategic decisions to improve the economic efficiency of its power supply portfolio.
Great River Energy plans to shut down the 1,151-megawatt Coal Creek Station power plant in the second half of 2022. Coal Creek Station has been a critical part of Great River Energy’s power supply portfolio for decades, but it has lost value compared to other alternatives in recent years.