Basin Electric Power and Panamint Capital Establish Long-Term Power Agreement for Cottage Grove Cogeneration Facility

Basin Electric Power and Panamint Capital: A New Era in Energy Security

In a major development for the energy sector, Basin Electric Power Cooperative and Panamint Capital have entered into a comprehensive 15-year tolling agreement, focusing on the offtake from the Cottage Grove Cogeneration facility situated in Washington County, Minnesota. This agreement marks a pivotal step towards enhancing energy reliability in the region and securing access to dependable power for the future.

Details of the Agreement

The newly forged contract is set to activate in December 2027 and encompasses the entire generating capacity and energy from Cottage Grove, which boasts a formidable 265-megawatt dual-fuel combined cycle gas turbine. With this agreement, Basin Electric is set to receive 100% of the power generated, fortifying its operations as a generation and transmission cooperative serving member cooperatives across the Upper Midwest.

Benjamin Hertz, Basin Electric's manager of Power Supply Planning, emphasized the critical nature of this facility for the cooperative's operational reliability. He stated, “As a dual-fuel dispatchable resource, the Cottage Grove Cogeneration facility is an important contributor to system reliability and resilience for the cooperative.” This position is crucial as the cooperative strives to support its members amidst the often challenging weather conditions experienced in the region.

A Resilient Energy Source

Cottage Grove Cogeneration has been operational since 1997 and has consistently proved itself as a reliable source of energy. Its dual-fuel capability allows for generation using either natural gas or fuel oil, which ensures uninterrupted energy supply during critical conditions or emergencies affecting the natural gas supply. The facility prides itself on an outstanding safety record, recently achieving 10,000 days without a lost-time incident, showcasing its commitment to operational excellence.

Adding to the facility's capacity, Panamint Capital is also developing an advanced-stage battery energy storage system on-site, capable of producing 80 megawatts and 320 megawatt-hours. This initiative enhances the facility's ability to provide long-term reliability to the regional MISO grid, addressing both current and future energy demands.

Comments from the Leadership

Apolka Totth, CEO of Panamint Capital, expressed enthusiasm regarding this partnership, stating, “We are pleased to be able to provide affordable, reliable power to Basin Electric and its 139 member cooperatives from our Cottage Grove facility.” This collaboration not only signifies their commitment to energy security but also highlights the extensive efforts put forth by the team at Cottage Grove since 2021, including the execution of significant upgrades and overhauls.

Beyond its immediacy, the long-term agreement sets the stage for a sustainable energy future. As weather conditions become more unpredictable due to climate change, partnerships such as this highlight the importance of having diversified energy sources and systems in place.

The Bigger Picture

The agreement between Basin Electric and Panamint Capital goes beyond just a contract; it symbolizes a commitment to enhancing energy accessibility and reliability for millions. Basin Electric serves approximately 3 million consumers spread across nine states, including North Dakota, South Dakota, and Minnesota. Its robust approach towards energy solutions reflects a progressive understanding of contemporary energy challenges, balancing affordability with sustainability.

In closing, this strategic alliance is anticipated to bolster the resilience of the energy supply system in the Midwest. With both companies focusing on driving improvement and innovation, their collaboration will likely pave the way for a more secured, efficient, and reliable energy future.

About the Companies

Panamint Capital is an energy investment firm backed by KKR and located in Incline Village, Nevada. It specializes in developing, acquiring, and managing power generation assets, overseeing over 3.0 GW of conventional and renewable energy resources across North America.

Basin Electric Power Cooperative, based in Bismarck, North Dakota, is a member-owned and non-profit cooperative that delivers wholesale electricity across nine states, aimed primarily at rural electric cooperatives.

This groundbreaking agreement promises a new era in energy reliability, supporting the needs of communities well into the future.