sandi tabor

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Page 1: Sandi Tabor

1

Lignite Energy CouncilLignite Energy Council

Sandi TaborVice President - Government Affairs

August 17, 2011

Sandi TaborVice President - Government Affairs

August 17, 2011

Page 2: Sandi Tabor

08/17/11 2

Current LEC MembershipCurrent LEC Membership

348 Contractor/Suppliers

3 Investor-Owned Utilities

3 G&T Cooperatives

4 Producers

2 Reserve Holders

5 Research Members

1 Gasification Company

366 Members

348 Contractor/Suppliers

3 Investor-Owned Utilities

3 G&T Cooperatives

4 Producers

2 Reserve Holders

5 Research Members

1 Gasification Company

366 Members

Page 3: Sandi Tabor

08/17/11 3

Background on Lignite Energy Council

Background on Lignite Energy Council

Major Generation Members Basin Electric Power Cooperative Montana-Dakota Utilities Great River Energy Otter Tail Power Company Minnkota Power Cooperative

Major Producer Members North American Coal Corporation BNI Coal Westmoreland Coal Company

Major Generation Members Basin Electric Power Cooperative Montana-Dakota Utilities Great River Energy Otter Tail Power Company Minnkota Power Cooperative

Major Producer Members North American Coal Corporation BNI Coal Westmoreland Coal Company

3

Page 4: Sandi Tabor

08/17/11 4

Background on Lignite Energy Council

Background on Lignite Energy Council

Major Development Members South Heart Energy Great Northern Properties American Lignite Energy Great Northern Properties

Major Research Members Canadian Clean Coal Coalition Sask Power Prairie Mines and Royalty Xcel Energy

Major Development Members South Heart Energy Great Northern Properties American Lignite Energy Great Northern Properties

Major Research Members Canadian Clean Coal Coalition Sask Power Prairie Mines and Royalty Xcel Energy

4

Page 5: Sandi Tabor

08/17/11 5

Service Territory of Lignite Energy Council

Major Members

Page 6: Sandi Tabor

08/17/11 6

0

200

400

600

800

1000

1200 1,100

900

673650

420

10044

Lewis & Clark

Heskett Coyote LelandOlds

Milton R.Young

AntelopeValley

CoalCreek

Generation Resources3,887 MW Total

MW

Cap

acit

y

Page 7: Sandi Tabor

08/17/11 7

Over 2.5 million people served

with ND lignite-based electricity

Over 2.5 million people served

with ND lignite-based electricity

Impact of the Lignite Industry

Page 8: Sandi Tabor

08/17/11 8

About one-fifth of MN’s electricity comes from ND -- the percentage is much higher in rural MNAbout one-fifth of MN’s electricity comes from ND -- the percentage is much higher in rural MN

Page 9: Sandi Tabor

08/17/11 9

Lignite is a Major ContributorTo North Dakota’s EconomyLignite is a Major ContributorTo North Dakota’s Economy

Creates 27,000 direct & indirect jobs

Generates personal income of $930 million annually

Generates $2.9 billion of business volume annually

Generates more than $90 million of state tax revenue annually / $180 million over biennium

Source: NDSU Agricultural Economics Department - March 2011

Page 10: Sandi Tabor

08/17/11 10

Economic Impact

Every 4 megawatts requires

about 3 jobs

Economic Impact

Every 4 megawatts requires

about 3 jobs

Page 11: Sandi Tabor

08/17/11 11

Clean Air StatesClean Air States

Source: EPA, May 1, 2011

Page 12: Sandi Tabor

08/17/11 12

Lignite Energy isEnvironmentally Clean

ND utilities have invested $2 billion in emissions control technologies

Annual operating cost is $100 million

ND utilities have invested $2 billion in emissions control technologies

Annual operating cost is $100 million

Page 13: Sandi Tabor

08/17/11 13

0

10

20

30

40

50

60

70

80

90

100

North Dakota (now) North Dakota (2012)

73%

Percent of Scrubbed CapacityPercent of Scrubbed Capacity

ND Power Plants Fitted With ScrubbersND Power Plants Fitted With Scrubbers

98%

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08/17/11 14

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08/17/11 15

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08/17/11 16

Regional HazeRegional Haze

Goal - return all national parks and wilderness areas (Class 1) to natural conditions by the year 2064

States - establish goals and emission reduction using best available retrofit technology (BART)

Goal - return all national parks and wilderness areas (Class 1) to natural conditions by the year 2064

States - establish goals and emission reduction using best available retrofit technology (BART)