Dairyland Power Cooperative’s 2024 Annual Meeting was held on June 5 at the La Crosse Center. Jenny Scharmer, Chair of the Board and Director representing MiEnergy Cooperative, presided over the meeting.
The theme of the meeting was Powering Possibility, symbolic of Dairyland’s plans and promises as a 24/7/365 critical services provider. It represents Dairyland’s determination to meet the changes ahead with an innovative and cooperative spirit – and a safety-first focus.
“Electricity is the foundation of modern life,” said Dairyland President and CEO Brent Ridge. “The utility industry is in a period of transition, which Dairyland must be prepared to meet within the guardrails of safety, reliability and affordability.” Ridge noted that Dairyland has retired 579 MW of coal generation since 2014 and has reduced its coal generation investment by 60% since 1999. “Innovation will continue to drive the energy transition, which will require time and the maturation of emerging technologies,” added Ridge.
Ridge spotlighted Dairyland’s culture of safety, learning and growth as key to powering possibility for future generations. “Dairyland’s achievements and sustainable generation business plan are a tribute to the safe, dedicated efforts of our employees and member cooperative leadership. All we can achieve will come down to people.”
Isaac Orr, Vice President, Research for Always On Energy Research, provided the keynote address: EPA Regulations & the Future of Grid Reliability. Orr emphasized the importance of a diversified power supply for grid reliability, pointing to warnings issued by reliability organizations. “Grid watchdogs are warning that the Midwest is the region most at risk of rolling blackouts in the coming years due to coal plant retirements and growing demand for power from data and manufacturing centers,” said Orr. “We are in a reliability hole and we need to stop digging.” Orr noted that although renewable energy is an important resource, “wind and solar alone simply cannot replace the reliability attributes of the coal, natural gas and nuclear fleet, which is why Dairyland is smart to explore new nuclear technologies.”
Click here for video of President & CEO Brent Ridge's 2024 Annual Meeting remarks.
Click here for video of Isaac Orr's, presentation, EPA Regulations & the Future of Grid Reliability. Orr is Vice President, Research, at Always On Energy Research.
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Dairyland Executive Vice President and Chief Financial Officer (EVP/CFO) April Wehling provided a 2023 Financial Report: “I am pleased to report that Dairyland is financially strong and stable. We remain in alignment with our Strategic Priority of maintaining financial and competitive strength, and for the third consecutive year, are projecting our wholesale rate to be in the top quartile in comparison to our peers.
“This continues to be achieved while providing our members with safe, reliable, and cost competitive electricity, and purposefully diversifying our generating resources.
“Economics, as well as diligent asset and cost management, contributed to Dairyland’s strong financial performance in 2023. Total margins were $24.3 million, exceeding budgeted margins of $18.7 million.
“Total operating revenues were $23.6 million below budget. This includes $27.9 million in favorable rate adjustments and credits to members. Without these adjustments, overall revenue was 4.7% above budget on a volume basis.
“The Dairyland system reached a new all-time peak load for the first time in 5 years. The new record of 1,177.5 MW was set on August 23, 2023, surpassing the previous record set in 2018. This was the second record set in less than a year; the Dairyland system reached a new winter peak load in December 2022, surpassing the former winter peak record set in 2019.
“Power Costs, which include fuel and purchased power, were $17.6 million below budget due to lower natural gas prices – which were down approximately 60% compared to the prior year— and also lower energy market prices.
“In 2023 Dairyland’s Board of Directors approved Capital Credit Retirements of $5.1 million, continuing its strong history of Capital Credit Retirements. Over its 82-year history Dairyland has returned $154.7 million to its Class A Member Cooperatives,” said Wehling.
The annual meeting, which was live streamed for employees and members who were unable to attend, included a Q&A session with Executive Team members, recognition of award recipients and an Energy Expo with educational booths.