TEST 2

*Our “fixed price” contracts with suppliers have been designed to eliminate the volatility that can arise in the energy markets. These contracts eliminate the risks associated with rising fuel costs and provide longer-term, locked-in pricing.

**We invest in the development of renewable projects in a variety of ways. We have constructed several smaller solar arrays near the communities we serve and we contract with energy producers for the electricity output from wind farms and large-scale solar arrays. We also purchase electricity from biogas created by large dairy farms in our service territory and finally, we capture the methane gas that escapes from landfills and turn that gas into electricity. However, because we sell the majority of the renewable attributes associated with the electricity produced by these renewable power sources to third parties, we cannot “claim” those kilowatts that are generated as renewable within our supply portfolio. However, we still receive the energy produced by these resources. By selling these attributes, commonly referred to as “RECS”, we not only enable other organizations to meet their renewable energy goals, but also the revenue generated from these sales helps us to lower wholesale power costs to our 23 member distribution cooperatives.

***A percentage of market purchases exist within the portfolio to meet any additional supply needs that are not covered with existing plants and contracts. Weather volatility and unplanned operational events at power plants and within the grid system are often the primary drivers behind market purchases.

*Our “fixed price” contracts with suppliers have been designed to eliminate the volatility that can arise in the energy markets. These contracts eliminate the risks associated with rising fuel costs and provide longer-term, locked-in pricing.

**We invest in the development of renewable projects in a variety of ways. We have constructed several smaller solar arrays near the communities we serve and we contract with energy producers for the electricity output from wind farms and large-scale solar arrays. We also purchase electricity from biogas created by large dairy farms in our service territory and finally, we capture the methane gas that escapes from landfills and turn that gas into electricity. However, because we sell the majority of the renewable attributes associated with the electricity produced by these renewable power sources to third parties, we cannot “claim” those kilowatts that are generated as renewable within our supply portfolio. However, we still receive the energy produced by these resources. By selling these attributes, commonly referred to as “RECS”, we not only enable other organizations to meet their renewable energy goals, but also the revenue generated from these sales helps us to lower wholesale power costs to our 23 member distribution cooperatives.

***A percentage of market purchases exist within the portfolio to meet any additional supply needs that are not covered with existing plants and contracts. Weather volatility and unplanned operational events at power plants and within the grid system are often the primary drivers behind market purchases.