Investing Together: Understanding Basin Electric's Member Investment Program

The Member Investment Program is not new to Basin Electric; rather, it’s been an essential part of how the cooperative does business. Born of the idea that members invest in the cooperative they own, the program helps support Basin Electric’s financial strength and long-term stability. In the Q&A below, we speak with Kayla Konschak, financial analyst III at Basin Electric, who administers the program.

Q: Please explain Basin Electric’s Member Investment Program:
A: Basin Electric’s Member Investment Program is an alternative investment resource for many of our members. A little history – during the 1970s, generation and transmission (G&T) cooperatives like Basin Electric began seeking opportunities to finance the construction of their power supply systems. Significant increases in interest expenses drove Basin Electric to explore alternative options. In 1976, the Basin Electric Board of Directors approved the establishment of this short-term capital borrowing program from its member cooperatives to avoid borrowing at market rates.

Q: What makes the Member Investment Program an attractive alternative investment resource for member cooperatives?
A: Basin Electric can offer investment rates to member participants that are usually higher than members could obtain through their own resources. When an investment matures, principal and interest are made available back to the member. It’s the member’s choice to either reinvest the funds, pay their power bill, or have their funds returned to them.

Q: Does the Member Investment Program contribute to Basin Electric’s overall financial stability?
A: Yes, as money is received from our members, it’s combined with Basin Electric’s General Fund, providing additional liquidity. Additional liquidity contributes to Basin Electric’s goal of maintaining a stable and reliable power supply to its membership at the lowest possible cost.

Q: How can members feel confident that their investments are safe and performing well?
A: Clear communication and transparency are key to building trust with members. It’s important that they feel confident their investments are being managed thoughtfully and transparently. Our team encourages questions and makes sure members feel informed and confident in their decisions. The ultimate goal is to create an informed, confident, and well-supported member experience.

For more information on Basin Electric’s Member Investment Program, contact:
Kayla Konschak
Phone: (701) 557-5407