Basin Electric directors approve regulatory resolutions

Basin Electric directors approved three regulatory resolutions at their January meeting. Two of the resolutions pertain to business in 2020, and the third to business this year. The resolutions support the cooperative’s plan to establish reserves and reduce costs on the balance sheet to maintain stable member rates.

The first resolution was to approve a revenue deferral of 2020 surplus sales revenue of up to $75 million.

The second was to approve early amortization up to $8 million of Basin Electric’s Loss on Investment in DGC expense deferral plan. “The term ‘up to’ was used in both resolutions because at the time of the board meeting we were working with very preliminary financial results,” said Shawn Deisz, Basin Electric vice president and controller. “The resolutions gave the CEO and general manager the authority to determine the actual amounts of the revenue deferral and the early amortization. They will be based on Basin Electric’s final operating results to ensure the consolidated net margin is approximately $75 million.”

The third regulatory resolution authorized the adoption of an accelerated capital recovery plan for Leland Old Station Unit 1. The plan accelerates the recognition of depreciation expense scheduled to be recorded from 2026-2030 totaling about $50.1 million. Basin Electric will record this accelerated depreciation over a five-year period beginning in January 2021 through December 2025. “This accelerated capital recovery plan does not change the useful life of Leland Olds Station Unit 1,” Deisz said.

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Shawn Deisz

Basin Electric directors approve regulatory resolutions