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Ward Uggerud, Senior Vice President, Otter Tail Power CompanyConservation and renewables are not a reliable, economical substitute for Big Stone II

Editor, Bemidji Pioneer

Your March 19 edition carried a letter from Chris Asendorf that faults Otter Tail Power Company's participation in the Big Stone II Project. He says investing in renewable energy and conservation could eliminate the need for another coal-fired power plant.

First, I generally agree with Mr. Asendorf about investing in conservation and renewables. We must, as a matter of practice, use energy as wisely as possible and produce our electric supply from a variety of sources including renewables. In fact, the Minnesota Legislature has passed two statutes that place renewable and conservation mandates on state utilities.

Mr. Asendorf and I differ, however, in the belief that conservation and renewables can alone provide electrical power for a growing economy. Almost every city we serve is looking for ways to add to economic opportunities through job creation and new industries. When one considers that the use of electricity mirrors economic growth, it is clear that Minnesota will continue to have growing energy needs.

Conservation, renewables, peaking generation, and base load resources will all need to be a part of Minnesota's energy future. Providing the balance of resources that allows us to provide electricity as reliably and economically as possible is our job and we have and will continue to do that.

While Mr. Asendorf may assert that conservation and renewable generation provide a cheaper solution, he offers no proof to support his argument. Otter Tail, on the other hand, must submit volumes of analysis to the state regulatory commissions as to what in fact comprises the least-cost alternative and we have done that and it shows the need for a balance of resource options.

In order to integrate renewable energy into our regional electric grid or to build additional fossil fuel plants, we must build and upgrade our transmission facilities. Our existing transmission system was largely built by individual electric companies to serve their own needs. It is being increasingly expected to transfer large blocks of power across the grid from the generator to the customer. One industry executive compared our situation to a farm-to-market road system trying to handle interstate truck traffic.

The Big Stone II Project includes upgrading or building about 150 miles of transmission lines in Minnesota and South Dakota. Those facilities will accommodate both coal-fired and renewable energy. Thus, Mr. Asendorf's concern for more renewable energy and my obligation to reliably serve Otter Tail customers will both be met.

Ward Uggerud
Senior Vice President
Otter Tail Power Company

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