Dakota Energy Board appeals ruling against East River Electric

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SIOUX FALLS, S.D. (Dakota News Now) - Dakota Energy is appealing a recent ruling by a federal judge to dismiss its lawsuit against East River Electric.

In a news release Wednesday, Dakota Energy said the appeal is a critical next step to securing more affordable energy and protecting Dakota Energy member-owners from what it calls collusion between East River and Basin Electric.

The April 12th ruling to dismiss the lawsuit meant Dakota Energy, an electric cooperative that operates in Beadle, Hand and Hyde counties, was not allowed to break a contract with East River, and find a new electric provider.

The cooperative has been trying to exit its contract, stating that prices from East River Electric have risen dramatically in recent years. Dakota Energy wants to buy electricity from Colorado-based Guzman Energy. Dakota Energy’s contract with East River Electric runs until 2075.

“Our Board stands united in support of policies and actions that benefit our member-owners, and moving forward with the lawsuit to obtain a buyout number from East River is a no-brainer,” said DEC Board Chair Chase Binger. “The stakes have never been higher to chart a course for the future of our cooperative. We know we’re on the right side of history, and while it’s difficult to lead, we won’t let our foot off the gas in supporting our member-owners.”

Representatives say the Board was disappointed in Judge Piersol’s ruling in that he ignored key facts that support a positive outcome for DEC member-owners, such as:

Just a few months ago the Federal Energy Regulatory Commission (FERC) rejected the very same argument he accepted.
East River initially committed to provide a buyout number and planned to work with our Co-op on a possible withdrawal before Basin threatened East River.
There are strong financial incentives for East River to want to maintain its monopoly on energy generation. Basin and East River want to continue to pass along the hundreds of millions of dollars wasted on the failed Dakota Gasification subsidiary to future generations.

East River Chief Member and Public Relations Officer Chris Studer has said the judge’s decision is a win for Dakota Energy’s members-owners. Now they’re facing more costs.

“We’re disappointed in their decision to appeal because it means Dakota Energy’s member-owners, who have not been given any say in the matter, are being forced to continue paying for this frivolous lawsuit,” East River Chief Member and Public Relations Officer Chris Studer said.

Dakota Energy says the appeal could result in savings for member-owners. It claims even a one-cent savings per kilowatt-hour would reduce Dakota Energy’s members’ energy costs by $2.5 million a year.

Dakota Energy says the appeal is necessary for the board to ensure that its member-owners have the flexibility to select affordable, reliable, and local sources of energy production.

East River Electric says that the costs of its electricity are cost-based as a not-for-profit entity. Dakota Energy is one of the founding members of East River Electric, currently made up of 24 member cooperatives and one municipal-owned electric system.