McKenzie Electric Cooperative Challenges Basin Electric Power Cooperative's Notices of Cancellation

Strategic Insights -

McKenzie Electric Cooperative, a member-owned rural electric cooperative in North Dakota and Montana, has intervened in a Federal Energy Regulatory Commission (FERC) proceeding to protest the cancellation of various rate schedules and tariffs filed by Basin Electric Power Cooperative. McKenzie's complaint, filed in June 2024, alleges that Basin violated the Federal Power Act by obtaining a loan from the Rural Utilities Service to evade Commission regulation. If successful, the complaint could maintain Basin's status as a public utility, rendering the Notices of Cancellation unnecessary. The Commission's decision on Basin's jurisdictional status will have significant implications for McKenzie's business and its 4,400 member-owners, who rely on Basin's Rate Schedule A rates for electric service.

Key Takeaways:

  • McKenzie Electric Cooperative, a member-owned rural electric cooperative, has intervened in a FERC proceeding to protest the cancellation of various rate schedules and tariffs filed by Basin Electric Power Cooperative.
  • McKenzie's complaint, filed in June 2024, alleges that Basin violated the Federal Power Act by obtaining a loan from the Rural Utilities Service to evade Commission regulation.
  • The outcome of McKenzie's complaint could impact Basin's status as a public utility, rendering the Notices of Cancellation unnecessary.
  • McKenzie serves approximately 4,400 residential, commercial, and industrial member-owners in portions of seven counties in North Dakota and Montana.
  • McKenzie is the largest (as measured by load) of the eleven member-owners of Upper Missouri Power Cooperative, which purchases the great majority of its power from Basin.
  • The primary component of McKenzie's costs for electric service is Basin's Rate Schedule A rates for all-requirements service.
  • McKenzie allocates the costs that it incurs to its own member-owners through retail rates.

Statistics:

  • 4,400: the number of residential, commercial, and industrial member-owners served by McKenzie Electric Cooperative.
  • 7: the number of counties in North Dakota and Montana where McKenzie provides electric service.
  • 11: the number of member-owners of Upper Missouri Power Cooperative.
  • 100%: the percentage of power that Upper Missouri purchases from Basin.

Sources:

  • Basin Electric Power Cooperative, Notice of Cancellation of Open Access Transmission Tariff, Docket No. ER25-2861-000 (filed July 16, 2025).
  • Basin Electric Power Cooperative, Notice of Cancellation of FERC Rate Schedules Nos. 1 through 39 and Rate Schedule A, Docket No. ER25-2862-000 (filed July 16, 2025).
  • Basin Electric Power Cooperative, Notice of Cancellation of Market-Based Rate Tariff, Docket No. ER25-2863-000 (filed July 16, 2025).
  • Basin Electric Power Cooperative, Notice of Cancellation of Other Tariffs and Agreements of Basin Electric Power Cooperative, Docket No. ER25-2864-000 (filed July 16, 2025).
  • McKenzie Electric Cooperative, Inc., Complaint of McKenzie Electric Cooperative, Inc., Request for Enforcement of the Federal Power Act, and Request for Emergency Stay, Shortened Answer Period, And Fast Track Processing, Docket No. EL25-92-000 (filed June 10, 2024).