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City of Sioux Falls Extends Power Sales Agreement With Heartland


The City of Sioux Falls has extended an existing agreement with Heartland Consumers Power District to provide the city’s supplemental electric power and energy. The city will also be participating in a new program offered by Heartland, the Energy ONE Incentive.

The new Denny Sanford PREMIER Center will receive a special energy-only rate during its first few years of operation through Heartland’s recently created program designed to incentivize new large retail loads in their customer communities. Large users of electricity typically pay a separate demand charge to have energy capacity available to them at all times. The new events center will generate an estimated 4.5 megawatt peak electric load when it opens in the fall of 2014, but will not receive demand charges as part of the Energy ONE Incentive.

“One of the largest operational costs of an events center is the electrical costs,” says Mark Cotter, City of Sioux Falls Director of Public Works. “This contract extension will save the City of Sioux Falls about $2.5 million over the first five years of operations of the Denny Sanford PREMIER Center.”

In 2006, the City of Sioux Falls selected Heartland to supply supplemental power to its core area, which consists of 1,676 residential and 945 commercial customers. The original agreement expired in 2021 but has been extended to 2036. Heartland provides the city’s power and energy requirements in excess of that supplied by Western Area Power Administration.

“We are honored the City of Sioux Falls has agreed to extend their power supply contract with us,” said Heartland Chief Executive Officer Russell Olson. “We have forged a strong relationship with the city since our partnership began. We look forward to serving the new events center and are excited about the growth the city has in its future.”

SIOUX FALLS, SD (KELO-AM) Heartland adopted the Energy ONE Incentive in April of this year, and the events center will be the first customer to take advantage of the incentivized rate.

“Heartland has always been an advocate for economic development in the communities we serve,” said Olson. “This program is different in that it specifically targets large customers that will have an approximate demand of one megawatt or larger. That is significant growth for any community.”

Heartland Consumers Power District is a non-profit, public power utility created in 1969 by the State of South Dakota. Heartland provides low-cost, reliable power as well as energy services and community development programs to communities, state agencies, and organizations in South Dakota, Minnesota, and Iowa. Heartland’s diverse power supply portfolio includes coal-fired, nuclear, wind, and diesel generation. Heartland’s board of directors functions in the best interest of customers and emphasizes reliable and economical generation and delivery systems.