2023 Annual Report
Creating
Opportunities
An overview of our company’s latest updates and impact
Leadership Message
This past year we celebrated significant achievements for our company and for our customers. As we look back on 2023, we reflect on a year marked by growth, resilience, and an unwavering commitment to our mission. We continued to provide steady rates, reliable power supply, and focused on creating opportunities for customers to help their communities thrive.
Supporting economic development and community vitality
Our Heartland Economic Development Loan Program (HELP) Fund continues to empower rural communities by providing accessible financing for local businesses and community projects. In 2023, we infused an additional $1 million into the fund, bolstering its capacity to foster entrepreneurial ventures and create economic opportunities across rural areas. Along with strategic partnerships, the HELP Fund underscores our commitment to economic vitality and reinforces our role as a catalyst for sustainable growth in the regions we serve.
In addition to financial support, we've nurtured customer relationships through annual customer events and our Customer Connections Committee (CCC). These forums have been instrumental in gathering valuable feedback and insights from our customers, guiding our efforts to enhance service delivery and community collaboration.
Exploring opportunities for growth
Heartland Energy has remained proactive in monitoring federal funding opportunities, particularly those available through the Infrastructure Investment and Jobs Act (IIJA) and the Inflation Reduction Act (IRA). In 2023, we introduced a partnership with Frontier Energy to provide webinars twice per month to keep customers abreast of the latest programs, opportunities and deadlines. We also continue working with American Public Power Association to leverage programs available to public power utilities.
We slightly re-structured our Power Forward program at the beginning of the year, shifting our focus to beneficial electrification. While we still believe in using energy efficiently, we also believe the technological advancements in electric appliances, particularly heat pumps, make them the most economical and efficient choice. We also introduced a new incentive on the purchase of Level 2 EV chargers to support the growing adoption of electric vehicles.
Commitment to safety and innovation
We expanded our commitment to cybersecurity in 2023 by partnering with Dakota State University to offer Project Boundary Fence (PBF) to customers outside South Dakota. PBF is intended to secure municipalities’ networks through external penetration testing. South Dakota municipalities are able to participate in PBF free of charge through funding from the Attorney General’s Consumer Protection Division. Ensuring robust protection for customers against cyber threats remains a top priority of Heartland Energy.
In December we announced the launch of a Flame-Resistant (FR) Clothing Store, a pivotal initiative aimed at enhancing safety for utility workers. Understanding the daily risks our customers’ employees face, we prioritized providing them with the highest standard of protective gear to mitigate hazards like arc flashes.
These initiatives reflect our dedication to innovation, safety and sustainability and reinforce our mission to providing reliable, forward-thinking services.
A vision for the future
As the electric utility industry continues to evolve, Heartland Energy stands ready to embrace these changes while advocating for policies that safeguard the interests of our municipal utility customers. Our dedication to operational excellence and customer-centric values will continue to guide us as we navigate new challenges and opportunities on the horizon.
About our company
Heartland Energy is a non-profit wholesale public power provider serving municipalities in South Dakota, Minnesota, Iowa and Nebraska. We offer a full suite of programs and services to serve our customers to help them grow and thrive. We value honesty, reliability and leadership in operations.
Our mission and vision
Heartland Energy is dedicated to providing reliable, affordable power to our customers while ensuring open communication, excellent customer service and sound decision making for a brighter tomorrow.
We aim to be a trusted leader and partner of choice in the delivery of competitively priced electricity while adding value to the communities we serve.
Our team
Heartland is only made possible by the dedicated team of staff members and board of directors who share a common goal of increasing the use of economical electricity, community growth and business development.
Municipal electric systems:
19
6
3
1
We also provide energy solutions to six public institutions in South Dakota and have a unit contingent contract with North Iowa Municipal Electric Cooperative Association.
Operations
2023 Generation
Whelan Energy Center Unit 2
204,534 Total MWh
Wessington Springs Wind Energy Center
173,192 Total MWh
Availability
68.9%
98.6%
Capacity
74.9%
48.3%
2023 Customer Energy Sales (MWh)
529,929
2023 Customer Peak Demand (MW)
103.29
Southwest Power Pool / MISO customers
Customers with a WAPA allocation
2023 Fuel Mix
In 2023, Heartland Energy navigated a complex economic landscape with agility and resilience.
Key Figures
Power Sales (MWh)
2023 Customer Revenue
$40,872,000
2023 Total Operating Revenue
$52,547,000
Power Sales:
The decrease in surplus sales revenue in 2023 was a result of a stronger market in 2022.
Surplus sales revenues were higher in 2022 and 2021 as a result of the impacts of Winter Storm Elliot and pricing in 2022 and as a result of the impacts of Winter Storm Uri in 2021.
Creating opportunities...
Heartland Energy is committed to creating meaningful opportunities for our customers.
Our programs support local businesses, attract new industries, and create jobs. We help residents and businesses save on energy costs and promote sustainability. We equip utilities with tools to recruit and train skilled workers and protect against cyber-attacks. By focusing on reliable and affordable energy, we ensure we meet everyone's needs now and in the future.
Through these efforts and more, we empower customers, strengthen communities, and boost local economies.
...to meet future needs
...to stimulate growth
Student, private and public collaboration for housing
Manufacturer cut ribbon on 76,000 square-foot addition
Low-interest financing is vital tool for Heartland customers
...to embrace electrification
Heartland Energy continues to promote the most efficient use of appliances and systems, but diverted focus on promoting electrification in 2023 as a strategic initiative.
Educating consumers on these advantages is of the utmost importance. To assist customers, we provided social media graphics and content and produced a short video, at right.
On the horizon:
continued cyber protection
Partnership with Project Boundary Fence extends services
customer ppe
Heartland Energy launches customer FR clothing store
2024 irp plan
Ensuring affordable and sustainable WAPA supply
Strategic plan initiative
Heartland aims to fortify its position as an industry leader
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PO Box 248
Madison, SD 57042
(800) 520-4746