The power grid is a complex system. For electric co-ops in this part of the country, the system is owned and maintained on three different levels or tiers. The parts you see close to home such as meters, green boxes, lines, and poles, are just a small portion called the distribution system. That’s the part of the system that Sioux Valley Energy is responsible for.

The bigger power lines and substations that scatter the landscape are part of the second tier called transmission. The Cooperative’s power suppliers, East River Electric Power Cooperative and L&O Power Cooperative, represent the transmission tier.

The third level of the system is the power generator. Basin Electric Power Cooperative generates electricity from a diverse energy mix including coal, natural gas, wind, and solar.

Sioux Valley Energy is a member of all the power cooperatives that make up the second and third tier. Additional power comes from the Western Area Power Administration which generates electricity from dams on the Missouri River.

Sioux Valley Energy pays a power bill to East River Electric Power Cooperative and L&O Power Cooperative. East River and L&O then pay a power bill to Basin Electric Power Cooperative and the Western Area Power Administration. Both transmission and generation account for more than 60 percent of your electric bill and those power supply costs are increasing, putting pressure on your electric rates.