After 65 years, Rushmore Electric Power Cooperative Inc. has moved itself beyond the mere provision of power. “What we’ve done is change ourselves [through] growth into a service-type of organization,” General Manager and CEO Vic Simmons says. 

Rapid City, S.D.-based Rushmore Electric delivers wholesale power to eight rural electrical cooperatives in western and central South Dakota. Simmons notes that four of the co-ops began developing in the state before World War II.

But the operations were put on hold until after the War, when the co-ops began building wires to service their customers. When the four entities realized they could not meet the demand for power by themselves, “They decided to join together and created Rushmore in 1950,” he explains.

“From the beginning, it was cheaper for them to do it in a joint fashion and not on their own,” Simmons continues. “Since then, we’ve had others join us over time.”

Today, Rushmore Electric buys the majority of its power from Basin Electric Power Cooperative, an operator of coal-fired plants, natural gas plants, renewable energy facilities and a nuclear plant. Another sixth of its power comes from Western Area Power Administration, a federal marketer of low-cost hydroelectric power from dams on the Missouri River.

Beyond G&T

Rushmore Electric has set itself apart from other “paper” generation and transmission (G&T) co-ops by branching into different services, Simmons says. In 1964, it established the Rushmore Electric Federal Credit Union to help employees and directors of rural electric cooperatives with financial needs and planning. “That’s set up not only for Rushmore but all of the eight co-ops,” he states. 

In the 1970s, it established Rushmore Engineering, which also serves its members. Its technicians and engineers “do all engineering functions per the members, including planning, design, construction and inspections,” he explains.

During the late 1990s, the company formed Rushmore Communications Inc., which operates multiple electronic control systems, wireless communications networks and computer systems. “We also do work outside of the co-op sides as well for fire departments and the sheriff department,” Simmons says.

Recently, Rushmore Electric moved into automation services for its members, which includes the use of its supervisory control and data acquisition system. This allows members to automate substations, he explains. “We also assist the members in their automated metering where they’re able to read all the meters in the field from the office.”

Rushmore Electric can use the automated metering to shed loads by controlling water heaters, air-conditioning units and irrigation systems during periods of peak demand. “That’s been our latest buzz, doing that demand response with the members,” Simmons says.

The company also offers automated mapping, which it is now providing to six co-ops outside of its family. “It falls into place with everything [they’re doing with] outage management,” Simmons says. “We’re doing about two-thirds of the state.”

Rushmore Electric regularly copes with the challenge of getting customers to accept changes in costs, Simmons says. “They’re used to paying an energy bill once a month,” he says, but notes that their bills can be affected by day rates or changes in demand. 

“We’re trying to make the customer aware of how that impacts their cost, based on when they use stuff,” he says, adding that Rushmore Electric also has strived to help them save through different programs.

An Extended Family

A longtime veteran of Rushmore Electric, Simmons joined the cooperative in 1985 and took his current roles in 1999. “It’s not just a job,” he asserts. “It’s a system where you tend to spend a career.”

Manager of Engineering Mike Bowers has been with Rushmore Electric for 38 years. “It’s the only job he’s ever had,” Simmons says. 

The cooperative’s environment has nurtured employee longevity, making its staff feel like a close-knit extended family. “When somebody has a kid, everyone’s involved,” Simmons explains.

Bright prospects are ahead for Rushmore Electric, but he is uncertain about the industry. “The real concern I have is how do we address the carbon footprint question,” he says. “Right now, 65 percent of our electricity comes from coal, so how do we replace that? I’m not going to replace that with wind and gas.  

“What are you going replace coal with that’s affordable?” he asks, noting that an answer has yet to be found.