Rural electric cooperatives support local tourism by powering many of Minnesota's lake resorts

Minnesota's iconic lake resorts are the heartbeat of many rural communities. They generate economic activity, preserve traditions and offer visitors an unforgettable escape into nature. With 11,842 lakes and 755 resorts and lodges across the state, these family-owned businesses fuel the tourism economy, creating jobs and sustaining local enterprises.

But behind the picturesque scenery and guest experiences lies a crucial backbone: reliable electricity and modern infrastructure. Rural electric cooperatives like Great River Energy member-owners Arrowhead Cooperative and Lake Country Power provide the essential energy solutions that keep these resorts running, ensuring their success in even the most remote areas.

Supporting lake resorts with reliable power

Both Arrowhead Electric Cooperative and Lake Country Power, as well as other electric cooperatives, recognize that lake resorts are key contributors to the local economies they serve. When people visit these lake resorts, unseen ripple effects are woven into the fabric of a successful lake-resort community. These businesses help generate additional demand for restaurants, marinas, grocery stores, gas stations and recreational vehicle services.

This tourism spending supports the interconnected web of small-town commerce. By providing reliable electricity, these cooperatives help resorts maintain uninterrupted operations, especially during peak tourist seasons when demand for power surges.

Arrowhead Cooperative: Keeping resorts powered and prosperous

Arrowhead Cooperative, based in Lutsen, serves resorts throughout its territory, offering tailored solutions to help them manage energy use efficiently. The cooperative's heating programs, such as off-peak water heaters and interruptible heating systems, allow resorts to save on energy costs while maintaining comfortable accommodations for guests.

Many resorts in the region have taken advantage of Arrowhead's economic development services and Revolving Loan Fund to upgrade facilities, enhance energy efficiency and invest in modern infrastructure.

Skyport Lodge is a shining example of how Arrowhead Cooperative's support has fueled growth in the industry. A recipient of an economic development loan from its Revolving Loan Fund, the lodge was revitalized by new owners who brought fresh energy and vision to the historic property.

"The use of funds was so effective that it helped the owners achieve their original 10-year plan, and they are now looking to sell the business to and start their next chapter," said John Twiest, CEO and general manager of Arrowhead Cooperative.

The cooperative's expertise in lighting upgrades and industry best practices also helps resorts transition to all-electric heating, ensuring a safe and sustainable energy source.

To prepare for the summer influx of visitors, Arrowhead Cooperative prioritizes maintaining a resilient power distribution system. When storms roll in and guests retreat indoors, reliable electricity becomes even more essential. The cooperative's commitment to grid reliability ensures that guests can enjoy their vacations without interruption.

"We have also seen many resorts interested in having electric vehicle charging stations," Twiest said. "The majority of resorts we serve are quite a ways from the Main Streets of the town, so having the convenience of things like EV charging stations at the resorts is a big plus for attracting new patrons."

Beyond electricity, Arrowhead Cooperative has extended broadband access to previously underserved areas. This initiative has been transformative for lake resorts, enabling them to offer high-speed internet to guests who expect connectivity even in remote locations. This dual investment in power and broadband strengthens the viability of rural tourism businesses, keeping them competitive in the modern travel market.

Lake Country Power: Driving tourism and economic growth

Lake Country Power, headquartered  in Cohasset, serves some of Minnesota's largest lake communities, including Leech Lake, Lake Winnibigoshish and Lake Vermilion. These regions are magnets for tourism, attracting visitors who support a wide array of local businesses. Resorts in these areas create demand for dock manufacturing, boat and ATV sales and marine mechanics, which stimulates economic activity.

The cooperative's economic development financing programs have been crucial in strengthening resort infrastructure. North of North Resort & Outfitters, for example, received a $100,000 low-interest loan to develop a fully electric resort, complete with high-efficiency appliances, electric boilers and air-source heat pumps. Lake Country Power also assisted in promoting the resort's development, enhancing its visibility as a top destination for lake-resort enthusiasts.

Another recipient of a $100,000 Revolving Loan Fund, Handberg's Marina, helped support its expansion to build a new repair and retail marine store in Crane Lake, Minnesota.

"Honestly, we couldn't have done the project without Lake Country Power's help," said Lori Sanborn, co-owner of Handberg's Marina, with her husband, Jeff. "Lake Country Power was such a fun piece of our expansion project. The funding helped bridge the gap between what the bank provided and what we were able to provide."  

Through its efforts, supporting economic development projects, like the marina expansion, provides extra value to lake resorts beyond ensuring a steady supply of electricity for business operations.

Lake Country Power's commitment to sustainability and affordability extends to its off-peak heating program. This program allows energy-efficient electric heat to charge during "off-peak" times when wholesale power purchase costs are minimal. This program will reduce Lake Country Power's overall cost and pass those savings through to the resorts via an incentivized electric rate. With this program, lake resorts can keep operating costs more manageable, making it easier for resorts to reinvest in their facilities and provide exceptional guest experiences.

Additionally, the cooperative supports resorts through its Member Made initiative, a marketing program designed to boost visibility for locally owned businesses. Recognizing that many rural resorts lack extensive marketing resources, Lake Country Power helps promote these essential tourism hubs.

Preserving a legacy

Family-owned lake resorts are integral to Minnesota's cultural and economic fabric. Thanks to the dedication of Arrowhead Cooperative and Lake Country Power, these businesses have access to reliable power, financial support and innovative programs necessary to thrive.

By investing in energy solutions, broadband access and economic development, these cooperatives ensure that Minnesota's lake resorts continue to welcome guests for generations to come.