President's Carbon Emission Plan Would Force At Least 15 Percent Rate Increase for Co-ops

There is a misconception that power companies are against renewable energy and other "green" energy policies. It's simply not true.

For electric co-ops all over America, our No. 1 priority is to provide our members with the most affordable power possible. Co-ops have spent millions upon millions of dollars in recent years to fund hydro, wind, solar, geothermal, methane and other renewable energy sources as well as research and development of carbon capture technology and other R&D projects.

While the potential for renewable energy to provide an excellent source of electricity is very real, the cost to make it a reality today is going to be steep. Co-ops believe that government cap & trade programs on carbon emissions and mandates on renewable energy portfolios will place unrealistic goals and unfair burdens that will cause prices to increase dramatically.

You, our members, will be the ones that have to pay the extra price, and we don't think that needs to happen.

Co-ops are in favor of expanding the use of renewable energy sources, but we believe it should be done in a smart, calculated manner that will not cause the price of electricity to skyrocket.

We'll continue to follow events in Washington, D.C. and share any good reading we come across, starting with this story...

In a letter to President Obama, National Rural Electric Cooperative Association CEO Glenn English voiced strong objections to the Administration’s plan to auction the carbon emission allowances under a cap and trade scheme.

In the letter, English pointed out that “Such a program would only serve as a backdoor, variable tax on consumers. Even worse, the level of the tax would be determined by Wall Street and large multi-national energy companies who would likely be the highest bidders in any auction.”

The read more, and access a copy of Glenn English's letter to President Obama, visit www.nreca.org

The price of electricity

We got lots of questions (and a "few" complaints) about how much electricity costs and why it is so expensive.

Let me clarify — lots of people complain that their bill is too high, and they think the problem is that we (the power company) are charging too much. In reality, electricity is pretty darn cheap, and here in Alabama we pay right at or below that national average per kilowatt hour (check out the map.)

The biggest reasons people have high bills are because they waste a lot of electricity either through being careless (leaving appliances turned on all day) or have a leaky house that causes their heating and cooling system to work overtime.

State Senate Bill 128

"It is my belief one of the most important jobs of a state legislator is to stop bad bills from becoming law. One such bill in the current session of the Alabama Legislature is Senate Bill 128.

"It seeks to place Alabama’s electric cooperatives under the jurisdiction and control of the state Public Service Commis-sion. I am strongly opposed to this because it would have a negative affect on a system that is working better than most business models today."

State Sen. Lowell Barron (D-Barron), who lives on the Sand Mountain EC system, wrote those words as part of a press release that was published last week by media outlets across the state. Here's a full version of the press release that was published in The (DeKalb County) Times Journal.

If you don't want to read the entire story, here are some highlights:

"Electric cooperatives are not owned by big stockholders, they are owned by the very families who buy the power they distribute. For this reason, electric cooperatives are focused on being responsive to their members’ needs, not on creating huge profits for investors."


"Electric cooperatives are examples of what is right about this country today. At a time when Wall Street’s corporate greed and mismanagement have created an economic crisis across our nation, electric cooperatives show us what corporate accountability, responsibility and transparency look like."


"I want to assure cooperative members that, while Senate Bill 128 is not dead, it is not breathing very well. I will work hard within the State Senate do ensure this bill is defeated.
"Placing electric cooperatives under the jurisdiction and control of the Public Service Commission would create needless bureaucracy and expense for a system that has a proven track record of progress.
"These locally-owned, locally-controlled utilities have improved the lives of people throughout rural Alabama for decades, and I will continue to support the excellent work they do."

TVA announces decrease in Fuel Cost Adjustment (FCA) beginning April 1, 2009

TVA announced on Thursday that the fourth-quarter Fuel Cost Adjustment (FCA), which goes into effect April 1, will decrease by about 7 percent.

What does that mean to you? Here's what TVA had to say...

Because the fuel cost adjustment is a per kilowatt-hour charge, amounts that consumers will save depend on the amount of energy they use. While savings will vary across the Tennessee Valley, residential consumers can expect a decrease that ranges from about $4 to $9 in their monthly power bills. Retail billing periods for TVA power distributors also vary, so some April bills will include March usage at the lower rate.

Overall, the decrease for the quarter will be about a 7-percent reduction on total average wholesale rates, and is a reduction of almost 40 percent from the current quarter’s fuel cost adjustment amount. For the quarter beginning April 1, the fuel cost adjustment will decrease about 0.5 cents per kilowatt-hour, from more than 1.3 cents to 0.8 cents per kilowatt-hour.

“In these economically challenging times, we are especially glad lower fuel costs will provide some relief in power costs to the consumers in the Tennessee Valley,” said TVA President and CEO Tom Kilgore. “Unusually cold weather this winter has meant higher consumption of electricity and higher power bills even for people who keep their thermostats low.”

Under the fuel cost adjustment, when the price of fuels used to make electricity decreases, the cost of electricity also decreases. Current economic conditions and increased rainfall also contributed to lower fuel and purchased power costs, Kilgore said.

To view the whole press release, visit the TVA website.

Pictures from Kentucky

Here are a few pictures we've received from guys who spent time in Kentucky. These photos are from Cullman EC lineman Justin Davis. As you can see, when the guys first arrived, the ice storm was still taking place. In fact, Justin said the ground was frozen soild almost 12 inches deep. That helped out at first because many of the poles that needed to be replaced were not conveniently located along the side of the road. Imagine mile after mile of poles running through the country side all snapped due to the ice storm. Then, as the ground started to thaw, the trucks had a hard time moving through the soy bean fields and needed a little help to get going.
Check out the Cullman EC photo page on Flickr for more images of Cullman EC's crews working in Kentucky.

Still lots of work to be done in Kentucky

Co-ops across the country are still sending employees to Kentucky to help make all the repairs and get life back to normal ASAP following the ice storm of two weeks ago. Cullman EC's first wave of lineman has returned (we'll posts some of their pictures if we see any). The second crew will return home this weekend and be replaced by a third crew that will be working there all next week.

Here's a video that a co-op in South Carolina made as some employees prepared to leave their homes and families to help co-op members in Kentucky.

Cullman EC crews in Kentucky to help repair ice storm damage

The massive ice storm that covered Kentucky last week has come and gone, but the damage it caused is still being repaired. Last week news reports said more than 525,000 people were without power. This morning, that number is down to 80,000. That's really good news — unless you're one of the 80,000 still freezing inside your home.

Cullman EC sent two construction crews to Owensboro, KY last week. Those eight employees will be heading home later today once eight more lineman from Cullman EC arrive. The reinforcments left Cullman and headed up I-65 around 9:30 Monday morning.

Here's a story from the Cullman Times that was printed this weekend, talking about the lineman from Cullman EC as well as the Cullman Power Board who went to Kentucky.

A press release from Kenergy, the co-op Cullman EC's crews are assisting, said in its service territory (14 counties and 51,000 members) there are more than 2,000 broken power poles that must be replaced, and more than 350 workers from co-ops in Michigan, Alabama, Mississippi, North Carolina, South Carolina, Tennessee, and Georgia helping their crews. As of Monday morning, more than 23,000 Kenergy members were still without power.