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How Long Can You Go Without Electricity?
Co-op challenge shows the good value electricity provides on a daily basis.
By Hannah Kamenetsky
Midwest Energy Co-op noticed a lot of folks were complaining about their electricity bills, while they didn't think twice about buying a cup of premium coffee every day at a local cafe.
But the cost of a year's worth of energy for the average consumer-member of the Cassopolis, Mich., co-op - about $1,000 - is roughly the same a a year's worth of that daily cup of java.
To show how much value comes from that $3.50 per day spent on electricity, Robert Hance, the co-op's president and CEO, decided to challenge conmumer-members to live without it for the price of a year's worth of electricity.
Thus, the idea of the Midwest Starbucks Challenge was born.
"People choose to spend $3 to $6 on a cup of premium coffee," Hance said. "The average member pays about $3.50 per day for electricity. We wanted to show them, 'You paid this for a cup of coffee that's gone in 30 minutes, and the same amount of money will power your house for a day.'"
The co-op offered $1,000 to the consumer-member who put in a bid to live without electricity the longest.
Last your the winning bid came from Vicky Kind, who lived without power for 18 days, along with her daughter, son-in-law and two grandchildren under the age of three. This year, the coop is taking bids until noon EST on May 12. As ECT went to press, the highest bid was 19 days.
The winning bidder can choose when the challenge takes place. The family isn't allowed to move out ot the house or use a generator or other form of electric generation.
"We're trying to help people understand what a great value electricity is," said Patty Nowlin, the co-op's communications manager. "Look what your're getting for this - it's not just a commodity, it's a value that touches every part of daily life."
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Senate Bill Seeks U.S. Energy Independence
Conrad's package includes incentives for renewables, grid improvement.
By Steven Johnson
A North Dakota senator has introduced a sweeping energy proposal as one of what is expected to be several measures aimed at weaning the United States from its reliance on foreign oil.
Sen. Kent Conrad, D-N.D., unveiled a $40 billion plan in early April that relies on a mixture of grants and tax Breaks for investments in alternative energy and fuel-efficient vehicles, and makes it easier for state governments to finance the construction of sorely needed transmission lines.
"Our dependence on foreign oil hreatens our national security and our economy,"Conrad Said. "It is time to do more than talk about this threat. It is time for a bold plan to end our nation's addiction to foreign sources of energy."
President Bush called for a reduction in the country's dependency on imported oil in his State of the Union address. Meanwhile, action on energy issues has recently picked up.
However, in the wake of escalating gas prices and tight petroleum supplies, Conrad said he sees an opportunity to push the issue.
His bill would require ethanol use in the United States to jump from 4.7 billion gallons in 2007 to 30 billion gallons by 2025 by setting a new standard for ethanol production, and extending tax credits for biodiesel and ethanol.
Conrad also would give consumers who buy fuel-efficient vehicles rebates of up to $2,500 to encourage a shift away from low-mileage cars, trucks and sport utility vehicles.
His plan also helps state governments pay for the construction of transmission lines through tax-exempt bonds.
Conrad's bill is one of several that address energy policy just a year after Congress passed comprehensive energy reform legislation. Senate Finance Committee Chairman Charles Grassley, R-Iowa, and ranking member Max Baucus, D-Mont., already have proposed extending a range of tax and bond programs, including the Clean Renewable Energy Bonds that co-ops use to finance renewable energy projects.
House Energy and Commerce Committee Chairman Joe Barton, R-Texas, also hopes to push his bill that gives refiners additional incentive to build new facilities, though that plan passed by just a two-vote margin in the House last year.
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King Coal
Coal production in the United States reached a record level in 2005, but transportation woes prevented some of the coal from reaching its intended destination on time, the Energy Information Administration reported.
The agency said production increased by almost 2 Percent to 1,133.3 million short tons, about 21.2 million short tons more than in 2004. However, shipping problems were "the overriding issue for the U.S. coal industry in 2005." the agency said, predicting that a tight coal market will keep consumers focused on coal transportation issues in 2006.
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Hydro Cars?
A North Dakota research facility has received $2.2 million to develop technologies that produce hydrogen fuel as a way of shifting consumption from fossil fuels.
The Energy and Environmental Research Center at the University of North Dakota will partner with the Department of Energy to probe ways to develop cost-effective hydrogen fuel technologies, said U. S. Sen. Byron Dorgan, D-N.D., a key supporter of the center. "This research will move us closer to a future where we fill our cars with hydrogen fuel, get twice the power to the wheel, and emit nothing but water vapor from our tail pipes,"Dorgan said.
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Calls Intensify For Rail Reform
By Steven Johnson
While the nation's railroads seek tax breaks to relieve congested lines, G&T's and shippers limited by freight rail monopolies told a House panel that carriers first must open their pocketbooks to build and repair tracks.
At an April 26 hearing of the House subcommittee on railroads, customers who have access to only one rail line also said federal aid to railroads must be accompanied by reform of monopolistic practices.
"There's no such thing as a free lunch," NRECA CEO Glenn English said. "Railroads have got to invest more and reform the way they treat captive customers. To date, they haven't been willing to do that where the need is the greatest."
English was among witnesses who testified that a rail capacity shortage and anticompetitive practices have slowed deliveries of coal and other commodities, costing consumers millions of dollars.
Some G&Ts are running short of coal for power plants because of missed shipments, he warned.
That could force them to meet demand through expensive natural gas or expensive spot market power.
The added costs would have to be passed to consumer-members.
Subcommittee members, rail industry executives and customers agreed that the aging rail grid needs to be modernized and expanded.
But participants disagreed sharply about the best way to provide relief to an industry that reported record earnings in 2005.
Shippers and some congressmen said a portion of those profits were attributable to rail monopolies charging excessive rates to "stranded shippers."
"In the absence of strong signals from the government about service and capacity to meet the needs of Main Street America, the railroads will take their signals only from Wall Street," English said.
"There is a balance to be struck here between Wall Street and Main Street because this is a vital industry."
Rep. James Oberstar, D-Minn., author of a bill desighed to equalize rates in the rail business, noted that the number of Class One railroads has dwindled from 64 in 1980 to four in 2006.
"No one envisioned that we would have four today," he said. "There are inequities that, if you don't address them, we think the legislative process must address them."
Much of the hearing centered on the possibility of giving railroads a tax Credit ot 25 percent to hasten investment in track construction.
Matthew Rose, CEO of BNSF Railway, estimated a 25 percent tax credit would increase infrastructure investment by $1 billion to $2 billion.
"It becomes incumbent upon us to find a way to make additional dollars available," said Rep. Steve LaTourette, R-Ohio, chairman of the subcommittee.
English countered that railroads, like electric utilities, have an "obligation to serve. We are both critical to our nation's economy and must act responsibly."
Industry representatives rejected the notion that the federal government should increase its oversight of railroads.
"Let the market sort this out. It sill and it has done exactly right so far," Rose said. However, shippers presented a long list of woes that they said indicate how railroad companies have skimped on construction in favor of profit-taking.
They agreed with English that a potential tax break should be accompanied by requirements that obligate railroads to serve the public interest and by reforms to promote competition.
Burt Wallace, a vice president at United Parcel Service, said the company recently shifted 300,000 pounds of packaged shipments from railroads to 600 trucks daily, because cargoes were not arriving on time.
John White, a representative of the cement trade association, said it costs less to import cement from China to the East Coast of the United States than to ship it 300 miles by rail from Pennsylvania to the same destination.
"With more than 80 percent of portland cement manufacturing plants captive to a single railroad, the current rail policy is unnecessarily contributing to higher construction costs," he said.
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Co-ops Seek More Than $500 Million in Renewable Projects
Electric co-ops are seeking to invest more than a half-billion dollars in renewable energy projects through a new program included in last year's energy policy law that gives co-ops financial incentives to pursue clean, renewable fuels.
As of the Treasury Department's April 26 deadline, 59 co-ops had submitted $513 million worth of applications - far surpassing the $300 million minimum set aside for co-ops in the Clean Renewable Energy Bond program.
"This number of applications shows the high level of interest and commitment that co-ops have in offering affordable renewables," said NRECA CEO Glenn English. "It helps them fulfill their mission of providing power to consumer-members at the lowest possible cost."
Susan Pettit, NRECA senior principal, said that $330 million in applications from 52 co-ops, which were submitted through the National Rural Utilities Cooperative Finance Corp., included #120 million for wind projects; $90 million for hydropower; $45 million each for landfill gas and biomass projects, and $30 million for solar energy.
Six applicants working through CoBank submitted $103 million in applications, mostly for wind and biomass projects.
English said the program has proven so successful that NRECA supports a Senate-sponsored proposal to expand it to further "help co-ops to continue leading the way on developing affordable alternative energy sources."
The extension would increase authorizations of $800 million over two years to $800 million annually. Of that, $300 million is set aside for co-ops, so they have incentives similar to those of IOUs for renewable projects.
Under the program, the bond issuer, such as a co-op, is responsible for repaying only principal to the bondholders. Bondholders receive federal tax credits instead of interest payments. The program, though it will bear some cost, approaches an interest free loan for electric cooperatives.
The current las is set to expire Jan. 1, 2008.
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Climate Change Debate Starts to Take Shape in Congress
By Steven Johnson
Congressional interest in climate change legislation is growing, but whether Congress will take action is uncertain, participants were told during a workshop at the NRECA Legislative Conference.
"There is growing pressure on our legislators to do something," said Kirk Johnson, NRECA executive director of environmental affairs. "The question is, 'What is going to be done and when might Congress take some action?'"
Johnson said a growing scientific and public consensus has identified climate change as a major environmental issue.
The nonpartisan National Academy of Sciences has reported that the Earth's surface temperature rose about 1 degree Fahrenheit in the 20th century, though the degree to which human activities were responsible for that is unclear.
Because of that uncertainty, it's important for co-ops to convey the message that any proposal to address greenhouse gas emissions must account for emissions in developing countries and emphasize the role of technology, Johnson said.
Power plants and industries in emerging economies in countries like China and India will emit more carbon dioxide than industrial nations by 2038, which would more than offset actions in the United States.
"If we don't attack it globally, then what we do won't matter much," Johnson said.
Johnson also told the audience that most European countries that have signed on to the Kyoto Protocol are not expected to meet their emissions targets under that treaty.
Instead of proposals like the Kyoto Protocol to cap emissions, the United States should focus on new clean-coal technologies and work to reduce the costs of renewable technologies as a way of addressing climate change concerns, he added.
Singling out power plants in climate change proposals also ignores the important role of automobiles and ogher vehicles that account for about 40 percent of carbon dioxide emissions, Johnson said.
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Did You Know?
Most Co-ops Offer Renewable Energy Because Consumer-Members Want it
Nearly 75 percent of the nation's electric distribution co-ops reported using electricity generated from renewable energy sources, according to a recent NRECA Market Research Survey. The survey showed that 52 percent of co-ops provide green power as a result of their fuel mix. The report also indicated that 21 percent of co-ops have programs that allow consumer-members to pay premiums in their rates for blocks of green power. About 60 percent of the CEOs who responded to the survey said they provide green power options because consumer-members want them.
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Coal Disposal
Filling old mines with coal ash might be a way to dispose of increasing quantities of the residue, according to a study by the research arm of the National Academy of Sciences.
Coal combustion in the United States produces enough ash to fill 1 million railroad cars annually, so developing alternative disposal methods is imperative, the study said. "Putting residues in mines as part of reclamation provides an alternative to landfills and surface impoundments, although potential health and environmental risks must be addressed," said Perry Hagenstein, chairman of the committee that wrote the report and president of the Institute for Forrest Analysis, Planning and Policy.
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Ethanol Push
The Bush administration wants to change the way it counts emissions from ethanol plants. The Environmental Protection Agency announced March 1 that it plans to increase the emissions threshold for corn-milling plants that produce ethanol to 250 tons per year before additional regulations kick in.
Currently, plants that manufacture ethanol for human consumption have a 250-ton limit, while plants that produce ethanol for fuel can emit only 100 tons of pollutants a year. U.S. Sen. John Thune, R-S.D., who sought the change, said applying the same threshold to the two types of plants "will open the door to greatly enhanced ethanol production across the country."
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Biomass Study
Poultry feathers, asparagus butts, agriculture wastes - they're all potential sources of power in Washington state. The Biomass Inventory and Bioenergy Assessment, conducted by Washington State University, reported that biomass could supply almost 50 percent of the state's energy needs.
The study, financed by the state Department of Ecology, said Washington produces 17 million tons of biomass that could be turned into nearly 1,800 MW annually - though the cost of accomplishing that was not calculated. "The abundance and the location of these organic resources should get us thinking even more seriously about developing renewable fuels and energy strategies within our state," said state ecology director Jay Manning.
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Toxic Rule
The Environmental Protection Agency wants to reduce toxic fumes from gasoline, vehicles and portable gas containers. In early March, the agency proposed sharp reductions in benzene content in gasoline.
The EPA also will seek lower exhaust emissions fro passenger vehicles operated below 75 degrees Fahrenheit and tighter standards for emissions that pass through portable containers. In all, the agency hopes to reduce annual emissions of air toxins by 350,000 tons. The annual estimated regulatory cost in $205 million. The rule will be effective after a 60-day comment period.
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Missouri Co-ops to Harvest Wind
By George Stuteville
Some of Missouri's most bountiful farm fields will soon be sown with wind turbines that will enable Associated Electric Co-op to reap a renewable harvest of electricity.
The Springfield, Mo.-based G&T joined developers and investors Jan. 31 in a signing ceremony with Gov. Matt Blunt at the state capitol.
The G&T will buy all the electricity generated from a 50 MW project near King City, Mo. Named Bluegrass Ridge in tribute to the farming community's historical role in bluegrass seed harvesting, the project is being funded and constructed by Missouri-based developer Wind Capital Group and John Deere Wind Energy.
"Associated Electric Cooperative is committed to providing affordable, renewable energy options to our customers," said Jim Jura, CEO.
"We are particularly pleased that the wind energy we are purchasing is harvested in our service area and that this investment will be staying here in our own communities."
When completed in late 2006, the project will consist of 24 turbines, and will produce enough power for up to 30,000 homes.
"Wind is a clean, renewable source of affordable electricity, which has the added benefit of strengthening rural communities and helping Missouri farmers," said Tom Carnahan, the project developer and president of Wind Capital Group.
"I am very proud to be working with Missouri's electric cooperatives and John Deere Wind Energy to bring this first project to our state."
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Did You Know?
Electricity Prices Show the Most Stability
By NRECA Strategic Aanalysis
Throughout the last decade, the price of electricity for residential use has been the most stable when compared to the swings of heating oil, propane and natural gas, according to data compiled by the NRECA Strategic Analyses Unit and the Energy Information Administration.
The chart shows that those fuels, vulnerable to shifts in the market and infrastructure, saw surging prices in 2000-2001, followed by steep declines in 2002. Meanwhile, electricity prices have remained stable, increasing on average a little more than 1 percent per year.
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Bush Touts Clean Coal in State of the Union
President says America must break its addiction
to imported oil
By George Stuteville
President Bus challenged Americans to wean themselves from their addiction to foreign oil in his State of the Union proposal with an ambitious program called the Advanced Energy Initiative that would promote research and development of renewable energy sources.
Bush's comments dealing with energy came toward the latter part of the annual presidential speech, but his proposal dominated headlines with its message of greater self-reliance to Americans reeling from high gasoline prices and soaring fuel costs.
"America is addicted to oil, which is often imported from unstable parts of the world. The best way to break this addiction is through technology," Bush said, adding that his administration has spent nearly $10 billion to develop cleaner, cheaper and more reliable alternative energy sources.
The core of the president's Advanced Energy Initiative is a 22 percent increase in clean-energy research at the Department of Energy, in an effort to push for breakthroughs in developing zero-emission coal-based plants, solar, wind and ethanol technologies.
It would also promote nuclear energy and development of vehicles that are less dependent on fossil fuels.
The president's 2007 budget outlines the federal spending plan for the Advanced Energy initiative with the following proposal:
- Coal Research: $281 million for development of clean-coal technologies; $54 million for FutureGen to develop zerp-emission power plants;
- Solar: $148 million for development;
- Wind: $44 million for wind energy research;
- Ethanol: $150 million to help develop bio-based transportation fuels from agricultural waste products, such as wood chips, stalks or switch grass;
- Efficient Vehicles: $30 million to speed up the development of battery technology; and,
- Hydrogen Fuel: $289 million to accelerate the development of hydrogen fuel cells and affordable hydrogen-powered cars.
NRECA CEP Glenn English said several of the president's energy objectives are in line with electric co-op goals, particularly in the development of clean-coal technology, with he said will ultimately hold down electricity rate increases and promote environmental objectives. "I was pleased the president focused on energy and the dependence upon oil. These are national issues, not just economic issues," English said.
English, a steering committee member of the Ag Energy Work Group's 25 x '25 program, said some of the president's goals meshed with the group's objectives.
The broad-based, nonpartisan coalition wants affordable renewable energy sources to supply at least 25 percent of the nation's energy needs by 2025.
The group is supported by the Washington, D.C.-based Energy Future Coalition.
"It is a worthy objective, and we are hopeful that the president and the Congress follows through."
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Wind Energy Comes to Missouri
Wind Capital Group, John Deere Wind Energy and Missouri Rural Electric Cooperatives announce development of Missouri's first utility-scale wind energy project
Jefferson City, MO. -
At an announcement in the State Capitol this morning, Missouri based developer Wind Capital Group, John Deere Wind Energy and the Missouri Rural Electric Cooperatives announced their plans to construct a 50-megawatt wind energy project in King City, MO, 30 miles northeast of St. Joseph. The project will be named "Bluegrass Ridge" in tribute to the farming community's historic role in bluegrass seed harvesting.
"Wind is a clean, renewable source of affordable electricity, which has the added benefit of strengthening rural communities and helping Missouri farmers," said Tom Carnahan, the project developer and president of Wind Capital Group. "I am very proud to be working with Missouri's electric cooperatives and John Deere Wind Energy to bring this first project to our state."
When completed in late 2006, the project will consist of 24, Suzlon S-88 turbines, and will produce enough power for up to 30,000 homes. The electricity will be purchased by Springfield, Mo.-based Associated Electric Cooperative, Inc., and distributed through its network of regional and local rural electric cooperatives.
"Associated Electric is committed to providing affordable, renewable energy options to our customers. We are particularly pleased that the wind energy we are purchasing is harvested on Missouri farms and that this investment will be staying here in our own communities," said Jim Jura, CEO of Associated Electric. Project financing is being provided by Johnston, Iowa-based John Deere Wind Energy, a unit of Deere & Company, the world's leading manufacturer of agricultural equipment. "John Deere is excited to be a part of Missouri's first wind project, and to be making an investment that benefits the communities where our customers live," said David Drescher, vice-president of John Deere Wind Energy.
The impact on the local economy could be significant. Farmers in the project area will have the opportunity to receive annual lease payments and the area could also see job creation, local investment, tourism and an expanded tax base. Michael Waltemath, a local farmer and member of the school board, expects to host several turbines on his farm. "My family has been farming this ground for generations and now we have a new crop that doesn't interfere with the rest of the farm operations. Acre for acre, wind will be the most profitable crop we harvest, not to mention what it will do for the local schools. We're really looking forward to all the new activity," said Waltemath.
Construction is expected to begin in early summer with at least 16 turbines operational by the end of 2006.
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No Biofuels in Counties With Health Ordinances
The Missouri Corn Growers Association (MCGA) and Missouri Soybean Association (MSA) jointly announced their opposition to building ethanol and biodiesel facilities in counties that have adopted health ordinances to restrict livestock and poultry production. According to the groups' leadership, corn and soybean farmers cannot afford to invest millions of dollars in these facilities in counties that refuse to support animal agriculture.
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Sticker Shock
All of a sudden, your car might be getting less gas milage than you thought. That's because the Environmental Protection Agency is proposing a new way to calculate the city and highway mileage that appears on the window stickers of cars, trucks and SUVs.
The EPA is using new data to calculate mileage and is planning to undertake an across-the-board adjustment for factors such as road grade, wind and tire pressure that currently don't figure in the equations. Under the new methods, city estimates for most vehicles will drop 10 to 20 percent, while highway mileage estimates will decrease by 5 to 15 percent. If the EPA adopts the plan after a 60-day public comment period, it will be effective with 2008 model year vehicles.
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Western Biomass
A draft study for the Western Governors' Association suggests that biomass could be an important part of the West's energy future. Biomass plants could supply as much as 15,000 MW of electricity to Western states by 2015, according the the document.
The area has sufficient stocks to fuel biomass plants with forest resources, agricultural residues and products and resources from the municipal waste facilities and landfills. The governors will consider various energy options at their annual meeting, June 11 - 15, in Sedona, Ariz. They are seeking to add 30,000 MW of renewable energy in the next 10 years.
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Good News
Based on News and Staff Reports
In an unexpected development, the Energy Information Association reported that worldwide spare production capacity of oil is likely to increase in the next two years, potentially dampening the rising price of energy.
Despite an anticipated increase in the worldwide use of energy, spare oil production could increase by at least 1 million barrels per day from non-OPEC countries, the agency said. Part of that will come from large, new projects in Angola, the Caspian region, Brazil and Canada. The increase in spare capacity is expected to ease the tightness in world oil markets and moderate price increased, EIA said.
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EPA Regulations to Set Curbs on Soot Emissions
By Steven Johnson
Proposed Changes to a key federal air-quality standard could have major consequences for power plant operators, utility groups said.
The Environmental Protection Agency announce plans in December to curb emissions of fine particle pollution and some larger particles, such as soot, as a way of cleaning up the nation's air.
The proposal is aimed at particles of 2.5 micrometers or less, which is about one-thirtieth of the diameter of a human hair. The EPA said it wants to tighten standards for those microscopic particles by about 50 percent.
The agency is soliciting comments on its draft and plans to issue final standards in September. NRECA is reviewing the proposal and intends to submit comments, said Kirk Johnson, executive director for environmental affairs.
Environmental organizations, which had sued the EPA to force revisions to the rules, said they were too weak.
However, an industry group noted that power plants have made substantial reductions in particulate emissions since 1997, when the standards were set.
"New particulate matter standards may be premature in that EPA and the states are just now implementing the revisions from 1997," the Electric Reliability Coordinating Council, a group representing coal-based power plants, said in a statement. "It is hard to see the justification for ratcheting the national particulate matter standard lower at this point."
The agency also wants to change the way it calculates larger, "inhalable" coarse particles of 2.5-10 micrometers in diameter. Road traffic and industrial sources are major contributors of the larger matter, according to the EPA.
If adopted, the rules could have major ramifications for operators of coal-based plants, which are considered a source of fine article pollution in the eastern United States.
In announcing the plan, EPA Administrator Stephen Johnson said scientific studies have found a correlation between exposure to particulate matter and health problems such as asthma, bronchitis and heart disease.
"This proposal is yet another step to ensure that Americans have cleaner air and healthier lives," he said.
The EPA estimated that about 191 counties across the country will not be in compliance with the proposed rules, up from 116 that fall short of current standards.
Counties are supposed to clean up particle pollution by 2015 or face federal penalties, including the possible loss of transportation funds.
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Rising Prices
Based on news and wire reports
Energy demand in the United States is projected to increase at a 2 percent clip in 2006, according to the Energy Information Administration. Coupled with tight international supplies and hurricane-induced losses, that demand could cause prices for oil and natural gas to remain high, the agency said in a short-term forecast. EIA said the average price of a gallon of gas in 2006 will be about $2.41, up from $2.27 in 2005. The price of a barrel of West Texas crude oil should jump to about $63 in 2006 from $57 in 2005.
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Associated Electric Cooperative Updates Website
Associated Electric Cooperative, Inc. (AECI) has updated its website, according to Nancy Southworth, Corporate Communications, who is responsible for the co-op's Internet presence.
The site was designed to make it easier for the general public to learn about the electric power producing cooperative.
AECI provides power for Missouri electric cooperatives and has proposed building a new power plant near Norborne, Mo., to meet the area's growing power needs.
www.aeci.org
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National, Regional Reliability Standards Likely
By Todd Cunningham
The new federal energy law does not require absolute uniformity in electric power reliability standards across the nation, so both national and regional standards are likely to develop, according to Federal Energy Regulatory Commission Chairman Joseph Kelliher.
Regional advisory bodies will play an important role, the FERC chief added in Oct. 28 letters to members of the Western Governors' Association.
Kelliher indicated, however, that FERC would not agree to the governor's pro- posal that the commission approve existing regional standards in the West as en- forceable on an interim basis.
Under the Energy Policy Act of 2005, enforceable reliability standards can only be established by the commission through a filing by the Electricity Reliability Organi- zation, an agency that FERC not yet certified, Kelliher said.
"NRECA has been actively involved in the development of those rules through formal comments to FERC." -Rich Meyer, FERC
Once the commission does so, it must approve a delegation agreement between a regional entity and the ERO, which then will submit standards to FERC for approval.
The chairman noted, however, that FERC previously approved an approach now in use whereby Western reliability standards are enforced through a contractual mechanism. This arrangement will continue until FERC certifies the ERO, Kelliher wrote.
Addressing North American Electric Reliability Council trustees Nov. 1, the com-mission chairman said FERC was "moving swiftly" to issue final rules to certify an ERO, establish reliability standards and provide for enforcement.
"NRECA has been actively involved in the development of those rules through formal comments to FERC," noted Rich Meyer, senior regulatory counsel.
FERC will fulfill its duty of assuring bulk power system reliability by certifying the ERO, reviewing reliability standards and approving those that provide for acceptable reliability while remanding hose that do not, Kelliher said.
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Survey Finds Consumers Favor Green Power
Findings reinforce NRECA's advocacy of outreach, senior staffer says.
By Todd Cunningham
American consumers favor renewable energy, but aren't certain whether it is available from their provider, according to a nationwide survey.
"Energy Pulse 2005," conducted by the Knoxville, Tenn.-based Shelton Group, found that 75 percent of respondents believe it is "very important" that their power provider offer electricity from renewable resources.
But half of the respondents didn't know whether their provider was in the green power market.
That lack of knowledge prompted an official with the survey research firm to suggest utilities step up their renewable energy publicity campaigns.
"Electric utilities would be well-advised to consider more educational outreach to their customer bases about any renewable power options the offer," said Suzanne Shelton, CEO of the Shelton Group.
Kirk Johnson, NRECA executive director for environmental affairs, agreed.
He reported that NRECA's regional meetings have included a presentation on renewable energy.
"Electric utilities would be well-advised to consider more educational outreach to their customer bases about any renewable power options..." -Suzanne Shelton, Shelton Group
The sessions note "overwhelming" consumer support for green power, and point out that NRECA supports responsible development and use of cost-effective renewable resources, as long as they don't undermine co-ops' ability to provide members with safe, reliable and affordable energy.
Johnson said nearly 300 co-ops are building or buying power from renewable sources.
"Co-ops need to continue to focus on communicating their philosophy and policy regarding renewable energy to consumer-members to avoid unnecessary conflicts and misunderstanding about the role renewable energy can play in our co-operative systems," Johnson added.
While only 3.4 percent of consumers who participated in the survey said they presently participate in a renewable energy program sponsored by their electricity provider, an additional 38 percent said they were likely or very likely to do so.
Half of the respondents said they would be willing to pay an average of an additional $10 monthly for electricity generated from renewables.
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Cycle Program Wins National Award
The Missouri C.Y.C.L.E. program (Cooperative Youth Conference and Leadership Experience) is this year's winner of the NRECA National community service Youth Award. This award honors the significant contributions of electric systems to local, state and national youth programs. The goal of programs in this category is to help youth understand the cooperative business model, the importance of civic responsibility and political or community involvement.
To give public recognition of the achievement, Missouri cooperatives that participate in C.Y.C.L.E. will be able to display and exclusive "National Community Service Award Winner" emblem on newsletters, websites, letterhead, advertising and more. The award will be given at the Celebration Luncheon during the NRECA Annual Meeting in Orlando.
The C.Y.C.L.E. conference is held the last week of July each year in Jefferson City. A big thank you goes out to everyone for making C.Y.C.L.E. such and outstanding program.
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