For
an update on the Waxman Markey bill, an article published by Sondra Boykin of Western Farmers Electric Cooperative, that
addresses the Climate Change legislation please click here.
A number of changes have
occurred over the past years but probably none will have the effect
on electricity costs as the new legislation that is expected to
occur in the near future. Global warming stands out as being the
most prominent issue that will induce these new costs. Legislation
allowing a Carbon Tax on Co2 emission stands to affect costs
especially for coal generating facilities. These costs will be
imposed on consumers as a tax on their electric bills. Western
Farmers Electric Cooperative and Southeastern Electric Cooperative
will be required to collect these dollars from our members and the
dollars will be remitted to the United States Government. At this
time no one knows how much these costs will be even though we
continue to hear different dollar amounts per ton of Co2 emitted.
Below is a table complied by the Association of Electric
Cooperatives from information they have received from the National
Rural Electric Cooperative Association predicting the affect of
various dollar amounts per ton. The information is based on a normal
average consumers electric bill using approximately. 1100 kwhr per
month.
Predicted Effects of Carbon Tax on
Consumers Based on 1100 kwhrs Monthly
This is a Carbon Tax To Be Imposed
by The United States Government on the Electric
Industry.
By looking at the chart at the left
and under the column WFEC you will see that if a $20 cost per ton were imposed on Co2 emission it would cost a member using 1100 kwhr
per month an additional $13.17. An increase of 11.38% on the average consumer electric bill.
The latest prediction I am aware of is
the implementation of a $20 per ton tax and ascending to $50
per ton within a few years. That would equal an additional
$32.92 per month on 1100 kwhr or an increase of 28.45% over
present costs.
I urge you to visit the link below and
join the campaign to keep electric costs affordable: https://www.ourenergy.coop/ .
From this point, click
on "Join the Campaign". From that page, send an email to your
legislators and ask them to support the effort to keep
electric rates affordable. They will listen if they know the
concerns of the people they represent.
Changes to Southeastern Electric's Line Extension Policy
As mentioned in the
article above it is the objective of Southeastern
Electric's Board of Directors, myself, my staff and every
employee here at Southeastern Electric to keep electricity as
affordable as possible. But we must also weigh the policies and
procedures closely to make sure we are keeping charges
equitable among our members. Southeastern Electric's
Line Extension Policy is one such policy that must be
given thorough attention and thought as to how it is implemented.
When I first began working at the Cooperative in 1977, I
remember we would extend a line for the cost of $10. A few
years later it was changed to a dollar amount for the
first pole and another set dollar amount for any
additional poles installed. The member would then get that
amount paid credited to their electric bill. Sometime in the
mid 80's our policy changed to where the member requesting line
extension was given a footage allowance for a residential account.
That footage amount was 300 feet for a residential service, and that
policy has been in effect since that time.
Southeastern Electric Cooperative is a
nonprofit organization meaning that any margins made during an
operating year are allocated back to the members participating that
year. Southeastern Electric is NOT
a
dollar self-sufficient organization however, meaning that money needed to build new line and make system improvements to
ensure quality service to it's members must be borrowed in addition to
any yearly margins. Most of the funds are borrowed from Rural Utilities
Service (RUS) which is a division of the United States Department
of Agriculture. The remainder of the funds are borrowed from the
National Rural Utilities Cooperative Finance
Corporation (CFC). Most of
the notes are borrowed for a period of thirty years at a
competitive interest rate. The interest expense paid back to these organizations
is one expense in Southeastern Electric's retail rates to it's
members.
After reviewing the present
line extension policy and
with input from myself, my staff and the Board of
Directors several changes are being made effective June 1, 2009. The most
important things we tried to keep in mind was, as I mentioned above,
afford ability and equality among all members.
The afford ability can be gauged not only by the
out-of-pocket expense that a member will incur from a line
extension, but also by the value of the electrical service
provided. By more of the cost being paid up front for new line
extensions, less loan funds have to be borrowed thus reducing
interest expense for all members. This is a more equitable
approach for all Southeastern Electric's
members.
Costs for goods and
services has increased in the past years and it is unavoidable that
companies have to increase their costs to do business or the way
they do business. I believe we have made appropriate changes to the
Line Extension
Policy
and that
the changes are equitable to all
members.
At Southeastern Electric's April Board
Meeting, the board approved the 2009 brush spray program. The area
to be sprayed this year is the Lane Substation
Distribution Lines
. A notification to
our members was inserted in S.E.C.'s May newsletter, the Circuit with this
information also. Chemical spraying of brush is a very important
part of S.E.C.'s Brush Control program in a number of
ways but it all comes down to cost. We can spray the
brush while it is small and prevent the more expensive alternative of clear cutting later on.
Our brush program is a combination of clear cutting and
spraying and S.E.C. spends approximately $1,000,000 yearly for right of way clearing.
This years spraying project will schedule approximately 134
miles of line to be sprayed.
If you
have questions or comments you may e-mail me
lspeaks@se-coop.com or phone me at Southeastern Electric Cooperative
580-924-2170.