In 2007 the State of North Carolina passed a new law that requires all electric utilities to derive a portion of their total energy sales from renewable resources or energy efficiency.  The requirement for electric cooperatives is ten percent.  The spirit of the law is to improve the environment by forcing utilities to invest in renewable generation and energy conservation.  The law also mandates that 0.2% of the total energy sales be produced by solar generation.  While this may not seem like very much, it actually equates to over one million kilowatt hours, or enough energy to power 1,250 FBEMC served homes.

French Broad Electric will be allowed to meet up to 30% of the overall requirements with our existing hydroelectric generating facilities.  This is beneficial to our membership as we have had our plant in place for years and much of the initial investment cost has been recovered.  With the hydroelectric facility’s low overhead costs, this plant not only provides low cost electricity but also assists FBEMC in meeting the requirements of the new law.

The remaining annual energy requirements will be met from a variety of sources.  French Broad EMC is assisting the Madison County School system with the installation of three windmills and will purchase the electricity as well as the credits they create.  The cooperative is promoting and selling compact fluorescent light (CFL’s) bulbs along with hot water heater blankets at a discount to its members at each of its offices.  We also gave away CFL’s and low water shower heads at our recent annual meeting for registration gifts.  These programs will decrease energy consumption for our members and at the same time generate the credits required by the new state law.

FBEMC has also recently invested in an energy efficiency program with Madison County Schools that will assist in generating significant energy savings for the school system.  Replacing old lighting with new improved energy efficient lighting, adding programmable thermostats and energy efficient windows, and installing solar hot water heating are only a few of the improvements that will reduce the school system’s annual energy consumption by thousands of dollars.

Unfortunately, purchasing renewable energy and most of the energy efficiency programs are currently more expensive than what French Broad EMC pays for electricity from Progress Energy.  In order to cover this difference in cost, the state law allows a utility to recover these costs by charging a monthly fee on each customer’s bill.  For the remainder of 2009, residential customers will now be charged 41 cents per month to cover the additional costs associated with this new law.  Commercial customers will be billed $2.07 per month and industrial customers will be billed $20.65 monthly.  This charge will appear as a separate line on each bill and will be titled “N.C. Renewable Energy Recovery Fee.” 

Each year, French Broad EMC is required to submit to the North Carolina Utilities Commission a resource plan  that outlines how we are meeting the requirements of this law and how we are recovering the costs.  As we are required to increase our renewable generation and investment in energy efficiency programs, this charge will continue to increase to cover those costs. 

Thank You,

Jeff Loven
jeff.loven@frenchbroademc.com


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