French Broad Electric Membership CorporationMarshall Office
     

Bright Ideas



General Manager's ReportJeff Loven
As Summer Temperatures Rise, the Demand for Electricity Rises
September, 2010

This summer continues to be one of the warmest on record and is causing our demand for electricity to increase while the capacity to generate and transmit that power is running short. In the past fossil fuel-fired power plants were the go-to option to meet growing new demand with proven technology, but looming federal regulations on CO2 emissions is changing that. The cost of complying with new regulations could make electricity less affordable for everyone—and we all need to voice our concerns about it.
Last December, the U.S. Environmental Protection Agency (EPA), a part of the executive branch, declared that six key greenhouse gases from auto emissions, including CO2 , are “endangering public health and welfare” of current and future generations. Emissions from motor vehicles of four of those greenhouse gases, including CO2, were also said to contribute to dangerous air pollution.

The endangerment finding puts a foot in the door for EPA to issue sweeping new rules that could impose strict limits on carbon emissions, including those from power plants. The cost of generating electricity would go up, and in the end those costs would hit consumer pocketbooks.

Congress is mulling over its own set of CO2 regulations, and we must continue to ask that any resulting legislation be fair, affordable, and technologically achievable. If passed, Congressional legislation should also preempt use of any other existing laws, fixing a regulatory disaster that would only add to costs for consumers with a mess of overlapping regulatory red tape.

Whatever the political outcome, the honest truth is the change won’t come overnight. Fossil fuels currently account for more than 70 percent of all electricity generated in the United States. New technology will be key to both keeping these traditional options up-to-date and refining new ways to affordably keep the lights on. Cleaner use of fossil fuels, an increased use of renewable energy, and a big commitment to energy efficiency will all be necessary.

Electric co-ops have a long history of providing safe, reliable, and affordable electricity to their members. Co-op research projects are already underway to expand the current limits of renewable energy, make coal- and natural gas-fired power plants cleaner and more efficient, and possibly even capture CO2 from plant emissions before they go up a smokestack and store them deep underground to keep them out of the atmosphere.

The Cooperative Research Network, of which our co-op is a member, was recently awarded a $33.9 million grant from the U.S. Department of Energy, which will support a wide-ranging “smart grid” research project. The effort brings together 27 electric co-ops in 10 states, which will match the grant money awarded to create a pool of nearly $68 million for ground-breaking technology development. With a smarter electric grid, we’ll be able to deliver electricity to our consumers more efficiently—cutting the amount of emissions we’ll need to generate as a result.

Co-ops have stepped up to challenges in the past, and I have no doubt our response to this challenge will be any different in the end.

To meet legislative requirements for renewable energy without breaking the bank, electric co-ops across the country are finding ways to make renewable sources of power work for their members.
More than 80 percent of our nation’s 900-plus electric co-ops provide electricity produced by wind, solar, hydro, geothermal, biomass (like landfill gas, livestock waste, timber by products, and crop residue), and other “green power” sources. All told, co-ops today receive 11 percent of their power requirements from renewable sources compared to 9 percent for electric utilities as a whole.

As renewable energy continues to develop across the nation, rest easy knowing that FBEMC and others are working together to achieve common goals and provide our members with safe, reliable, affordable electricity. As it has been for 70 years, that’s our co-op way.

Thank You,

Jeff Loven
jeff.loven@frenchbroademc.com


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