Climate Change & Greenhouse Gas
Dear Members;
With retail rate increases expected in the spring of 2012, it is important for Benton REA members to understand why power costs are rising. Let’s take a look at state regulation regarding Climate Change and Greenhouse Gases, another reason power costs are on the rise.
Several years ago in response to concerns over climate change and green house gas, the Washington State voters passed Initiative Measure No. 937 referred to as I-937. This initiative requires qualifying electric utilities to purchase 3 percent of their wholesale power from renewable resources by 2012 ramping up to 15 percent by 2020. Renewable resources were defined as wind, solar, geothermal, landfill gas, ocean wave or tidal power, sewer gas, biodiesel, and biomass. Unfortunately existing hydro-electric resources were not included as a renewable resource in Washington State.
The mandates included in I-937 require qualifying utilities to purchase wholesale power from defined renewable resources at costs which range 3 to 4 times higher than the cost of power produced by conventional resources utilizing hydropower, coal, natural gas, and nuclear.
In addition to the direct economic impact from purchasing the higher cost output from renewable resources, some utilities have had to forgo their right to purchase low cost hydro-power from the Bonneville Power Administration in order to meet the percentages of renewable resource purchases mandated by I-937. Over time, the mandates of I-937 will increase wholesale power costs for all end use electric consumers.
We know that retail rate increases are on the horizon, let’s work together to remain informed of the reasons!!! After all that is "The Cooperative Way.”
Sincerely,
Charles Dawsey
General Manager
Sincerely,
Charles Dawsey
General Manager
