Managers Message

The Cost of Energy Alternatives

Dear Member:

For the last couple of months we have been addressing the issues of climate change, global warming and green house gas. As we have noted, these issues will likely result in the development of new forms of electrical generation.

In order to make informed decisions regarding new generation, it is important to understand how the costs of these new resources currently compare to the cost of power that we purchase from the Bonneville Power Administration (BPA) under a power supply contract that will expire in 2011.

Source of Generation                                                           Current Cost per MWH
BPA-hydro/nuclear                                                                      $28
Landfill Gas                                                                                  $45
Coal                                                                                              $50
Nuclear                                                                                         $54
Wind                                                                                             $80-$100
Solar                                                                                             $100

It is evident that the cost of generation from alternative resources will be more than we are currently paying to purchase power from BPA. In many cases almost twice as much. As we are forced to meet new demand for electricity from alternative resources, it is clear that the price of electricity will increase after 2011.

As always, the Board of Benton REA will be good stewards of the environment by continuing to offer energy conservation programs, and will meet your future energy needs in the most environmentally sound manner consistent with good business-after all "That is the Cooperative Way"

Sincerely yours,

Charles L. Dawsey

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Benton Rural Electric Association - 402 7th St. - PO Box 1150 - Prosser, WA. 99350 - 1-800-221-6987