Manager's Message - September

Managers Message

September 2007

Climate Change: Affecting The Environment We Live In and Do Business In

Dear Members,

After several years of monitoring the political climate at both the state and federal level and witnessing the dramatic changes being implemented through legislation, I feel compelled to communicate to you what I believe are the realities of a utility industry soon to face unprecedented rate increases.

The Department of Energy predicts that the United States will experience a 40 percent increase in electricity demand by 2030. However, through legislation and/or political maneuvering, we have all but eliminated the use of coal, nuclear or hydro which are traditionally the conventional generating resources that would be used to meet growing electrical demand. While electricity from wind, solar, ocean wave, and methane are being pursued, everyone, including the proponents of these technologies, acknowledge that these resources are not only expensive but also limited and will not meet the future electricity demands of our nation.

To further complicate this problem, some in Congress are pushing for aggressive and costly policies to address climate change. Some proposals involve technology that is not yet developed or proven. The costs associated with these aggressive climate change policies will be added to the inflated energy costs electric consumers are already facing. In addition, there are efforts on several fronts that advocate significant increases to electric rates simply to force people to reduce their electricity demand as a way to reduce carbon dioxide (CO 2- green house gas emissions).

At some point, we must draw a line in the sand regarding what we can afford. We cannot allow programs or regulation to move forward that dramatically increase our electric rates simply as a mechanism to make more costly alternative resources competitive. Raising electric rates as a way to achieve these environmental policy goals is ill conceived.

Many of our public officials do not yet fully appreciate the economic costs connected with their proposals to address climate change and other environmental issues. These costs, when coupled with increasing costs of new generation, will be huge if not done carefully and with a full understanding of what technology can make possible. It is a message I have been carrying to legislators for several months now.

Benton REA is on record supporting reasonable approaches to climate change. What we can not and will not support are steps that place an unnecessary economic burden on electrical consumers including Benton REA members or set expectations based on unavailable or unproven technology.

We will continue to inform and educate decision makers about energy efficiency, our commitment to being good stewards of the environment, and all the positive things electric cooperatives, like Benton REA, do for its members everyday. All of this is focused on delivering reliable power as safely and affordably as possible. After all that is "The Cooperative Way."

Sincerely yours,

Charles Dawsey

General Manager

Managers Message September 2007 Climate Change: Affecting The Environment We Live In and Do Business In Dear Members, After several years of monitoring the political climate at both the state and federal level and witnessing the dramatic changes being implemented through legislation, I feel compelled to communicate to you what I believe are the realities of a utility industry soon to face unprecedented rate increases. The Department of Energy predicts that the United States will experience a 40 percent increase in electricity demand by 2030. However, through legislation and/or political maneuvering, we have all but eliminated the use of coal, nuclear or hydro which are traditionally the conventional generating resources that would be used to meet growing electrical demand. While electricity from wind, solar, ocean wave, and methane are being pursued, everyone, including the proponents of these technologies, acknowledge that these resources are not only expensive but also limited and will not meet the future electricity demands of our nation. To further complicate this problem, some in Congress are pushing for aggressive and costly policies to address climate change. Some proposals involve technology that is not yet developed or proven. The costs associated with these aggressive climate change policies will be added to the inflated energy costs electric consumers are already facing. In addition, there are efforts on several fronts that advocate significant increases to electric rates simply to force people to reduce their electricity demand as a way to reduce carbon dioxide (CO 2- green house gas emissions). At some point, we must draw a line in the sand regarding what we can afford. We cannot allow programs or regulation to move forward that dramatically increase our electric rates simply as a mechanism to make more costly alternative resources competitive. Raising electric rates as a way to achieve these environmental policy goals is ill conceived. Many of our public officials do not yet fully appreciate the economic costs connected with their proposals to address climate change and other environmental issues. These costs, when coupled with increasing costs of new generation, will be huge if not done carefully and with a full understanding of what technology can make possible. It is a message I have been carrying to legislators for several months now. Benton REA is on record supporting reasonable approaches to climate change. What we can not and will not support are steps that place an unnecessary economic burden on electrical consumers including Benton REA members or set expectations based on unavailable or unproven technology. We will continue to inform and educate decision makers about energy efficiency, our commitment to being good stewards of the environment, and all the positive things electric cooperatives, like Benton REA, do for its members everyday. All of this is focused on delivering reliable power as safely and affordably as possible. After all that is "The Cooperative Way." Sincerely yours, Charles Dawsey General Manager