August 2009
Climate change legislation or just another tax?
Mark Twain has often been credited for saying, “Everyone talks about the weather, but no one does anything about it.” Well, it seems Congress is working on that problem and their first step is, of course, to create a new tax. But even Benjamin Franklin said, “in this world nothing can be said to be certain except death and taxes.” So, it really shouldn’t be a surprise that Congress found a way to tax our newest “crisis.”
On June 27, the House of Representatives passed the Waxman-Markey climate change bill (H.R. 2454), now named the American Clean Energy and Security Act of 2009, which will cap the carbon dioxide emissions of U.S. electric utilities. According to Open Congress.org, the purpose of the bill is to “create energy jobs, achieve energy independence, and reduce global warming pollution and transition to a clean energy economy.” This was a fight that went down-to-the-wire resulting in the bill passing the House by a narrow margin of 219-212. Twenty-two Democrats voted against the measure while eight Republicans supported the bill. Democrats managed to sneak in some bureaucratic provisions filed in a 300 page manager’s amendment at 3 a.m. that morning. House members were upset that this amendment was added to the already 900+ page bill in the middle of the night, providing no time for members to read them before casting their votes. This assumes that the House members read the first 900+ pages. Most House members were unable to acquire a physical copy of the entire bill before they were called to vote. Included in the amendment were building codes and energy efficiency requirements that would be imposed on new homes built across America.
As I have stated in previous articles, this type of legislation will raise our electric rates considerably. Congressman John Salazar, D-Colo., voted against the bill saying, “The bill places a disproportionate burden on the backs of my constituents.” Salazar contends that while he supports “creating green jobs and investing in renewable energy, the bill will raise the average household cost of utilities between a few hundred dollars and several thousand dollars per household. I cannot support dramatically increasing utility rates on my constituents at a time when I feel the economy is just starting to stabilize across the state.”
I would like to thank Representatives Doug Lamborn, R-Colo., and Mike Coffman, R-Colo. for taking a stand against this legislation and supporting what is best for Colorado. Rep. Lamborn said after the voting, “It is clear we need a comprehensive energy plan, not a national energy tax.” “Unfortunately Democrats rushed a ‘cap and trade’ bill through the House that is essentially a national energy tax.”
Representative Betsy Markey, D-Colo., waivered on whether or not to vote for the bill, but at the final hour did follow her party’s recommendation and voted in favor of the bill.
I agree that it is important to create new jobs through wind, solar and other alternative-energy sources, but it is equally important to preserve the jobs that people already have in the gas, oil and the coal industry. This proposed law will add additional burden to people and may sacrifice the current jobs to allow the creation new ones.
A “sort-of bright spot” for electric cooperatives is that we did reach a deal on allowances in the cap-and-trade bill through the National Rural Electric Cooperative Association (NRECA). Through negotiations with House Energy and Commerce Committee Chairman Henry Waxman, D-Calif., and NRECA CEO Glenn English, a provision was included in the bill that no one would get a “windfall” of more than 100% of its needs determined by whether a utility receives allowances above what will cover its direct and indirect costs of complying with the cap-and-trade program. Allowances above that level are to be distributed to all load distribution companies, including investor-owned utilities, cooperatives and municipals, based on emissions. Under the former version, large investor-driven refineries in California and on the East Coast would have an advantage. NRECA discovered through their analysis that companies such as Southern California Edison, Public Service in New Jersey and PG&E in California would receive up to 181% of their share of the cap. By contrast, some cooperatives in Minnesota, Kentucky, Illinois, Arkansas and Ohio would receive as little as 59% of their share under the current formula. English recommended that allocation of emission allowances to local distribution cooperatives be based on the carbon content of the fuel used to produce the electricity sold by the local distribution cooperatives and be in proportion to the utility sector’s share of emissions.
The prediction is that the bill will be much tougher to pass in the Senate. A major struggle is expected with 60 votes needed to overcome a filibuster. This legislation has been touted as “the largest tax increase in American history under the guise of climate change.”
NRECA continues to have significant concerns about the bill. Some of the improvements they will work on with the Senate are to:
- Make sure the emissions caps, particularly in the first decade of the program, are consistent with the availability of technology – the caps in the current bill remain too stringent;
- Ensure that emission allowances for the utility sector are distributed based on emissions to minimize the additional costs to the consumers who will be most affected by the reductions required by the bill;
- Improve the cost-containment provisions of the legislation to avoid price shocks; and
- Make other improvements to the bill that will make it more workable, affordable and flexible.
As cooperative members, I urge you to contact your Senators and make them realize we are concerned about the price of our electricity. As you can see by the very close vote in the House of Representatives, not everyone is convinced that this bill is the answer. Democrats in several key states voted “no” which gives us hope that our legislators are listening to the people they represent in congress. If you continue to contact them, we may have a chance of sending this bill back for the re-vamping it needs. President Obama has stated that, “Under my plan of a cap and trade system, electricity rates would necessarily skyrocket.” But he has also stated that, “the measure would cost the average American about the price of a postage stamp per day.” Obviously the president, as with everyone else, only knows electricity rates are going to increase through this tax. Don’t let that happen. It is up to us, the people back home, to stop this bill. I urge you to contact your Senator today by going to www.ourenergy.coop and letting them know where you stand. The electric bill you save may be your own.
Local Happenings
You don’t have to travel too far from home or spend a fortune to have some good ol’ family fun. August 8 is the Black Forest Festival held at the corner of Black Forest and Shoup Roads. Start your day off right with a hearty pancake breakfast from 6:30 – 9:30 a.m. in the community center. After breakfast, you can wonder around and check out vendors and displays, listen to some great bands, including the Air Force Academy’s “Wild Blue Country” recently returned from a tour of military bases in Iraq, or take a tour of some historic buildings. But, you better stake out your seat early for their fantastic parade at 10:30. There is something for everyone at this festival, so don’t miss out on the fun. Festival runs til 3 p.m. For more information and the schedule, go to
http://festival.blackforest-co.com
Come out and kick up your heels at the annual Ramah Days on August 8 & 9 The festival is full of small town fun for kids of all ages. A parade at 10 a.m. will kick-off the event. Peruse the food and craft vendors, take a chance on one of the many raffles, and let the kids try their hand at the carnival games just for them. Listen to the many bands playing throughout the two days of the event and enjoy lunch prepared by the ladies of the local church. If you want to make it a night, have dinner for only $5 and join in the street dance from 7-11 p.m. Saturday night. Ramah is located east on Hwy. 24 about 9 miles past Calhan. Get out and have some summer fun!
Phase I Officially Open
MVEA board of director’s president Joe Martin cuts the ribbon marking the grand opening of phase I of the Falcon Operations Center on June 23. Holding the ribbon on either end are directors Milt Mathis (left) and Bud Paddock. Second row (left to right) are general manager Jim Herron and directors Barry Springer, Allen Gresham and Rick Gordon. Joining in the festivities are MVEA staff, architects from LJH, representatives from Tri-Lakes and Eastern Plains Chambers of Commerce, and several MVEA members. After the ceremony, there was a light reception and tours of the building. All three phases of the new building are scheduled to be completed by the end of 2009.
The Battle Goes One
Lincoln County Relay for Life
MVEA, KC Electric and Tri-State G&T once again came forward to be the HOPE sponsors for this year’s Lincoln County Relay for Life on June 26. This was the second year for the event which grew from approximately 90 participants in 2008 to nearly 300 in 2009. Twenty-two teams had at least one person on the track from 7 p.m. to 7 a.m. to help raise money for cancer research and provide resources for cancer patients. The Relay had a goal of $35,000 this year and has raised nearly $28,000 as of the first of July. Their fundraising efforts will continue through August 31.
Many of MVEA’s employees participated not only as walker/fundraisers, but also in the planning of the event. MVEA employees on the planning committee were Jaclyn Parmer, Trudy O’Dwyer, Susan Meyer, Jonelle Dohe and Deborah Skillicorn. MVEA employees and their families walked over 250 miles during the night, raising awareness of research efforts and remembering and celebrating the lives of cancer victims.
But it wasn’t just MVEA employees that made this event a success. Community participation and involvement of local businesses is what the Relay is all about. Folks like Denise Kelly organized her Farm Credit Team and got the support of her husband’s employer, Black Hills Energy, to raise over $3,000 to date with the Limon Education Foundation just a few dollars behind them. Superior Builders, a national building company headquartered in Limon, fielded two teams, as did the Limon Correctional Facility and the Limon Emergency Services. People from these teams, and many of the other teams and businesses, served on committees, recruited teams, organized fund raising events and volunteered extra time to make the Relay a success. The local grocery stores, Limon Super Foods and Osborne’s Market, donated food and water to help walkers through the night and Darling’s Delights provided donuts for that much needed burst of energy in the morning. It was truly a community event.
Since last year’s event, Lincoln County has come on the American Cancer Society’s radar. Outreach and resource programs have come to our communities and workers from ACS have made themselves available and known within the area. The Relay has had a very positive effect in this area.
But perhaps the most important aspect of the Relay is the feeling that one is not only doing something in the fight against cancer, but also remembering and honoring those who are currently in the battle or have, unfortunately, succumbed to the disease. Recently, Limon lost one of its cherished citizens, Willie Layton, to cancer. Although Willie is not the only person that has died of cancer in the past year in this community, it did seem ironic that just before the July 4 Relay last year, Willie had received his first chemo treatment and sat on his brother’s deck watching – not feeling up to joining in. Survivors had encouraged him to join them in the opening lap, but he had replied, “Next year.” About a month before the 2009 Relay, Willie lost his battle. So instead of watching him walk that survivor lap, Willie’s family and friends spent the night remembering his fight and celebrating his life.
The American Cancer Society’s Relay for Life is a means for those whose family or friends have been touched by cancer to take a stand and fight back against a terrible disease. Lincoln County is helping to win that fight. For more information on the Lincoln County Relay for Life and the opportunity to donate to the cause, go to www.limonrelay.org and plan to participate in next year’s Relay. Celebrate, Remember, Fight Back.
Tri-State and Duke Energy Team Up On Colorado Wind Project
Tri-State G&T and a subsidiary of Duke Energy Corp. have signed a 20-year agreement to purchase the output of a new 51-megawatt wind farm to be built in east-central Colorado.
“This wind power project is an important part of our near-term strategy to diversify our portfolio with renewable resource that complements our fleet of baseload generation,” said Ken Anderson, Tri-State’s executive vice president and general manager. “It also keeps us ahead of targets to meet renewable energy standards on behalf of our member co-ops.”
The Kit Carson Windpower Project, named for the county in which it will be sited, will be comprised of 34 – 1.5 megawatt General electric turbines to be erected on a 6,000 acre site northwest of Burlington, CO. No new transmission facilities will be required to the Tri-State system; the wind project will be directly connected to an existing Tri-State 230-kilovolt line between substations located near the towns of Limon and Burlington.
“Being able to connect to our existing transmission system helps get the project online within 18 months,” Anderson said. “We’ll continue to invest in new transmission resources that will support further development of renewable energy projects.”
Duke energy will construct, own, operate and provide all maintenance services on the facility, which is scheduled to be in service by the end of 2010. Construction will begin in June 2010 with a workforce of about 150 people on site during the peak construction period. A permanent staff of four to eight technicians will operate the wind farm. Duke Energy is the third largest electric power holding company in the U.S. based on Kilowatt-hour sales.
In March of this year, Tri-State and Tempe, AZ. based First Solar, entered into an agreement to develop a 30-megawatt solar generating facility in northeast New Mexico. Construction of that facility is scheduled to start in April 2010 and is expected to be fully operational at the same time as the Kit Carson Windpower Project.
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