March 2010
Facilities Charge
Probably the most misunderstood charge on your electric bill!
Your residential electric bill has two components. One calculation is the Facilities Charge and the other is for the energy consumed during the month, billed as kilowatt hours. “Facilities” charge is probably not the best name we could have chosen because no one quite understands the reason for the charge. A better definition might be a “Grid Access” charge or a “Pole, Transformer, Meter” charge. The Facilities Charge is a set monthly amount each member pays to cover a portion of the fixed costs associated with serving the meter with electricity regardless of the amount of energy used. The Facilities Charges is designed to recover costs for the following:
- Substations, transformers, meters, poles, wire, vehicles, line trucks, lifts, trenchers, other line equipment necessary to build and maintain the electric distribution system, offices, and warehouses;
- Labor and overhead to build, maintain, and repair the system; read the meters and prepare the bills;
- Costs of property taxes, insurance, depreciation, and interest on long term debt.
For each metering point in our service area, MVEA makes a significant investment. The average investment for a service is over $5,000. The Association must receive a return on this investment in order to maintain system reliability, safety, and financial integrity. The concept of recovering fixed costs with a fixed charge or “Facilities Charge” provides rate equity among all members.
In 2009, MVEA had a cost of service study conducted by an independent organization to determine the costs to get service to a typical residence. The study showed that we should be charging around $40 per service per month for the fixed costs. On the upside, the study also stated that we could lower our kilowatt hour rate if we decided to raise the Facilities Charge. In a “perfect world,” we could raise the Facilities Charge and reduce the rate for your kilowatt hour usage. To maintain the same revenue stream, this approach would require people with very low usage of less than 200 kWh per month to pay more and people with average usage of 800–900 kWh per month to see very little change.
We have received suggestions from our membership to eliminate the Facilities Charge. If the Facilities Charge was eliminated, the kilowatt-hour charge would need to be much higher to recover the same revenue amount.
In a “perfect world” the Facilities Charge is designed to cover all of the fixed costs before you use any electricity. This ensures that all members are paying their fair share of the basic costs to provide electric service.
Redesigning our rate structure will involve a great deal of consideration and study by the Board of Directors. As members themselves and your elected representatives, their first consideration is what will work best to keep your monthly bill low, the rates equitable, maintain the power reliability, and keep your cooperative stable.
I will be addressing this topic several times in the next year just to keep you up-to-date on what is being considered at your cooperative. Rest assured, we will look at many alternative options to keep the cost as low as possible. After all, we are not-for-profit, just for service.
MVEA essay winner goes to leadership camp!
Each fall, MVEA has an essay contest for high school juniors whose parents or guardians receive service from our cooperative. In the last issue you met Alex Yoder, our first place winner, who will be traveling to Washington, D.C. this June for the NRECA Youth Tour. Our second place winner is William Felzien, a junior at Limon High School and the son of Dale and Cleta Felzien of Limon. William is very active in both the band and Boy Scouts. He is currently working on his Eagle Scout rank. In band, William plays the tuba and is a member of the Tri-M Society. He is on the honor roll and on the Student Youth Advisory Council in Farmers Union. His favorite classes are physics and math.
In July, William will be attending the Colorado Electric Education Institute’s Cooperative Youth Leadership Camp near Steamboat Springs. During the week, William will participate in leadership and team building seminars, legislative simulations and starting and running a camp cooperative. But there is a lot of fun during the week also including dances, barbeques, volleyball games and exploring the beautiful Steamboat Springs area.
Following is William’s winning essay. Congratulations!
Electricity for our future
With oil prices soaring and oil being in limited supply, we need a reliable form of energy. It also needs to be a cleaner fuel than oil is. It will help the environment and our health over time. With these in mind, I believe nuclear energy will be our reliable and clean energy of the future.
There are many misconceptions of nuclear energy. One is that nuclear energy is harmful to the environment. This is not true. Nuclear energy does not produce sulfur dioxide or nitrogen oxide, both of which can cause acid rain and be harmful to the environment. The nuclear waste is dangerous though, that is why it is safely transported and contained. Even now we are working on a way for nuclear waste to be recycled, which means less waste will just be sitting around and more of it will be used again and again and again. Another misconception is that nuclear facilities emit dangerous levels of radiation. While they do release some radiation, it is insignificant and has no impact on the environment. A rem is the radiation dosage. The Department of Energy states that living next to a nuclear power plant for a year results in a 1 millirem dose, while just a flight from Los Angeles to New York is 2.5 millirems. The average American is exposed to about 350 millirems a year, of which 83 percent comes from natural sources. Three percent of that even comes from the consumer products you use every day. Living next to a nuclear facility would cause just 1 percent of millirem dosage.
Another misconception is that nuclear reactors are too vulnerable to terrorist attacks, earthquakes and other accidents. They really aren’t. There are 104 nuclear power plants in the United States and 446 worldwide. Not one has ever fallen victim to a terrorist attack. Nuclear power plants are designed to withstand high velocity airborne attacks, such as an impact from a large passenger plane, whether it was an accident or on purpose. Ever since terrorists became a threat again, the Nuclear Regulatory Commission (NRC) has heightened security and increased safeguards for protection. With natural occurrences, the NRC requires each plant to meet a certain criteria against them. In 2004, the Kashiwazaki-Kariwa site experienced an earthquake measuring a 6.9 on the Richter scale. The facility suffered no incidents. All of the plant’s safety features performed as they were meant to. Other accidents are rare occurrences, such as the Chernobyl incident. That was caused by human error and poor design. While 50 people did lose their lives, most of them were rescue workers who were misinformed of the dangers of the radiation. Almost all incidents involving nuclear facilities have been fixed without the loss of life.
Nuclear energy is a clean way to power our future. Even today, 20 percent of our power is produced by nuclear energy. And as technology increases, soon we will be able to recycle it – meaning it will become even more environmentally friendly. This is why I believe nuclear energy will be the energy of our future.
Black Forest Art & Craft Guild offers scholarship
For the fifth year, the Black Forest Art & Crafts Guild is offering a $1,000 scholarship to graduating high school seniors. The scholarship is awarded annually to a student who resides within the Guild’s boundaries: County Line Rd. on the north; Eastonville Road on the east; Woodmen Rd. on the south; Black Forest Rd. on the west as far north as Old Ranch Rd. then west to State Hwy. 83 and north to County Line Rd. Applications are available at Falcon, Lewis Palmer and Pine Creek High Schools or you may call Sally Burr at 719-495-0496. Application deadline is April 2, 2010.
The Black Forest Arts & Crafts Guild was established in 1964 and is the longest continuous craft guild in the western United States. It consists of local artists and crafters who annually donate to groups and individuals that enhance the Black Forest community. Donations from guild members, patrons of craft shows and the local community have resulted in a $1,000 scholarship being awarded the last four years.
Lincoln County Relay For Life
Walking for a cure
MVEA is once again the Hope sponsor for the 3rd annual Lincoln County Relay For Life. This year’s event will be Friday, July 9, 7 p.m. to Saturday, July 10, 7 a.m. at the Limon High School track. Participants gather Friday evening and walk through the night to celebrate the lives of those who have battled cancer, remember loved ones lost and fight back against a disease that takes too much. Relay For Life is a fun-filled overnight event that empowers everyone to help fight cancer by raising money and awareness to support the American Cancer Society’s lifesaving mission. Teams camp out at the Limon High School track and take turns walking or running around the track. Each team is asked to have a representative on the track at all times during the event. Relay For Life symbolizes the hope that people lost to cancer will never be forgotten, that those who face the disease have support and that one day cancer will be eliminated. The fact that we have over 11 million survivors that are registered with the American Cancer Society proves we are making a difference.
Go online to the relay’s website at www.limonrelay.org to start a team, join a team, donate, register as a survivor or just get more information. You can also contact event chair Brenda Higgins at 719-763-2414 or Team development chair Summer Hutsell at 719-775-2879. Come and celebrate more birthdays for everyone.
MVEA members publish local history
MVEA is always on the lookout to better educate our members and their families on the region that the cooperative serves. One of the ways we do this is to purchase quality books about the area and its history and donate these books to local libraries and schools.
This last year we were contacted by David Wismer about a book he had recently published on Shamrock Ranch. David, and his wife Mary Anne, own the 2,586 acre ranch located in the heart of Black Forest bordered by Highway 83 on its western edge. First homesteaded in the 1860’s, much of the property had been subdivided. But the present owners managed to purchase the parcels to piece much of the ranch back together in 1994. Their common interest in its history led to publication of the book with the assistance of another Black Forest resident and MVEA member, Gary Wright. It is based on interviews and research covering the years 1803 – 2008. Filled with many historical pictures and maps of the area, the book also depicts the character of the people that resided in the area – from Native Americans to the military to the gold seekers to the modern day business man.
MVEA felt this was an excellent publication that should be available to our members through their schools and libraries and purchased copies to donate. We wish to thank MVEA members David and Mary Ann for introducing us to their excellent publication and for devoting so much time researching the area. If you would like to purchase this book, you can contact the publisher, Johnson Books, at 1-800-258-5830 or online at www.bigearthpublishing.com. If you like learning about the history of this area, you will definitely enjoy this book!
New Photo Calendar in the Works!!
Our 2010 calendar was absolutely great with some wonderful photos from our members. So for the seventh year, we are inviting you to send in your photos taken within MVEA’s territory and reflecting the seasons, people, lifestyle or landscape of our area. The winners will be included in our 2011 calendar. Please read the following guidelines carefully. The deadline for entry is July 1, 2010. If you have questions, please call Deborah Skillicorn at 719-495-2283.
- Only MVEA members, directors, employees and their family members are eligible.
- Photos will not be accepted without a completed entry form. Duplicate form if necessary.
- Only two photos per person will be accepted. Submit a separate entry form for EACH photograph.
- DO NOT WRITE YOUR NAME OR ANY OTHER INFORMATION ON THE PHOTOGRAPH.
- Prints, CD’s or disks will be accepted. It is not necessary to send enlargements. See note to digital camera users.
- Photos must have horizontal/landscape orientation.
- DO NOT SUBMIT ORIGINAL PHOTOGRAPHS. PHOTOS BECOME THE PROPERTY OF MVEA AND WILL NOT BE RETURNED. NO EXCEPTIONS.
- Deadline: July 1, 2010. Mail to: Mountain View Electric Association, Attn: Deborah Skillicorn, 11140 E. Woodmen Rd, Peyton, CO 80831.
Note to digital camera users: Resolution of digital photos printed on home printers is usually too low for commercial printing. If you submit a digital photo, be sure that you retain the original, untouched digital photograph which would have to be submitted if your photo is chosen for publication. Resolution also needs to be at least 300 dpi.
Click here for entry form.
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