News
6/10/2010
MVEA Representatives Join Co-op Leaders in Washington, D.C. by Jim Herron
In early May, a delegation of Mountain View Electric Association directors and staff discussed electric co-op concerns and issues with our representatives in Washington, D.C. Board members Donna Andersen-VanNess, Allen Gresham, Joe Martin and Milt Mathis and I joined 90 electric cooperative leaders from Colorado and an estimated 2,500 representatives of electric cooperatives from across the country in bringing specific cooperative concerns to the attention of our senators and representatives.Senators Michael Bennet (D) and Mark Udall (D) met with the group, as did Reps. Jared Polis (D-Dist. 2), John Salazar (D-Dist. 3), Betsy Markey (D-Dist. 4), Doug Lamborn (R-Dist. 5), Mike Coffman (R-Dist. 6) and Ed Perlmutter (D-Dist. 7). Rep. Diana DeGette (D-Dist. 1) was ill and sent her legislative aid to meet with the Colorado contingency.
This annual trip to Washington, D.C., by your board of directors and management staff is critical in making sure that electric officials understand the concerns of electric co-op members as laws and regulations are considered that will significantly affect Mountain View Electric’s business operations and the price you pay for electricity. This annual legislative pilgrimage is just one way that we represent you, our member-owners, with a unified voice on significant legislative and regulatory issues.
Making this trip at the same time as rural electric leaders from other states adds to our numbers and is effective in gaining legislative attention and an understanding of our national political influence. During the visit, the group had the attention of our House and Senate representatives during face-to-face meetings focused on those issues most important to electric co-ops.
At this year’s legislative rally, Colorado’s electric cooperative delegation, along with the lobbying groups from the nation’s other electric cooperatives, focused its messages to Congress on four specific areas of concern. First, the co-ops asked Congress to preserve funding for the 75-year-old Rural Utilities Service program (formerly the Rural Electrification Administration) and to oppose the administration’s efforts to reduce the RUS electric loan program funding levels for fiscal-year 2011 by $2.5 billion. Members of Congress were reminded that this program does not cost the government money as the loans are repaid with interest. This year, the program brought $63 million into the government coffers. Co-op representatives asked senators and representatives to support keeping the funding at fiscal-year 2010’s $6.5 billion funding level.
Second, the co-ops encouraged Colorado’s elected officials to co-sponsor or support HR4785, the Rural Energy Savings Program Act. The bill has bipartisan support and would provide funding to electric cooperatives that could then become low-interest loans to co-op members for energy efficiency improvements.
Third, Colorado’s congressional representatives were asked to co-sponsor or support one of several bills that have been introduced to prevent the Environmental Protection Agency from using the Clean Air Act as a vehicle for regulating greenhouse gas emissions, including carbon dioxide, from power plants. Members of Congress were reminded that the CAA was designed for regional emissions and is not designed to handle global emissions. Using the CAA in this way will unnecessarily increase electric bills and damage the economy while not significantly cutting the amount of CO2 in the atmosphere. The electric co-ops asked their senators and representatives to enact the emission regulations. This is not the job of the EPA, but of Congress, co-op representatives said.
Finally, the co-op officials reminded Colorado’s elected officials of how electric co-ops are different from other utilities. As member-owned, not-for-profit organizations, electric co-ops are focused on keeping rates affordable for our member-owners and not on making a profit for shareholders. Co-ops have fewer members per mile of line and serve in the far reaches of the country. That makes it more expensive to serve these members and means forced increases in rates will hit these members hard.
These were important messages for the co-op representatives to take to Washington. I would encourage you to send a personal message to our representatives in Congress, Representatives Mike Coffman, Doug Lamborn and Betsy Markey, and thank them for their support. You can also visit www.ourenergy.coop for to make your voice heard.
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 considerations 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.
Check Out Energy Savings At Local Libraries
Plug-in energy meters are the newest items to leave the shelves at public libraries in MVEA’s territory. We’ve recently started a program allowing consumers to check out “Kill-A-Watt” meters from local libraries and Book Mobiles in MVEA’s service territory.
Checking out the simple plug-in “Kill-A-Watt” meter can help consumers assess how efficient appliances really are. The meter comes with basic, easy to follow instructions. It displays kilowatt-hours and makes it easy to find out your electrical expense.
The rising cost of electricity can really hit you where it hurts and this program provides a ‘no cost’ way to reduce energy usage and identify the real energy abusers. Members that have used the meters report “unplugging appliances that weren’t being used to save energy.”
Key Accounts Representative, Kevin Holbrook, wanted to widen the meters’ availability and turned to the local public library system for help. “Accessibility to the meters is better for our members and there are several learning opportunities possible with this meter”, said Holbrook. “With the co-op’s help, users can calculate how much it will cost to use an appliance over a month’s time."
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.
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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