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February 22, 2010 Update.
I just returned from the National Rural Electric Cooperative Association’s (NRECA) annual meetings in Atlanta Georgia. I participated in four all day training sessions before the conference began with Directors from across the United States. The four full day training classes were:
1. Ethics and Governance: Implementing the New Accountability
2. Applying Governance Concepts to Real Boardroom Challenges
3. New and Emerging Technologies: What Every Director Needs to Know
4. Getting Involved: The Board’s Role in Shaping Policy
The Conference featured NRECA CEO and former congressman Glenn English, analyst David Gergen, former Shell Oil CEO John Hofmeister, and USDA Rural Utilities Administrator Jonathon Adelstein. Additional afternoon meetings I attended included sessions by Motley Fool co-founder David Gardner, a forum on how technology can be used to better communicate with coop members, and a forum on using the internet effectively. I also attended a luncheon acknowledging and celebrating the efforts by NRECA’s Cooperatives (including HILCO) to contribute money and send help to Haiti and Guatemala and to learn of upcoming opportunities and needs that we may be able to support through NRECA’s International Foundation. One such effort in the next year is to bring electricity to a remote Asian village for the first time (which would involve volunteers of linemen as well as at least one electrician for adding wiring in at least one building in the village). Becky did go with me and she attended some conference activities at our expense.
One of the things I realized during the meetings is that the NRECA member cooperatives including HILCO are basically very organized grass roots organizations that could easily be used to communicate the views of mainstream America with our representatives.
Congress probably will need to act on the issue of Global Warming/Global Climate Change/ Carbon Dioxide Level Concerns because, if it does not, the EPA is getting in position to establish regulations to control Carbon Dioxide emissions under the Clean Air Act. Keep in mind that Carbon Dioxide is a naturally occurring gas that plants need to survive. The Clean Air Act was passed to control pollution that is directly harmful to the environment and was not originally intended to control Carbon Dioxide which simply put is nothing more than harmless plant food in the lower atmosphere. It is so safe that most of us drink it every day (carbonated drinks). In fact, Carbon Dioxide is the byproduct when a fuel is completely consumed in the burning process and is very much the desired emissions from gas or coal burning since the product of incomplete combustion is carbon monoxide (a poison that is clearly harmful to every person or animal that breathes).
It is feared that the cost of electricity could climb substantially due to the EPA exercising jurisdiction over carbon dioxide emissions under the clean air act even if congress fails to act. The clean air act was created to control and reduce emissions that are pollutants that affect health and safety and most people can see that carbon dioxide should not be lumped in with harmful emissions. The EPA would first exercise its rule making through the auto industry before it would move on new rules for other industries like electricity generation. However, it is feared that broad reductions in allowed carbon dioxide emissions would have to involve restricting emissions by all types of industry including electric generating plants (which are predominantly fueled by domestically produced natural gas and coal fuel sources today).
Since inaction on the part of Congress does not provide the protection sought for electric consumers, we need to encourage our Representatives and Senators to engage in the issue and work with NRECA's legislative representation in coming up with a reasonable and affordable legislative solution.
Members are still strongly encouraged to visit the Our Energy Our Future Website to get more informed and to use the provided links to send emails to your own elected officials.
What do we value the most? Is it our Time? Or is it our Money? While we recognize that there will be a longer wait if we go out to eat during the Friday Dinner rush, if we are visiting with friends, we might not care about the wait. On the other hand, if we are rushed to beat a deadline, we might order out. Some of us pay extra to avoid lines by using the Valet for parking. Others might camp out overnight to be in line to get the big item on sale tomorrow. Our time has to be assigned a value and we really do this all day long as we make decisions like whether to wait in the budget gas line or drive down the street and pay a little more. We make decisions concerning when to go shopping, whether to go to the convenience store and pay more or to the bulk wholesaler to get more and pay less. Sometimes we choose Time over Money and other times we choose Money over Time. But wouldn’t we all love the rare opportunity to save both?
Electricity currently is different that any other item we buy on a regular basis because it is always available without delay, no matter when we want it and regardless as to how much other people on the line are using it. However, we receive a bill each month that tells us what we must pay and, while most people do not realize this, the amount is directly related no only to how much electricity was used but also when it was used.
Let me state the above again. A large component in the cost of a typical residential electric bill is caused by everyone using electricity at the same time. If we could spread out our use over the day, we would all save substantially.
Since electricity is readily available anytime we flip a switch, we mistakenly may think that it costs the same no matter when or how we use it. The truth, however, is that how we use electricity does affect how much we have to pay for it. Most Electric company pricing formulas (called tariffs) are Click here to read the entire article: "WHEN Used?" Does Matter!
On a more positive note, this link tells about a tax credit up to $1500 that has been included in the recently passed 2009 Stimulus Bill
to encourage homeonwers to do energy improvements for their homes. This basically allows taxpayers to
earn up to $5000 tax free that can be used for selected energy improvement projects! "
November 2009 Update.
During the first week in November, I attended the Region 10 Director's meeting for the NRECA in Albuquerque. Since inaction on the part of Congress does not provide the protection
sought for electric consumers, we need to encourage our
Representatives and Senators to engage in the issue and work with NRECA's legislative representation in coming up with a reasonable and affordable legislative solution.
Members are still encouraged to visit www.OurEnergy.coop to get more information and to send emails to elected officials.
I also received my Cooperative Credentialed Director Certificate from NRECA Chief Executive Officer and former congressman Glenn English. (I completed the necessary coursework in December of 2008
but the certificates are awarded at Regional meetings.) Currently all seven of the HILCO Board members
have completed the necessary work to be credentialed.
The February 2009 Report will show that two HILCO Directors attended the Texas Electric Cooperative (TEC) Legislative Session in Austin. I was one of the two HILCO Directors that attended this
event representing HILCO on February 9 to 11. Electrical Cooperatives continue to be seen as quality organizations created to meet the needs of
member/owners and that
have democratically elected leaders. I do expect there to be some legislation this year that outlines the best practices of Electrical Coops all across
Texas in
areas of quality governance. The TEC is very active in working with our elected state representatives to insure that member/owner's interests are being properly
protected with any state legislation under consideration.
The March 2009 report will show that I attended a Regional Conference for Directors. The Conference was in Las Vegas (not my favorite city) and Becky did go with
me at our own expense.
I attended two courses: one on Advanced Rate Making and another on Energy Efficiency Efforts that are being put into place by Cooperatives across the
country in addition to the actual conference. I was able to hear from our National Rural Electric Cooperative Association leaders and better understand what they are
doing and what we need to do locally to support their efforts to keep electricity affordable. I also was able to interact and get
ideas and learn from Directors with Cooperative experience ranging from my six months to one Director that had been serving for over 40 years. I, along
with other directors across the country
continue to be concerned about how the current administration, congress, and the EPA all have ideas that could cause the typical monthly bill for electricity to
jump from $20 to $50 in the near future and even higher down the road. We all certainly think now is the time for our members to be in contact with each of our
Congressmen and Senators to ask them to think very carefully about the economic impact of their actions on using electricity as a future source of
substantial Federal income.
All at my own expense, I spent an extra night and rented a car to travel and tour Hoover Dam and see the hydro generating plant. I was suprised
to
find that it is open to the public. I would highly recommend it if you are ever in the Las Vegas area. It certainly is a much cleaner alternative for both
the production of electricity as well as how to spend your time in that area of the state.
Headline: "U.S. budget to have CO2 revenues by 2012" "This February 24th Article
quotes White House Spokesman Robert Gibbs as saying that a Carbon Dioxide Cap and Trade program will be in place
in time to raise revenue for the 2012 Federal Budget. What this most likely means is that Electricity costs will be increased so that Electricity
Generation companies can pay for this new source of federal revenue. It is important
for everyone to realize that this is in fact, a new source of revenue that will come out of the pockets of people that use electricity. This makes it
even more important that we all continue to look for ways to reduce usage.
"It's OUR Energy and OUR Future!"There are a lot of action groups and powerful individuals that are pushing our
elected officials to
act on limiting Carbon Dioxide Emmissions. This website link will help you get engaged and stay informed. Electriciy generation is the biggest producer of man made carbon dioxide. Any action on reducing carbon dioxide emmissions could
greatly affect how affordable and available electricity is in the future. Do you think our economy can take electricty doing what gasoline did this past Summer? We need our elected
representatives to be very wise in their actions and we all need to stay engaged in the process as energy related decisions are made. While I'm sure no one would support
returning to real pollution (smog), we need to make sure that if Carbon Dioxide reduction is really necessary that we work hard to develop new technologies
that will allow us, and the rest of the world, to produce electricity without emmitting as much carbon. The task is not small and our elected officials
need to have input from all areas. This means you need to weigh in as well.
HILCO Board Meeting Minutes are now available on HILCO Website. Log on to see them here.
HILCO Board Approved Activity Reports are now available on HILCO Website. Click here to
see them.
Information shared at the meeting was intended to get Director's to continue to encourage cooperative members to keep in
contact with their elected representatives in Washington over the proposed cap and trade legislation. It is feared that
the cost of electricity could climb substantially due to the EPA exercising jurisdiction over carbon emissions under the
clean air act even if congress fails to act. The clean air act was created to control and reduce emissions that are pollutants that
affect health and safety and some feel that carbon dioxide, which is the byproduct of complete combustion and that helps plants
survive, should not be lumped in with harmful emissions. The EPA would first exercise its rule making through the auto industry before it would
move on new rules for other industries like electricity generation. However, it is feared that broad reductions in allowed carbon dioxide emissions
would have to involve restricting emissions by all types of industry including
electric generating plants (which are predominantely fueled by domestically produced coal today). HILCO Board Activity Report Supplemental
While the current Board Activity Reports are not usually Director Specific, the December report will show that I did attend the necessary training to become a Credentialed
Director. The five days of classroom training were in Nashville on December 12th through 16th. Becky did go with me at our own expense. In recent years,
HILCO's Board has tried to be
responsive to Member concerns and as a result it is Board policy to not pay travel expenses for Director Spouses. Feel free to email me if
you have any questions.
"Click here to go to: It's OUR Energy and OUR Future! and get involved."
Email Stephen
Thank you for visiting www.stephenpape.com