Editorial Submitted by Directors Rick Bergman and Lee Grove

As members of Southern Power District’s Board of Directors, we would like to make our customers, as well as all electric consumers aware of an issue that will determine how much you pay for electricity in the future. As we are writing this letter, the Chairman of the House Energy and Commerce Committee is working to push “cap and trade” legislation through Congress, with a goal to do so prior to Memorial Day.
We have been watchful of this legislation in recent months. We understand that there are many opinions about a “cap and trade” program among our customers. But through this campaign we are discovering that people with a wide range of opinions are in agreement that electric rates must remain affordable. A “cap and trade” plan is one that would drive up the cost of electricity significantly by forcing coal generating plants to purchase carbon credits in exchange for emitting carbon. Here in Nebraska, this should be of particular concern, as coal comprises 65% of all generation. And beyond your electric rates, you may also see an increase in your cost for natural gas. It is anticipated that a shift may occur in generation from coal to natural gas, which emits less carbon dioxide. This shift will drive up the price you pay for natural gas, not to mention the cost that farmers must pay for fertilizer.
With the drive to pass the bill through the Energy & Commerce Committee later this month, now is a critical time to ask some very important questions. There has never been a more appropriate time to get in touch with your Congressman and Senators in Washington. They need to know that you are concerned about the affect that this legislation will have on your electric rates. We urge you to visit www.southernpd.com/oeof and take just a few minutes to share your concerns with Congressman Adrian Smith, and Senators Ben Nelson and Mike Johanns. If you do not have email access, feel free to send your thoughts to Southern Power District and they will gladly assist you with sharing your message!

Sincerely,

Rick Bergman, Holdrege
Lee Grove, Axtell