Thursday, April 30, 2009

Why is SPD Engaged in OEOF?

Southern Power District has been engaged in a campaign this year called Our Energy, Our Future. There is a very simple concept that urged the District to boost their involvement in the campaign. That concept is that events being discussed in Washington DC will dramatically increase the affordability of your electric service. Southern Power District--its board of directors and staff--feels an obligation to make customers aware of those events. We feel it is our job to inform you--our customers--so you can make judgements and take the action you feel is appropriate.

We have seen predictions that your electric rates could triple in the next 10 years if global warming legislation is passed. In some instances, we have been accused of engaging in “scare tactics” with this campaign. We, on the other hand, feel you need to know the facts so you can determine for yourself if you should be “scared”. We know that concerned citizens ultimately have the power to make a big difference. On the federal level, Southern does virtually no lobbying on your behalf. Our national association, the National Rural Electric Cooperative Association, is working hard to make sure your voice is heard. Southern wants nothing more than to engage you in these discussions and to provide you with an easy route to let your Senators and Congressman know of your feelings.

It is important to Southern’s Board that you know we are not engaging in a pro or con debate on global warming. However we do feel that when this issue is being addressed, it is important to keep our electric rates affordable. We are not against renewable generation, but feel that electric service must be affordable, and there when you need it. Providing high quality and reliable electric service at an affordable price is the short version of the mission statement of almost every electric utility in the United States. We feel that as legislation is considered in regard to global warming that this mission deserves some consideration as well.

We hope you will consider joining us in this nationwide grassroots effort, and let those in Washington DC know how you feel. There are tools available on Southern’s website, at www.southernpd.com/oeof that make it very easy for you to communicate to Nebraska’s delegation in Washington. What if anything you say is up to you, but the tools also provide some clear and to-the-point messages that you can choose to put your name on.

These are critical times in the electric industry and what happens in the weeks to come can dramatically shape your electric energy future. Do not make the mistake of being passive; thinking someone else is looking out for your best electric supply interests. Remember this is your energy we are discussing, and it is your future that may be impacted.

Thursday, April 16, 2009

Editorial, submitted by Director Marvin Fishler

I am a member of Southern Public Power District’s board of Directors, having served in this capacity for 11 years. I take a strong interest in the political activities on the state and national level. Today I find myself very concerned about how potential national policies will affect the cost of your electricity.

One of the policies currently under discussion nationally is a carbon cap-and-trade program, which would place a “cap” on the emissions of carbon dioxide. The emission of carbon dioxide from electric power generating plants is a key part of legislation dealing with global warming. Those who use fuels such as oil, coal and natural gas—such as power generating plants—would be mandated to acquire allowances for emitting carbon dioxide through a trade program down to a federally set cap. Initially, all carbon dioxide emissions would be taxed up to this cap level. Such a program would significantly raise the price of electric generation from coal, natural gas and oil. The result unfortunately is a hidden tax that would significantly increase the rates that you must pay for electricity—potentially tripling rates for some customers across the United States. Take a look at your next bill from Southern to see what that would mean!

To further examine the issue, and specifically how it would affect Nebraskans, consider that 65 percent of our state’s generation is currently produced from coal. This means that the cost to produce well over half of our generation would take a direct hit from a cap-and-trade bill. Add to that the increases expected in natural gas—which produces an additional 2.4 percent of our electric generation and the resulting increases to your electric bill will be significant.

The Institute for Energy Research has also acknowledged that a cap-and-trade program is designed to unfairly target rural economies. Their studies show that either a carbon tax or cap and trade program would transfer wealth from rural areas—where people drive more and use more energy—to more densely populated urban areas.

Although clean air is an important issue, the potential harm of a cap-and-trade program or any kind of carbon tax is a concern to me. I want all electric consumers to ask themselves some important questions: Is NOW the time to enact climate change legislation? Can we afford to pay for the resulting increases to our electric bills? Do we want Wall Street to trade these carbon credits?

We need to speak out to our elected representatives in Washington about this issue. I urge you to join me in participating in the Our Energy, Our Future campaign. We need the voices of Nebraskans to join with over 1 million voices from across the nation to speak out. Our message must be that while addressing global warming issues, “we must keep our electric rates affordable”. I urge you to log on to www.southernpd.com/oeof and express your concerns to Congressman Adrian Smith or Jeff Fortenberry, and Senators Ben Nelson and Mike Johanns.

Marvin Fishler, Central City

Friday, April 3, 2009

Editorial, submitted by Directors Larry Benson and Richard Schaffert, and Board Chairman Dean Klute

Serving as members of Southern Power District's Board of Directors for a combined 63 years, we have seen a number of challenges faced by the utility industry during our time of service. With all of the attention on global warming issues, Southern Power District and its customers are now facing one of the greatest challenges we have ever seen.

As a public power district, Southern has been part of a unique system that offers our customers utility rates that are among the lowest in the nation. Service as members of Southern's Board, we are accountable to Southern's customers, and know that our customers depend on affordable rates for their homes, businesses and farm operations.

The affordability of our electric rates is now in jeopardy. Global warming issues are now being discussed by our elected leaders in Washington, and unfortunately, there doesn't seem to be any consideration about the impact that global warming legislation will have on our electric rates. Affordability is a factor that cannot be ignored in these discussions.

We urge you to join the Our Energy, Our Future campaign. We need your help to communicate to our leaders in Washington that affordability of our electric rates is important. By logging on to www.southernpd.com/oeof, you can communicate with U.S. Congressman Adrian Smith and Jeff Fortenberry, as well as Senators Ben Nelson and Mike Johanns.

Senate Passes Bill Ensuring Debate of Cap & Trade

The amendment introduced by Senator Mike Johanns to ensure complex and far-reaching cap-and-trade legislation is not slipped into law using budget reconciliation was passed in the Senate on Wednesday, April 1st with over two-thirds of the vote. The amendment ensures a full, open, and robust debate on the details of extremely complex climate legislation. Using reconciliation would have limited debate on climate change legislation and rushed through final passage of the bill, possibly in less than one day.

We are encouraged to see that Senator Johanns has recognized the impact that a cap-and-trade bill will have on electric consumers. We are expecting a debate regarding the issue to occur very soon, so we need to speak up now. Let Senator Johanns, Senator Ben Nelson, and Congressman Adrian Smith know that you are concerned about the impact climate change legislation will have on your electric bill. We need to work together with our leaders to find solutions that we can afford! Log on to www.southernpd.com/oeof, and send your email or letter TODAY!

Tuesday, March 31, 2009

Johanns Says Complex Climate Legislation Must Have Full Public Debate

Senator Mike Johanns today introduced an amendment to the budget to ensure complex and far-reaching cap-and-trade legislation would not be slipped into law using budget reconciliation.

Reconciliation is a legislative tactic that would prevent an open debate and full disclosure of the details of potential cap-and-trade legislation.

"This legislation could have profound consequences for every family across the country, and we must vote on this legislation with a full understanding all of the details. This cannot be done if budget reconciliation is used," said Johanns. "The House has now included these instructions in their budget, and if accepted by Congress, it would limit debate, transparency and thoughtful consideration of this sweeping legislation in the Senate. The public deserves to know the full price they will pay for flipping on a light switch if this legislation passes and the attempt to gloss over such details using procedural tactics is alarming."

Fast Facts about Budget Reconciliation:


  • The House budget includes a placeholder, budget reconciliation, that would slip in a cap-and-trade proposal that has yet to be defined, debated or detailed.


  • It is a legislative maneuver to bypass normal Senate procedures.


    • It limits debate to 20 hours when most legislation has unlimited debate.


    • It lowers the normal vote requirement from 60 votes to a simple majority in the Senate.


    • It imposes guidelines on what amendments can be offered, which is not the case for most legislation.

    Based on previous climate proposals, the likely effects of a cap-and-trade proposal are:


    • Increased energy costs, construction costs, fertilizer prices, and also higher gas and diesel prices.


    • The cost of corn production would go up by $40-80 an acre. ($3-7 billion for Nebraska Farmers)


    • The Congressional Budget Office (CBO) says the Environmental Protection Agency will have to spend $1.7 billion to hire 400 additional staff just to set up the program and write the rules.


    • A $3,000 per year energy tax on every American family.

    We applaud Senator Johanns for recognizing the impact that a cap and trade proposal would have on "everyone who uses a light switch". Read Johann's entire article by selecting this link.

Friday, March 20, 2009

The following is an excerpt taken from Senator Mike Johann's weekly column:

While I am eager to get back to the office, I have stayed busy working on a number of issues important to Nebraska. Last week, I wrote a letter to the Senate Budget Committee regarding a very concerning development on global warming legislation, known as "cap-and-trade," that could significantly affect businesses, farms, and families across the state. The legislation would end up costing up to $3,000 per family in the form of an energy tax. There is talk that it could get passed by means of the budget reconciliatory process instead of traditional Senate procedures. This would prevent most members of Congress, including myself, from fully debating it.

It is critical that this legislation be given thorough consideration so that all members of Congress and the American people fully understand its far-reaching implications. My letter received signatures of support from 32 other Senators, including 8 Democrats. This strong statement from one-third of the Senate reinforces the importance that this process is dictated by fair and robust debate, not parliamentary gimmicks. The American people expect and deserve this transparent and comprehensive debate.


We are very encouraged by Senator Johann's concern about this issue, and his desire to have the opportunity to engage in a debate on the issue.

As a constituent of Senator Johanns, as well as Senator Ben Nelson, and Congressman Adrian Smith, you have the opportunity to express your concerns on issues pertaining to your electric rates. You've heard from Senator Johanns that the cap and trade program will affect families and farmers in Nebraska, and result in an energy tax. If this is a concern to you, speak up! Log on to www.southernpd.com/oeof and start a conversation with our Washington representatives.

Editorial, submitted by Dan Emery, Chief Steward, Local IBEW 1597

Dear Editor:
Public power districts in Nebraska and rural cooperatives across the nation are backing an awareness campaign called Our Energy, Our Future. This campaign is designed to educate end use customers on the effects of current policies being considered nationally related to global warming. We in public power, unlike private companies, feel a sense of responsibility to let our customers know about issues that could dramatically impact them.
There are two major issues to consider. First, in the past two years there has been a complete shut down of construction of power plants fired with coal. In 2007, 35 planned coal fired plants were canceled and another seven in 2008. That is a significant amount of generation that will not be there to meet the needs of a hopefully recovering and growing economy. Some areas of the country are predicted to have shortages as soon as next year. Those of us who work in this industry have always prided ourselves in the ability to provide for all of your electric needs, and provided you service when you need it. It is important to know that while renewable generation is a part of our future, it cannot replace the traditional generation that has provided you with highly reliable electric service in the past.
The second issue to inform you about is the cost of your electric service. We strive everyday to do our work efficiently and keep your electric rates low. I do not intend my comments to spark a debate about the issue of global warming. However, we do need to let our members of Congress know that while they are considering legislation dealing with global warming, that they need to keep our electric rates affordable. There have been predictions that your electric rates could increase 150% to 300% in the next 10 years if some of the concepts being considered are enacted. In the 1930’s the rural electric program brought lights to rural America. With these increases, we fear they will go out because some will not be able to afford basic electric service.
Now is the time to act. Consider contacting Congressman Adrian Smith or Jeff Fortenberry. At the same time, contact Senators Ben Nelson or Mike Johanns. Tell them that while considering legislation related to climate change please make sure they keep your electric bill affordable. You can easily send emails to all of them by going to www.southernpd.com/oeof. It is your energy and the result will be your energy future.