SIPC -- A Message From Our President

A Message From Our President

December 2008

Climate Change and Your Electric Bill

It would seem every day we hear and or see news on climate change with many proclaiming the problem, some providing what they deem is a solution, and most of us still wondering where is this train headed. As a power supplier in southern Illinois, Southern Illinois Power Cooperative (SIPC) is taking such discussion very seriously. As a cooperative we do not have stockholders. The cost of operating our business is borne entirely by the local individuals and businesses that use our power. In keeping with this focus, we only pass on in the bill what it really cost to "run the business" and to make necessary investments back into the generation and transmission assets we own.

SIPC actually has one of the cleanest power plants in the state and region and we are meeting the current permit limitations and helping to keep southern Illinois air clean. The emissions from our coal-fired and natural gas-fired plants are typical for the industry. We monitor and control sulfur-dioxide, nitrogen oxides, particulates (ash particles), and mercury. We also monitor and manage water run-off and chemical uses in the production and transmission of electrical power. Controlling these emissions increases our costs and results in higher electrical bills to our end users. The same is true for local, state, or federal regulation, tax, or rule placed upon SIPC as those costs are passed on to the members for the power they consume. The federal government is discussing the potential need to regulate carbon dioxide (CO2) due to computer modeling results and theories that CO2 is a contributor to the greenhouse effect. This is otherwise known as nature’s process in creating a warmer planet. Climate change is used loosely in the media to describe this whole topic. CO2 is exhaled by humans and animals during normal daily life and by no means harmful in and of itself. Power plants which use coal, natural gas, oil and other combustible materials emit CO2 as part of the normal combustion process. Automobiles, trucks, motorcycles, boats and lawn mowing equipment all emit CO2 when they use typical fuels. Plants, trees, and grasses absorb CO2 as they need it to survive.

SIPC is assuming some form of climate change regulation will come in the next administration as there is considerable activity on Capitol Hill. We are urging users of electrical power to get involved with their federal representatives in Congress. The current bills being crafted call for significant reductions in CO2. Implementing these reductions with today's technology would effectively double your electric bill. The technology to economically and effectively remove and store CO2 does not exist today although it is possible to reduce some CO2 now and continue to trim it as the technology improves. We all can contribute to reduce climate change but there is no silver bullet to address this global issue.

The Electric Power Research Institute (EPRI) has a very good balanced plan to address CO2, at: http://mydocs.epri.com/docs/public/DiscussionPaper2007.pdf This document lays out the only comprehensive plan of which I am aware.

As consumers, we all have a stake in our nation’s electric supply. SIPC hopes you will address the following three topics with your elected officials in Washington DC.:

Experts say that our nation's growing electricity needs will soon go well beyond what renewables, conservation and efficiency can provide. What is your plan to make sure we have the electricity we'll need in the future?

Our country faces a crisis as electricity use increases faster than available supply. I believe that by unleashing American ingenuity we can solve this problem. What are you doing to speed the development of new technology which will allow me to have the electric power I need while meeting our national climate policy goals?

Balancing electricity needs and environmental goals will be difficult. How much is all this going to increase my electric bill and what will you do to make it affordable?

If you do anything else besides reading this article, then please address the issue of climate change with your senator and representative. You can do this by visiting http://www.ourenergy.coop or by calling our offices to obtain a preprinted postcard. SIPC is one of the founding members of the new National Renewables Cooperative Organization (NRCO) to jointly develop cost-effective renewable generation resources. In early 2009, NRCO will begin in earnest its quest to evaluate and pursue renewable projects for its members nationwide. We recognize renewables cannot answer completely the growing demand for power; however, we do recognize it is the responsible thing to do in helping to secure future power resources. ACES Power Marketing of Indianapolis, IN was hired to develop the initial plan and you can find some basic information on NRCO at: http://www.acespower.com/Resources/NRCO%20Update.pdf Through NRCO, SIPC will pursue cost-effective renewable generation resources such as hydro, wind, and others as they become available.

SIPC would hope as climate change legislation does come, it is responsible and mindful of the three questions above. The government will need to help us with the solutions in moving forward, however, since the issue before us is international, so should be the cooperation.

If you would like to request a card to write your congressman, please feel free to call our offices at 618-964-1448 or write to:

Southern IL Power Cooperative
Attn. Climate Change Form Request
11543 Lake of Egypt Road
Marion, IL 62959