Oklahoma Living Magazine

Chris Meyers
General Manager,
Oklahoma Association
of Electric Cooperatives

Climate legislation stalls

After much debate and political maneuvering, comprehensive energy and climate change legislation to date has failed to be enacted by Congress. With legislator’s focus now on the mid-term elections this November it is unlikely that there will be any comprehensive energy or climate legislation taken up this year. There may still be a chance for narrowly focused energy legislation targeted at off shore drilling or renewable energy standards, but nothing comprehensive. Why has Congress failed to pass any kind of climate legislation? It is not because there is wide spread disagreement about the need to take steps toward cleaner fuels and reducing green house gas emissions. It is not entirely partisan politics either. The real problem lies in getting agreement on how to transition in an affordable and achievable way and over what time frame it can be reasonably accomplished.

The path forward is a very difficult one. It is difficult because this transition has global, national, and local economic consequences that vary widely. We will continue to use a wide variety of energy sources such as coal, natural gas, oil, nuclear, and renewables such as hydro, wind and solar. The market share of each of these is what will shift.

Globally, our dependence on fossil based fuels and our investments in plant and equipment that burn that fossil based fuel is significant. There are entire sectors of the economy built around each of these fuels. Very large investments made by utilities and heavy industry are designed to consume those specific fuels. We potentially strand large investments made by these industries. It also has an impact on the consumer in terms of cost, not to mention the livelihoods of millions of workers who work in those industries. There are also very real barriers to making the transition. For example, in our industry, renewables such as wind and solar are located in areas where there is not enough transmission capacity to move that power. There needs to be an investment in high voltage transmission lines before renewables can play a larger role.

Climate legislation has stalled but it will be back. It’s not reasonable to expect such a complex issue be solved in one legislative session. It may take several sessions to achieve the compromises necessary to get anything passed. In the meantime, we will continue to work on the critical issues important to you as both a consumer and member-owner of energy assets.

John Bruce

President

Oklahoma Association of

Electric Cooperatives

The co-op commitment to

affordable power for all

Oklahoma's electric cooperatives deliver affordable power to you every day. It's why electric cooperatives were created, and it's a commitment we plan to keep.

In the 1920s and early '30s, central station electric service was a luxury that only 10 percent of rural residents nationwide enjoyed - and those who had power paid dearly for it. When Franklin D. Roosevelt visited Warm Springs, GA in 1924, he was dismayed to find electricity for his small cottage cost four times what it did at his estate in New York. After being elected president, he created the federal Rural Electric Administration by Executive Order to make power affordable for all Americans. As a result, electric co-ops were born.

Innocations in line building pioneered by co-op engineers and the compeditive pressure co-ops placed on investor-owned utilities to serve rural areas slashed the cost of providing electric service in the countryside by 50 percent or more.

In the decades since, co-ops have established a proven track record of offering stable and affordable electric rates. Data from the US Energy Information Administration (EIA), in fact, shows that since 2000, co-op electric rates have consistently run lower than the industry average. This is further proof that we're committed to keeping electricity bills within your means.

But the struggle for affordable power that farmers and their neighbors fought three-quarters of a centry ago has flared up again through the debate over climate legislation. Other issues might be more pressing for Congress at the moment, but the debate will continue.

Our job, on your behalf, is to work closely with Congress to find the best solutions for addressing climate change while keeping hte price of electricity within your means.