Navopache CEO warns of higher utility costs ahead

 

PINETOP-LAKESIDE - David C. Plumb, CEO of Navopache Electric Cooperative, warned consumers of the rising cost of power at the annual meeting of Navopache Electric Cooperative Sept. 12.

 
     Insulating homes to reduce their use of electricity is vital to keeping costs under control in the years ahead.
     "The wholesale costs are going up. We need to increase the energy efficiency of our homes," Plumb said.
     The 63rd annual meeting of NEC was rural America at its best. It opened in Blue Ridge High School Auditorium with the singing of the National Anthem. Unlike many events nowadays, the 227 members present actually sang the National Anthem. Families came from as far away as New Mexico to hear about the state of their co-op and possibly win an appliance from the huge array of door prizes.
     Director Steve Heckathorne gave the invocation and no one was around from the ACLU to protest. The Pledge of Allegiance was loud and clear, with no embarrassed shuffling around. The crowd was mostly older, with no heckling or outbursts. Television news cameras would have had a difficult time finding anything sensational to film.
     On a very serious note, Plumb said the purchase price of power is going up on Jan. 1, 2010.
     "While purchased power costs, which are passed through to our members without markup, will increase by about 38 percent by January of 2011, we now have forewarning and time to take steps to reduce our energy usage and our bills."
     Navopache is working on programs that would benefit members, he said. One potential project involves the use of geothermal energy that could provide generation at a cost comparable to new coal-fired generation, and with no emissions. Plumb said the next step is for Navopache to apply for a federal grant for drilling and proving the resource.
     Because of the current economic situation, the Board of Directors has decided to delay construction of a new administration building at the Pinetop-Lakeside Commerce Park, although construction of other facilities will continue as planned.
     "We are encouraging people to now start increasing the energy efficiency in their homes and businesses," he said.
     One of the best ways to start, he offered, is to put in compact fluorescent lights, low-flow showerheads and weather-stripping on doors and windows.
     A number of tips for greater energy savings are available online. Plumb suggested going to the Touchstone Energy Web site www.togetherwesave.com for information.
     Brad Baker, board president, reported on the effects of the complex and confusing "Cap and Trade" bill, President Obama's energy plan, if it is passed. He said that it represents "an oppressive tax on carbon emissions" and is an "enormous threat to our economy."
     The American Clean Energy and Security Act of 2009, the so-called "Cap and Trade" plan, passed the U.S. House of Representatives by a slim margin of 219-212 this year and went on to the Senate. Baker urged co-op members to contact their U.S. senators and ask them not to vote for the bill.
     Baker explained in the last NEC newsletter: "Electric utilities which rely on fossil fuel power generation will be required to obtain permits (called allowances) to emit a specified amount (cap) of carbon.
     Any unused allowances could be sold or traded (trade) to other entities. This bill is another costly federal 'paper game' engineered at the expense of all taxpayers under the guise of reversing the effects of global warming ..."
     Baker explained that the present federal budget proposal relies on the government's Cap and Trade program that would auction 100 percent of emission allowances to the highest bidder, and then use the revenues to fund other governmental programs.
     "The scheme, in effect, puts an unrealistic and unprecedented tax on electric utilities, requiring them to act as tax collectors for the federal government.
     "Electric cooperatives are member-owned not-for-profit organizations that operate at cost. Allowances are an additional and unnecessary expense which will cause massive and unjustified increases to consumers' bills."
     He added, "Many good people, old customers, are not able to pay their bills now ... Our No. 1 priority is to keep electricity affordable."
     National representatives of rural electric cooperatives went to Washington, D.C., in May to meet with congressional representatives. They were able to mitigate some of the potential economic impacts of the bill through personal contacts. Baker said the Cap and Trade bill sponsored by senators Barbara Boxer and John Kerry is presently on hold in the Senate.
     In other business, Brad Baker was re-elected president of the Board of Directors for another four-year term. Other directors elected were Fred Harper, District 5, Steve Heckathorne, District 6, and Ann Menges, New Mexico.
     Long-time insurance agent for the NEC Harley Cooper was recognized for his service to members. He sold health insurance to members through Mutual of Omaha.

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