Guest Editorial for the Jefferson Post (January 2008):
Listening to our Consumers While Reducing our Carbon Footprint
By Doug Johnson, Chief Executive Officer, Blue Ridge Electric Membership Corporation
There are many different views currently being debated about climate change and global warming. At Blue Ridge Electric we believe it is prudent to begin a long-term strategy that more strongly embraces a reduction in our nation’s carbon footprint. Throughout the years Blue Ridge Electric has maintained that not wasting energy is simply the right thing to do—for your pocketbook, for the cooperative, and for the environment.
But how we reduce our carbon footprint—and become a “greener” America—could have a significant impact on consumers’ electric rates. That’s why Blue Ridge Electric and other cooperatives are listening to our members’ views on this critical matter. As a member owned cooperative, your views will help direct the approach of our cooperative on carbon footprint reduction.
One message from our consumers is coming across loud and clear: affordable electric rates are the most important factor. According to research conducted with cooperative members locally and across the nation last fall by TSE Services, affordable electricity and using energy efficiently to help control energy costs are the top issues for 97 percent of our members. The report also reveals that investing in renewable energy is important to members—but only up to a certain cost. Indeed, only 20 percent of our members say they would pay even an additional 5 percent more over their current monthly bill for renewable energy. That number fell to 13 percent if they had to pay an extra 10 percent on their monthly bill, and dropped to only 3 percent if renewable energy added 20 percent to their monthly costs.
Make no mistake; there will be a substantial cost in which we all must share to reduce carbon emissions. In an editorial last year, the New York Times called this “an unpleasant and inescapable truth: any serious effort to fight warming will require everyone to pay more for energy.” For most Americans, cost is the bottom line, especially in our current economy. And until now, cost has not been a significant part of the conversation among politicians when discussing how to implement various carbon reduction plans. Neither have the talks addressed how to implement a truly global policy for reducing green house gases on a world-wide scale. We believe that this is an issue that must be approached internationally as a part of our nation’s foreign policy in order to have a significant, sustainable impact on the environment.
Both state and national legislation will impact the way we address carbon footprint reduction, renewable energy and energy efficiency. From a state perspective, the Renewable Energy and Energy Efficiency Portfolio Standard (REPS) written into law late last summer includes a cap on the amount a utility can increase a consumer’s bill to help pay for renewable energy. The new law caps residential increases at $10 per year until 2011, and rises to $34 per year for residential consumers in 2015. While this will help protect consumers from sharp price spikes, the amount may not be sufficient to fund a substantial renewable energy portfolio. We do believe that the best approach to carbon footprint reduction is one that should be incorporated over the long term so as not to economically harm consumers or the economy, as well as to give technology time to mature to a level that it can have a more significant role in helping achieve the goals.
From a national perspective, electric cooperatives are working together through the National Rural Electric Cooperative Association (NRECA) to examine the implications to our consumers of two different bills passed by the House and Senate late last year. Because it’s an election year, there is a possibility that final legislation may not be passed in ’08. However, we will continue to keep an eye on all legislation and work with our legislators to keep them informed of any possible impacts to cooperative consumers.
The numbers demonstrate why it’s more important than ever to develop legislation carefully and that we continue on our path to conserve and explore alternative energy sources: world energy demand has grown by 60 percent over the last 25 years according to the National Petroleum Council. And over the next quarter century, many predict similar patterns due to growth in developing countries such as China and India. Currently, the United States is the world's largest energy consumer. But with exploding economic growth overseas that will continue driving up energy demand, reducing our carbon footprint will most certainly need to be approached from a global perspective in order to have any significant impact on our environment.
As the complex issues of becoming “greener” are sorted out, Blue Ridge Electric is taking action in the meantime. We have developed interconnection procedures for members wanting to connect their renewable energy systems to the grid. We also partner with NC GreenPower to give members an easy avenue for supporting more renewable energy projects right here in North Carolina. And, we offer a comprehensive “Energy Tips” area on our web site that includes a customized energy audit to help you find ways to become wiser energy users. We also offer a wealth of energy saving information on our web site and through our monthly newsletter to help you control your energy costs by using energy more efficiently.
Perhaps most importantly, we are working with our wholesale power supplier, Duke Energy Carolinas, to implement a renewable energy portfolio including energy efficiency measures and other steps that will help us meet the state’s Renewable Energy Portfolio Standard.
As I close this month’s editorial, I can assure you that Blue Ridge Electric will be looking out for the best interests of our member-owners as we work with legislators and others on implementing ways to reduce our carbon footprint. Our position is anchored in the core value we were founded upon: to always look out for our members by keeping the lights on and the rates as low as possible.
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