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!

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.