Our Energy Update

On Thursday, May 21st, the House Energy and Commerce Committee approved climate change legislation that they plan to bring to the House floor in late June. This legislation--the American Clean Energy & Security Act of 2009--seeks to impose a tax upon all electric consumers in the form of a cap-and-trade system.

Cap-and-trade has been the subject of much debate recently. Although it is a complex system to comprehend, the concept behind such a system is becoming more widely understood by electric consumers. At Southern, we are learning from our interaction with customers that concern for the impact of climate change legislation on affordable electricity is growing. In recent weeks we have received letters from customers who are concerned about how skyrocketing rates will impact their family budget, farm operations, small businesses and communities, and our overall local and national economy.

Additionally, I had an opportunity to listen in on a "public meeting" conducted by Congressman Adrian Smith which covered a wide range of issues. It was clear in listening to the concerns expressed by his constituents from across the state that affordable electric rates remain a top priority. During that same public meeting, Congressman Smith polled his listeners to determine if they support a cap-and-trade system. The results: 94 percent no, 6 percent yes.

We also recently learned in a letter received from Senator Johanns that the amendment he introduced on March 30th--which ensured that cap-and-trade legislation would not be slipped into law using budget reconciliation--was ignored by the authors of the budget resolution and dropped. Although this was discouraging news to hear, we continue to feel that the voices of constituents play a large part in the actions taken by our leaders. They are hearing our message, that we need electric rates to remain affordable. Its a simple message, but one that is strong when we all work together to make certain the message is heard!

This is a critical time for all electric consumers to get involved and speak up about that need for affordable electricity. We urge you to act now and engage in a conversation with our leaders in Washington, and you can do this through the Our Energy, Our Future campaign. Even if you don't consider yourself to be an "expert" on the complex issues surrounding energy, you probably do know whether or not you can afford to see your electric rates skyrocket, and what such increases will do to our local and national economy. Visit the Our Energy, Our Future website today and get to talking!

Editorial Submitted by Directors Rick Bergman and Lee Grove

As members of Southern Power District’s Board of Directors, we would like to make our customers, as well as all electric consumers aware of an issue that will determine how much you pay for electricity in the future. As we are writing this letter, the Chairman of the House Energy and Commerce Committee is working to push “cap and trade” legislation through Congress, with a goal to do so prior to Memorial Day.
We have been watchful of this legislation in recent months. We understand that there are many opinions about a “cap and trade” program among our customers. But through this campaign we are discovering that people with a wide range of opinions are in agreement that electric rates must remain affordable. A “cap and trade” plan is one that would drive up the cost of electricity significantly by forcing coal generating plants to purchase carbon credits in exchange for emitting carbon. Here in Nebraska, this should be of particular concern, as coal comprises 65% of all generation. And beyond your electric rates, you may also see an increase in your cost for natural gas. It is anticipated that a shift may occur in generation from coal to natural gas, which emits less carbon dioxide. This shift will drive up the price you pay for natural gas, not to mention the cost that farmers must pay for fertilizer.
With the drive to pass the bill through the Energy & Commerce Committee later this month, now is a critical time to ask some very important questions. There has never been a more appropriate time to get in touch with your Congressman and Senators in Washington. They need to know that you are concerned about the affect that this legislation will have on your electric rates. We urge you to visit www.southernpd.com/oeof and take just a few minutes to share your concerns with Congressman Adrian Smith, and Senators Ben Nelson and Mike Johanns. If you do not have email access, feel free to send your thoughts to Southern Power District and they will gladly assist you with sharing your message!

Sincerely,

Rick Bergman, Holdrege
Lee Grove, Axtell