Author: Chris Hayes

Kentucky Co-Op’s Make Capitol Connection

WASHINGTON, DC – The voice of Kentucky’s electric cooperatives was heard loud and clear in Washington, D.C. in February, when 26 co-op leaders from across the commonwealth met at the U.S. Capitol with all eight members of Kentucky’s congressional delegation.

U.S. Senate Majority Leader Mitch McConnell briefed co-op leaders just after his meeting with the Republican Senate caucus concerning the vacancy on the U.S. Supreme Court following the death of Justice Antonin Scalia.

The Republican senators agreed with McConnell’s contention that the replacement justice for Scalia should be named by the next president, and not President Obama, because the presidential campaign is in full gear, and provides the best reflection of the will of the American people.

Of particular consequence is the fate of the EPA’s Clean Power Plan.  Without Scalia’s vote, the high court is split 4-4 on the legality of the unprecedented regulations.

McConnell has filed an amicus brief, or “friend of the court” brief with the D.C. Circuit Court of Appeals in the case of the State of West Virginia, et al. v. Environmental Protection Agency (EPA) et al.

House Energy and Power Subcommittee Chairman Ed Whitfield (KY-01), and Representatives Hal Rogers (KY-05), Andy Barr (KY-06), Brett Guthrie (KY-02), and Thomas Massie (KY-04) joined McConnell on the brief.

“This is the latest effort to fight back against the Obama Administration’s War on Coal, and I am proud to lead efforts in filing this brief in support of Kentucky,” McConnell said.  “Our amicus brief makes clear that it is the role of Congress to legislate and the Administration has overstepped its authority by essentially legislating through regulation.”

At KAEC’s Energy Breakfast, Kirk Johnson, NRECA Senior Vice President of Government Relations, updated Kentucky co-op leaders on a possible timeline for the case. The NRECA is one of about 150 petitioners to file briefs to the U.S. Court of Appeals for the District of Columbia Circuit.

Johnson explained that while the same basic legal arguments remain against the Clean Power Plan, the new briefs are also fashioned to reflect the judicial philosophies of the judges in the D.C. Circuit.

“If upheld, the Rule would lead to a breathtaking expansion of the agency’s authority,” the petitioners wrote in a joint brief.

“Congress did not intend and could not have imagined such a result when it passed the provision more than 45 years ago. The Rule must be vacated,” the brief concluded.

The legislative fly-in was led by KAEC President & CEO Chris Perry and KAEC Board Chairman David Kimbell of Gibson EMC.

Arguments before the DC Circuit are scheduled for June 2, with any decision likely to be appealed by one side or the other immediately thereafter, Johnson said. At that point, the case is at the mercy of the uncertainty of the U.S. Supreme Court, which may or may not have Scalia’s replacement in place, and may or may not grant “certiorari,” to agree to hear the appeal.

With the exception of Kentucky’s lone Democrat in Congress, U.S. Rep. John Yarmuth (KY-03), who did not mention the EPA in his remarks to co-op leaders, Kentucky’s congressional delegation is unanimous in its opposition to the Clean Power Plan.

Introduced by Pennyrile Electric Cooperative CEO Greg Grissom, U.S. Rep. Ed Whitfield was thanked for his years of service to co-ops and his consistent support of co-op issues, especially as Chairman of the House Energy Committee’s Subcommittee on Energy and Power. Whitfield is retiring in January.

U.S. Senator Rand Paul spoke extensively about illegal EPA regulations, including the Clean Power Plan and the Waters of the United States (WOTUS) regulations which he said are another example of the Obama administration redefining words in order to make legislation apply to the administration’s agenda. Sen. Paul encouraged co-op leaders to continue to lead on these issues at home.

During visits with Kentucky’s congressional delegation, KAEC representatives asked them to sign the letter to the House Appropriations Committee requesting adequate funding for the Rural Utilities Service (RUS) program. The loan program is an important tool to ensure that members continue to have access to safe, reliable, and at-cost supplies of power from cooperative utilities.

U.S. Rep. Andy Barr was among the first to sign.

In his remarks to co-op leaders, U.S. Rep. John Yarmuth expressed his disdain for the increased polarization of Congress. Yarmuth  predicted that emerging technologies will continue to disrupt business models the way we know them.

KAEC representatives encouraged lawmakers to appropriate at least level funding for the Low Income Home Energy Assistance Program (LIHEAP) as Kentucky sees continued job losses in rural areas of the state to assist our members with paying their bills.

U.S. Rep. Hal Rogers consistently addresses this funding in his role as Chairman of the House Appropriations Committee.

Legislators were also thanked for supporting the “Electrify Africa Act” which recently passed via voice vote and was signed into law by President Barack Obama. This bill helps Africa bring electricity to 50 million people for the very first time. Moreover, the bill  specifically defines coal as a fossil fuel and encourages its use as a fuel source for developing nations.

Co-op leaders asked the delegation to support legislation implementing a state enforcement mechanism for the EPA’s coal combustion residuals rule. Without a state enforcement mechanism, utilities would be left vulnerable to third-party lawsuits that would result from unclear and untimely federal implementation.

Introduced by Mark Stallons, Owen Electic Cooperative CEO, U.S. Rep. Thomas Massie expressed support for Kentucky’s electric cooperatives.

U.S. Rep. Brett Guthrie updated co-op leaders on his efforts as a member of the House Energy and Commerce (E&C) Committee to curb the Obama administration’s regulatory overreach.

Perhaps the most significant takeaway from the KAEC meetings at the Capitol is that all six Kentucky U.S. representatives and both Kentucky U.S. senators met with us, a reflection of the strength of Kentucky’s electric co-ops as a constituency and a political force.

The legislative fly-in was led by KAEC President & CEO Chris Perry and KAEC Board Chairman David Kimbell of Gibson EMC.

Hampton Longest Serving Kentucky Co-Op Distribution Manager

Only one other active co-op leader in the nation has served longer

Ted Hampton was a 23-year-old PE and history teacher who “didn’t know a thing about electricity” when he was plucked from the faculty at Knox Central High School to become the distribution manager at Cumberland Valley Electric in 1964.

Once one of the youngest distribution managers in the country, Hampton is the longest serving in Kentucky history and has the 10th longest tenure in U.S. history. Only one other active co-op leader has served longer, hired five days before Hampton, according to benefits administrators at the National Rural Electric Cooperative Association.

“I love it every day,” Hampton, 75, says at his office in Gray, Kentucky. “I look forward to getting up, going to work, and doing the job. It’s like a big family here. Everyone does a good job, and we are able to associate with leaders in the community.”

Hampton and Kentucky’s rural electrification grew up together. The Little Brush Creek one-room schoolhouse he attended through eighth grade had no electrical service. It was heated by a pot-bellied stove in the middle of the school.

Hampton’s uncle, Bill Hampton, had been manager at the southeastern Kentucky cooperative for 10 years when he suffered a sudden heart attack and died in 1964, his nephew recalls.

“The managers approached me to see if I would be interested in the job,” Hampton says. “The co-op had a great reputation in the community. I talked to my father and he said ‘Go for it.’”

But Hampton needed help learning the ropes. He credits Sam Hord, then manager at South Kentucky RECC, based in Somerset, for mentoring him.

“I was the new kid on the block,” Hampton recalls. “If I had any tough decision, any question, Mr. Hord was there to help me. He took me under his wing and helped me tremendously. I never took a bad piece of advice.

“I am always eternally grateful to the folks at South Kentucky RECC,” Hampton says.

The elder statesman of Kentucky’s electric cooperatives has returned the favor, many times over.

“Ted Hampton is the dean of Kentucky co-op managers,” says Michael “Mickey” Miller, president and CEO of Nolin Electric Cooperative, Elizabethtown. “His advice and counsel is always sought whenever a major decision is necessary.”

In December, Hampton completed his second term as board chairman of the Kentucky Association of Electric Cooperatives. He had also served as KAEC board chairman in 1995.

“Ted has been a leader and mentor for the cooperatives across the state of Kentucky,” says Chris Perry, KAEC president. “He is not always the most vocal, but when he speaks everyone listens. He has been instrumental in the growth and development of the Kentucky Association of Electric Cooperatives.”

“Ted’s welcoming personality puts everyone he interacts with at ease, and he sincerely wants to help others succeed,” says Tri-County Electric Executive Vice President & General Manager Paul Thompson.

“His positive, caring attitude and commitment to the rural electric cooperative members increases morale and ensures a high level of performance for the Kentucky Association of Electric Cooperatives board of directors. Ted is truly an outstanding role model.”

“The whole world has changed,” Hampton tells Kentucky Living. “Back when I started, the main job was getting bills out and keeping the lights on, but now it is much more difficult. Regulations are killing us.”

Hampton remembers his initial goal in the 1960s was to reduce the cost of electricity to 1 cent per kilowatt-hour.

“We got it down to 1.2 cents per kilowatt-hour,” Hampton says, “but now it’s 9 or 10 cents, and with all the regulations and what they’re doing to the coal industry, it may rise to 15 cents.”

The intersection of rising electricity rates and the decimation of the coal industry, part of the economic fabric of Cumberland Valley’s service area, has Hampton worried about his neighbors.

“We’re going to be in trouble,” Hampton says. “With all the regulations, I’m concerned that electricity will be so expensive that the people in eastern Kentucky will be unable to pay their power bills.”

“We’ll find a way to serve the people,” Hampton continues, “but in our service area, we have lost so many jobs, they are hurting.”

Local co-ops need to do everything they can to contain costs for members and enhance education and communications, Hampton says. He has embraced technological advancements and encourages co-ops to share best practices with each other.

“There is a lot of knowledge in the cooperative world. You’ll find anyone in Kentucky is willing to help you,” Hampton says. “You save a lot of time and a lot of money and it’s good for the whole program.”

In the late 1990s Cumberland Valley pioneered an automated meter reading system, an efficiency especially helpful for its very rural and mountainous service area.

“Our power lines go across the river and across mountains,” Hampton says. “It is difficult for equipment to access many of those areas.”

Since 2004, the 21,000-member cooperative has implemented electronic mapping of all equipment and facilities.

“For more than half a century, Ted Hampton has led Cumberland Valley Electric with a simple philosophy: lowest possible cost of service, community involvement, and quality service,” says East Kentucky Power Cooperative (EKPC) President and CEO Tony Campbell. “My career has afforded me the opportunity to meet many electric cooperative leaders, and I would put Mr. Hampton in the elite class of these (cooperative) leaders. Over the past seven years, Mr. Hampton has been gracious enough to spend a significant amount of his time mentoring me, and I believe his coaching has made me a much more effective leader.”

Campbell says Hampton is consistently one of the first leaders to offer assistance when EKPC faces challenges.

“On many occasions, Mr. Hampton has given me advice that was not necessarily what was best for him, but was good for all cooperatives in general,” Campbell says. “He spends much of his time traveling the 140 miles across his service area, helping the people he’s known his whole life. He lives the co-op spirit, and he truly believes in─and practices─cooperative principles.“

His fellow distribution managers in Kentucky regard Hampton as a member of their families.

“Ted is almost like a father to some of us,” says Licking Valley RECC General Manager and CEO Kerry Howard. “He is always there for us and gives us great advice and always willing to help. Some of us even call him ‘Pops.’”

“Uncle Ted always brings clarity to the Kentucky co-op program,” says Pennyrile Electric President and CEO Greg Grissom. “He is a wonderful asset for advice and knowledge and a good friend.”

“I have known Ted Hampton for over 30 years,” says Taylor County RECC Manager Barry Myers. “His honesty and integrity are unequaled. I am blessed to be able to call him my friend.”

Recalling the instrumental role Sam Hord played in his career, Hampton suggests new co-op leaders find a mentor.

“If I was a young manager starting out today, I would try to find a manager with several years of experience,” Hampton says.

“He’s always one of the first to hold out his hand to welcome a new CEO,” says Debbie Martin, president and CEO of Shelby Energy in Shelbyville. “Most all of us have been touched by the wisdom and knowledge that Ted brings to the table.”

Hampton’s co-workers in southeastern Kentucky cannot imagine a co-op world without his leadership.

“Ted Hampton will not be fully appreciated for his service to Cumberland Valley Electric until someone or something has to do his job,” says Rich Prewitt, Cumberland Valley Electric’s director of Member Services. “He is so knowledgeable about the people that make up our members and the infrastructure of our lines that his guidance and leadership are just intuitive. He operates under the philosophy that there is never a time to do something wrong, it’s better to just do it right the first time. In serving our membership there are no gray areas, you always know where Mr. Hampton stands for, and that’s what is best for our members.”

Sixty-three years after he attended Little Brush Creek school, Hampton now owns the one-room schoolhouse near his home. He uses it for storage.

“It still does not have power,” Hampton laughs.

Fifty-one years and counting, Hampton plans to stay on the job “as long as my health holds out, and I’m doing a good job for Cumberland Valley.”

  • Joe Arnold, Vice President of Strategic Communications for KAEC

America’s Electric Cooperatives Launch ‘Co-Ops Vote’ Campaign

America’s Electric Cooperatives launch ‘Co-ops Vote’ campaign to boost voter turnout, awareness of rural issues

The National Rural Electric Cooperative Association (NRECA) today launched a major initiative to enhance voter engagement. The goal of the “Co-ops Vote” campaign is to boost voter turnout in areas served by cooperatives by encouraging electric co-op employees and their consumer members to exercise one of their most basic rights—the right to vote.

“America’s electric cooperatives are leaders in the communities they serve throughout the country with a powerful sense of their civic duty,” said NRECA Interim CEO Jeffrey Connor. “Co-ops Vote focuses elected leaders on the people who are most invested in the success of their own communities.  With 42 million members across the nation, electric co-ops are a powerful voice on national issues that have a local impact.  We want to be sure that voice is always heard, especially on Election Day.”

Working in collaboration with states and local co-ops, this non-partisan campaign will educate and engage all voters on important issues, such as ensuring continued access to reliable electricity, promoting co-ops’ development of innovative renewable energy solutions, and expanding broadband coverage throughout rural America.

Co-ops Vote will provide a wide variety of tools to its more than 900, not-for-profit members to help educate and engage employees and communities, including voter registration information, candidate information and a campaign video. Co-ops are urged to take simple steps, such as encouraging employees to register to vote, hosting voter registration drives at co-op offices, and partnering with local civic groups to plan voter registration efforts.

For more information, visit www.vote.coop and follow #CoopsVote.

The National Rural Electric Cooperative Association is the national service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives, which provide service to 42 million people in 47 states.

KAEC Commends U.S. Supreme Court, Stay Of EPA Regulations Comes At Critical Time

Kentucky’s member-owned electric cooperatives commend the action taken Tuesday by the U.S. Supreme Court to suspend the implementation of new, harmful federal regulations of electric power plants. The EPA’s so-called Clean Power Plan (CPP) threatens the affordability and reliability of electricity for the 1.5 million Kentuckians served by cooperatives.

“The high court’s halt of the regulation comes at a critical time,” said Chris Perry, president and CEO of the Kentucky Association of Electric Cooperatives. “Without this stay, co-ops would have been forced to take expensive and irreversible actions to comply with the rule.”

The EPA plan targets coal, the main source of Kentucky’s electricity, in new and aggressive limits on carbon emissions. About 90 percent of electricity generated in Kentucky is by coal fired power plants.  The CPP fundamentally changes how electricity is generated, distributed and consumed in the United States.

Because the time frame of the EPA’s rule is inconsistent with the time needed to build alternative energy sources, the rule’s implementation would increase the likelihood of increased costs and potential reliability problems in Kentucky. Co-op members would also be on the hook for the debt of prematurely retired coal-fired plants as non-producing stranded assets

KAEC applauds the leadership of several Kentuckians who have played key roles in the issue. Senate Majority Leader Mitch McConnell has steadfastly and effectively voiced his objections to the rule. Governor Matt Bevin is striking a responsible balance, challenging the EPA rule’s legality while seeking an extension until implementation is effective.  And, both former Kentucky Attorney General Jack Conway and current Attorney General Andy Beshear have provided solid legal arguments against the heavy-handed regulations.  Conway initially filed suit against the EPA, while Beshear has continued the challenge with 28 other states.

KAEC, its 26 member cooperatives and the National Rural Electric Cooperative Association are actively working to communicate the consequences as the courts continue to contemplate the regulations.

At Long Last, Pension Crisis In The Spotlight

Joe Arnold’s Frankfort Update

A few years ago, when I was a frequent panelist on KET’s Comment on Kentucky, on the year-end edition of the show, I would bemoan how difficult it was for television reporters to relay the awful condition of Kentucky’s public pension systems.

As a result, my self-critique was that I did not adequately cover that ticking time bomb of a story, despite the ever-increasing concerns of retirees, citizen watchdogs, and industry analysts.

One reason that the broadcast media gave the snowballing pension crisis relatively little attention is that news outlets have a limited amount of airtime and generally pay more attention to action than inaction.

The pension crisis was rarely on the front burner.

It is now.

In his joint State of the Commonwealth and Budget Address last week, Governor Matt Bevin (R) said paying down Kentucky’s underfunded pensions is “the heartbeat of this entire budget.”

It’s been 14 years since Kentucky’s pensions were fully funded. The Kentucky Employees Retirement System (KERS) has about 17 percent of the money needed to cover its liabilities. The Kentucky Teachers’ Retirement System is about 42 percent funded.

“Everything else we care about, including things that I want, things I campaigned on, things I’d like to see, things that many of you in this room and in this body would like to see, we cannot afford until we get our financial house in order,” Bevin told lawmakers in the House chamber.

The Republican’s two-year budget proposal earmarks $1.1 billion for the pension systems, while imposing $650 million in cuts to state government “across the board.”

As he pledged during the gubernatorial campaign, Bevin’s budget begins the phasing out of Kynect, the state’s health benefit exchange.

Several areas were spared cuts, however. Bevin wants increased funding for K-12 education, public defenders, testing of backlogged rape kits, and better pay for social workers, state troopers, and corrections officers.

Bevin acknowledged the state has a long way to go to make the pension systems whole, about $35 billion.

Rejecting a House Democrat proposal to make pension payments by issuing bonds, Bevin said, “We cannot borrow our way out of debt, nor will we try.”

Bevin also called for an independent audit of the pension systems.

For an issue that has escaped the public spotlight for more than a decade, Matt Bevin has identified Kentucky’s pension crisis as the state’s priority.

Meanwhile, legislation on the move in Frankfort includes:

House Bill 172 would preserve pension benefits if spouses of deceased Kentucky public school teachers remarry. Sponsored by Rep. Rick Nelson (D-Middlesboro), the bill was approved by the House State Government Committee.

House Bill 97 is aimed at protecting the lives of infants. It would extend the amount of time parents have to surrender their baby at a state-approved safe place without facing criminal charges. Current law allows 72 hours after birth. HB 97 allows for a 30-day window. It passed the House 92-0.

Senate Joint Resolution 36 condemns Virginia’s recent decision to stop recognizing Kentucky concealed carry permits. By a 37-1 vote, Kentucky’s Senate urges the border state to restore the so-called reciprocal agreement that allowed Kentucky concealed carry permit holders to legally carry a concealed firearm in Virginia.

House Bill 50 was approved by the House Judiciary Committee.  It would allow “public benefit corporations” to operate in Kentucky.  Such corporations would then be required to balance the interests of their stockholders with a broader public interest. According to sponsor Kelly Flood (D-Lexington), 31 states have such a law.

House Bill 278, sponsored by House Speaker Greg Stumbo (D-Prestonsburg), would increase Kentucky’s minimum wage from $7.25 to $10.10 over the next two and half years.  The bill was approved by the House Labor and Industry Committee.

Senate Bill 33 would require public high school students to learn CPR. Sponsored by Sen. Max Wise (R-Campbellsville), the bill will now be considered by the House after a 32-6 vote in the Senate.

Senate Bill 4 dictates informed consent before a woman can have an abortion in Kentucky.  The bill, sponsored by Sen. Julie Raque Adams (R-Louisville), is moving back and forth between the Senate and the House.  After the Senate passed Adams’ original bill that requires in-person, face-to-face consultation, the House amended the legislation, allowing for video conferencing as well. The Senate will now consider the amended House bill.

House Bill 54 would give families of paramedics and other emergency service personnel killed in the line of duty the same $80,000 state death benefit now provided to families of fallen police and firefighters. It is sponsored by Rep. Dean Schamore (D-Hardinsburg) and was filed following last November’s death of Jessamine County paramedic John Mackey, who died after being hit by a car while on ambulance duty.

Joe Arnold(link sends e-mail), KAEC Vice President Strategic Communications

Battery Breakthrough?

The next big thing in energy might be a battery installed outside or inside your home. Huge batteries like Tesla’s Powerwall can store electricity from on-site renewable energy sources or from the power grid, then release it later for household use. Photo: Tesla Mo

Improved technology for energy storage requires bigger, lighter, cheaper, more durable batteries—and around the clock power—to fuel renewable energy

Now, if saving the electricity generated by sunshine were as easy as catching rainwater in a barrel, then renewable energy production would be a lot more appealing for the masses. I think about this every time I take a tour of a high-tech, low-energy-consumption home.

As I walk through the rooms, I pretend what it would be like to actually live there. Where do you put the groceries? How much light is there over the kitchen sink? I wonder how I’d use the fancy stove to fix dinner, and where I’d put the ironing board in the laundry room. Where’s the switch for the bathroom exhaust fan?

I also look at the energy-efficiency labels on the heating and air-conditioning system and the water heater. Then I focus on the rooftop solar panels—and that’s when I go into full investigator mode. How much electricity do those panels produce during the day? What happens on cloudy days or at night when the sun isn’t shining?

Evolving battery technologies
On brilliantly sunny days, a solar array might produce more electricity than all the devices within the home need at the time. Being able to store that surplus quickly, safely, and simply, then withdrawing the electricity for use after sunset, would make sense. It’s easy enough to charge a cell phone’s tiny battery now and use it later—but developing a way to save larger quantities of electricity for a whole household has been a tough challenge.

A key problem involves the chemistry inside conventional lithium-ion batteries. Because of their internal construction and the chemical reactions taking place within them, this kind of battery can go into “thermal runaway.” That’s a fancy term for uncontrolled heating that can destroy the battery or, even worse, cause it to catch on fire. When enlarging a lithium-ion battery to the size needed for a whole house, one solution is to include a cooling and ventilation system.

That’s the route Tesla took when it announced its new Powerwall system early in 2015. Weighing 220 pounds, and about the size of a large television (roughly 51 inches tall, 34 inches wide, and 7 inches thick), the wall-mounted box includes a liquid thermal control system to prevent over-heating. The Powerwall device can store electricity from solar panels, then release it later to provide power to operate kitchen and laundry room appliances, heating and cooling systems, even TVs. The list price of $3,000 does not include professional installation by a trained electrician, nor does it include the cost of the required inverter for use with solar panels.

During the September 2015 Solar Power International showcase in Anaheim, California, another company, SimpliPhi Power Inc., introduced a different technology. According to their advertising materials, their home energy storage battery uses a different combination of chemicals (lithium-ion iron phosphate, no cobalt) that is nontoxic, lightweight, and does not require a costly and bulky heat reduction system.

Yet another company, Orison, is looking for investors to launch production of a third style of home energy storage system that it describes as a “plug and play” device that does not require professional installation.

And there are a host of other innovative companies trying to take their latest battery breakthroughs to the adoption stage.

Wind power and grid options
Tesla’s Powerwall system can be configured to function with or without the conventional power grid. With the proper disconnects for safety reasons, the Powerwall device can provide household electricity during a grid outage. In that situation, it becomes a backup device.

But the Powerwall can also store electricity coming from the grid. That can be important in two situations. In areas with time-of-day pricing structures for electricity, it might be smart to store electricity from the grid in the device when power is cheap, then use it later when power directly from the grid would be very expensive. It could also help when electricity from wind turbines is flowing into the grid in large quantities at times when there is not much demand for power. The device could store the surplus, then release it as needed after the wind stops blowing.

While all of this is possible on paper, and in demonstration homes, whether or not consumers will want to spend the money on this new technology remains to be seen. Jason Ballard, co-founder and president of a sustainable home improvement store that offers Tesla’s Powerwall, says, “I think in the near future, having a battery in your home will be as normal as having a water heater or a dishwasher.”

In September 2015, Kauai Island Utility Cooperative (KIUC), Hawaii’s only member-owned electric utility, announced a plan to make use of the first utility-scale solar array and battery storage system designed to supply power to the grid in the evening, when demand is highest. The project is believed to be the first utility-scale system in the U.S. to provide dispatchable solar energy, meaning that the utility can count on electricity being available when it’s needed, even hours after the sun goes down.

KIUC President and CEO David Bissell says, “KIUC has been investigating energy storage options for more than two years and price has always been the biggest challenge. This is a breakthrough project on technology and on price that enables us to move solar energy to the peak demand hours in the evening and reduce the amount of fossil fuel we’re using.”

Nancy Grant, from February 2016 Kentucky Living magazine Issue

Alcohol, Felony Bills Highlight Busy Week At Ky Capitol

Intrigue over the balance of power in Kentucky’s House of Representatives took a back seat to actual legislation in the 2016 General Assembly’s first full week on the job.

That said, three dates are circled on everyone’s calendar in Frankfort:

January 26 – Governor Matt Bevin’s joint State of the Commonwealth and Budget address.

March 8 – special elections to fill four vacancies in the House, where Democrats hold a four seat advantage, 50-46.

April 12 – “Sine Die” – the date the General Assembly consumes its 60th and constitutionally mandated final day of the session.

Bevin’s speech will come on the legislature’s 15th day. In the mean time, lawmakers are moving ahead, especially with bills which were either resurrected from previous years, or piggyback on previous initiatives.

The first bill to clear either chamber is Senate Bill 11, which aims to modernize Kentucky’s 1930s-era alcohol laws.  Backed by the booming bourbon industry and craft beer makers, the bipartisan legislation sailed through the Senate by a 29-8 vote.

Bourbon tourism is at the heart of the comprehensive bill, which would increase the amount of packaged alcohol that can be sold at distilleries from three to nine liters. Sample sizes at distilleries would grow from 1 ounce to 1.5 ounces.

“You hear it said all the time: Government needs to just get out of the way and let industry work, let industry soar,” said Sen. John Schickel (R-Union), the bill’s sponsor. “Now, we really need to get out of the way of this bourbon industry and let it soar. If you go anywhere around the world someone will ask you about Kentucky bourbon.”

The bill, however, is not supported by all distilleries, including one in the Senate district of Sen. Joe Bowen of Owensboro.

“I’m very conflicted on this bill,” Bowen (R) said, while expressing support for alcohol-related business in Kentucky. “But at the end of the day, Mr. President, I simply feel that there are some inequities in this bill. There are some contradictions in this bill.”

The bill also:

  • outlaws powdered alcohol;
  • allows malt beverages to be sold at festivals;
  • allows drinking on quadricycles, commonly called party bikes;
  • specifies who pays for special elections to expand alcohol sales;
  • allows bed and breakfasts to sell liquor by the drink;
  • allows alcohol wholesalers to give discounts to retailers;
  • allows brewers, distillers and vintners to taste their products for quality control;
  • authorizes package liquor stores to give samples;
  • and synchronizes all alcohol license renewal dates.

Joking that his Senate district also includes homegrown distilleries which are not legal, Senate President Robert Stivers (R-Manchester) expressed hope that the booming bourbon businesses would spread the wealth in the distressed economy of Eastern Kentucky, where the coal industry has been decimated.

“We have one wonderful resource in the east that is not carbon related and that is timber, white oak,” Stivers said. “I ask these icons who have asked us to help their industry … to help Eastern Kentucky by investing in that region of the state.”

The Senate also approved another alcohol-related measure; Senate Bill 12 would allow liquor sales at Kentucky Speedway in Sparta before 1 p.m. on Sundays.

The first bill to pass the Kentucky House also received bipartisan support. By an 80-11 vote, the lower chamber approved House Bill 40, which allows felonies to be expunged from the records of non-violent criminals.

Approximately 94,000 Kentuckians would be eligible to wipe their slates clean.

The bill would remove from public view the criminal records of Class D felons and those who were never formally accused or convicted of a Class D felony. The legislation also prohibits expunged files from being used in judicial or administrative proceedings involving hiring and other matters.

“There is an overwhelming and growing army of support for expunging the records of people who committed Class D felonies and helping these individuals become successful, productive, employable citizens  of the commonwealth,” said House Judiciary Chair Rep. Darryl Owens (D-Louisville).  Owens and Rep. David Floyd, (R-Bardstown) are primary sponsors of the bill, which is also supported by Governor Matt Bevin (R).

The Senate President, however, is expressing reservations.

“Am I opposed in theory to what they’re trying to do? Give the individual a second chance who’s not had any problems for five, 10, 12, 15 years? Had some juvenile indiscretions not necessarily being under the age of 18, but in their youth in college? No, I’m not opposed to that,” Stivers said.  “I don’t think most people are. But it’s the method and manner of how you do it so you don’t open Pandora’s Box to more problems than you already have.”

Stivers said expungement of a felony conviction would not necessarily remove the conviction from court records, which could complicate employer background checks.

According to the Legislative Research Commission (LRC), convicted felons could ask the courts to expunge their records five years after completion of their sentence or probation; Those accused of a felony, but never indicted or convicted, could apply for expungement much sooner. Sex offenders, those who committed an offense against a child or vulnerable adult, those with a prior felony conviction, those who have recently been convicted of a misdemeanor or violation, or those against whom charges are pending would not be eligible for felony expungement under HB 40. The bill was amended by the House to also exclude those convicted of felonies involving abuse of public office, human trafficking and child pornography.

The LRC reports other legislation on the move in Frankfort includes:

  • The Senate approved Senate Bill 9, which would exempt school and university construction projects of $250,000 or more from the state’s prevailing wage laws. The bill would cover the construction of school dormitories, administration buildings, sport facilities, parking facilities, and health facilities.
  • House Bill 115 would expand eligibility for screenings under the state’s Colon Cancer Screening Program to uninsured Kentuckians between the ages of 50-64 or uninsured persons deemed at high risk for the disease. Eligibility would be based on current American Cancer Society screening guidelines. The bill was approved by the House Health and Welfare Committee and now goes to the full House for consideration.
  • The Senate Standing Committee on State and Local Government approved Senate Bill 45, which would allow pension managers to disclose the name and benefit amount for any current or former lawmaker by making those figures subject to the state’s open records laws.
  • The committee also approved Senate Bill 10, a constitutional amendment which would move election for governor and other statewide constitutional officers to even-numbered years when congressional and presidential elections are held. If it passes the General Assembly, the proposed change to the state Constitution would appear on the November ballot.
  • The House Agriculture and Small Business Committee approved House Bill 83.  The legislation sponsored by Rep. Tom McKee (D-Cynthiana) would expand the state’s definition of reference tobacco— tobacco products made by manufacturers specifically for research and not for public use—to include smokeless tobacco products like snuff and snus when the products are labeled specifically for tobacco-health research and experimental purposes. Current state law limits the definition of reference tobacco to cigarettes.
  • The Senate Standing Committee on Health and Welfare sent Senate Bill 20 to the full senate.  The legislation would create an independent review process for health care providers to appeal claims that have been denied by managed-care organizations (MCOs), private companies contracted by Kentucky to administer Medicaid. Under the current structure, appeals have to be made directly to the MCOs. The Kentucky attorney general’s office would be the independent arbitrator.

Joe Arnold (link sends e-mail), KAEC Vice-President of Strategic Communications

$1,000 WIRE Scholarships For College Students

Since 1989, the Kentucky Chapter of Women in Rural Electrification (WIRE) has offered college scholarships to Kentucky college students to help them finish their degree. WIRE is now taking 2016 applications for three $1,000 scholarships.

Kelci Fulkerson is very grateful she was one of the 2015 scholarship recipients. “I’m attending graduate school now and it is more expensive. Receiving the WIRE scholarship helped relieve a little financial burden stress and I can focus more on school work.”

Kelci, who is studying speech language pathology, says she heard about the WIRE scholarship from her mother whose hometown is served by Warren RECC and it was her mother who encouraged her to apply.

WIRE scholarships are open to any eligible student whose family is served by a Kentucky electric cooperative and has at least 60 hours of credit at a Kentucky college or university by the start of the fall term. (Electric cooperative employees, directors, managers, and their relatives, and those of Big Rivers Electric Corporation, East Kentucky Power Cooperative, and the Kentucky Association of Electric Cooperatives, are not eligible.)

WIRE is an organization of women associated with Kentucky electric cooperatives. Members are wives of cooperative managers, board members, employees, employees themselves, and other women associated with electric co-ops in Kentucky. A yearly fundraising event is held in November with all proceeds going to the WIRE college scholarship program. Over the past 27 years, WIRE has given more than $91,000 in Kentucky college scholarships.

The deadline for submitting a WIRE college scholarship application is May 13, 2016.
DOWNLOAD THE 2016 WIRE APPLICATION.

Please return applications to Mary Beth Dennis, KAEC, P.O. Box 32170, Louisville, KY 40232.

EKPC Finalizes Purchase Of Natural Gas Power Plant

WINCHESTER, Ky.— East Kentucky Power Cooperative (EKPC) yesterday finalized the purchase of a natural gas-fueled power plant in LaGrange, Ky., from Bluegrass Generation Co. LLC.

The power plant, located about 20 miles east of Louisville in Oldham County, features three simple-cycle natural gas units with a total net rated winter capacity of 594 megawatts.

“This transaction was the result of a year and a half of work by EKPC’s staff to determine the best option for meeting the needs of our owner-member cooperatives as safely, affordably and reliably as we can, and to evaluate the benefits and risks of this purchase,” said Anthony “Tony” Campbell, EKPC’s president and CEO.

The addition of these units will help EKPC reduce power purchases during periods of heavy demand, reduce the risks of market volatility, diversify its generating portfolio and replace generation lost due to the partial retirement of EKPC’s Dale Station in April.

Recently, the Kentucky Public Service Commission approved the purchase, opening the way for EKPC and Bluegrass Generation Co. to finalize the transaction. In approving the purchase, the PSC agreed the plant represents the most reasonable, least-cost resource available to meet the needs of EKPC’s 16 owner-member electric cooperatives.

The Oldham County plant was built in 2002. Under an existing agreement, which continues until April 2019, Kentucky Utilities/LG&E receives the output of one unit.

EKPC anticipates doubling the power plant’s current workforce of five employees.

The transaction resulted from a 2014 solicitation for proposals for electric-generating resources to replace EKPC’s Dale Station in Clark County, Ky. The 200-MW Dale Station is being partially retired in April 2016 and two of its four units are being placed in indefinite storage due to the cost to comply with new, more-stringent federal regulations.

KAEC Announces Reorganization To Align Business Model With Needs Of Electric Cooperatives

The Kentucky Association of Electric Cooperatives (KAEC) and United Utility Supply (UUS) announced today that they are reorganizing their business to better serve their members in the Commonwealth and around the country. In a deal that is expected to bring UUS members transformer cost savings while ensuring the uninterrupted supply and availability of essential electrical products, KAEC has reached an agreement with Electric Research and Manufacturing Cooperative Inc. (ERMCO) for KAEC’s affiliate, UUS, to become a distributor of ERMCO transformers. The shift to a distribution-only model will result in KAEC no longer manufacturing transformers.

“Making this transition has been a difficult decision, but it comes after a careful analysis of KAEC’s position and a realistic assessment of the challenges we face in the marketplace,” said Chris Perry, KAEC president and CEO. “This distributorship brings greater value and stability for our members and puts the Kentucky Association of Electric Cooperatives and United Utility Supply in a strong position for the future,” Perry continued. “We are proud of KAEC’s 58 years of manufacturing excellence, but we recognize our responsibility to our members to adapt and adjust our business model to meet the challenges of today. We move forward committed to the same cooperative principles upon which we were founded: to serve and support members of KAEC and UUS.”

About KAEC
Kentucky Association of Electric Cooperatives is the statewide association that provides services for the 24 local, consumer-owned electric distribution utilities in the state, as well as two generation and transmission cooperatives that produce power. Electric co-ops in Kentucky serve 843,000 member-owners, providing power to one-third of Kentucky’s population. KAEC services include representation before the Legislature, Congress, and regulatory bodies; safety training; coordination of management training; and public relations support including publication of Kentucky Living magazine, the largest circulation publication in the state with nearly 480,000 copies mailed monthly, with a readership of 1.2 million.