Author: Wade Harris

NRECA Broadband Will Give Co-ops a ‘United Voice in Washington’

NRECA has launched a new level of service for electric cooperatives that provide broadband or are considering offering it.

NRECA Broadband, which opened July 12 to NRECA voting members, offers a growing number of exclusive resources, including additional legislative and regulatory experts to represent participating co-ops’ interests in Washington, D.C.

“Co-ops entering the competitive broadband business face a whole new set of regulations, reporting requirements, tax implications and other issues specific to the telecommunications space,” said NRECA CEO Jim Matheson.

“Through this new service tier, we aim to be a strong, united voice in Washington to represent our unique interests and stand toe-to-toe with big telecom.”

Co-ops that participate in NRECA Broadband will gain access to new strategic communications services, education and events, and focused business and technology support in addition to targeted advocacy. The first NRECA Broadband Leadership Summit for tier participants will take place Nov. 17-18 in Washington, D.C.

“This new level of service will amplify our voice as a national organization in Washington, where telecommunication issues are discussed and where telecommunication business policies are decided,” NRECA Chief Operating Officer Jeffrey Connor said.

“This is about building partnerships that NRECA can develop to be a more powerful voice for our members’ interests,” he said.

Participation in NRECA Broadband is voluntary and open to any NRECA voting electric co-op. The annual fee for co-ops that are in the broadband business is $12,000 plus $1 per broadband customer. The annual fee for co-ops not yet delivering broadband is $6,000.

Matheson said the time was right to expand NRECA’s service in broadband as hundreds of member co-ops work to bridge America’s digital divide.

“NRECA’s mission is to be an advocate for quality of life in the rural and diverse communities our members serve and has been for 80 years,” Matheson said. “NRECA Broadband services are a natural extension of our advocacy. We are committed to serve electric cooperatives for broadband as we do for the electric side of their business.”

Cathy Cash is a staff writer for NRECA.

Shelby Energy welcomes international copper producer Wieland 

Shelby Energy Cooperative today welcomed Wieland North America to Kentucky as the international copper producer broke ground for a $250 million copper and copper-alloy recycling facility in Shelbyville, Ky. 

“Wieland’s tremendous dedication to quality, people and sustainability makes the company a perfect fit for our community, and we welcome them with open arms,” said Jack Bragg, President & CEO of Shelby Energy Cooperative, which worked with state and local officials to help recruit Wieland. “We are proud Wieland chose Kentucky and particularly Shelbyville as the location for the next chapter in its 200-year history.” 

Wieland is constructing the new recycling facility on a 79-acre site near Interstate 64 in Shelbyville. With 75 full-time employees, the operation will melt copper and copper-alloy for recycling for use in manufacturing semi-finished copper and copper-alloy products for customers throughout North America. The facility is expected to begin production in 2023. 

“With customers located throughout North America and the globe, Wieland was looking for a centrally located site with outstanding transportation access, and we knew this site would fit their needs,” said Brad Thomas, Manager for Economic Development for Kentucky’s Touchstone Energy Cooperatives. “We are thrilled to play a role in helping Wieland find a home here in Kentucky.” 

Wieland North America manufactures copper and copper-alloy products, including sheet, strip, foil, tube, bar and other fabricated components for its North American customers. The company also rerolls and forms other metals, such as stainless and carbon steel. 

Last year, Wieland, based in Ulm, Germany, brought its North American headquarters to Louisville. 

Story: Nick Comer

Line trainees learn the ropes at EKPC

Dozens of electric line worker trainees received hands-on training for three days in mid-May at EKPC to better their skills in rigging and hoisting operations.

The three-day training was led by Kentucky Electric Cooperatives Director of Safety and Training Randy Meredith and held at EKPC’s headquarters and outdoor training facility. Trainees from 15 different electric cooperatives across Kentucky learned skills designed to improve the work of apprentice and entry-level line workers, including how to set poles and how to install transformers and other heavy power-line materials manually.

“Performing these tasks within the bounds of OSHA Standards is the core component of the training that Kentucky Electric Cooperatives is providing,” Meredith said.

Safety is a critical component of the training. Meredith said instilling the core safety components of the job early in the careers is not only a key to working safely, but working safely for years to come.

“We know that with a foundational understanding of the compliance standards, even the most rigorous work can be performed safely and efficiently. We want all line workers to be safe during the day and go home fully intact every night.”

NERC: weather, demand and supply delays could threaten reliability this summer

Extreme weather conditions, high seasonal demand and supply and shipping delays could pose reliability challenges for the nation’s electric utilities this summer, the North American Electric Reliability Corp. said in a new report.

“The utility industry prepares its equipment and operators for challenging summer conditions, but persistent, extreme drought and its accompanying weather patterns create extra stresses on electricity supply and demand,” said Mark Olson, NERC’s manager of reliability assessments, in a May 18 briefing on NERC’s Summer Reliability Assessment.

“Grid operators in affected areas will need all available tools to keep the system in balance this summer,” he said. 

Olson outlined industry concerns, which include ongoing inventory disruptions that are delaying generation and transmission construction and upgrades, cybersecurity threats, supply challenges for coal-based generation, and an anticipated active late-summer wildfire season in the western United States and Canada.

The report notes that reliability challenges are being compounded by evolving demands on the power grid, which has grown increasingly complex as renewable energy assets are added and consumers assert more control over their electricity use. 

“There’s clear, objective, inclusive data indicating that the pace of our grid transformation is a bit out of sync with the underlying realities and the physics of the system,” said John Moura, NERC’s director of reliability assessment. 

“We look at that long-term, and we see the transformation that’s happened over the last 10 years with our traditional baseload generation resources like coal and nuclear retiring, and lots of new natural gas and variable generation, mostly solar and wind,” said Moura.

NERC officials discussed the potential impact of summer weather and associated demand on regional transmission operators who manage large portions of the nation’s power grid. 

Seven areas face risks of energy shortfalls this summer, said Olson. “Their anticipated generation resources may not be sufficient to meet the operating reserves of a peak summer day in an average year.”

But 2022 is not shaping up to be average. Drought conditions and the early beginning of wildfire season in the West and Southwest coupled with low winter snowfalls could pose problems for the Midcontinent Independent System Operator. That prompted a “high risk” designation for MISO, which serves 15 states and Canada’s Manitoba province. 

“Drought can lead to reduced output from several types of generation, and it can also set weather conditions for higher temperatures,” said Moura.

Areas facing elevated risks include:

• The Southwest Power Pool: Drought conditions could contribute to low output from thermal and hydro generation needed to balance wind output.

• Texas: Increased wind and solar have eased capacity concerns, but drought conditions and summer heat may challenge the Electric Reliability Council of Texas and prompt manual load shed events during periods of low wind and high power plant outages.

• While the Pacific Northwest and California should have sufficient reserves under normal conditions, regional heat events could cause transmission congestion and energy emergencies. Wildfires, drought and supply chain issues could pose localized risks. 

“The risk of energy shortfall in these areas is elevated because more extreme conditions that drive above-normal demand or low resource output could deplete the reserves and lead to an energy emergency,” Moura said. He added that hydroelectric output could be curbed by drought conditions, particularly in California. 

NERC officials also warned that as older generation is retired, smaller baseload and peaking plants are being driven harder, increasing the risks of mechanical failures and forced outages. Officials also warned that some utilities are facing slowdowns in coal delivery, creating additional concern about falling reserve margins.

NRECA reacted to the report with a statement to reporters that noted “the ongoing energy transition must recognize the need for time, technology development and be inclusive of all energy sources to maintain reliability and affordability. A resilient and reliable electric grid that affordably keeps the lights on is the cornerstone of the American economy. American families and businesses rightfully expect the lights to stay on at a price they can afford. And a diverse energy mix that includes adequate baseload supply is essential to meeting those expectations day in and day out.”

Derrill Holly is a staff writer for NRECA.

Co-op profile: Logan Reeves | Kenergy

In the latest co-op profile video by your statewide association, we are pleased to feature Logan Reeves. 

In his 2 1/2 years as a system controller for Kenergy, he has demonstrated the power of positivity and is an inspiration to all of his fellow colleagues after overcoming a huge obstacle in his life.

Does your co-op have an interesting story to tell or other developments to share? If you have an idea for a video produced by the statewide co-op association, please email wharris@kyelectric.coop or mdennis@kyelectric.coop

Biden’s 2023 Budget Proposal: What Co-ops Should Know

The Biden administration’s proposed 2023 budget would increase funding for the U.S. Department of Agriculture’s ReConnect broadband program by 33%—from $450 million in fiscal year 2022 to $600 million.

The ReConnect program provides loans and grants to electric cooperatives to help pay for the construction, improvement or acquisition of facilities and equipment to bring high-speed internet to rural communities that have little or no service.

The COVID-19 pandemic has underscored the importance of broadband as people have relied on it to work from home, attend virtual classes and access telemedicine appointments.

President Joe Biden’s budget proposal is, like that of all presidents, a request to Congress. Legislators have the power of the purse and ultimately will decide spending priorities and levels for federal agencies and programs.

“While we recognize that the final decision lies with Congress, we welcome the administration’s support for increasing broadband funding to help close the digital divide that is keeping rural America from reaching its full economic potential,” said Hill Thomas, NRECA’s vice president of legislative affairs.

Turning to another USDA program vital to co-ops, the administration’s proposed budget calls for continuing to fund the Rural Utilities Service Electric Loan Program at $6.5 billion. Congress increased funding for the program by $1 billion in fiscal year 2022 from $5.5 billion in 2021.

Co-ops use RUS loans to help build and improve infrastructure that provides reliable, affordable electric service to their consumer-members. Repayment of those loans with interest to the U.S. Treasury helps reduce the federal deficit. 

“We are glad to see that the administration’s budget supports the increase that Congress provided to the RUS loan program that is so crucial to electric co-ops and the communities they serve,” Thomas said.

In a departure from the Trump administration’s budget proposals, the Biden administration is not seeking to sell off transmission assets that provide affordable hydropower from federal dams to hundreds of co-ops.

The Trump administration—in an effort that drew bipartisan opposition in Congress—had proposed to privatize assets held by the Tennessee Valley Authority, Bonneville Power Administration, Southwestern Power Administration and Western Area Power Administration.

The Trump administration had also sought to increase rates for federal Power Marketing Administrations by changing the cost-based rate structure to make it comparable to rates charged by investor-owned utilities.

In its budget plan for 2023, the Biden administration proposes increased funding for climate-related activities at nearly every federal agency. That includes a boost of almost $17 billion, for a total of $45 billion, to the five agencies with the most climate-related programs. The budget requests a record $11.9 billion—a nearly 29% increase—for the Environmental Protection Agency alone.

Erin Kelly is a staff writer for NRECA.

NRECA Asks Postal Service to Drop Rate Hikes in Light of Reform Act Relief

NRECA and other nonprofits are asking the U.S. Postal Service to abandon an unprecedented postage rate hike now that Congress has passed legislation to bolster the agency’s operations and provide financial relief.

The Postal Reform Act of 2022, which the Senate approved last week and President Joe Biden is expected to sign into law soon, was drafted to strengthen how the beleaguered service does business and ultimately save it money.

But the measure will not ease the record-high rates authorized last year or deter additional biannual postage increases.

“While this legislation will help shore up some of the Postal Service’s financial challenges, it does not provide immediate relief for electric co-ops and other postal users that face record rate increases in the coming years,” said Bobby Hamill, NRECA’s government relations director on this issue.

“NRECA continues to work with our Alliance of Nonprofit Mailers coalition in urging the Postal Service and the Postal Regulatory Commission to moderate the planned rate increases, particularly in light of the recent financial support provided by Congress.”

The Postal Regulatory Commission last August authorized nonprofit marketing mail rates to increase by an average of 7.8%. This included 5.7% for first-class letters, 10.4% for large envelopes, newsletters and magazines and 8.6% for parcels.

NRECA joined with the ANM to fight the new rates, and ANM joined a lawsuit against the commission for allowing the nonprofits’ postage rates to jump higher than current inflation.

However, the U.S. Court of Appeals for the D.C. Circuit ruled last November that the rate hike was within the commission’s authority under the 2006 Postal Accountability and Enhancement Act and that it satisfied the Administrative Procedure Act’s requirement of “reasoned decision-making.”

ANM Executive Director Stephen Kearney said that with a record $24 billion in cash and $107 billion in relief from Congress, the Postal Service does not require 6.8% to 8.8% rate hikes as authorized. USPS will file the level of its next rate increase with the commission in April.

“We and other mailer groups are now trying to convince the USPS to not use its full rate authority,” Kearney said. “Mailers are also being hit by other cost increases for paper, fuel and trucking that are driven by supply and demand.

“If USPS uses all the authority, it will lead to a second record set of increases in less than a year. USPS could and should defer its use of the full authority.”

Cathy Cash is a staff writer for NRECA

NRECA President Chris Christensen: ‘Collaboration Must Remain a Hallmark’ of Co-ops

NASHVILLE, Tenn.—Continued collaboration among electric cooperatives will help all co-ops face the challenges of an uncertain future, NRECA President Chris Christensen told co-op leaders Tuesday at NRECA’s PowerXchange.

“It’s that diversity of experience that allows us to work together to tackle common challenges,” the Montana rancher and former teacher said. “Some are specific to the electric cooperative network. Others are consistent across the entire electric sector, and we can share common solutions just as broadly.”

That doesn’t mean there’s a one-size-fits-all approach when it comes to co-ops, said Christensen, who serves as a director at NorVal Electric Cooperative in Glasgow, Montana.

“Our friends at Pedernales in Texas and their 872 employees are going to approach a common issue like a rate change differently than our newest NRECA member, Isle au Haut in Maine, which has one full-time employee,” he said.

“Nonetheless, we can and should continue to collaborate as much as possible—here in Nashville and after we’ve returned home. There are always experiences to learn from, and our commitment to collaboration must remain a hallmark of electric cooperatives.”

As NRECA’s president, Christensen has visited co-ops throughout the country and seen firsthand how they build on shared ideas. One example came when he told colleagues from other co-ops about NorVal’s requirement for directors to earn certain NRECA leadership credentials.

“In the weeks after I shared that experience, several colleagues shared with me that they not only put that idea into practice, but they built on it,” he said. “And some adjusted it to suit their specific needs, adding additional local learning opportunities or tying learning to rewards. Sharing our experiences and learning from each other, that’s the cooperative spirit that helps us face an uncertain future together.”

Attending PowerXchange and learning from one another is a way that leaders are “taking a proactive step for our co-ops.”

“Apply what you’ve learned here,” Christensen said. “Take ideas you get today back to your co-op and put them to good use. Continue to educate yourself and share your experiences with your fellow leaders back home.” 

Cooperation among co-ops is key to ensuring that leaders are taking action “to be successful for future generations for our members,” he said. 

“I say bring it on. Our co-ops are smart, capable and stronger when we work together.”

Author: Erin Kelly

Matheson: Electric Co-ops Help ‘Keep Our Communities Moving Forward’

NASHVILLE, Tenn.—NRECA CEO Jim Matheson welcomed more than 5,000 attendees to the 2022 PowerXchange with a message lauding electric cooperatives’ reputation and accomplishments as well as their aspiration to move their communities forward.

“That’s what I respect most about the work you do,” Matheson said at the March 7 general session. “And it’s my motivation to keep improving—to keep searching for ways we can be better.”

Matheson noted that electric co-ops are viewed as a trusted source by Republicans and Democrats on Capitol Hill about where their communities stand, and he discussed how NRECA has worked to fortify that reputation. 

NRECA is using more effective ways to reach elected officials, including digital and social media tools, modernizing its grassroots outreach, and creating stronger connections between members of Congress and the electric co-op communities they were elected to represent, Matheson said. 

“We’ve actually tested the results and measured our progress. We know these efforts are paying dividends for NRECA and for you,” he said. “Today, our reputation in Washington is more durable than ever.

“When policymakers look at every other organization in the energy industry, they see a partisan set of special interests. They see a friend or a foe, based on their politics. But when they look at America’s electric cooperatives, they see communities. They see people. They see you. As a result, in Washington D.C., we stand out,” he said.

Matheson outlined four co-op values he highlights when meeting with policymakers: 

• Co-ops strengthen communities through innovation and member support.
• Co-ops provide essential services such as broadband where no one else will.
• Co-ops provide reliable service from a resilient system.
• Co-ops accelerate the advancement of technology in rural America.

“This is our job at NRECA,” Matheson added, “to help create the foundation so you can do your best work to serve your members. To be a voice for the good you represent and the possibilities you create in your community.

“We always say the electric co-op is about serving the member at the end of the line,” he said. “But when you challenge yourself … and aspire to a larger purpose and a greater good, the thing about the end of the line becomes the fact that you never really get there. There’s always something more we can do to keep our communities moving forward.”

Author: Cathy Cash

Pennyrile Electric in first phase of broadband deployment



joint effort between Pennyrile Electric and Hopkinsville Electric System to bring high-speed fiber internet to consumer-members is underway.

In a new video posted this morning by Kentucky Electric Cooperatives, Pennyrile Electric CEO Alan Gates says the first phase of the “energynet” buildout now underway is expected to be complete within two years. 

“And beyond that, I mean our ultimate goal is to reach every end member of Pennyrile Electric within five years,” Gates says, explaining that large communication providers declined to serve rural areas where co-ops serve only two or three customers per mile of line.

Click here to watch the video which includes comments from Pennyrile Electric members excited about the broadband service to help with education, farming, health care and quality of life.

“We want great member satisfaction. We feel that this is a way to connect to our members, providing a service that no one else was willing to bring them, much like we did with electricity in 1936 and 1937,” Gates says.  We’re a service company, so we want to do everything that we can to serve our membership, and just try to be able to do that without affecting the electric rate, from that, we will provide connectivity to our entire membership.”

Funds allocated through Christian, Trigg, and Todd County Fiscal Courts will allow Pennyrile Electric to move forward with the project, while preserving a business model that protects the integrity of the electric side of the business.

“What’s so good about what we’re doing is it’s going to be out in the rural areas,” says Clayton Miller, lead fiber technician with Pennyrile Electric. “The rural areas, they don’t have access to this. So, this is really going to be a big jump for them compared to people who live in the city. So you can have the big city feel and the technology side but still live out in the country.”

Three packages are offered for the energynet service:

  • 200 mbps home package is offered at $59.95/month.
  • 500 mbps gamer edition package is offered at $79.95/month.
  • Full speed service with speeds up to 1 gigabit is offered at $99.95/month.  

Each energynet package includes whole-home wifi and 24/7 local support with unlimited data usage and no contracts.