Category: Coop News

No sales tax on your power bill

I need your help to keep your electric bill as affordable as possible.

Ahead of the Kentucky General Assembly convening for its budget session in January, I urge you to tell your legislators not to add any sales tax on residential power bills. 

Connecting with your specific lawmakers is made easy on our new grassroots website, RuralPowerKY.com. Simply fill in your address and the website will have an email ready to send to your senator and representative.

Under current law, residential electric bills are exempt from the state’s 6% sales tax. However, as the General Assembly continues to consider new sources of revenue, potentially removing more exemptions from the sales tax, co-ops are urging legislators to protect the exemption on residential electric bills.

Since we launched this campaign in October, we are thankful that some lawmakers have affirmed they would not consider this proposal. Even if you want to thank your legislators for opposing this tax, it is important that they still hear from you and understand that you care about this.

The way co-ops judge every expenditure is whether it helps us serve our consumer-members. A tax on every residential power bill would not help us serve our members. By keeping costs as low as possible, co-ops not only help household budgets, but also economic development in communities across rural Kentucky.

Chris

Chris Perry, Kentucky Electric Cooperatives President and CEO.

Rural act to fix tax law unintended consequence

Electric cooperative leaders from Kentucky are joining co-ops across America calling on Congress to fix an unintended consequence of changes to federal tax law, warning that co-ops risk losing their nonprofit status if a major ice storm or tornado strikes a state.

To maintain tax-exempt status, no more than 15% of a co-op’s annual gross income can come from sources other than co-op members. Under the new law, government grants are considered non-member income—increasing the risk that co-ops working to restore their systems after major storms or help their community will be forced to forfeit their tax-exempt status.

Other federal or state government funding that could fall into this category are grants for economic development, energy efficiency and rural broadband deployment. 

Without tax-exempt status, co-ops will be forced to return a significant portion of those funds to the government in taxes rather than using the monies for their intended purpose.

“These changes leave a cloud of uncertainty hanging over electric co-ops,” says Marty Littrel, president and CEO of Meade County RECC, one of 26 electric cooperatives in Kentucky. “This uncertainty puts co-ops and their communities in a difficult position as they work to plan for the future.”

The Rural Act is bipartisan legislation that would correct this mistake. Co-sponsors include Kentucky Congressmen Andy Barr and James Comer.

—Joe Arnold

Advancing the state’s energy future

Kentucky Electric Cooperatives President Chris Perry was among more than 150 energy leaders from across the country who gathered at the University of Kentucky’s Kroger Field in October to discuss America’s energy future.

“It is important that electric cooperatives and rural America are part of the national energy conversation,” Perry says, “Co-ops have both real-world experience and a keen interest in helping shape the next chapter of safe, reliable and affordable electricity.”

Hosted by the Federal Energy Regulatory Commission and UK’s Center for Applied Energy Research, the EnVision Forum was attended by U.S. Department of Energy Deputy Secretary Dan Brouillette, who is nominated to be the next secretary.

Discussion topics included the need for investment in energy infrastructure, the implications of climate concerns and how the epidemic of opioid use is threatening the future energy workforce.

“The modern energy landscape is rapidly evolving,” says FERC Chairman Neil Chatterjee, a Lexington native. “The energy economy is in a period of significant and rapid change.”

UK President Eli Capilouto praised the “bright minds, fearless leaders and innovative trailblazers” on the forefront of the energy discussion. 

“As the commonwealth’s flagship and land-grant institution, this is what it’s all about, convening experts, disseminating knowledge and seeking solutions. It reflects our innate desire to expand what is possible,” says Capilouto.

Landfill power in Morehead

The old saying of “one man’s trash is another man’s treasure” is taking on new meaning at a landfill in eastern Kentucky.

In October, Fleming-Mason Energy Cooperative joined North American Bio Fuels and Advanced Disposal Services to dedicate a new renewable energy plant fueled by methane from the Morehead Landfill.

“As a result of this project, Fleming-Mason Energy Cooperative will provide clean, renewable energy to its members,” says Joni Hazelrigg, president and CEO of the co-op, which will purchase all energy generated by the plant. “We are excited to help make this possible for the communities we serve.”

The Morehead Generating Station can make 1.6 megawatts of energy, enough to power over 600 homes.

As organic waste breaks down in the landfill, flammable methane gas is produced. The gas is collected by a system of pipes within the landfill and piped to the plant, where it is used as fuel.

“This plant runs 80% to 90% of the time, which is very efficient for a renewable power plant. It has been fantastic working with both Fleming-Mason Energy and American Disposal Services,” says Brian Evans, chief operating officer of North American Bio Fuels.

North American Bio Fuels operates a similar facility at Blue Ridge Landfill in Irvine.

Operation Round-Up beautifies Elizabethtown

Thanks in part to Nolin RECC consumer-members who “round up” their bill to the nearest dollar each month, a Greenspace project at Freeman Lake is a reality.

An Operation Round-Up community impact grant funded the project to place stone pillars at two new bridges and to plant blooming crabapple trees in one of the most active trail entrances.

“Without a doubt, Nolin RECC members have contributed to the quality of life in our community and we are proud to have them as a partner of Greenspace,” says Elizabethtown Councilman Matt Deneen, a Greenspace board member. “The community impact of the Round-Up grant program is a leading example of what a cooperative can achieve when it is built upon a foundation of service not only to its members but to the community as a whole. The example Nolin RECC has set is the cornerstone of quality and credibility that will be needed to inspire other businesses and individuals to contribute additional trees to the area as the project expands.

Co-ops honor McConnell as 2019 ‘Distinguished Rural Kentuckian’

Highest honor awarded by Kentucky Electric Cooperatives

LOUISVILLE, Ky. (November 18, 2019) – U.S. Senate Majority Leader Mitch McConnell (R-KY) was honored on Monday, November 18 as the “2019 Distinguished Rural Kentuckian” at the 73rd Annual Meeting of Kentucky Electric Cooperatives. The award is the highest honor given by the statewide association of Kentucky’s electric cooperatives which serve nearly 1.5 million Kentuckians in 117 of 120 Kentucky counties.

“Senator McConnell is a champion for rural Kentucky,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “Time and time again, he has been there for co-ops when it matters most. And, what’s striking is how responsive he is to the issues of rural Kentucky and America.”

Perry said McConnell’s leadership securing access to sensible financing and USDA funding has helped Kentucky co-ops deliver safe, reliable and affordable electricity, and McConnell’s advocacy for sensible environmental regulations has protected the consumer-members of Kentucky co-ops.

“We know that Leader McConnell’s clout means good things for Kentucky and we appreciate his hard work and dedication to fight for rural priorities,” Perry continued. “As Majority Leader, he gets to set the agenda and because of that, rural Kentuckians have a lot to be grateful for. Our agenda is his agenda.”

“As a predominantly rural state, we’re made stronger by our heritage,” said U.S. Senate Majority Leader McConnell. “From the Big Rivers to East Kentucky Power, your 26 statewide electrical cooperatives are making a real difference in the lives of families and communities. You’re helping power Kentucky’s future, support good jobs, and drive our economic prosperity. I’m grateful for your advocacy and keeping me up to date on your priorities, and I’m honored to receive this award.”

First elected to the U.S. Senate in 1984, Senator McConnell is Kentucky’s longest serving senator and the longest serving Republican Senate Leader in U.S. history. In addition to serving on the Senate Agriculture Committee, Senate Rules and Administration, he also serves on the Senate Appropriations Committee – the committee which holds jurisdiction over discretionary spending.

Through the years, Senator McConnell has fought for many priorities important to rural Kentucky, including major tax reform, regulatory relief, infrastructure, rural broadband development and healthcare. Senator McConnell is well-known as a champion for rural Kentuckians – their jobs, families and futures. He has secured vital funding for our communities and been the voice for all Kentuckians in Washington.

Living in the present

Major holidays like Thanksgiving naturally make you think about family, childhood memories and the gifts of love and togetherness of past holidays.

It has been a tough year for me. Both of my parents passed away. My father lost his battle with Alzheimer’s disease and a couple of months later my mother lost her battle with Parkinson’s disease.

As we enter the holiday season, I have a hole in my life. No more picking up the phone to talk about football. No more visits discussing the grandchildren. No more laughs. No more hugs. All that is left are the memories and photographs that I now cherish. 

Thanksgiving was a wonderful time when I was growing up. I loved waking up on those mornings in my house with the smell of turkey and pumpkin pie. My mother loved the Macy’s Thanksgiving Day parade and we would watch every minute while she continued to work hard making a wonderful meal. Dad would make the patented Perry potato salad. My aunt would bring the deviled eggs. Those afternoons were perfect with our family sharing a meal and sharing time together.

After the stuffing and pumpkin pie were finished, my brother and I would watch some football. My dad and uncle would go outside in the cool air and enjoy smoking a cigarette. After some time passed, we would convene again for a little more pie, coffee and Pepsi. After a wonderful day, we would hug and look forward to the upcoming Christmas season, when we would do it all again.

I miss those days. So, as we enter the holidays and spend time together, I ask that you to try to avoid the distractions of the season and be fully present with the ones you love.

I found out this year that those moments are fleeting, and I will appreciate the ones now a little more. My wife, daughters and friends are the world to me, and I promise to be engaged and live life filled with focus and purpose.

May you and your family have a blessed Thanksgiving.

Chris

Chris Perry, Kentucky Electric Cooperatives President and CEO.

Smart grid, better reliability

The traditional electric grid has evolved into the modern smart grid, packed with advanced technologies that benefit both consumers and utilities.

A key feature is the smart meter, which provides two-way communication between the energy provider and the consumer. Smart meters help detect power outages and automate billing. Both help to improve reliability and efficiency. 

Research and innovation continue to add improvements, making problems in the grid easier to prevent early on, easier to identify and easier to fix. The smart grid also helps utilities plan for the future to reduce the likelihood of power blackouts and surges, and to better manage the electricity load, which can ultimately save money for the utility and consumer.

Another consumer benefit is more access to information and new ways to control and manage their energy use online or via app before they receive their monthly bill, which can lead to better energy efficiency habits. 

By investing now in smart grid technologies, utilities will help to reduce costs over the long run while also providing more reliable service to those they serve. 

Over the next decade, utilities are expected to invest $110 billion in smart grid technologies, and this value is likely to grow as new technologies are developed. Many electric cooperatives across the U.S. have started initiatives to deploy smart meters and other advanced grid infrastructure.

—Maria Kanevsky/NRECA

Winter weather is upon us: How low should you go?

Selecting the proper temperatures throughout the day and night can be a bit confusing as you balance comfort with energy and dollar savings. 

It does save energy overall if you lower the temperature setting on your central furnace or heat pump thermostat. The actual amount of dollar savings depends primarily on how low you set the thermostat, how long you have it set back and, to a lesser degree, your climate.

There also are other advantages to lowering the thermostat setting during winter. A lower house temperature requires less moisture indoors to keep the indoor air at a given relative humidity level. A heating system that runs less at a lower temperature means the equipment will last longer.

There is not a “best” thermostat setting for all homes and climates. The lower you set it, the greater the overall savings will be. The amount of savings per degree for each nighttime, eight-hour setback period ranges from 1% to 3%.

Unless there are some health problems in your family, 62 degrees is typically comfortable if you are wearing long sleeves or a sweater.

Important note: programmable thermostats generally are not recommended for heat pumps. Do not change heat pump thermostat settings more than 1 or 2 degrees. Consult the manufacturer’s manual or contact your co-op’s energy advisor for more information.

Mythbusting

It is a common myth that it takes as much energy to reheat a house—in the morning, for example—as was saved during the overnight temperature setback. The amount of heat a house loses through its walls, ceilings and floors is directly proportional to the difference between the indoor and the outdoor temperatures. Air leakage also increases with larger temperature differences.

When the indoor temperature is set lower, the indoor-to-outdoor temperature difference is smaller, so less heat is lost from your house. That means your furnace has to use less gas, oil or electricity to create the heat to replace it—which is less than the amount saved over the temperature setback period. During the summer, the same concept applies with air conditioning.

JAMES DULLEY is a nationally syndicated columnist who writes on energy efficiency and do-it-yourself energy topics.

Candidates for Kentucky governor answer electric co-op questions

On November 5, Kentucky voters will elect the commonwealth’s constitutional officers for the next four-year term.

Topping the ballot are the candidates for governor. Incumbent Republican Matt Bevin and his running mate state Sen. Ralph Alvarado face Democrat Attorney General Andy Beshear and his running mate Jacqueline Coleman.

We are grateful to both candidates for replying to our questions about key issues facing rural Kentucky, in particular the commonwealth’s energy future, economic development and workforce development.

In addition to advocating for issues that affect the ability of Kentucky’s electric cooperatives to deliver safe, reliable and affordable electricity, co-ops are also leading the drive for more voter participation in the rural areas they serve.

Kentucky’s off-year elections typically draw poor voter turnout, especially compared with presidential election years. Four years ago, Kentucky’s statewide voter turnout was only 30.6%, and the counties with the lowest turnout were in rural areas.

The nonpartisan Co-ops Vote campaign aims to both improve rural voting and make sure that rural voters are aware of important issues. Since the launch of Co-ops Vote in 2016, Kentucky Electric Cooperatives has championed the cause, encouraging consumer-members attending local co-op annual meetings to make sure their voices are heard at the ballot box.

“If rural Kentuckians want elected leaders to pay attention to their concerns, voting is the most effective method,” says Chris Perry, president of Kentucky Electric Cooperatives. “I encourage all Kentuckians to join me in making the commitment to vote.”

Eligible voters, no matter where they live or whether they are co-op members, can participate in Co-ops Vote and take advantage of its voter resources. Just visit www.vote.coop and take the pledge to vote in this year’s elections. Once you’ve registered, you’ll have access to information on registering to vote, where to vote and background on all the candidates.

“The communities and rural areas served by co-ops are facing challenges that require attention and respect,” Perry says. “It’s easy to attack rural electric cooperatives. We are paying attention to see who gives co-ops and their members a fair shake in Frankfort.”

As the flagship publication of Kentucky’s electric cooperatives, Kentucky Living posed the same four questions to both Bevin and Beshear, allowing each a total of 400 combined words to answer all questions.

Co-op Candidate Q & A

What is your vision for the energy future of Kentucky?

Bevin: Our energy future must be intertwined with my vision that Kentucky will become the engineering and manufacturing hub of excellence in the United States. We are in the process of fulfilling that vision precisely because of Kentucky’s low energy prices. Kentucky is second in the entire nation in aerospace exports. Automotive and pharmaceuticals are also major export categories for our commonwealth. In fact, we broke our all-time record as a state with $31.76 billion in international exports in 2018. Maintaining this growth is dependent on affordable, safe, reliable and environmentally responsible energy production.

Beshear: Kentucky needs an all-of-the-above approach to energy. One of the biggest challenges working families face, especially in eastern Kentucky, is that their energy bills go up year after year, while good jobs are hard to find and wages remain flat. Kentucky families shouldn’t have to choose between putting food on the table and keeping the lights on. As attorney general, my office has opposed dozens of utility bill hikes and helped save Kentucky families nearly $1.6 billion. I will continue to advocate for consumers, affordable utility costs and smart energy policy as governor.

No Kentuckian currently pays sales tax on their residential electric use. Can Kentucky’s electric cooperatives count on your support to help them serve struggling families and keep residential electric sales exempt from a sales tax?

Beshear: Tax reform in Kentucky shouldn’t burden working families who are already struggling just to get by. My focus will be on closing sales tax loopholes for purchases of things like private jets and luxury yachts. Additionally, we have to stand up for consumers and hold utility companies accountable. Monthly energy bills should be reasonable and affordable, not the skyrocketing rates we have seen in many parts of Kentucky.

Bevin: I do not support taxing utilities that people need.

What is your plan to help rural Kentucky retain, grow and recruit business to bring people back to rural Kentucky?

Bevin: I would refer you to my record thus far. No governor in America has outhustled me since I took office. Since the beginning of our administration, we have announced 1,160 new projects. We just broke the $20 billion mark in investments and are now over 52,000 new jobs. Perhaps most importantly, we have more people working in Kentucky than ever before. Many of these are in rural communities in Kentucky. Stay tuned, we are just getting warmed up.

Beshear: We must create family-supporting jobs and support small businesses in every part of Kentucky, including rural areas. My plan to create good-paying jobs focuses on growing economic sectors that Kentucky is positioned to lead in, like agritech and advanced manufacturing. These jobs of the future will draw on our state’s agricultural and industrial strengths as well as new technological innovations. We also have to rethink how we use tax incentives for job creation. My administration will move away from giving handouts to out-of-state CEOs and bring more jobs that pay a living wage to our rural communities. We also need to protect two of the main pillars of rural economies: health care and public education. While Matt Bevin attacks our schools and rural hospitals, they will be a priority in a Beshear/Coleman administration.

Electric cooperatives employ more than 3,000 people across the Commonwealth. What is your plan to ensure that Kentucky has an educated and prepared workforce for the future?

Beshear: Kentucky has the talent and the people, but Governor Bevin has failed to give our workforce the tools they need to compete in a global economy. Instead of cutting community colleges, I will expand job training programs in partnership with organized labor and strengthen career readiness in schools. We should also be fully funding public education, including community colleges and technical schools. Businesses will follow the workers, and I’ll always prioritize making sure Kentuckians have the skills they need to earn a good living for their families.

Bevin: Again, I have to refer you to my record. Our per pupil education expenditures were the highest in Kentucky history in our most recent budget. Meanwhile, programs like our Work Ready Skills Initiative, our Registered Apprentice Program, our Work Ready Scholarship and our Work Matters Task Report (which was recognized by the U.S. Department of Labor) represent a multimillion-dollar investment in Kentucky’s workers. These programs, along with public/private partnerships that are training world-class graduates in advanced manufacturing, are in place to ensure that Kentuckians have the skills demanded by job creators for 2019 and well into the future.

Concern for community

October is National Co-op Month, when cooperatives across the country celebrate the many ways co-ops are unique and more importantly, the members they serve. Your co-op was built by, belongs to and is led by people in your local community.

One of the seven cooperative principles is “concern for community,” and Kentucky’s electric cooperatives demonstrate this commitment in many ways.

This year co-ops again partnered with Governor Matt Bevin’s office on Beautify the Bluegrass, promoting the initiative in Kentucky Living and showing pride in our hometowns with some heavy lifting and TLC for Main Streets, neglected parks and welcome signs. Shown above, Kentucky Electric Cooperatives and Kentucky Living teams partnered with Brightside to weed, plant and mulch two “BrightSites,” or mini green oases, located on major highways in Jefferson County.

Co-ops also demonstrate their commitment to community by advocating for you in Frankfort and Washington, D.C. Right now, co-ops are concerned that state lawmakers might try to add a sales tax to your residential electric bill.

Please join our grassroots network of local co-op consumer-members at RuralPowerKY.com and add your voice to ours to educate elected officials on why rural Kentucky would be especially impacted by such a tax.

Chris

Chris Perry, Kentucky Electric Cooperatives President and CEO.

Kentucky’s electric co-ops launch RuralPowerKY.com to oppose sales tax on power bills

Bevin and Beshear weigh in on controversial sales tax proposal

(October 1, 2019) – Kentucky Electric Cooperatives is speaking out against any potential sales tax on Kentuckians’ power bills. The October issue of Kentucky Living magazine reveals both a new grassroots website against such a tax and an exclusive Q&A with Governor Matt Bevin and his Democratic challenger Andy Beshear, which includes their respective positions on the sales tax issue.

RuralPowerKY.com will serve as an educational landing place for local, state, and federal issues that could affect the more than 1.5 million co-op members across the Commonwealth. The platform also allows Kentuckians to communicate directly with legislators.

Under current law, residential electric bills are exempt from the state’s 6% sales tax. However, as the General Assembly continues to consider new sources of state revenue, potentially removing some exemptions from the sales tax, co-ops are cautioning legislators to protect the exemption on residential electric bills. Kentucky Electric Cooperatives is opposed to adding any sales tax to power bills and is using RuralPowerKY.com to encourage lawmakers to leave that exemption alone.

“Adding additional taxes to electric bills would have a devastating impact on rural Kentuckians as a sales tax could cost some consumer members hundreds of dollars per year,” stated Chris Perry, CEO and President of Kentucky Electric Cooperatives. “Not only would a tax impact household budgets, it would also stymie economic development in those areas.”

When recently asked by Kentucky Living if electric cooperatives could count on their support to keep residential electric sales exempt from a sales tax, both candidates for governor provided replies.

Governor Matt Bevin: “I do not support taxing utilities that people need.”

Attorney General Andy Beshear: “Tax reform in Kentucky shouldn’t burden working families who are already struggling just to get by. My focus will be on closing sales tax loopholes for purchases of things like private jets and luxury yachts. Additionally, we have to stand up for consumers and hold utility companies accountable. Monthly energy bills should be reasonable and affordable, not the skyrocketing rates we have seen in many parts of Kentucky.”