The power of working together
Each of Kentucky’s 24 local distribution co-ops and the two generation and transmission co-ops that provide your electricity belong to the statewide organization that also publishes Kentucky Living—magazine, the Kentucky Association of Electric Cooperatives (KAEC). Membership in KAEC gives the co-ops the opportunity to share information and practical advice among themselves, everything from safety to disaster response to technical know-how.

As an additional benefit, KAEC speaks on behalf of the co-ops to provide information to elected officials in the state legislature, in the governor’s office, various cabinets, and state agencies, including the Kentucky Public Service Commission, which regulates Kentucky’s electric utility industry.

This advocacy on behalf of co-ops and their members becomes even more important following August’s announcement of the national Clean Power Plan, which will have a huge impact on Kentucky’s energy future.

Chris Perry, the association’s CEO, says, “We represent 1.7 million people, with electric co-op members in 117 of Kentucky’s 120 counties. Our organization is a great example of how cooperatives work together, sharing resources. We represent our member-owners in Frankfort in many ways all year long.”

Chase Crigler, director of Community and Government Affairs for KAEC, says, “During each legislative session, our statewide association and representatives from the generation and transmission co-ops have a consistent and daily presence in Frankfort. We are constantly interacting with legislators, talking with them about hot-topic issues, and making them aware of issues they might not anticipate. We are always on hand to answer questions, dispel rumors, and provide the facts about all parts of the electric utility system. Then, when the legislature is not in session, we attend joint interim committee meetings around the state. We’ll meet with legislators anyplace they need us to be.”

Electricity and local economies
Working tirelessly year-round on behalf of electric co-op member-owners is becoming increasingly important as the economic impact of national energy policy goals receives more attention.

Crigler says, “Legislators are concerned with jobs, and they’re worried about our state’s competitiveness in terms of power pricing. And they want to know that the lights are going to stay on for all their constituents. Knowing that, even with the many changes going on in the bulk power system, cooperatives will continue to be able to provide reliable, affordable power is important. That has an impact on economic development in communities throughout the state.”

An unusual chain of events shows how cooperatives must always be on the lookout for positive opportunities. A few years ago, Big Rivers Electric Corporation, the generation and transmission cooperative that provides power for three local distribution co-ops in western Kentucky, received approval from the Public Service Commission to add a new interconnection near Henderson to improve reliability in the multi-state region.

Shortly thereafter, a major industrial user in the area, an aluminum smelter, decided to stop buying electricity from Kenergy Corp., the local distribution co-op, and instead shop around on the open market. For a while, losing such a key customer for Big Rivers’ electricity threatened to up-end decades of careful financial planning, affect the stability of the power grid, and cause widespread major increases in the rate structure for all other electricity users served by Big Rivers.

But the same interconnections that made it possible for the industrial customer to buy its power from another source have also offered a workable solution for Big Rivers to use its generation capacity wisely. As a member of MISO, the regional transmission organization that serves 15 midwestern states and the Canadian province of Manitoba, Big Rivers can sell bulk power on the open market.

Big Rivers already has several new contracts to sell electricity generated in Kentucky on the open regional market, with a net savings of $13 million over projected expenses. Big Rivers CEO Bob Berry says, “As a result of this bulk power sale contract, the fuel costs for co-op members is much smaller than it would have been without the sale.”

Big Rivers has also requested in filings with the Kentucky Public Service Commission that any earnings on another bulk power sale to a customer in Nebraska be returned to retail consumers as a credit on their electric bills. Berry says, “Our co-ops’ customers here in Kentucky own us, so they deserve the benefit of this transaction. These are cooperative principles at work.”

By Kentucky Living FUTURE OF ELECTRICITY Columnist Nancy Grant

Fighting Back Against Administration’s Costly Power Plan
By Senator Mitch McConnell
November 6, 2015

Here we go again. The Obama Administration has fired its latest salvo in the War on Coal by publishing the final version of its so-called “Clean Power Plan”—regulations that would effectively shut down most coal-fired power plants and prevent new ones from being built.

These regulations would shrink our state’s economy by almost $2 billion. And they would hurt Kentucky workers and their families by raising electricity rates by double digits while cutting coal jobs across the state. What the administration is pushing for is not a Clean Power Plan, but a “Costly Power Plan” that will have no lasting impact on the environment.

That’s why I am using my position as Majority Leader of the U.S. Senate to fight back against President Obama and his bureaucrats at the EPA who have issued these regulations aimed at the heart of coal country. This summer, I was able to secure language in an Interior Appropriations bill that, if enacted, would halt this regulation.

More recently, I filed a bipartisan measure in the Senate under a procedure established by the Congressional Review Act (CRA). The CRA empowers Congress to overturn regulations issued by the executive branch with a simple majority vote. The CRA measure I filed would stop the Obama Administration from imposing on Kentuckians its anti-coal regulation for new coal-fired power plants.

I am also a proud cosponsor of another bipartisan Senate measure filed under the CRA that would block the so-called Clean Power Plan’s regulation pertaining to existing coal-fired plants. Together, these measures represent a comprehensive effort to fight back against the Obama Administration’s outrageous effort to cut jobs and hike electricity prices in Kentucky.

I’ve been fighting against this president’s hurtful policies, and this so-called Clean Power Plan in particular, since he first proposed it. Several months ago, I wrote a letter to every governor in the country suggesting that they take a responsible wait-and-see approach before subjecting the citizens of their states to unnecessary pain caused by complying with the government’s request for state implementation plans for these outrageous regulations.

I wrote this letter because there is a legitimate question as to whether the administration even has the authority under federal law to issue these regulations. Also encouraging is the fact that the administration, in recognition of the difficulty many states will have complying with this plan, is allowing states to seek a two-year delay to abide by it. President Obama will be out of office by then, and the next administration may not even continue forward on this disastrous route.

This tacit admission from the Obama Administration that its plan is unworkable proves that the pushback from states is making a difference. More than half the states have launched lawsuits to fight back against this ill-advised plan. I’m encouraged that Kentucky’s next governor, Matt Bevin, has already pledged he will not comply with these regulations.

I’m determined to continue the fight against the Obama Administration’s attack on Kentucky jobs. The administration’s lack of compassion for those being trampled by these massively regressive regulations is shocking. The path to pursuing the administration’s left-wing ideological agenda runs right over Kentucky coal miners and their families, who have done nothing to deserve it.

And remember: for all the damage this Costly Power Plan would inflict on the middle class, it’s not even expected to reduce global emissions in any meaningful way.

Tons of pain for almost no gain. That’s the Obama White House plan.

So the fight against the War on Coal continues. This fight will not be short or easy. But it’s essential to our livelihoods and our very way of life, and hard-working Kentuckians should know that I’m going to keep standing and fighting for them, no matter what the Obama Administration or their EPA throw at us.

Champion of energy retiring after 22 years in Congress

Leaders of Kentucky’s electric cooperatives are thanking U.S. Rep. Ed Whitfield (Ky-01) for his decades of service in Congress, in particular his leadership on energy issues and commitment to affordable and reliable electricity in the United States.  On Tuesday, Whitfield announced that he would not seek a 12th term in the U.S. House of Representatives.

“Congressman Whitfield has been a great supporter of Kentucky’s electric cooperatives,” said Chris Perry,  president and CEO of the Kentucky Association of Electric Cooperatives.  “He has led the charge on our issues for many years.  Representative Whitfield has been great for Kentucky and great for our country.”

As Chairman of the House Energy and Power Subcommittee, Whitfield has been a tireless and consistent advocate for Americans most affected by federal regulation of U.S. power plants.  The Hopkinsville native played a key role in modernizing U.S. energy policy, while promoting clean uses of coal and protecting domestic uranium enrichment capabilities at the Paducah Gaseous Diffusion Plant.

Most recently, Whitfield has forcefully and articulately objected to pending EPA regulations projected to dramatically increase electricity rates for members of Kentucky’s electric cooperatives over the next 15 years.

“I hate to see him go,” said Greg Grissom, president and CEO of Pennyrile Electric in Hopkinsville.  “Congressman Whitfield has been a wonderful asset for the First District and a very strong supporter of our electric cooperatives.”

Grissom, a former executive at Hickman-Fulton Counties Rural Electric Cooperative Corporation, noted that Whitfield has worked to understand and represent the varying needs and concerns of individual electric cooperatives, regardless of the source of electric generation.

Kentucky’s First Congressional District represents about 700,000 people in Western Kentucky.

“Representative Whitfield has been a tremendous asset to the electric cooperative program in Kentucky and nationwide,” said David E. Smart, president and CEO of West Kentucky Rural Electric Cooperative Corporation in Mayfield.  “He is always accessible, knowledgeable on our issues and ready to work with us for the greater good of our members and his constituents. His experience and support of the first district will be difficult to replace.”

Joe Arnold, political editor, reporter, anchor, and host of the weekly The Powers That Be program for WHAS11, has been named Vice President of Strategic Communications for Kentucky Association of Electric Cooperatives.

KAEC President and CEO Chris Perry says, “Our industry is facing many challenges due to the Clean Power Plan and other regulations. Joe is a communications leader with the skills to effectively communicate how issues will affect Kentucky’s electric co-ops and our members. This is a critical role in the success of our organization and during a period of transition in the utility world. We are looking forward to having Joe on board.”

Arnold announced his departure from television news to colleagues in the WHAS11 newsroom Tuesday morning, August 4, 2015. Though Arnold will begin his position at KAEC on September 18, he will continue to contribute to WHAS11 political coverage as host of The Powers That Be and on election night.

“It is with mixed emotions that I announce my decision to transition to the next stage of my career,” Arnold said. “WHAS11 is a leader in broadcast journalism and my dear and talented colleagues have been a second family to me over the last 17 years. WHAS11 has introduced me to leaders, concerned citizens and issues in Kentucky, and I am excited to be able to apply my experience and skills to an organization that supports a critical asset for our state, reliable electricity at affordable rates.”

In his new role, Arnold will oversee corporate media relations communications for KAEC, which includes Kentucky Living magazine. He will represent KAEC on local and state legislative concerns and lead KAEC communications as it relates to the 26 electric cooperatives and other key constituent groups.

Recognized locally and nationally for his reporting of politics and government, Arnold first joined WHAS11 in 1998 while host of The Joe Arnold Show on WHAS-AM 840. Beginning in 2001, Joe anchored Good Morning Kentuckiana and weekend newscasts before assuming the role of political editor in 2009.

Arnold’s reporting has been recognized with top awards from the Associated Press and Emmy Awards for investigations and blogging.

A 2012 graduate of Leadership Louisville, a civic training group for emerging leaders, Arnold has also been recognized for his contributions to charitable causes, including the Colon Cancer Prevention Project and the Alzheimer’s Association.

Arnold lives in Louisville with his wife and two children.

On Monday, August 3, 2015, President Barack Obama unveiled the Environmental Protection Agency’s final rule for the Clean Power Plan, regulating greenhouse gas emissions at U.S. power plants. The plan requires carbon emissions to be cut 32 percent by 2030 outlined in a 1,560-page report.

The Clean Energy Plan sets national standards, while allowing states flexibility in deciding how to meet those goals. States are required to submit state-specific plans by September 2016. If states need more time, they can make an initial submission and request extensions of up to two years for their final plan. Mandatory reductions for carbon emissions begin in 2022, and states can elect to gradually step down reductions to meet the final goals for 2030.

While the nation relies on nearly 40 percent of coal for its energy, Kentucky’s energy is 92 percent coal-powered, according to the latest statistics from the U.S. Energy Information Administration.

An important strategy for lowering emissions in Kentucky, given the state’s heavy reliance on coal for energy and lack of renewable energy from solar and wind, will be energy-efficiency programs put into place by electric utilities, which are already being widely used.

For Kentucky, shuttering power plants, leaving stranded assets before the debt is paid off, is a huge concern. East Kentucky Power Cooperative’s CEO Tony Campbell says, “The regulations announced effectively remove coal as an option for future power plants, and begin restricting carbon emissions from existing coal-fired plants. This will put pressure on costs to rise. As we move away from coal, there are serious questions that must be addressed about the affordability and reliability of alternatives, including natural gas and renewables.”

East Kentucky Power provides generation and transmission to 16 distribution electric co-ops in Kentucky, which provide power to more than 1 million Kentuckians.

EKPC’s Campbell says, “I am concerned about the impact these rules will have on the affordability and reliability of electric power.” He says, “I am especially concerned for the people at the end of our power lines. Among the people served by Kentucky’s electric cooperatives, household income is 7.4 percent below the state average and 22 percent below the national average. Among the 87 counties served by EKPC’s owner-member cooperatives, 40 counties face persistent poverty.”

National Rural Electric Cooperative Association (NRECA) CEO Jo Ann Emerson states, “Any increase in the cost of electricity most dramatically impacts those who can least afford it, and the fallout from the EPA’s rule will cascade across the nation for years to come.”

NRECA is the national service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives that provide electricity to 42 million consumer-members in 47 states, including Kentucky.

Emerson states, “While we appreciate the efforts intended to help offset the financial burden of rising electricity prices and jobs lost due to prematurely shuttered power plants, the final rule still appears to reflect the fundamental flaws of the original proposal. It exceeds the EPA’s legal authority under the Clean Air Act, and it will raise electricity rates for our country’s most vulnerable populations while challenging the reliability of the grid.”

NRECA recently commissioned a study that underscores the devastating relationship between higher electricity prices and job losses. The study, Affordable Electricity: Rural American’s Economic Lifeline, measures the impact of a 10 and 25 percent electricity price increase on jobs and gross domestic product (GDP) from 2020 to 2040. The study shows even a 10 percent increase in electricity prices would result in 1.2 million jobs lost in 2021 across the country with nearly 500,000 of those lost jobs in rural communities.

“For many years, because of the Commonwealth’s abundant coal resources, Kentucky has enjoyed some of the lowest electric rates in the nation,” says Campbell. “I am proud of EKPC’s role in providing some of the most affordable, reliable electric available. As a result, Kentucky has a dynamic manufacturing economy that employs 235,000 Kentuckians and depends on that affordable energy.”

Kentucky’s electric cooperatives are committed to keeping costs affordable and to maintain reliability for electric co-op members.

Emerson says, “We will continue reviewing this extremely complex rule and have additional comments on behalf of America’s not-for-profit, consumer-owned electric cooperatives in the coming days.”

Pennyrile Electric, in Hopkinsville, hosted the 11th Kentucky Lineman’s Rodeo at the Western Kentucky Fairgrounds July 30 and 31.

The Kentucky Lineman’s Rodeo is a yearly competition organized by the Kentucky Association of Electric Cooperatives and showcases the amazing talents of electric cooperative lineman. This year’s rodeo saw 21 of Kentucky’s 26 electric cooperatives’ linemen compete for the coveted titles of top Apprentice, Journeyman, and Lineman team. The competition includes several work-related events: hurt-man, pole top rescue, and skill climb. All events are mainly judged on safety procedures since the rodeo’s main focus is doing line work in the safest possible manner.

Besides the 100+ competing lineman, the rodeo also had 50 judges and 37 volunteers. Family members and co-workers also come out in large numbers to support their various cooperative team members. Sponsors are also important to the success of the rodeo and there were 32 sponsors at varying levels providing support.

The rodeo, which began in 2005, started as part of a state effort to make lineworker safety a top priority for electric co-op utility employees in Kentucky. While the event is a competition, the rodeo tests line workers’ skills and safety practices—scoring rewards safety over speed.

Find out top results and see a video about the 2015 Kentucky Lineman’s Rodeo.

Farmers RECC and its power supplier, Winchester-based East Kentucky Power Cooperative (EKPC), today announced updates on their project to develop a plant in Glasgow that will produce clean, renewable energy. Called the Glasgow Landfill-Gas-To-Energy (LFGTE) project, the plant will produce renewable power using methane collected from the Glasgow Regional Landfill. The plant will be owned and operated by EKPC, the power supplier that is owned by Farmers RECC and 15 other rural electric Kentucky co-ops.

On April 2, 2015, the Kentucky Public Service Commission approved the construction of the landfill generator. This allows EKPC to begin construction of the facilities to generate electricity from the captured landfill gas. “We are extremely excited to be part of this and appreciative to East Kentucky Power Cooperative and the City of Glasgow for helping make this a reality,” said Farmers RECC President and CEO Bill Prather. “This project has been made possible as a result of the City, Farmers, and East Kentucky Power working together for the benefit of the community.”

The project began as a result of extensive discussion between Farmers RECC and the city of Glasgow. Farmers RECC was interested in the production of energy from renewable sources and the city of Glasgow was interested in capturing the methane gas produced at the landfill. In addition, the LFGTE project will provide a backup source of power to the Glasgow Water Company’s waste water treatment plant, saving them from having to make a considerable investment to provide their own backup power source.

“The longer term impact will be the ‘alternative’ energy that will be generated at the projects’ completion,” said Glasgow Mayor Dick Doty. “The City of Glasgow is very excited to be partners with East Kentucky Power and Farmers Rural Electric Co-op for the exciting opportunity to positively impact the environment and the citizens of Glasgow and Barren County.”

EKPC President and CEO Anthony “Tony” Campbell said the Glasgow plant fits with the cooperative’s Strategic Plan to continue to pursue prudent diversity in its generation fleet. “We were the first utility in Kentucky to build renewable power plants, and this project shows our continued commitment to affordable, reliable alternatives that work,” he said.

The plant will produce approximately 1 megawatt, which is enough electricity to power about 550 Kentucky homes and is expected to begin producing electricity later this year. East Kentucky Power will own, operate and maintain the plant, while Farmers will design, construct, operate and maintain facilities that interconnect electrically to the plant. EKPC will purchase the methane gas from the City to power the generator and Farmers will purchase all of the renewable energy produced by the facility. “It’s no secret that the demand for energy in Kentucky and around the world continues to rise,” Prather said. “We’re doing our part to responsibly meet this projected demand by working with the City of Glasgow and East Kentucky Power to develop this renewable resource.”

EKPC owns and operates five other Kentucky landfill gas plants located in Laurel, Greenup, Hardin, Pendleton and Boone counties. These plants annually generate enough electricity to power more than about 8,000 Kentucky homes each year. The environmental benefits of biomass projects equal taking 130,000 cars off Kentucky’s roads each year.

For the past year, the Environmental Protection Agency (EPA) has been working on new rules to regulate the carbon dioxide emissions of power plants as pollutants under the Clean Air Act.

The agency expected to finalize its highly controversial carbon dioxide standards for new units on January 8, and for existing units on June 1.
EPA will postpone these rules until sometime “mid-summer,” Janet McCabe, acting assistant administrator for EPA’s Office of Air and Radiation, said in a conference call with reporters.

The agency did not provide a specific date for the final rules.

NRECA CEO Jo Ann Emerson said EPA should use the extra time to study the 1.2 million comments that flooded the agency from advocates for electric cooperatives concerned about the proposals’ impact on affordable, reliable electricity.

During many Kentucky electric cooperative annual meetings this past summer tables were set up where cooperative members could sign cards provided by Action.coop to send to the EPA urging them to keep affordability in mind when proposing new regulations that will affect electric co-op power bills. Co-ops also made the cards available at co-op offices and during member appreciation days as well as putting the message on T-shirts.

As of December 2014, Kentucky co-ops had sent almost 16,300 cards to the EPA helping to raise the overall number of cards sent from co-ops across the nation to the 1.2 million.
A recent study, entitled Energy Market Impacts of Recent Federal Regulations on the Electric Power Sector, was released by Energy Ventures Analysis, a Virginia-based firm that has provided market analyses of the energy industry since 1981.

The study looked at the impacts of the proposed regulations on individual states. In Kentucky, the average residential electric utility bill is projected to increase by $450 a year if the proposed regulations go into effect.

EPA’s Janet McCabe also said the proposed rules targeting emissions from coal-based power plants attracted more than 4 million public comments.

EPA is also preparing a federal “model” plan to comply with the regulations although the agency has a “strong preference” for states to draft and submit their own implementation plans to meet the new emissions limits, McCabe said.

Information gathered from ECT.coop and Jackson Energy