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PAGE 2  FEBRUARY 2012 INSIDE YOUR CO-OP


CEC Inside Lines is published monthly for 


Board of Trustees PRESIDENT


 VICE PRESIDENT


 SECRETARY TREASURER


 


 


 





Management and Staff  Terry Matlock


 


 Jia Johnson


 Tonia Allred


  


 Jim Malone


 


toll free telephone 800-780-6486


web site www.choctawelectric.coop


 PLEASE CALL


800-780-6486 


BY TERRY MATLOCK Chief Executive Officer


Old cars and aging power plants Replacing them may be necessary—and expensive


T


the Detroit Auto Show on January 6, 2012 offered consumers a first look at what we


can expect in the new cars of 2012.


Have you ever bought a new vehicle? Remember that new car smell, and of course, that new car price? Just thinking about it makes you reconsider what needs to be done to keep that old car running. A little touch up paint here and there, hang a smell-good new car fragrance on the rear view mirror, and continue the journey from point A to point B, wherever that may be.


Our nation’s ‘fleet’ of power plants are kind of the same. Most were built back in the 70s, some 40 years ago now. While the new has worn off these power plants, the demand has increased and the ample stock of supplied


generation just ain’t what it used to be.


Costs to maintain these old power plants are expensive and the EPA regulations continue. It is estimated that a large number of coal-fired generation plants could shut down by 2018. If so, that means that new generation would have to be developed to meet the demand.


If required to go to the new power generation dealership, I can only imagine what the cost would be for new construction and equipment.


China has now surpassed the United States as the top global energy user. And, despite efficiency measures, we continue to use more and more electricity. Choctaw Electric Cooperative members have an average increase in annual usage of 300 KWh compared to just three years ago.


The cost of new generation


The cost to build new power plants can vary widely. Each type of generation carries a ballpark price tag. The prices shown below, based on each kWh produced, take into account plant construction, maintenance, fuel, and operating costs.


If you remember, when these coal-fired generation plants were built gas generation was being restricted because federal agencies were concerned that gas reserves were running low. Now the same agencies are placing greater regulatory demands on coal-fired plants.


I’m all for green power, gas power, coal power or whatever. Let’s just get together. I’ll be visiting our delegation of lawmakers later this spring to convey the message that what Choctaw Electric Cooperative wants is a balanced, common sense approach that has affordability and dependable generation in mind. That’s the best way to ensure our members continue to enjoy safe, reliable and affordable electric service.


CEC CEC


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