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Electric industry hit hard with rising fuel


CO-OP News


costs, coal restrictions All electric utilities–not just co-ops–are feeling the impact By Brianna Wall


across the nation are feeling the impacts of rising fuel costs and endless regulation aimed at carbon- producing generation plants. “Our power supplier, Western


I


Farmers Electric Cooperative (WFEC), along with all other generation facilities, must abide by the federal government’s rules and regulations regarding sources and methods of power generation,” said OEC V.P. of Engineering and Assistant Manager Patrick Grace. “Energy effi ciency has never been more important in such an unstable power generation market.” Fiſt y-seven percent of every dollar


OEC collects goes directly to WFEC for the electricity they generate (see illustration on page 6). T at electricity is generated from coal and natural gas, as well as renewables like wind and hydro power—it can also be purchased for the lowest price on the open market. Coal accounts for 33 percent


of WFEC’s fuel mix and is its least expensive form of energy. T e coal- fi red plant located in Hugo operates around the clock–with the exception of maintenance periods–and already utilizes low-sulphur coal, a more environmentally-friendly form of coal. Additional Environmental Protection Agency (EPA) restrictions on coal plants loom in the not-so- distant future.


f you’ve noticed higher electric bills this year, you’re not alone. Electric utilities


“WFEC is trying to add capacity,


but federal regulations are preventing them from using loans to build new or expand the capacity of an existing coal plant,” Grace said. “When you’re forced to depend on purchased power and other sources of generation, you’re subject to the volatility of those sources’ market costs–some members


really felt that eff ect when they received their April bills in the mail.” Generation costs are the largest


part of an electric bill. When the least expensive source of generation is taking a hit by regulations and restrictions, another form of energy must take its place to meet demand.


Continued on page 6


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