The Complexities of EPA’s Clean Power Plan


ly, it probably will mean higher electricity bills.


But we’re still crunching the numbers. The Clean Power Plan is an extremely com- plex and far-reaching regulation. In fact, it’s probably the single most complex regula- tion co-ops have ever confronted. The rule affects cooperatives and their members more than other sectors of the utility industry. This is because cooperatives are unique among utilities. As you know, we are a not-for-profit


organization that provides electricity to 24,170 electric meters across seven coun- ties. We do not have investors who can foot the bill for expensive new plants or equip- ment for which we have not budgeted. LREC is more than just poles and lines.


The Environmental Protection Agency’s (EPA) regulation to limit greenhouse gas emissions from power plants will have a big impact in Oklahoma. Labeled the “Clean Power Plan,” it aims to reduce nationwide carbon dioxide emissions from power plants by 32 percent below levels recorded in 2005.


Oklahoma’s goal will be a 23 percent reduction. LREC along with other electric cooperatives in Oklahoma, will have to work with other utilities in the state in partnership with the Oklahoma Corporation Commission to achieve this reduction.


More than likely, power plants, especially those that use coal, will be forced to shut down before they have been fully paid for. In these situations, electric co-op members will have to continue paying for a power plant that no longer operates while also paying for electricity.


What does that mean for you, our members? Unfortunate- Continued from page 1


When LREC’s financial condition permits,


your board of trustees decides to retire, or pay the capital credits.


2 LREC Powerline Press


We look out for our members every day. Co-ops do a lot more than provide electricity. We want to improve our communities. This is why we offer scholarships, Youth Tour, Energy Camp and in 2007 we started Opera- tion Round Up, a voluntary program that rounds up your monthly bill to the next dollar. We have distributed more than $728,825 to local causes in need. We have this same concern for community when it comes to regulations and other policy changes that will increase the cost of electricity. Some folks may not notice an extra $10 added to their bill, but many others are already struggling to get by.


The potential cost increase is why we’ve been so engaged on this issue. That’s the root of our concern because we’re ultimately concerned about our members. We’re keeping up the fight and working for legislative and legal solutions in partnership with co-ops from around the country. Our top concern remains providing you, our members, with safe, affordable and reliable electricity.


How Do Capital Credits Work? LREC notifies you through


the newsletter on how and when you will recieve your capital credits retirement on your bill.


Because electric co-ops operate at cost, any excess revenues, called margins are returned to members in the form of capital credits.


AECI’s Chouteau Power Plant


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