Wisconsin Regulators to Decide on Transmission Project
Posted on May 10, 2012
At a meeting Thursday, the Public Service Commission of Wisconsin was expected to decide whether to approve a power line that would run between Alma and Holmen in western Wisconsin. Northern States Power Company, Dairyland Power Cooperative and WPPI Energy are all working on this $234 million project. Read more here.
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Update on American Municipal Power Lawsuit
Posted on May 10, 2012
American Municipal Power, Inc., an Ohio coop, sued a company last year for breach of contract and two torts, seeking $97 million in damages per claim. The suit alleges that Bechtel Power Corp. lowballed its estimate of the construction costs for a coal-fired supercritical power plant in Ohio by more than $1 billion, and then unexpectedly raised its estimate by $1 billion, forcing the coop to scrap the project. The judge recently ruled that the facts alleged by the coop support a plausible claim that Bechtel wantonly failed to inform the coop of the price increase in a timely manner, but...
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Hoosier Energy to Shutter Coal-Fired Plant in 2015
Posted on May 9, 2012
Hoosier Energy, a cooperative based in Bloomington, Indiana, will retire a 250-MW coal-fired plant in Petersburg, Indiana, in 2015. Hoosier explained that the costs associated with new and proposed U.S. Environmental Protection Agency rules motivated the company to close the plant. Additional details may be found here.
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Kentucky Coop Files Request to Join PJM
Posted on May 9, 2012
East Kentucky Power Cooperative (EKPC) is seeking approval from the Kentucky Public Service Commission to join PJM Interconnection (PJM), a regional transmission organization that coordinates the movement of wholesale electricity in 13 states and the District of Columbia. Citing operational and regulatory constraints, EKPC says PJM membership would allow for more efficient and economic coop operations. Click here for more.
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North Dakota Wind Farm Faces Unexpected Taxes
Posted on May 7, 2012
Basin Electric Power Cooperative, based in Bismarck, North Dakota, is paying nearly $800,000 in new tax revenue to school districts, counties and other governmental entities, which is about $300,000 more than projected by the South Dakota Public Utilities Commission two years ago. Taxes for the $363 million, 108-turbine wind project, located on 40,000 acres in three counties, are based on energy production and are paid in addition to preexisting property taxes. However, power generation from the project has been very strong, and because the taxes are tied to generation, the generation...
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Rural Coops to Receive Millions in Loans to Improve Infrastructure and Install Smart Grid Technologies
Posted on May 7, 2012
Agriculture Secretary Tom Vilsack has announced that rural electric coops in 10 states will receive loans, worth $334 million total, to install smart grid technologies and make improvements to their facilities. The loans will be provided by the USDA Rural Development’s Rural Utilities Service. The new funding includes almost $20 million to install smart grid technologies. In Georgia, Jefferson-based Jackson Electric Membership Corporation will receive a $102.8 million guaranteed loan to build and improve more than 850 miles of distribution line and make other system improvements. ...
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Coops’ Financial Positions Remain Strong According to 2011 Key Ratio Trend Analysis
Posted on May 4, 2012
Although load growth remains tepid, the various financial ratios that are used to evaluate the financial strength of coops continue to improve. According to the annual Key Ratio Trend Analysis by the National Rural Utilities Cooperative Finance Corporation (CFC), equity as a percent of assets increased to a five-year high of 42.24, percent and payments from consumers remained reliable. See the CFC’s press release for more.
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SMECO Ready to Construct Transmission Project
Posted on May 4, 2012
The Southern Maryland Electric Cooperative (SMECO) announced it anticipates breaking ground on a $100 million transmission project this May, which will feature upgraded line poles able to carry more power with a more aesthetically pleasing appearance. Developers expect a project in-service date of March 2015. Click here for the full story.
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North Dakota Cooperatives Pay Coal Conversion Tax Under Protest
Posted on May 3, 2012
Basin Electric Power Cooperative and Minnkota Power Cooperative have each paid a North Dakota “coal conversion” tax under protest in anticipation of an upcoming vote by North Dakotans regarding whether to abolish property taxes, which would include the coal conversion tax. If approved, the change would apply retroactively to January 1. The coal conversion tax is assessed based on the amount of power produced from coal facilities. Additional details can be found here.
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Minnesota Coops to Test Smart-Grid Technology
Posted on May 3, 2012
Three Minnesota cooperatives (Great River Energy, Minnesota Valley Electric Cooperative and Lake Region Electric Cooperative) are participating in a $5 million demonstration project to pay for new smart-grid software in attempts to smooth (and track) their customers’ demand. The Minneapolis Star-Tribune has more on the story.
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Carbon Dioxide Rules Unlikely to Affect Coop Credit Quality
Posted on Apr 30, 2012
According to a report from Standard & Poor’s Research (S&P), the proposed U.S. Environmental Protection Agency (EPA) restrictions on carbon dioxide emissions from new coal plants are unlikely to affect the credit quality of electric cooperatives. The EPA has proposed new emissions restrictions that will require modification at some coal-fired plants. The S&P report predicts that the new regulations will put coal at even more of an economic disadvantage. Click here for the full story.
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Kansas Coops Become 100-Percent Borrowers of CFC
Posted on Apr 30, 2012
Meade-based CMS Electric Cooperative, Inc. and nearby Pratt-based Ninnescah Rural Electric Cooperative, Inc. have both closed deals to become 100-percent borrowers of the National Rural Utilities Cooperative Finance Corporation (CFC). Both coops cited CFC’s high level of customer service and the low interest rates and savings that CFC could provide by refinancing their existing debt as reasons behind this decision. CMS is expected save about $7 million over the life of the new notes. More details about the deals are available here.
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Montana Senators Seek Upgrades to State’s Power Grid
Posted on Apr 30, 2012
Two Montana senators, Max Baucus and Jon Tester, are asking U.S. Energy Secretary Steven Chu to create a timeline for implementing upgrades to the state’s power grid in order to aid cooperatives. The plan, if implemented, would affect the Bonneville Power Administration and the Western Area Power Administration, which serve electric coops that provide electricity to more than 400,000 Montana citizens. To read more about the key issues highlighted by Sens. Baucus and Tester, click here.
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House Committee Blocks Funding for Energy Department Plans for PMAs
Posted on Apr 30, 2012
On April 25, the House Appropriations Committee approved by voice vote an amendment to the fiscal 2013 Energy and Water spending bill that blocks funding for proposed changes that would affect power marketing administrations (PMAs) and their customers. In testimony before the House Committee, NRECA CEO Glenn English raised concerns that the proposed plans would impose high costs on PMAs. Energy Secretary Steven Chu had proposed several initiatives, which called for the PMAs to promote renewable energy, serve as research grounds for cyber security technologies, respond to solar flares and...
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