State’s electric co-op leaders
lobby Congress on your behalf

In May, representatives of Mississippi's electric power associations headed to Capitol Hill to join a grassroots force of some 3,000 electric co-op representatives from throughout the nation.

We met at an annual legislative conference that gives us opportunities to inform lawmakers of issues affecting the quality, reliability and cost of your electric service. Mississippi’s delegates discussed concerns ranging from new power generation financing to hurricane recovery costs.

One issue is the need for continued full funding of the Rural Utilities Service. Electric power associations have partnered with RUS since the 1930s to build and maintain a reliable electric energy infrastructure to serve rural Mississippians at an affordable cost. RUS helped get electric co-ops started by offering rural residents a source of affordable financing for the creation of their own electric utility.

Electric power associations still need this adequate and affordable source of financing to ensure high levels of reliability and to fund growth, especially in the area of power generation. We told lawmakers we oppose any attempt to alter the RUS mission in this regard.

The nation’s electric cooperatives are growing at a rate twice that of investor-owned utilities. Mississippi’s electric power associations serve some of the state’s fastest-growing areas, and demand for electricity is rising statewide. Future generation of electricity to meet growing demand must be planned now. We encourage federal support in the building of new nuclear plants to meet this demand.

Another issue affecting energy costs is the skyrocketing cost of shipping coal by rail to generation plants. In Mississippi, coal-fired generation is a major source of electricity for our members. Rail is often the only viable mode of transportation for coal, yet often there is no choice among rail carriers. The astonishing rise in rail freight costs—from $1.9 million in 2000 to $20.1 million in 2005—has been a factor in the increase in our electric prices. We’re asking Congress for legislation that would offer fairness to shippers who have no choice in carriers.

While in Washington, we also updated lawmakers on the impact of Hurricane Katrina on our service areas and our recovery effort. We estimate our cost of restoring power to more than 500,000 meters in the state to be some $400 million. Without FEMA assistance, the total restoration cost would be placed on our members.

There is, however, a common misconception that FEMA will reimburse us for the entire cost of the recovery. It won’t. Electric power associations and FEMA have developed a good working relationship through the years by working together during times of crisis. With FEMA’s assistance, we can avoid burdening our members with the bulk of the restoration costs.

Our strong showing in Washington made a powerful statement on your behalf. Rest assured that our voice was heard.

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