Bill to require electric co-ops to promote efficiency

 

By Robert Allen
Daily Press Writer
Published/Last Modified on Saturday, March 22, 2008 4:14 AM MDT

MONTROSE — A bill requiring electric cooperatives to dedicate set percentages of revenues to conservation and energy efficiency programs awaits Colorado Senate approval after a near-even House vote.

“This is not the place the government should be. But this is, in my opinion, something that the touchy-feely-feel-goods are requiring to make themselves feel better,” said Rep. Ray Rose, R-Montrose.

“It’s a bill to make those people look good by allowing them to say, ‘See, I passed legislation that will require green energy and require the industry to clean up their act.’”

Advertisement
HB 1107 would require cooperative electric associations and municipal utilities serving more than 5,000 customers to devote 1 percent of revenue the first year, and 2 percent the second year and beyond, toward the efficiency programs. Rose voted against the bill, which passed 33-32 in late February. The Colorado Senate’s State, Veterans and Military Affairs Committee has a reading scheduled Wednesday.

The Delta-Montrose Electric Association board endorses the bill. Board member Nancy Hovde said it would create an investment that saves money and reduces the need for additional power generation.

“What it does is it actually cuts wholesale power costs,” she said. “It ultimately is good for all our members.”

She said the association and its members can save considerably through reducing demand during peak usage hours.

DMEA spokesman Tom Polikalas said the association devoted from 0.5 percent to 1 percent of revenues toward efficiency programs over the past few years. He said these include programs for public education, high-efficiency lighting, heating and cooling efficiency in homes and geothermal systems.

“Really the key part of the decision is that if more electric co-ops support efficiency programs, it reduces the need to build more power plants,” Polikalas said.

He said rate hikes can be avoided by eliminating the need for plants in the future.

When asked whether the additional amount of DMEA revenues spent on such programs would lead to increased rates, Polikalas said the efficiency measures can reduce the overall cost of electric bills.

Rose said the bill establishes a government mandate that provides “no benefit to the consumer whatsoever.”

“Keep in mind that co-ops belong to the people. So this is taking 2 percent out of the consumer’s profit to disseminate information to the consumer to say, ‘Save electricity,’” he said.

“Our members have faced rising electric rates for five of the last six years,” DMEA general manager Dan McClendon said in a press release. “Widespread adoption of energy efficiency programs across the state will help reduce upward pressure on all our rates.”

The bill states a utility may only be exempted in a year following one in which electricity sales fall at least 3 percent. It would require periodic reports to the state energy office. Program planning, administration, marketing and rebates are among the costs allowed under the requirement, according to the bill.

If approved, the bill would become effective July 1.

Contact Robert Allen via e-mail at roberta@montrosepress.com
 

¤ Please read our Disclaimer and Privacy Policy before participating in our online community.

Comments


Post a comment


READER COMMENTS 

• Be respectful of others, the writer and the subjects in the story.

• Be relevant. Keep your comments on point. 

• See the guidelines for TalkAbout. Perhaps your comment is best for that community forum, available from the home page, instead of commenting on a particular story.

Comment posters are responsible for the opinions they express and the accuracy of the information they provide. We urge comment writers to treat this as a public forum where manners matter. We encourage a collegial, non-insulting tone. All readers comments must be approved by our staff before posting to the Web site. Be aware, in accordance with the Communications Decency Act and provisions upheld in judicial appeal, that you are responsible for comments posted on this Web site. Montrose Press is not liable for messages from third parties.

DO NOT POST:
* Potentially libelous statements or damaging innuendo.
* Obscene, explicit, or racist language.
* Personal attacks, insults or threats.
* The use of another person's real name to disguise your identity.
* Comments unrelated to the story.

Opinions, advice and all other information expressed in montrosepress.com's reader comments represent the individual's own views and not necessarily those of the Montrose Press. Montrose Press does not endorse and is not responsible for statements, advice or opinions offered by anyone other than authorized Montrose Press spokespersons.

Thank you for your comments!

(optional)