Building for Tomorrow’s Energy Needs
Affordable, reliable energy and a clean environment are all vital to healthy, growing communities. That's why Associated Electric Cooperative Inc. (AECI) has been preparing to meet the energy needs of future generations by researching power supply options and developing a plan to continue providing low-cost wholesale power to its member owners – one of which is Access Energy Cooperative.
AECI's strategy calls for maintaining low wholesale energy rates and reliable service while continuing to reduce air emissions and protecting the environment. There are several key elements to the strategy and each plays an important role in meeting our energy needs.
AECI's energy sales are projected to grow 2.8% per year through 2014 for a total of 28%. AECI has announced that it is in the best interest of all the members that they build a new coal-based power plant to meet these demands. They will also be adding a combined-cycle natural gas plant to help meet members' growing energy needs by 2007.
AECI has spent more than $600 million to improve air quality. Since 1994 AECI has reduced its sulfur dioxide emissions rate more than 90 percent and its nitrogen oxides emissions rate more than 80 percent. These environmental improvements are part of an industry-wide effort that has been improving our air quality.
New government regulations and constantly improving technologies will result in even cleaner air in the future. In conjunction with reduction of sulfur dioxide and nitrogen oxide emissions, AECI will also comply with EPA's Clean Air Mercury Rule issued in March 2005. To meet and exceed these new emissions reductions, AECI will need to invest $600 million in capital costs by 2018 to further modify existing coal-based plants with emissions-reduction technology.
Putting all this together is going to cost AECI up to $1.7 billion and will result in member-owners of AECI, such as Access Energy Cooperative, with an increase in wholesale power costs in April of 2006, as well as April of 2008. Access Energy management and board are researching how this wholesales power cost increase will affect the rates of our members through a Cost of Service Study. The upfront investment to put this all in place is costly, but will provide greater long-term assurance of wholesale price stability for member owners and major improvements in air quality.