AECI Will Be The Lowest Cost Reliable Wholesale Power Supplier
This was a very important message received by the Board of Directors and staff at the Associated Electric Power Inc. (AECI) Annual Meeting. AECI, the power supplier for Access Energy Cooperative, has announced a schedule of rate increases in wholesale power costs, starting April 1, 2006.
WHOLESALE POWER RATE INCREASE
As of April 2006, we will receive an eight percent increase in wholesale power costs. This rate increase will affect your cooperative. Your Board of Directors is in the process of conducting a Cost of Service Study to explore just how these increases will affect our members. Even with the announced wholesale power cost increases, AECI has a goal of being the "lowest cost reliable wholesale power supplier."
WHAT IS CAUSING THESE INCREASES?
Two factors: the need for more power and increased expenses for environmental regulations.
Public opinion will have it that our environment is worsening and that technology to improve it is cheap and immediate; when in fact, emissions from coal-fired generation plants have decreased significantly. Since 1994, NOx emissions have been reduced by 45% and SO2 emissions by 89%, even though power generation has significantly increased.
These reductions are very significant; however they are NOT cheap and are NOT immediate. AECI has spent over $300 million since 1994 to comply with air emissions regulations. AECI plans to remain very proactive on addressing these issues and expects to spend nearly $1.7 billion on measures to further improve on meeting the power supply demands of our members while complying with regulations for further improvements on air quality.
"We need to get out in front on these issues and support these activities," said Jim Jura, CEO and General Manager of AECI.
AECI is not alone in being affected by these issues, and it is their mission that AECI will remain the lowest-cost wholesale power supplier. "We can succeed on these challenges ahead," stated O.B. Clark, AECI Board President. "Our strongest benefit is our cooperative family. Our customers are our owners, which is not the same for IOU's, as they have to balance between customers and owners. With cooperatives, what benefits one-benefits all!"