April 2008 Commentary
Storm warnings cannot be ignored
by Bruce J. Graham,
CEO of Indiana Statewide Association of RECs, Inc.
Remember a few years ago when Indiana’s property tax laws were rewritten? Some observers warned that when the new assessments were totally phased in by 2007 many residents were going to see their property tax double.
We were warned some folks may have to sell their home because they wouldn’t be able to afford the reconfigured taxes. But most of us were incredulous at that notion.
This is America. We as a people wouldn’t let that sort of thing happen in this time and place. The warnings went unheeded … until the tax slips hit the mail last year. Suddenly, the red flags went up with the “for sale” signs. The angry public and political leaders sure took notice then. Property tax relief became the priority of the governor and the General Assembly that ended in March.
There’s another storm brewing that could soon shake our foundations, too. It’s about the electricity that powers our lives.
Our nation is running out of electricity. Utility experts are using words like “brownout” and “rolling blackouts.” And we’re talking in the not-too-distant future.
Again, folks are incredulous. They can’t believe such a thing would or could happen.
But for more than a decade, attempts to build new baseload generation in this country have been met with growing opposition. Instead, smaller natural gas-fired plants have been built to stave off the shortages but not the inevitable need to build substantially larger and less expensive generation.
Now, electric utilities have ramped up the warnings because electric capacity is dropping below acceptable reliability margin levels. Besides skyrocketing construction and fuel costs, now electric utilities also must deal with the cost of climate change.
Pressure is mounting for Congress to do something about carbon dioxide emitted by power plants that burn fossil fuels. Legislators have been formulating laws that will place additional costs on fossil fuels which will further limit supply. Some estimate electric rates will increase by as much as 40 percent because of carbon legislation. And experts warn some parts of the country will run short of power in just two years. Meanwhile, energy supply is getting short shrift in Congress. Conservation and renewables will not be enough to meet the demand.
The nation’s electric cooperatives are asking consumer-owners to contact their state and federal leaders. Elected officials must understand the consequences of their actions and provide leadership in coming to terms with climate change goals and the need to keep the lights on and electric bills affordable. We need a balanced plan people can live with.
We encourage consumers to visit the Web site www.ourenergy.coop, plug in your address and ask your legislator, “What are you doing to make sure we’ll have the affordable power we need in the future?” Far too often questions don’t get asked until plans go awry.
Think blackouts or rates forced higher than what some folks can afford are things that just can’t happen? We don’t need to look beyond our own property taxes for a real-life example of plans gone wrong. Now’s the time to ask the questions about electricity’s future.
Written By: eceditor
Date Posted: 3/28/2008
Number of Views: 1198
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