When electric cooperatives began to spread across America 75 years ago, President Franklin D. Roosevelt made the point that electricity in this country was no longer a luxury. It had become, as it is today, a necessity. Affordable electric energy is one of the key driving forces behind our economic engine.

In these difficult economic times, a lot of Americans are struggling to make ends meet. As not-for-profit, consumer-owned and controlled electric co-ops, we want to make certain that each and every citizen in this country can continue to receive affordable electric power. Normally, Central Valley Electric Cooperative does not appeal to its members, much less all residents of southeastern New Mexico, to contact politicians in Washington, D.C., about issues that may affect electric bills. But the current debate surrounding climate change legislation, in particular carbon dioxide (CO2) regulation, demands that we let consumers know what is taking place before Congress acts in order to allow those that will ultimately be affected to contact our congressional delegation to make your voice heard about this critical issue. No matter what side of the man-made climate change debate you fall on, whether you believe in human caused climate change or whether you believe climate is a constantly changing dynamic system that humans have little if any influence over, you should take this opportunity to contact your congressman and/or senator and voice your concern over the potential increases in your electric rates.

Representatives Henry Waxman of California and Ed Markey of Massachusetts have introduced legislation entitled “The American Clean Energy and Security Act of 2009″ to address issues related to climate change. Through a “cap and trade” system, they hope that CO2 emissions can be cut based on benchmarked 2005 levels. The problem with a “cap and trade” system is that nobody knows what the actual cost may end up being. President Obama’s budget assumes a cap and trade system would equate to a carbon tax of $20 per ton of CO2 emitted which would be an additional tax burden on consumers of around $90 billion per year. Recently, even President Obama’s economic team admitted that this $20 per ton amount is conservative and in order to actually cut CO2 emissions that number is probably closer to $60 per ton which would equate to $270 billion per year in additional costs on the American consumer’s electric bill.

So what does this mean to you? We estimate that at $60 per ton, Central Valley’s residential members would pay an additional $600 per year in electricity costs. Remember also that commercial and industrial businesses would incur additional electricity costs and those costs are passed on to consumers in the products they buy or would thereby affect the way businesses are operated. This would have a direct impact on our farmers that use electricity to irrigate fields and our oil and gas companies who use electricity to pump oil or compress natural gas. Yes, you guessed it, since electricity is one of the largest expenses in producing oil and converting it to gasoline, the price of gasoline will increase as well. Considering our current economic condition, the question becomes (even if you think this is the right thing to do to combat climate change) is this the right time to implement such a plan? Congressional representatives should also be asked how much they think your electric bill will increase, and how will the government spend the money it collects if it does pass this legislation. Will it spend it on the necessary technology improvements to meet our electric needs such as clean coal technology or will it spend the money on pet projects or more government bailouts. We need to hold our elected officials to the same transparency standards they want to hold all of us to.

Electric utilities are dealing with a very different situation than we have in the past. Electric bills will go up because of the climate change and energy policy decisions of U.S. senators and representatives on Capitol Hill – or worse, unelected federal bureaucrats at the Environmental Protection Agency. Higher electric bills will become the norm as we are all forced to comply with these government mandates.

At Central Valley Electric Cooperative, we’re talking to our members of Congress, trying to convince them to work with us to make sure that we not only deal with climate change, but do so in a way that keeps electric bills affordable. To accomplish this goal, we need your help.
Make certain that those who lead us in Washington, D.C., hear from you today.

Please contact our New Mexico delegation at the following:
Representative Harry Teague – 1007 Longworth House Office Building, Washington, D.C. 20515, 202-225-9599
Senator Jeff Bingaman – 703 Hart Senate Office Building, Washington, D.C. 20510, (202) 224-5521
Senator Tom Udall – 328 Hart Senate Office Building, Washington, D.C., 20510, (202) 224-6621

(EDITOR’S NOTE: Chuck Pinson is the general manager of Central Valley Electric Cooperative Inc.)

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