Changes and increases

By Steve Foshee

Tombigbee

Curt Morris Chair

David Collins Vice-Chair

Sheila Gunter Secretary Treasurer

Terry Gosa

Jim McRae

William T. Hulsey

Mitzi West

Chad Williams Warren Williford

Recently, I listened to an older country song in which the female singer was singing about her mother telling her life is all about changes. From birth to death, there are constant changes we face in our lives–including with business. There are constant changes for various reasons. Some are due to innovation, others due to money and others due to regulations. In this article, I would like to discuss regulation changes and how this must be paid for.

In years past, this was coal country. There was an abundance of coal in North Alabama. The primary generation fuel for electricity was coal. It was hydro first, but moved to coal. For generations, it was plentiful, it was right here and burned very well to produce the steam which produced electricity. This method was an inexpensive way to power compared to everything else.

Life is about change. The number of coal plants has drastically decreased. Many of them have been shut down due to costs, and changes in regulations. In other words, reduction for the sake of perceived climate change.

As a result, most of the generation lost due to closure of coal plants has been replaced by natural gas, which has half the carbon emissions of coal. To some, carbon is the main problem which creates climate change. Natural gas was chosen due to less expensive prices to build power plants. It also was plentiful and was a cheaper alternative than other sources, such as nuclear. However, a year ago, the president decided additional pipelines were not in the nation’s interest. The price of all forms of fuel immediately increased. Just look at gasoline. Natural gas has risen on the wholesale level over 400%. As a result, costs to fuel power plants have increased dramatically–more than I have seen in the 40 years of my career. Simply put, it is a nightmare.

In our last survey, some 72% of you said climate change is real and stated we should do our part to reduce it if it did not cost the membership. Over the years, the government has done this for you, but at a cost. This cost is going to be high. Again, in my 40 years, this is the highest I have seen it. There is an old saying that we cannot have our cake and eat it too. In this case, this is true. Effective January, costs increased with a fixed $5 per month charge and a $.006 energy charge. This yields about a $10 increase per month to the average home. There are a few good things that have happened. One, we did not raise our rates or charges in 2022. Almost all electric utilities increased their prices three times or more. Secondly, we did not experience any rolling blackouts during the very cold snap as many others did. While we did experience an outage in the Brilliant area, this was not due to rolling blackouts, which we can all agree is a great thing.

Another old saying is, “Hold on to your hat, this ain’t over.” It isn’t. Additional fuel costs are going up as I write this article. There is no longer cheap energy in any form now. Could it roll back in the coming year? Maybe, but currently, it is continuing to rise. Life is about change. I think it is going to be a roller coaster ride.

Follow these five tips below to help reduce your energy usage during the colder months to help combat any energy charge increases.

5 Ways to Save During Winter

Winter weather typically means increased energy use at home. Keep your bills in check with these tips to save energy— and money!

Mind the thermostat. If you have a traditional heating and cooling system, set the thermostat to 68 degrees or lower. Consider a smart or programmable thermostat for additional savings.

Get cozy. Add layers of clothing for additional warmth, and snuggle up under your favorite heavyweight blanket.

Don’t block the heat. If your air vents or heating elements (like radiators) are blocked by furniture or rugs, your home isn’t being adequately heated.

Take advantage of sunlight. Open window coverings during the day to let natural sunlight in to warm your home. Close them at night to block the chilly night air.

Block air leaks. Seal windows and exterior doors with caulk and weather stripping to improve indoor comfort and decrease the amount of energy used to heat your home.