“Building new power plants today costs significantly more than it did in 2000.”
Source: National Rural Electric Cooperative Association
Energy efficiency is the best way you can help save yourself energy and money. Your co-op continually offers you advice and help for using energy efficiently to keep down your own costs. Ask your co-op about an energy audit of your home, farm or business facilities; an audit can be a major help in determining where your own usage can be more efficient. Your co-op also knows about financial assistance programs than can help you implement proven energy efficiency improvements that result in real savings. Your co-op can help you manage how you pay for your power, too, whether it’s a pre-pay program, budget billing or by electronic means. You can help your cooperative by communicating these concerns to local, state and federal officials. Tell your representatives to help avoid further government-driven increases in energy costs. For tips that will help you save energy and money, look at the website www.togetherwesave.com.
The Cost of New Generation The cost to build new power plants can vary widely. Each type of generation carries a ballpark price tag. The costs shown below, based on each kilowatt-hour produced, take into account plant construction, fuel, operating and maintenance costs, operating performance assumptions, expected operating life, and general tax and financing assumptions. Wind and solar generation are not directly comparable to other technologies because their power production varies based on weather conditions. These costs also do not reflect tax incentives or grid integration costs. 24.2
25 20
15.3
15
8.9
10
9.6
9.8
9.8
11.5
11.1
6.6
5
rm
al
PV
Th e
lar
as s
So
lar
So
r
om Bi
cle a Nu
Co al
al erm
nd Wi
Ge oth
Hy
dr
o
0
as
Up to 68 percent of every dollar you pay your local electric cooperative goes directly for wholesale power costs. Bucket trucks, poles and wire, right-of-way trimming, payroll, and other operating expenses are covered by the rest.
What you can do
lG
68%
This is the first in a series prepared by the North Carolina Association of Electric Cooperatives. Next month: A primer on how your cooperative operates.
ra
UP TO
c
cents per kilowatt-hour (kWh)
Your power dollar
The bottom line is that the rising cost of producing and delivering electricity is a fact of life. Because we’re all in this together — it’s your business, too — we need to work cooperatively to face the facts.
Na tu
natural gas resources. To meet the growing requirements, generating facilities are being upgraded and modernized, and the cost of doing that is passed on to consumers. Because your co-op is a part-owner of the Catawba Nuclear Station in York County, S.C. (operated by Duke Energy), about half of the electricity you use is generated by nuclear power, where costs have remained relatively steady, with zero carbon emissions. Without this nuclear resource, our costs would be significantly higher than they are now. Additionally, as required by North Carolina law, we are tapping renewable resources like solar and landfill gas. These resources are typically more expensive and are limited in our area. We manage this requirement by purchasing a diverse mix of renewable resources to minimize the cost impact. Knowing that these rising costs are part of doing business, your cooperative works to minimize increases by managing costs. That work includes implementing cost-saving measures at the co-op and in partnership with our wholesale power providers. Most cooperatives have invested in new technologies and data management software that result in system efficiencies. These investments will provide positive outcomes for both the cooperative and consumer-members over time. Keep in mind that your cooperative is a non-profit business owned by its members. Unlike other utilities we do not have a guaranteed rate of return. We operate at cost, and if there are any margins over and above our costs in a given year, we return that money in the form of a capital credit to the membership.
Estimates by National Rural Electric Cooperative Association using U.S. Energy Information Administration data from July 2012
Carolina Country SEPTEMBER 2012 15
CC09_wk.indd 15
8/13/12 3:02 PM