LEGISLATION FOR COOPERATIVES

LEGISLATION FOR COOPERATIVES

Chris Hamon CEO

Electric cooperatives, like White River Valley, are deeply connected to the communities they serve and are focused on meeting energy needs today and into the future. Providing our members with safe, reliable, and affordable power will always be our highest priority. It requires much more than simply maintaining overhead power lines and other infrastructure. We must also focus on what elected leaders are doing in Washington to ensure they are acting in our best interest.

Congress created a problem for electric co-ops when it made changes to the tax code in 2017 that inadvertently put co-ops’ tax-exempt status at risk if they received government grants. This could have stuck co-op members with the cost of paying taxes had Congress not acted to fix the problem. Fortunately, the bipartisan legislation known as the RURAL Act passed and co-ops won’t lose their tax-exempt status just because they receive government grants for efforts in disaster recovery, broadband service, renewable energy, energy efficiency, or other priorities.

The Affordable Clean Energy rule was also passed in 2019. This rule replaced the overreaching Clean Power Plan and empowers states to continue to reduce emissions while still providing affordable and reliable energy for all Americans. The effects of ACE have been felt at a local level.

Our power provider, Associated Electric, was given a strong Aa3 credit rating in their latest financial report. A rating given to only one other generation and transmission cooperative in the entire country. The report noted that the Affordable Clean Energy rule provided more time and flexibility to achieve carbon reductions, especially when compared to previous regulations on greenhouse gases. The report also noted a sound governance structure, low risk profile, diverse assets, and competitive wholesale power rates – which all means clean energy AND lower rates for White River members.

As a WRVEC member, you have ability to join the Action Committee for Rural Electrification (ACRE). These are members who form a strong grassroots network dedicated to the long-term success of electric cooperatives and legislative items such as these. Visit whiteriver.com for more information and to make your voice heard in Washington.

We will continue to manage operational uncertainties and government regulations, but we are pleased to celebrate these wins from 2019 and invite you to join our efforts for the years to come.