north arkansas electric cooperative
A MESSAGE FROM MEL COLEMAN, NAEC CEO
High wholesale power costs lead to higher bills for NAEC members North Arkansas Electric Cooperative wants to provide our members with safe, reliable and affordable electricity, but we have little control over one factor affecting your electric bill — the power cost adjustment. You’ll find the power cost adjustment as a line item on your statement. It is how NAEC adjusts for the increase or decrease in the cost paid by our wholesale power provider, Arkansas Electric Cooperative Corporation, for the generation and transmission of electricity. The cost changes rapidly. Rather than changing NAEC’s base kWh rate monthly, the Arkansas Public Service Commission approved the use of this adjustment to pass on either additional costs or savings to members. In 2021, the power cost adjustment on your bill has been a higherthan-normal debit each month. The higher adjustment is due to increased natural gas costs AECC not only had to pay during February’s record cold weather but also during the past few months. As an example, natural gas prices were $1.92 per million British thermal units in September 2020 but reached $5.16/MMBtu in September 2021. Unfortunately, higher power cost adjustments likely will continue for months or even years as the forecast calls for natural gas prices to remain high. This points to the danger of government regulations and litigation from environmental groups that are forcing utilities to close coal plants prematurely and rely too heavily on natural gas. Unlike coal, natural gas is a publicly traded commodity with an ever-changing price dependent on supply and demand. Electric co-ops long have advocated for a balanced mix of fuel sources. We need to limit the impact spikes in any one fuel source can create. We need baseload generation able to be delivered to the electric grid 24/7 by both natural gas and coal plants. We need smarter use of renewables, which cannot provide baseload generation the grid requires. Generation costs cannot become so inflated that they lead to electric bills our struggling members just cannot pay. Based on wholesale power cost predictions, though, that will be inevitable unless policies change. 22
NOVEMBER 2021
NORTH ARKANSAS ELECTRIC COOPERATIVE
Classic raises $12,000 for scholarships With the support of NAEC’s vendors and local businesses, the Operation Round Up® Golf Classic raised $12,000 for the co-op’s scholarship program. Eighteen teams competed for cash prizes in the scramble, which was held at the Cherokee Village South Golf Course on Sept. 16. Course sponsors were Roese Contracting, Arkansas Electric Cooperatives Inc. and Arkansas Electric Cooperative Corp. Silver sponsors were Anstaff Bank, Arvest Bank and FNBC. Operation Round Up awarded 20 high school graduates with a $1,000 scholarship for the 2021-2022 academic year. Members can help fund scholarships by enrolling in Operation Round Up. The average annual donation per account is $6. Call 870895-3221 to join.