Public Power - January/February 2009 - (Page 8)

Perspective Staying Focused on Public Power’s Historical Mission By Mark Crisson • President & CEO • American Public Power Association grim condition of the global economy serves as a stark reminder of the importance of public power’s mission. We are in business not for profit, but to supply an essential public service at the lowest possible cost, consistent with sound business practices. As households and businesses struggle to stay afloat in an injured economy, we must continue do all we can to keep electricity reliable and affordable consistent with good environmental stewardship. Public power utilities have carried out this mission admirably for more than 12 decades. The cover article of this issue, “Heat or Eat,” is another reminder of the importance of our mission. While electricity makes many luxuries possible, it is, at bottom, a vital commodity, essential to meeting minimum standards of health, safety and comfort. The challenge of carrying out public power’s mission is compounded by a number of factors, including the current financial crisis. Reckless lending and borrowing practices in the financial services industry have inflicted tremendous harm on the global economy. As the nation’s elected leaders continue to work this year to restore stability to the financial markets and strength to the economy, local utilities will be challenged to protect their credit ratings and maintain sound finances. The challenge is further compounded by the growing likelihood of mandatory carbon controls. President-elect Barack Obama is committed to enacting a nationwide cap-and-trade program that would reduce emissions of greenhouse gases by 8 January-February 2009 The 80 percent by 2050, with all emissions allowances auctioned. Rep. Henry Waxman, now the chairman of the House Energy and Commerce Committee, takes an aggressive position on greenhouse gas emissions. The bill he introduced in the last Congress called for freezing U.S. greenhouse gas emissions in 2010 at 2009 levels, then cutting emissions by 2 percent a year until 2020, when emissions levels would need to be no higher than they were in 1990. By 2050, emissions would be 80 percent lower than in 1990. APPA’s work plan priorities for 2009 are aimed at helping member utilities confront these challenges. Climate change tops our list of priorities. Our staff will monitor and engage in legislative and regulatory efforts to respond to climate change. We will work to make sure a wide range of clean, affordable generation options remain available for utilities, including advanced coal, natural gas, nuclear, biomass, hydro, wind and other renewables. We will advocate solutions that are cost-effective, do not lead to overreliance on natural gas, and that ensure technologies for reducing emissions are commercially available and effective. Keeping wholesale power costs affordable is another APPA priority this year. Our Electric Market Reform Initiative, now in its fourth year, has raised awareness among policymakers, consumers and the news media about problems in markets run by regional transmission organizations. We will continue to communicate the need for reforms both to Congress and the Federal Energy Regulatory Commission. Demand-side management programs help public power utilities keep electricity costs under control and produce lower bills for their customers. We will continue our work this year to bring more tools to our members for increasing energy efficiency, implementing demand-response programs, increasing reliance on distrib- uted generation, broadening use of plugin hybrid vehicles, and understanding and implementing the smart grid. Last year, we developed a new Web resource, Energy Efficiency Resource Central (EERCnet.org), which includes a database of energy efficiency programs implemented by APPA members. Utilities seeking to try new approaches to energy efficiency can use the database to see what programs have been implemented elsewhere and get a reading on how effectively they worked. APPA’s DEED (Demonstration of Energy-Efficient Developments) program approved funding for development of a guidebook on the smart grid. The notion that electricity can be used more efficiently if suppliers and consumers of electricity are linked by two-way communications is exciting and holds great promise. It also represents a very expensive capital investment. We expect the guidebook will offer suggestions for a multi-year plan that utilities can implement as they adopt smart grid technologies. The nation’s transmission infrastructure is in desperate need of expansion and upgrades. We will continue to push for joint ownership of transmission. Public power has a long and successful history of joint ownership and development of generating facilities. When the financial risks of a project are shared by multiple owners, all of whom will use the facility, these badly needed projects are more likely to go forward. The presence of multiple owners in a transmission project will also help eliminate obstacles to permitting. When local communities see that new facilities are planned for their benefit, resistance to new construction is more likely to dissolve. Progress on these priorities will help public power continue to succeed in its mission of keeping electricity reliable and reasonably priced. ❚ Public Power http://www.EERCnet.org

Table of Contents Feed for the Digital Edition of Public Power - January/February 2009

Public Power - December 2008 Contents Perspective 10 Questions Heat or Eat? Achieving Excellence in Nuclear Operations Training Grand Ambitions for Wind Power Visions of Green Carbon Trading Across The Pond Reliability Green Energy Customer Service DEED Hometown Connections Parting Shot

Public Power - January/February 2009

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