|
|
| Rates To Remain Stable in 2006
The Board of Directors of Farmers’ Electric Cooperative announced today that the 67-year-old non-profit organization was not going to increase its electric rates to its members in 2006. “Barring unforeseen circumstances, we don’t anticipate having to consider any action regarding our rates until 2008,” said Dan Bryan, Executive Vice-President and Chief Executive Officer of the Cooperative. “Rate stability for our member-owners is important to us and we will continue to do everything we can to be a reliable energy source for members of the cooperative.” Bryan said the cooperative had been receiving a number of contacts from members inquiring as to whether or not FEC would be raising its rates. “There is a great deal of volatility in the energy markets involving fossil fuels, such as propane, natural gas and fuel oil,” Bryan pointed out. “Unfortunately, there seems to be a belief in some publications and news gathering organizations that these types of fossil fuels and electricity generation always go hand-in-hand and that is simply not true.” Bryan cited the use of low sulphur coal by Associated Electric Cooperative (AECI), FEC’s power provider, as a perfect example of how financially volatile gaseous fuels do not have an impact on the base load generated by AECI. “The generating units at Thomas Hill and New Madrid are coal-fired power plants,” Bryan explained. “The new power plant outside of Norborne, which is scheduled to begin construction in 2007, will also be a coal-fired facility. Associated Electric also has first access to the hydropower generation that is available in Missouri.” Bryan said Associated Electric Cooperative did have six peaking capacity generation facilities that are powered by natural gas or propane, but they are only used when necessary. Farmers’ Electric Cooperative last increased its rates in October of 2004. Prior to that the last rate increase to its members by the cooperative was January of 1991. FEC also had a rate decrease in April of 1995. Bryan said there were a number of reasons the cooperative was able to provide a stable rate base for its member-owners, including: stability from its power supplier, AECI; economic development activities; an aggressive rebate program for its member-owners; and the cooperative’s load management program, The Switch Team. “When you combine all of these factors, we have been very successful in providing safe, reliable service at an affordable rate,” Bryan said. |
