Co-ops wonder where electricity will come from

Rural electric cooperatives are meeting in Indianapolis to discuss a looming energy crisis. Due to rising demand for electricity in their territory, much, of it suburban, "The rural utilities are calling for government to help clear the way for new power-plant construction, alternative energy facilities like wind farms and new transmission lines to feed energy to cities where most of it is used," writes Jeff Swiatek of The Indianapolis Star. "Industry predictions show that if U.S. electric producers don't build new plants or encourage significant conservation, they will be unable to handle peak demand periods from electrical users by 2012."

In response to this crisis, "Duke Energy started construction this year of the first major power plant to be built in the state in 20 years. The $2 billion, 630-megawatt coal-fired plant [in Indiana] also would use new technology that aims to reduce air pollutants significantly over a conventional coal plant," writes Swiatek. Energy providers like Duke will be forced to raise rates by as much as 20 percent in coming years to pay for the construction of such plants.

Bruce Graham, chief executive of the Indiana Statewide Association of Rural Electric Cooperatives, was encouraged by Duke's move. But the construction of the plant and the support for it point to the continuing dependence of rural electric cooperatives on coal as their most significant producer of electricity, about 80 percent of it. A recent post here discussed the financial support given by rural electric cooperatives to the coal industry to help ensure the construction of new coal-fired plants.

There are many opponents of coal plants. The Citizens Action Coalition wants to block permits for the Duke plant on grounds that it would produce large amounts of greenhouse gases and stricter federal regulations on such power plants could dramatically increase building costs, which would be passed along to customers. "The consumer watchdog calls for heavy investments in energy-efficiency measures to reduce demand for power and keep it from outrunning power supplies" writes Swiatek. (Read more)