CEO's Blog
"The Power Behind The People,
Brunswick Electric Membership Corporation"
A series of articles by
Robert W. “Chip” Leavitt, Jr., CEO of BEMC
2/12/09: “Get To Know Your Local Electric Co-op" (#1 in a series of 6 articles)
How much do you really know about your home or business electricity? Do you ever wonder where it comes from, who’s behind it, and how they’re working to better the environment? In an introductory six-part series, I’ll answer these very questions.
At Brunswick Electric Membership Cooperative, we’re here for you. It is our job to ensure your lights stay on. We’re a team of professionals dedicated to our members in Brunswick, Columbus, as well as parts of Bladen and Robeson counties. From myself, the Board of Directors and the employees, our promise is to serve. We serve by providing safe, reliable, affordable power 24 hours a day, seven days a week. That’s our number one priority.
You may ask, what really is an electric cooperative? Unlike other electric providers, a coop is owned by its members…..you. In fact, 80% of our nation’s counties receive electricity from a co-op. Co-ops were formed when public utilities were busy bringing electric service to customers throughout the country, but were less interested in rural areas. These rural areas were less populated and thus promised fewer customers per mile of electric line. Passed by Congress in the 1930’s, the Rural Electrification Act linked coops with their communities in a way that other utilities simply cannot claim.
As a member of a cooperative, it is important to understand how your energy is produced and distributed. Through electricity generation, electricity transmission and electricity distribution, you’re able to turn on the lights. Electricity generation is the conversion of mechanical energy into electrical energy. Generation facilities are the first place this conversion occurs. Once this happens, it is transported through high-voltage transmission lines over long distances. Distribution then carries electricity from transmission substations to you. Simply defined but not as simply carried out, the creation of electricity is important in every person’s life. In an uncertain world, everyone wants to be certain the lights will still come on at night.
In recent months, we've all witnessed economic struggles. These struggles affect each and every member of our cooperative. That's why we're working every day to provide the most cost-effective and environmentally friendly ways of providing safe, affordable and reliable electricity. We encourage you to maximize the energy performance of your home by becoming more energy efficient. We can help you.
We share your concerns about the environment. We want to protect our environment, but want to do it in the most efficient manner. So, we’re working to increase the percentage of renewable energy in our portfolio, while maintaining a healthy mix of traditional energy sources to keep your power affordable, still meeting legislative mandates. Over the next couple of months, we’ll be discussing just that. Renewable energy is being produced through various resources like NC Greenpower, Greenco Solutions and more. We encourage our members and those in the community to read about these endeavors.
At BEMC, we feel it is important that we always work together. Tough economic times bring out the best in the best people. As a member of the community we serve, we promise to be here for you – not just when times are good, but more importantly, when our community is challenged. We’ve weathered worse and we’ll weather this too. Together with each member of our co-op we can and will make sure the lights in our community always shine bright. Together….we can.
2/26/09: "Going Green" (#2 in a series of 6 articles)
In today’s dynamic environment, climate change and green power are in the socio- economic makeup of our every day life. To us at BEMC, its means being mindful about the state of our resources and taking care to use them efficiently and effectively to insure that we meet the needs of our future generations of members.
The use of coal as an energy source continues to be a part of the national debate. There are those who endorse no use of coal, those who are willing to use coal that is cleaned by a process, those who propose a more efficient and effective use of coal in our plants, and those who advocate the use of coal to reduce the importation of foreign oil. The fact is that coal is an abundant national resource and is highly efficient in producing heat to make steam to turn turbines to make electricity.
Without coal as a part of the energy mix, we will be required to use other more expensive fossil fuel or use less efficient biomass. These options at this time could have a drastic impact on the cost of power. A program to clean coal and increase the use of renewable resources over a period of time makes more sense. Many of our state and national mandates will attempt to legislate the proper mix to reduce emissions and keep electricity affordable. We are working with them to accomplish this for our members.
We will discuss three renewable energy initiatives available to BEMC over the next couple of months – renewable energy in and of itself, the NC GreenPower initiative and GreenCo Solutions.
It is important to note that as an electric co-op, we want to make use of these various options for going green. But we still want to minimize rate increases that will arise as new power plants are built and new environmental regulations add to the cost of power. The affordability of electricity changes when new ways of creating power are introduced. Plus, we are currently experiencing increases in electric demand. Over the next 20 years, it is estimated that energy consumption will increase by almost 90 percent.
This increase in consumption will most definitely increase the need for new power plants, which in turn cost money. So, we must find solutions now in order to save costs down the line. We can assure our members and the community that we will stay abreast of every option for savings including research and proper planning.
Our challenge is to find the best and most affordable solutions for creating energy more efficiently, while still remaining reliable for our members. The challenge is also to remain affordable. This is very important to us. These are challenges we are ready and willing to face head on.
We invite the opportunity to go green and to lessen our impact on the environment. However, it is going to be a process that will not happen overnight. The demand for energy is increasing daily. We must find a balance between meeting that demand and being environmentally conscious, all while remaining affordable. It will be a team effort for all of our employees and members.
So, we must always remember how important it is to work together. Though times are tough right now, we must always have hope that we’ll make it through. At BEMC, we are all members of your community. We find it imperative to be there for each other through good times and not so good times. Together we can handle anything that comes our way and insure the lights in our community always shine bright. Remember, together we can.
3/12/09: “Balanced Solutions" (#3 in a series of 6 articles)
In August 2007, North Carolina became one of the first states in the country to pass legislation requiring utilities to generate more electricity from renewable energy sources. The goals of the legislation are to diversify the resources used to reliably meet NC’s energy needs, provide greater energy security by using indigenous resources available within the state, encourage private investment in renewables and energy efficiency and provide improved air quality. This law mandates that by 2018, 10% of our energy in NC would come from renewable sources such as wind, solar, water and biomass.
Here at BEMC we’ve embraced the idea of renewable energy as a supplement to traditional generation sources. As always, bringing you affordable energy is our priority, and we are working every day to make that energy more environmentally responsible as well.
So, what is “renewable energy”? It is energy produced from replenishable resources like wind, solar, water and biomass. You’ve heard about the great potential of renewable energy in the news, but it’s important that we look at each source realistically and understand what’s possible and what’s not in relation to cost and efficiency. When we add renewable energy sources to the mix, it goes into the “pool” of power that makes up the regional or local grid. While it is physically impossible to distinguish and deliver individual electrons to specific homes, by choosing renewable energy you are ensuring that green electrons are delivered to the grid on your behalf. That creates a cleaner, healthier overall energy mix.
Wind power is a great resource in some areas of the country, but here in NC it’s not our best option. Offshore wind development has the most potential, but getting the product to market (the transmission grid) in a cost-effective manner is a major issue. However, through our statewide affiliate GreenCo Solutions, we are joining other co-ops in a large-scale wind project in the Midwest to gain further insight into the possibilities of wind generation.
In NC solar power has very good potential. Again, through GreenCo Solutions and NCEMC (North Carolina Electric Membership Cooperatives) we are involved in a large-scale solar power facility to explore the technology needed to make solar more efficient and affordable. The QVC Rocky Mount Distribution Center has a large solar array capable of generating one megawatt of energy, and NCEMC has a ten-year agreement to purchase that renewable energy for the NC electric grid.
On a smaller scale, a typical residential solar system can cost between $10,000 and $30,000 but there are a number of rebates, tax breaks and other incentives that can significantly reduce the cost of installing a PV solar system. The U.S. government offers a 30% federal tax credit for such systems installed before Dec 31, 2016, and NC offers a 35% personal tax credit up to $10,500 on solar electric systems. In addition, residents may also qualify for payments for the power generated from their solar system from the statewide NC GreenPower program. An important first step in considering a residential solar system is a home energy audit. We encourage you to visit our website (www.bemc.org) to learn more about these programs.
Hydropower harnesses the power of flowing or falling water to generate electricity, but nationally we are using only a small percentage of the potential hydropower available. This is due largely to ecological concerns as well as the fact that many hydro installations are seriously outdated. This is an area we are continuing to explore.
Biomass energy, electricity generated by processing vegetative materials or hog and poultry waste also has great potential in our area. At this point current technology requires a very high volume of animal waste to make it cost-effective. Further development and technology improvements may make this a very viable renewable source for NC.
All of these types of renewable energy have potential to help us in our quest to be better stewards of our environment. But they all require improvements in technology to make it more cost-efficient to produce and deliver it to the electric grid. This will take time and it will not be cheap. We all need to understand that there is a price for “going green”. The legislative mandate is a plan for moving forward. We have 10 years (till 2018) to get there - - and we will. But it will take a “Balanced Solution” to do it and make it cost-effective for everyone involved.
What do we, as a community, need to do? We need to understand what’s at stake, where we’re going and what it will cost. The NC mandate is a great first step and we need to give it a chance to work. We must support tax incentives for renewable energy and energy efficiency. We also need to press Congress for a “balanced solution” that considers the costs to consumers.
Yes, “going green” will cost us all. We must realize that there is no quick fix. Is it worth it? YES. Is it achievable? YES, but only through a “Balanced Solution” using a mix of improved, cleaner, traditional energy sources and a gradually increasing proportion of renewable sources.
At the end of the day, our priority is you, our members, and bringing you affordable, reliable power. Together with each member, we can and will make sure our community always shines bright. Together… we can.
3/26/09: “Energy: Nuclear as Part of the Mix” (#4 in a series of 6 articles)
In our previous conversation, we discussed the need for a “balanced solution” of power generation. We pointed out the need for an overall energy portfolio that provides clean, safe, secure, reliable and affordable energy. While we’re supportive of “going green”, we must be realistic about the reliability and affordability associated with any changes in power generation.
With a growing economy comes a growing demand for electricity. That is evidenced by our own membership’s requirements which increase significantly each year. The U.S. consumes about 3.6 trillion kilowatt hours (kWh) of electricity annually, but the U.S. Energy Information Administration predicts our demand will grow and we will consume nearly 5 trillion kWh by 2030. That is about a 30% increase. That electricity will have to come from somewhere.
As we move toward a “green economy”, renewable-generated electricity will expand in the energy portfolio. The Energy Information Administration (EIA) projects that renewable-generated electricity will account for 12.5% of the total electricity generated in 2030. Currently, wind and solar power produce only 2% of U.S. electricity. As you would expect, these resources do not provide energy around the clock, thus, they have limitations as base-load electricity. At present our only large scale sources of base-load electricity are fossil fuel plants, nuclear plants, and hydroelectric plants. Today, approximately 50% of the U.S. energy needs are met by coal-fired plants while nuclear power supplies about 20% of our electricity.
Nuclear power offers the ability to generate large volumes of base-load energy safely and efficiently. Additionally, operating nuclear power plants have near-zero carbon emissions. Meeting our growing demand in a cost efficient, environmentally friendly fashion is one of the chief reasons we should give serious consideration to the expansion of nuclear power.
Several encouraging developments in the nuclear power spectrum include (1) the regulatory process has now been streamlined, making it easier to anticipate and control costs and schedules; (2) the Nuclear Regulatory Commission will review and pre-approve standardized equipment designs that can be used across the industry; and (3) anticipated climate change regulations are likely to severely restrict carbon emissions from fossil-based plants in the future, making near-zero emission nuclear plants even more attractive.
There are presently 439 nuclear units operating in the world. They provide 16% of the world’s electricity as continuous, reliable base-load power. Of these, 104 units are located in the United States producing approximately 20% of our electricity. Nuclear power today provides about 70% of electrical generation that has minimal carbon emissions during operation.
Nuclear power has a lot to offer as an important component of a balanced solution:
Solid and substantiated safety record
The Nuclear Regulatory Commission, a federal agency, oversees and conducts extensive monitoring of nuclear operations to ensure compliance with regulations on public, safety and the environment.
Operational performance
The 104 reactors in the U.S. continue to achieve a median unit capability of 91.5% according to the Nuclear Energy Institute. Unit capability factor is a plant’s ability to produce electricity around the clock.
Our Catawba Plant located on Lake Wylie in York County, South Carolina operates at or greater than a 90% capacity factor. Catawba is jointly owned by NC Electric Membership Corporation, NC Municipal Power Agency Number One, Piedmont Municipal Power Agency and Duke. Nuclear accounts for 51% of the average fuel mix for North Carolina Co-op consumers.
Capital Costs
Life expectancy of nuclear power plants can be 40 years or longer. The lessons learned from the initial nuclear power plant expansion in the U.S. provided great insight into new plant design and operations. The initial capital costs of the new nuclear power plants will be high, but the expected generation output, around the clock, and for many decades provides for a valuable investment in the energy portfolio.
Low fuel costs
Fuel costs for nuclear plants are a minor proportion of the total generating costs. Since it doesn’t depend on fossil fuels, the cost of nuclear power also is not directed impacted by fluctuations in oil and gas prices.
Spent Fuel
The production of nuclear generation produces spent fuel from the process. Currently, no long term storage solution has been adopted by the U.S. government. Nuclear plant operators are safely storing spent fuel on-site in spent fuel pools and dry cask storage that provide an interim solution. Additionally, more discussions on fuel reprocessing may provide solution to the spent fuel situation.
Minimum carbon emissions from nuclear plants
Nuclear power does not depend on fossil fuels. Coal and natural gas power plants emit carbon dioxide into the atmosphere. With nuclear power plants, these emissions are minimal.
Electrical generation that does not result in carbon emissions has to expand if we are to meet our demand for electricity. The Nuclear Regulatory Commission has indicated that it expects to receive application for the construction and operation of as many as 34 new plants by 2010. Not all of these applications will be filed and no doubt not all the filed applications will result in new plants. But there is the prospect of significant new nuclear construction in the US. The timeline for a nuclear plant is approximately 10 years from the decision to build and that makes it even more important to move forward with nuclear construction.
So, in finding a balanced solution to meet our energy needs, we must always remember how important it is to work together. That means being there for each other through good times and not so good times. Together we can handle anything that comes our way and insure the lights in our community always shine bright. Remember, together we can.
4/15/09: “Energy: NC Issues and What BEMC Is Doing Now” (#5 of 6 articles)
In this series so far, we’ve talked about how electric cooperatives work. We’ve discussed the difference between generation and distribution of electricity and the use of various fuels for generation, including nuclear. We’ve also touched on issues involving “going green” on a large scale, renewable energy sources and the legislation passed in North Carolina mandating that by 2018, 10 percent of our energy in North Carolina must come from renewable sources.
Next, we would like to discuss renewable energy in the southeast region as a whole and here in NC. From there you’ll learn what BEMC is already doing and what’s on the drawing board.
When you look at the national maps of potential for renewable generation, it’s clear that the southeast region does not have as much availability of renewable resources as most other areas of the country. Biomass and small wind projects are the main projects underway at this time. Farther down the road, offshore wind, wave, solar, landfill gas to energy and perhaps tidal energy projects may become part of the mix. Biomass is key to meeting any renewable mandates in North Carolina but economical ways of “getting the product to market” must be addressed. The federal incentive is spurring interest in solar applications, but most of this activity will likely be residential in our area, not the large-scale installations that would make a significant contribution to the electric grid.
North Carolina is working to develop all the resources we have available, but there are limitations on the available resources. This is why we sometimes participate in projects in other areas of the country. Looking ahead, we are very concerned that national policies under consideration may not take into account the regional differences in potential.
So, what is BEMC doing to look out for your best interest in the formulations of energy policy? This is a day-to-day challenge. Nothing is being taken for granted. We’re doing several different things on the federal and state level. First, we’re staying involved and informed when it comes to state policies already in place and national legislation being addressed. We’re building our portfolio of renewable energy credits to comply with state mandates. The implementation of a plan and procedures to account for our mandated renewable energy credits is underway. We have initiated partnerships with federal, state and local agencies to meet our mandates. We’ve expanded our partnerships with other NC co-ops to strengthen our voice in future legislation. And, Along with these partners we are making the necessary face-to-face contacts to voice our concern for the potential drastic effect of energy legislation on future electric rates.
Locally, we’re putting into place several different procedures:
- We are progressing cautiously into the renewable arena, while also emphasizing energy efficiency options where our members can make the most impact.
- We are making every attempt to inform our members and listen to your concerns.
- We are working with commercial projects to maximize energy efficiency.
- We have established rates to accommodate renewable energy generation.
- We have expanded our low-interest energy conservation loan program to include solar water heating projects and upgraded to meet or exceed Energy Star requirements.
- CFL bulbs are being distributed to our members to celebrate Earth Day in April and at special events throughout the year.
- Water heater insulating wraps are available to our members for a minimal charge.
- Energy Efficiency booklets are free for the asking at any BEMC office and our website, www.bemc.org has an Energy Savers section loaded with information to help you be more energy efficient.
- Our prepaid metering program, which provides a home display for hourly information about your usage, has gained BEMC national recognition as a leader in this field.
- Automated meter reading technology allows us to research your hourly usage to help you reach your energy efficiency goals.
- BEMC has a designated resource professional to respond to member questions on renewable energy and energy efficiency.
- We’ve added school programs to encourage and educate our youth on renewables and energy efficiency.
- Our new BEMC college scholarship awards are based on local, state and national energy research in addition to academic achievements.
- We are encouraging our members to speak out to their legislators on energy legislation….more on this next time.
At BEMC, we’re very busy! For the immediate future, our emphasis will continue to be on meeting our state REPS mandate and to encourage and work with our members on obtaining maximum energy efficiency in their day-to-day energy usage.
Through all of this, our priority is still you, our members, and bringing you affordable, reliable power. Together with each member of our co-op, we can and will make sure our community always shines bright. Together….we can.
4/29/09: “Energy: Get Involved to Find a Balanced Solution” (#6 of 6 articles)
COULD YOUR FAMILY AFFORD A 40% INCREASE IN YOUR ELECTRIC BILL?
We at BEMC don’t think so either.
That’s why we’re working hard to inform all of our members of the issues involved in finding a balanced solution for America’s energy policy. We must ensure a reliable supply of electricity that is also environmentally sound. American ingenuity has and will always produce creative solutions to meet these new challenges.
One of the most vexing problems in our world today is climate change and American innovation is our key to facing it head on.
It is clear that the President and Congress will address the issue of climate change, and we must be involved to help them find the right solution - a solution that marries America's tradition of developing cutting-edge technology with our fundamental respect for the land on which we live and the air we breathe. The wrong solution will cause steep increases in electric bills for families, businesses and our economy as a whole. We can't solve the issue of climate change by placing impossible burdens on the backs of hardworking Americans. It’s time for us to get real about energy.
Any legislation to decrease carbon emissions must be balanced. It must avoid long-term economic consequences to consumers and the economy. It must have achievable targets and tangible benefits. Priority should be given to policies that lower energy costs by improving energy efficiency because such polices would help alleviate financial burden to consumers.
The call to make reliability and affordability of electricity the central considerations in climate change legislation is the call to do the right thing, to choose significant, long-term greenhouse gas reduction that imposes the smallest increases in energy bills. The wrong choices on the issue would devastate our economy and our future. So, what are the right choices?
BEMC, along with cooperatives across the state, proposes the implementation of a broad range of new technologies over the next two decades. We propose reducing carbon dioxide emissions dramatically, but in a way that softens the impact to already increasing energy costs. Congress must focus on technology development to reduce carbon dioxide emissions and keep the timing of reductions more in line.
A sensible plan to protect the environment and our economy must include:
Consumer Protection - Consumer price protections must be put in place to mitigate harmful economic conditions on the end consumers of electricity.
Careful Timing - Any defined emission reduction targets must be achievable and timed with the advancement and commercialization of technologies.
Regulatory certainty - Utilities need to know the rules of the road if they want to keep the lights on. Further, the rules cannot change once a non-reversible decision has been made and should provide a uniform playing field for the entire country to avoid detrimental regional economic impacts. One size does not fit all when it comes to implementing renewable energy programs. National maps show that renewable resources are not available equally in all areas, so national policy must allow for regional differences. In NC, we already have a workable state mandate . . . let’s give it a chance to work.
All sectors must be included - Every entity that produces greenhouse gas emissions must be included in the legislation, not just electric generation.
World-wide effort - It's not just the United States producing CO2. A world-wide effort is needed to make a measurable CO2 emission reduction.
Let’s look for lower cost solutions that are sustainable over time and get us to the goal - energy independence and protecting our environment. This isn’t about fear, it’s about getting it right and without breaking the bank.
I urge all BEMC members and consumers everywhere to speak up to Congress as they consider this issue. YOU can make a difference on this issue that's critical to our future. Let your Congressional representatives know that they need to find a balanced solution for climate change.
Co-ops in North Carolina and other southeastern states have set up a program that makes it very easy for you to voice your opinion, in your own words, by putting you directly in touch with the office of your Congressional representatives by either telephone or email.
Contact your Congressional representatives today! Log onto www.findabalancedsolution.com or call toll-free 1-877-40BALANCE. (877-40-225-2623)
Through all of this, our priority is you, our members, and bringing you affordable, safe, reliable power that is also environmentally responsible. Together with each member of our co-op, we can and will make sure our community always shines bright. Together….we can.
This is the final article in our Energy series.
