Energy

Monday, November 9, 2009 8:30 AM

Don't Forget Rural Areas, Co-Op Group Says

By Beth Sussman, NationalJournal.com

National Rural Electric Cooperative Association
This organization represents more than 900 not-for-profit electric cooperatives that provide electricity to 42 million Americans.

What They Want
NRECA's top priority is to make climate change legislation affordable because electric co-ops mainly serve rural and lower-income areas. Greenhouse gas reductions are going to come at a cost, but those costs need to be equitably distributed, said Glenn English, the association's CEO.

English said that proposed legislation will disproportionately affect lower-income citizens, who pay a greater part of income on energy costs, and the allocation of allowances will disproportionately affect certain regions of the country, like the Midwest and South. NRECA proposes that allocations be based solely on emissions and the carbon content of the fuel mix to balance out the costs. "That is the only way in which consumers are going to avoid being penalized," English said.

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To make legislation affordable, NRECA also wants to see more realistic emissions caps and schedules -- starting in 2012 is too soon and reduction targets are too aggressive, according to the group -- and inclusion of cost-containment measures to stabilize energy costs.

"Without cost containment, we're likely to see a rollercoaster ride when we move forward in the next few years," English said.

Deal Breakers
NRECA would prefer to see a climate change bill pass through Congress, but if the final legislation isn't affordable enough, NRECA would rather leave climate change regulations in the hands of the EPA. The association is waiting to see "whether Congress can come up with legislation that is more promising and is a better way than what the EPA does," English said.

The House bill didn't go far enough on affordability, he said, but the group is still hopeful that changes will be made to address those concerns so the NRECA can put its support behind a bill. "We're trying to keep our options open at this period," English said.

How Much They've Spent
NRECA spent $3.7 million on lobbying activities in the first nine months of 2009, compared with $3.4 million in the first nine months of 2008, according to lobbying disclosure forms.

The NRECA's PAC and individuals connected with the association have donated $622,600 to federal candidates and political parties during the 2010 election cycle, with 54 percent going to Democrats, according to the Center for Responsive Politics. During the 2008 election cycle, the PAC and individuals donated $1.7 million to federal candidates and political parties, with 49 percent going to Democrats.

NRECA's total revenue for 2008 was $10.5 million, according to IRS forms.

Key Players
EnglishEnglish, NRECA's CEO, has met with lawmakers in the House and the Senate, particularly those who represent areas that rely on co-ops for electricity. Members of the NRECA have sent 1.6 million e-mails to lawmakers about climate change legislation, English said, and the group is focusing on engaging its members to advocate for an affordable bill.

English spent 20 years in Congress as a representative for Oklahoma's 6th District. He served as chairman of the House Agriculture Subcommittee on Conservation, Credit and Rural Development.

English is a registered lobbyist, along with 14 other NRECA employees.

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