ANOTHER VOICE

Growing electricity demand requires new power plants and transmission lines
By Jim Jura

Editor’s note: Another Voice is an opinion column that provides perspective on issues that affect agriculture. Opinions expressed are not necessarily those of Today’s Farmer or MFA Incorporated. Submissions should be 700 words. Send submissions or inquiries to Todaysfarmer@mfa-inc.com.

For the rural electric cooperative members we serve across Missouri, southeast Iowa and northeast Oklahoma, the need for reliable, affordable electricity is met by a unique, growing system of locally owned and controlled cooperatives.

The system consists of Associated Electric Cooperative Inc. (AECI) and its member-owners: six regional generation and transmission cooperatives that serve 51 local distribution cooperatives. Collectively, the cooperatives in this system are responsible for generating, transmitting and distributing electricity to more than 800,000 cooperative member-consumers—the families, farms, homes and businesses that count on reliable, low-cost electric service. More than 630,000 member-consumers in Missouri receive power supplied by AECI.

Electricity demand among AECI’s members continues to grow. In 2005, electricity demand set records for total energy sales and peak demand, the period during hot summer and cold winter days when electricity demand is highest.

Forecasts show demand for AECI’s members will grow about 2.3 percent per year for the next 10 years. That’s about 100 megawatts of additional power needed annually.

To meet growing demand and ensure reliable power supply remains available for members, AECI is planning ahead. In August 2005, AECI purchased a large unfinished natural gas-based power plant in Dell, Ark. The plant is scheduled to be completed by AECI in 2007.

In addition, AECI recently agreed to buy all the power from Missouri’s first utility-scale wind farm. The 50-megawatt project is in Gentry County and adds another resource to AECI’s already diverse generating resource mix. Construction is expected to begin in early summer with at least 16 of the 24 wind turbines operational by year-end 2006. AECI expects to announce its involvement in another wind generation project in Missouri.

To meet the growing round-the-clock power needs of its members, AECI has announced plans to build a 660-megawatt, coal-based power plant northwest of Norborne, Mo., in Carroll County. The alternate site is Holt County near Big Lake, Mo. Construction is expected to begin in 2008, with operation scheduled in 2013.

For the past several years, AECI has taken an aggressive approach to improving air quality, spending more than $650 million to reduce air emissions while continuing to meet cooperative members’ needs for low and stable electricity rates. The new plant will be equipped with the best available technology for controlling emissions of sulfur dioxide, nitrogen oxides, mercury and fine particulates, which include tiny dust particles.

A coal plant requires a couple years of permitting and about 4 years of construction time. The plant AECI proposes is a large project that will cost about $1.3 billion and employ up to 900 workers at the peak of construction. Along with the plant, AECI proposes about 135 miles of transmission lines to deliver the electricity.

A $1.3 billion construction project is a huge economic engine that will promote job growth, as well as delivery of goods and services, and will have a significant impact on a county, a region and even on the state. The towns located near the proposed or alternate site will certainly experience a significant impact from the project.

Besides the positive economic opportunities a power plant creates, including affordable electricity for rural residents and businesses, there are the changes a community faces—construction, additional workers seeking lodging, meals, gas and other day-to-day services, and a large, industrial neighbor.

Being a good neighbor has been part of AECI’s approach to business throughout its 45-year history. We continue to work with the local community and its citizens, especially those who are affected by a new power plant. To date AECI has provided news about the project to the local communities; advertised plans for the plant and transmission lines; presented programs at the request of local organizations; communicated progress through e-mails, faxes, letters and phone calls to anyone who requested it; worked closely with affected and nearby landowners; and shown plans for the project, listened to concerns and responded to questions.

Listening to the concerns of the local community and addressing those concerns in the best possible way are AECI’s objectives as we plan for the energy needs of our rural electric cooperative members.

To learn more about plans for the new power plant and the latest developments, visit www.aeci.org.

Jim Jura is CEO and general manager of Associated Electric Cooperative Inc.