Today In Mississippi

Nation's energy policy should address reliability, affordability

By Michael Callahan
Electric Power Associations of Mississippi Executive Vice President/CEO

Climate-change legislation is a hot topic in Washington these days. Our political leaders are discussing several bills that address climate change and the reduction of carbon-based emissions, particularly from electric generating plants.

This debate has the potential to bring about profound changes in the affordability and reliability of electricity in this country. So it is imperative that its focus be as far-reaching as its impact on consumers—and the economy.

Electric power associations in Mississippi are taking part in the discussions through the National Rural Electric Cooperative Association, which represents some 900 electric cooperatives serving 40 million members in 47 states. We believe Congress should expand its focus beyond climate change to develop an overall energy policy, including a full discussion of the following:

Quality of life: Electric service is essential to Americans’ way of life and should not be legislated or regulated separate from a long-term, strategic energy policy.

The science and economics of climate change: There is still much debate regarding the actual impact of man-made activities upon global temperatures. Also, questions persist about whether reductions in CO2 emissions will actually result in decreases in global temperatures. Consideration must be given to the realistic consequences and achievable results of carbon capture, not only in the United States but around the world. More research is needed before climate-change legislation is adopted.

Financing needs: A federal financing organization, such as the Rural Utilities Service, must be allowed to provide loans for the construction of new base-load generation—the minimum amount of electric power demanded from a generating plant over a period of time—including coal-fired plants that can take advantage of the nation’s coal resources, a low-cost and abundant natural resource.

Nuclear generation: Nuclear generation is currently the most cost-effective base-load alternative to coal. A better strategy for building and financing new nuclear stations must be formulated.

Hydroelectric power generation: Increases in hydroelectric power generation can be achieved by additional federal government investment in the repowering of existing facilities.

Transmission of electricity: The nation’s transmission grid must be upgraded to accommodate additional capacity and alternative fuel sources.

Research and development: The energy industry must find new ways to meet demand, increase efficiency and develop technology for environmental regulations. Specific goals for research and development must be defined and funding systems developed, with planning for commercialization and implementation.

New Energy Trust: A universal “New Energy Trust” should be adopted to fund research and development for new energy technologies.

It is essential that our nation develop an energy policy that realistically addresses and balances the core issues of reliability, affordability and sustainability. This foundation should provide a strategy for continued energy planning.

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Electric Power Associations of Mississippi
P.O. Box 3300 Ridgeland, Mississippi 39158-3300 phone 601.605.8600 fax 601.605.8601