MRPC News Release

Aug. 25, 2008

For more information, contact:
Richard Cavender or Bonnie J. Prigge, (573) 265-2993

Energy Efficiency, Renewable Energy Necessary to Meet Increasing Electric Demand, Utility Exec Says
MRPC selects St. Robert to host Annual Dinner

ST. JAMES—Using energy more efficiently will help curb the demand for electricity, which is one of several reasons that electricity rates are on the rise, Dwayne Cartwright, general manager of Intercounty Electric Cooperative explained to the board of the Meramec Regional Planning Commission during its regular meeting Aug. 14.

Cartwright, along with Jim White, Intercounty board president, Jerry Hartman of Show-Me Electric and Dan Blesi of Crawford Electric, explained why costs were rising and what could be done to soften the blow.

Costs are increasing because of more demand along with an outdated transmission grid, higher coal transportation costs, rising construction materials costs and the cost of compliance with state and federal regulations.

“There’s some legislation that could have some very negative impact on rates,” Cartwright said.

Currently, Associated Electric—the cooperative that generates electricity for the local cooperatives— is projecting a 2 percent growth in energy demand for the next 10 years. That’s the equivalent of adding 30,000 homes per year, Cartwright said.

The challenge becomes meeting that demand. Cooperatives are encouraging members to use less by promoting energy efficiency.

“We’re trying to be pro-active with energy efficiency; we can curb demand,” Hartman added.

Cooperatives are also exploring renewable resources, and Associated is installing more generating equipment. Cartwright expects nuclear power to be a part of the solution for meeting future demand. “On nuclear, we have to educate our people,” he said, pointing out that there have been no nuclear disasters in the United States. Plants have been shut down when safety equipment indicated potential problems.

Peter Herrington, plant manager for Ace Manufacturing in Sullivan, pointed out that increases in electric rates are expected, and those additional costs must be passed on to customers on a regular basis—not all at one time—and as much notice as possible be given on the pending increase. Earlier this year, Show-Me Electric substantially increased contract rates charged to municipalities. The cooperative had not raised municipal rates for several years. Herrington, who represents industry on MRPC’s board, says his company must generate an additional $500,000 in sales to cover the increased electric costs that weren’t budgeted.

In other business, the board:

• Selected a proposal from the city of St. Robert to host the 2008 Annual Dinner and agreed to changing the date to accommodate the site. The dinner will be Wed., Nov. 12 at St. Robert Community Center.

• Adopted a resolution to support the passage of primary seatbelt legislation for Missouri and to become a primary seatbelt partner with the Missouri Coalition for Roadway Safety;

• Honored Robert Reed as outgoing chairman of MRPC and honored outgoing board members Les Murdock of Cuba and Bruce Sassmann of Bland for their serves to the board. Chairman Laura Antolak presented plaques to Reed and Murdock at the meeting.

• Learned since June meeting, MRPC’s grant writing efforts had secured projects totaling some $2.2 million dollars, including $1.6 million from the Federal Home Loan Bank of Des Moines to renovate senior citizen housing complexes in Vienna, Dixon, Owensville and Cuba.

Formed in 1969, MRPC is a voluntary council of governments serving Crawford, Dent, Gasconade, Maries, Osage, Phelps, Pulaski and Washington counties and their respective cities. A professional staff of 27, directed by the MRPC board, offers technical assistance and services, such as grant preparation and administration, housing assistance, transportation planning, environmental planning, ordinance codification, business loans and other services to member communities.

The MRPC board will meet at 7:30 p.m. on Sept. 11 at its office at 4 Industrial Drive in St. James. All meetings are open to the public.

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