Should Nevada consumers pay for out-of-state energy use? - Opinion - Re...

http://www.printthis.clickability.com/pt/cpt?expire=&title=Should+Neva...

Powered by

Should Nevada consumers pay for out-of-state energy use?

BY LESLIE JAMES SPECIAL TO THE LAS VEGAS REVIEW-JOURNAL
Posted: Sep. 2, 2012 | 2:09 a.m. Updated: Sep. 4, 2012 | 3:49 p.m.

At a time when every penny counts, a number of citizens of the West could soon see higher electric and water bills to subsidize the delivery of wind power from thousands of miles away to California. And given the history of power generation in our area, it hardly seems fair. As late as the mid-1930s, many homes here in the West were without electric service, and major power companies largely ignored that fact. This spurred the development of a federal plan that led to the building of the Hoover Dam, later followed by other federal dams, including the Glen Canyon Dam, which was authorized by Congress in 1956. To put together the financing and long-term maintenance of these giant public works projects, those who lived in the footprint of these federal water reclamation projects stepped forward and agreed to pay higher rates short-term because they knew they would derive significant long-term benefits from the construction of these projects. This responsibility, known as "beneficiary/user pays," is still reflected in our electric bills 80 years later, and we are still paying for the costs of generating and transmitting the electricity as well as dam upkeep. But there is a new effort from the Department of Energy that could change the operation of these facilities, including Glen Canyon Dam, and further increase the cost of electricity and water for all of us who paid to build these federal projects, while benefiting those in other parts of the region who made no investment in the infrastructure. The March 16, 2012, initiative from Secretary Steven Chu, titled "Power Marketing Administration's Role," can be found on the department's website at http://tinyurl.com /8zufazm. Since many in the West are still trying to get back on their feet from the prolonged and deep recession, it is not surprising that the DOE effort, which could increase electric and water bills for many consumers in our region, has been met with stiff opposition. Numerous elected officials, local public power utilities and rural electric cooperatives in

1 of 2

9/13/2012 11:48 AM

Should Nevada consumers pay for out-of-state energy use? - Opinion - Re...

http://www.printthis.clickability.com/pt/cpt?expire=&title=Should+Neva...

this region have contacted their representatives in Washington, D.C., in protest. Increasing the cost of electricity and water for millions of users would not only be a setback for struggling families but would also make local businesses less competitive. Critics of the federal plan also note it undermines the oversight role of Congress. When Congress created the Power Marketing Administrations (PMAs) - the agencies charged with overseeing the sale and delivery of hydroelectric power from the nation's large federal dams - they were charged with making electricity available at "the lowest possible rates consistent with sound business principles." The new effort could make that mandate impossible. Any change in the purpose of the PMAs or their agreements with local consumers should be adopted by Congress - the body that has authored, expanded, and refined their role - not by unelected officials at DOE. A bipartisan June 5 letter, signed by 166 members of Congress, was sent to Chu, noting that the department "appears to be sidestepping the role of Congress in debating and overseeing policies related to the PMAs." Simply put, the DOE is trying to fix a system that isn't broken, and it's overstepping its powers to do so. The core concept behind the success of these public works projects, "beneficiary/user pays," should be honored. The DOE should not foist the cost of providing electricity to consumers far away onto the backs of local residents, who have often paid higher-than-market rates to fund these projects over an extended period of time. Any new beneficiaries who are brought into the current system should also honor the cornerstone agreement and pay for the costs of their inclusion. The Hoover and Glen Canyon dams and others like them are national treasures that underpin the economic viability of a broad swath of America. Their construction, which tamed and harnessed many of this nation's most powerful rivers, was a shot in the arm to regions of the country that had suffered from lack of development and lack of access to electricity and water. Projects like the Hoover and Glen Canyon dams that were built for economic stimulus in the Great Depression and to further provide electricity to the Western states as they were growing and developing shouldn't be used now to worsen today's Great Recession. Leslie James, of Phoenix, is the executive director of the Colorado River Energy Distributors Association.

Find this article at:

http://www.lvrj.com/opinion/should-nevada-consumers-pay-for-out-of-state-energy-use-168303796.html Check the box to include the list of links referenced in the article.

Copyright Stephen Media, LLC. All rights reserved. Any reproduction or distribution (except for personal, non-commercial purposes), in any form or by any means, without the express written consent of Stephens Media, LLC, is strictly prohibited.

2 of 2

9/13/2012 11:48 AM