How Co-ops Set the Standard
6/26/01

By Paul Wesslund, Editor Kentucky Living

People want to build so many power plants in Kentucky the governor put a moratorium on new ones. There’s a whole pile of issues involved in that suspension, but to me it points out the difference between electric cooperatives and other kinds of utilities.

In case you missed the news, this summer Gov. Paul Patton put a six-month halt on applications for new electric generating plants. Patton’s move came as the state received its 24th request in less than two years. He ordered the moratorium to allow time to study the effects the plants would have on the environment and the electric transmission system in the state.
This flurry of proposals results from the 1992 deregulation of wholesale electricity sales among utilities. It may also be a response to the attention that the California energy crisis has given to the importance of having enough power plants to supply the demand—and how much money can be made from selling electricity.

Kentucky is one of the leading states for new power plant proposals, in part because of its plentiful coal supplies, and its location as the crossroads for a lot of natural gas pipelines to bring fuel in, and transmission lines to ship electricity out.
Many of the proposed plants are being built by entrepreneurs banking on being able to earn a profit by selling electricity to the highest bidder.

Which brings me back to the difference between electric co-ops and other businesses. Electric cooperatives, including those in Kentucky, build and operate their own power plants. But when a co-op fires up a generating station, it’s not for profit, but to make sure its customers, its members, have enough reasonably priced electricity to allow them to enhance their quality of life.
Electric co-ops are locally based and owned by the customers who buy the electricity. That form of business structure makes a difference. Power plants built in hopes of attracting paying customers may prove to be an effective way to supply our state and our nation with electricity, but their primary motive will be to make money. Your electric cooperative will continue to set the standard for placing consumers first.

Kentucky Association of Electric Cooperatives, Inc. 4515 Bishop Lane * Louisville, KY  40218 502-451-2430 * FAX: 502-459-3209 Terms of Use