Taking the first step
When you flip the light switch, you expect the power to flow. That simple expectation guides many complex and difficult decisions the leaders of your electric cooperative must make in the coming weeks and months if you are to have the electricity you need in the future.
Over the years, it has become increasingly clear that these tough decisions will involve fewer options. Most of our baseload power — the energy you rely on to power your home or business 24 hours a day, seven days a week — comes from coal.
Electric cooperatives aren’t alone. Missouri’s electric utilities together generate about 80 percent of their power using coal.
In its effort to reduce carbon emissions, the Environmental Protection Agency is implementing new sweeping regulations that may make it too costly to continue generating power from coal.
Given the potential impact of these new federal environmental regulations, the uncertainties of whether we will need to replace aging coal power plants and the continued consideration of carbon tax proposals at the federal level, Missouri must keep all options on the table.
One important option is additional nuclear generation. Unlike coal and natural gas, nuclear energy does not have carbon emissions, and once the plants are built, they are extremely reliable and provide low-cost power.
That’s why the electric cooperatives have partnered with Missouri’s investor-owned and municipal electric providers to seek bipartisan legislation that would keep the nuclear power option open for all Missourians. This legislation is a measured, but important, interim step in these uncertain times.
This joint effort includes plans to seek an early site permit from the U.S. Nuclear Regulatory Commission (NRC) for a potential new nuclear facility at the Callaway Plant site in central Missouri. The legislation only would allow for recovery of the costs of an early site permit — but it is not for CWIP, or “construction work in progress,” an issue that brought talks of a nuclear power plant to a standstill a few years ago.
Obtaining a site permit from the NRC is a three-to-four-year process in which studies are performed to determine whether a site is suitable for the construction of new or additional nuclear units.
This permit would maintain the option for future development of new nuclear power generation, and in so doing, create an opportunity to bring thousands of jobs and major economic benefits to the state.
It also better positions Missouri to have access to potential future federal funding initiatives for nuclear power, which in turn could significantly lower costs to consumers. If the legislation passes, the application for the site permit is expected to be filed in the second half of 2011; however, this is only a first step and is not an actual commitment to build a nuclear facility.
Missouri’s electric cooperatives strongly believe this approach is a prudent course of action.
Pursuing a site permit is a low-cost, measured approach to maintaining a clean energy option, while allowing Missouri’s electric providers to carefully assess a host of important matters — including future energy needs, potential environmental regulations, new technologies and economic development considerations.
On Nov. 19, Gov. Jay Nixon held a press conference to throw his full support behind this measure. Members of the general assembly also have expressed their support for this important step in preserving the nuclear option.
Rest assured, as we look at these options for future power supply we will do it, as always, by keeping the best interests of our members in mind.
Hart is the executive vice president of the Association of Missouri Electric Cooperatives.
-Barry Hart
