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Buckle down and work together

Climate change legislation will have a tremendous impact on our nation. As utilities, we must be engaged in the debate, so we can help develop a comprehensive plan that addresses climate change, encourages technology development, gives us time to develop that technology - and do all this in a way that won't financially burden that person at the end of the line.

Basin Electric Power Cooperative - September 3, 2009

Cooperatives, Congress must work together to come up with the right legislation

I recently had the opportunity to go to Washington, D.C., and meet face to face with the individuals who are currently considering the Waxman-Markey bill passed by the House and who will likely consider a new version of the bill in September.

I met with senators from South Dakota, North Dakota, Montana and Wyoming, along with a staffer with Sen. Klobuchar of Minnesota. In my conversations, I noted a desire on all their parts to be a part of the climate change solution - just like Basin Electric. However, how we go about doing that remains largely debated.

There are a variety of ways to legislate carbon dioxide emission reductions. The term we've heard most lately is cap-and-trade. But there's also cap-and-dividend, carbon taxes, technology-focus legislation and other hybrid versions of all three. It's quite likely the train has left the station and climate change legislation will be passed sometime in the future. The question is, what kind of train will it be and will we be tied to the tracks?

I was pleased with my Senate visits. All of these individuals expressed a desire to work with us to come up with well-considered legislation. While it was clear to me that these senators want to tread into this matter carefully, not all members of Congress share that commitment. Some have indicated the Senate's draft will not significantly differ from the House version in the way it allocates emissions allowances. While the recently passed House bill is a much better version than the original draft, much work remains before we can support that bill.

As written, the House version distributes allowances according to a two-part formula: 50 percent based on the carbon dioxide emissions attributable to the electricity sales, and 50 percent based on retail sales without regard to emissions. That means a utility on the East Coast that is largely nuclear based will get a windfall of allowances it doesn't need, forcing carbon-intensive utilities to purchase those allowances from such utilities. I can't for the life of me understand why that makes sense! I remain hopeful that common sense will prevail and that those utilities that actually need the allowances will get them until the technology is developed, allowing us to directly cut our carbon emissions.

Basin Electric has taken a proactive stance when it comes to climate change. You'll read in this issue how we formed a working group with our Class A members and statewide associations to develop a position paper on climate change legislation. You'll also read about how we've worked with the membership to develop a uniform communications campaign, "Find A Balanced Solution." Further, we've even reached out to those investor-owned utilities that share our position and formed a coalition - and took our message to Washington as well.

As we continue to engage in the debate, it is imperative we continue to work together. Today, as we embark on perhaps the biggest challenge we've ever faced, it's important we work from the same blueprint and show a united front. I believe we can be helpful to members of Congress as they consider this legislation. They expressed a desire to see how some of the proposed bills impact Basin Electric. We committed to doing a thorough analysis and will share that with them.

Before we rush into historic legislation that will impact our nation for years to come, we'd better make sure we do it right - not only for that person at the end of the line, but for our nation. With so many unknowns and differing opinions inside and outside of Washington, it's time to engage and work together. Fasten your seatbelts!

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