Where We Stand
The IAEC strives to be an effective and visible presence before the Iowa General Assembly and to voice the legislative priorities of Iowa's electric cooperatives on a national level, too. Energy-related issues frequently arise at both levels and the IAEC gets directly involved in many of them. These bills can have a direct impact on our members, and, in turn, on their member-consumers. It is our goal to ensure that potential legislation is in our members' best interest and also that it is workable.
Renewable resources are an important part of Iowa’s overall energy mix. That’s why Iowa's electric cooperatives are actively integrating renewable energy into our systems. In doing so, we strive to balance safety, reliability and affordability with our commitment to being environmentally responsible energy providers. Click here to view some highlights of the renewable activities Iowa's electric coooperatives are involved in.
On the federal side, IAEC is working closely with the National Rural Electric Cooperative Association (NRECA) on bills in the US House and Senate. One issue of significant interest to cooperatives, deals with rail transportation and the unfair costs cooperatives and consumers are being forced to bear by being held “captive” to a single rail provider.
Railroads were deregulated by Congress in 1980, but remain exempt from most of the nation’s antitrust laws. Most Midwest G&Ts generate a high percentage of their electricity from coal-fired power plants and are dependent upon rail service for transportation of coal. Since Congress deregulated the industry, unprecedented consolidations have led to whole states, regions and entire industries becoming “captive” to a single railroad (by virtue of physical location) and subject to price gouging. This hugely affects many cooperatives in Iowa.
Rail transportation is frequently the only viable method of transportation for coal, and 75% of electric cooperative’s generation is coal-fired. Often there is no other choice for utilities, like electric cooperatives, to choose competing carriers making coal shipments "captive" to the railroads. Sadly, the Surface Transportation Board (STB) has failed to protect consumers against high rail prices where there is no rail competition in Rural America.
Under prior STB rulings, railroads are charging excessive rates to captive shippers like grain elevators, electric cooperatives, farm and chemical producers, wood and paper processors, mining, milling and fabricating industries, just to mention a few. Some "captive" rail rates are as much as 400-500% more than the railroads' cost of providing service, and many times more than other customers who enjoy competitive rail alternatives. These excessive charges create higher electricity rates and lead to higher consumer prices for everyone. The STB has consistently exercised its regulatory authority over railroads in a manner that emphasizes the industry's profitability at the expense of protecting captive rail customers, such as my local cooperative’s Generation & Transmission (G & T) Cooperative.
A recent resignation has created a vacant position on the three-member STB, and you can help resolve the current situation. Please write President Bush and urge him to select a nominee for the STB vacancy who is fair, objective, and who will consider the best interests of consumers and businesses who are "captive" to the monopoly abuses of the Nation’s railroads. The next nominee must be someone who understands the nature of deregulation, believes in competition and understands the concerns of captive rail customers across the United States.
A recent resignation has opened a position on the three-member STB. We’re asking cooperative member-consumers and employees to write to Iowa's Senators and Representative to please write President Bush and urge him to select a nominee for the STB vacancy who is fair, objective, and who will consider the best interests of consumers and businesses currently "captive" to the monopoly abuses of the railroads. The next nominee must be someone who understands the nature of deregulation, believes in competition, and understands the concerns of rail customers across the country.