What's New
Co-ops Discuss High Rail Costs and Renewable Energy with National Lawmakers
For more information and photos, contact:
Ann Foster
Director of Communications
Iowa Association of Electric Cooperatives
Office: 515-727-8945
Cell: 515-229-6977
May 5, 2006 - Representatives of Iowa's rural electric cooperatives (RECs) recently traveled to Washington, D.C., to discuss timely legislative issues affecting electric cooperatives and their members - including high rail charges affecting coal delivery and the need to extend incentives for clean renewable energy. The meetings were held during the 2006 Legislative Conference ofthe National Rural Electric Cooperative Association (NRECA), April 30-May 3. More than 3,000 co-op representatives from all over the United States participated in the conference.
Gerald Klemme of LeMars, who is president of the Iowa Association of Electric Cooperatives' (IAEC) board of directors and a member of the North West REC board, says the group's mission in Washington, D.C., was to discuss pending federal issues, most notably the rail issue, renewable energy incentives and stable funding of the Rural Utilities Services (RUS) programs.
"Electric cooperatives make an impact on legislative outcomes when we pull together like this," Klemme says. "Certainly, the presence of more than 3,000 people on Capitol Hill - all calling for the same thing can make a difference."
The Iowa delegation had considerable discussion with lawmakers about clean renewable energy bonds and the captive rail issue. With the Clean Energy Bonds legislation before Congress, the cooperatives are seeking expansion and extension of existing renewable energy incentives to help finance qualified renewable and clean coal energy projects. Sen. Grassley has led the way for Iowans on this issue, by sponsoring legislation on clean energy bonds.
The captive rail issue has the potential to dramatically impact the prices cooperatives pay for the transportation of coal to power plants. "More than ever, railroads are charging captive shippers excessive rates. No other deregulated industry has the power to deny its customers access to competition," Klemme says. "High rail rates flow straight through to Iowa's electric cooperative customers. All of the power suppliers that serve customers of Iowa's electric cooperatives use captive rail for at least part of their coal shipments."
On the captive rail issue, the electric cooperative contingent from Iowa hand-delivered more than 1,400 letters from cooperative directors, employees and member-consumers, to Iowa�s congressional delegation.
The letters called upon members of Congress to urge the Administration to appoint a fair and objective member to a recently vacated position on the Surface Transportation Board - the group responsible for overseeing the rail industry.
The group also discussed the Administration's proposed budget of Rural Utilities Service (RUS) funding. The fiscal year 2006 budget proposes only $4 billion for RUS when $6 billion is required. The Administration could also propose new regulations later this year that could greatly limit RUS loans to electric cooperatives. These cuts would impair the electric cooperatives' efforts in infrastructure development and trickle down to Iowa's rural economies.
The Iowans met at length with Senators Grassley and Harkin; Congressmen Latham, King Boswell and Leach; Joe Wheeler with Congressman Nussle's office and Lloyd Ritter and Richard Bender from Senator Harkin's office. "This is an important part of the process in Washington, D.C., because the lawmakers and key staff play important roles in the development of legislative positions," Klemme says.
"The Iowa delegation has always been very supportive of the co-ops and seemed to respond well to this year's messages," says Brian Kading, executive vice president for the IAEC.
Those representing Iowa RECs were: Roger Arthur, IAEC/Allamakee-Clayton Electric Cooperative; Jeff Bean and Nancy Carlson, Western Iowa Power Cooperative; Terry Bruns, Iowa Lakes Electric Cooperative; John Burbridge and Joe Farley, Harrison County REC; Jennifer Feddersen, Linn County REC; Bill Freeman, Clark Electric Cooperative; Charles Gilbert, Midland Power Cooperative/Corn Belt Power Cooperative; Gerald Klemme, IAEC/North West REC; Norman Kolbe, Sac County REC/Corn Belt Power Cooperative; Tom Miller, Hawkeye REC; Christian Nygaard, Humboldt County REC; Kent Pauling, Northwest Iowa Power Cooperative; Larry Rohach, Grundy County REC/IAEC; Kenric Scheevel, Dairyland Power Cooperative; Roger Rust, Franklin REC/Corn Belt Power Cooperative; Kathy Taylor, Corn Belt Power Cooperative; and Brian Kading and Shelly York, IAEC.
Ann Foster
Director of Communications
Iowa Association of Electric Cooperatives
Office: 515-727-8945
Cell: 515-229-6977
May 5, 2006 - Representatives of Iowa's rural electric cooperatives (RECs) recently traveled to Washington, D.C., to discuss timely legislative issues affecting electric cooperatives and their members - including high rail charges affecting coal delivery and the need to extend incentives for clean renewable energy. The meetings were held during the 2006 Legislative Conference ofthe National Rural Electric Cooperative Association (NRECA), April 30-May 3. More than 3,000 co-op representatives from all over the United States participated in the conference.
Gerald Klemme of LeMars, who is president of the Iowa Association of Electric Cooperatives' (IAEC) board of directors and a member of the North West REC board, says the group's mission in Washington, D.C., was to discuss pending federal issues, most notably the rail issue, renewable energy incentives and stable funding of the Rural Utilities Services (RUS) programs.
"Electric cooperatives make an impact on legislative outcomes when we pull together like this," Klemme says. "Certainly, the presence of more than 3,000 people on Capitol Hill - all calling for the same thing can make a difference."
The Iowa delegation had considerable discussion with lawmakers about clean renewable energy bonds and the captive rail issue. With the Clean Energy Bonds legislation before Congress, the cooperatives are seeking expansion and extension of existing renewable energy incentives to help finance qualified renewable and clean coal energy projects. Sen. Grassley has led the way for Iowans on this issue, by sponsoring legislation on clean energy bonds.
The captive rail issue has the potential to dramatically impact the prices cooperatives pay for the transportation of coal to power plants. "More than ever, railroads are charging captive shippers excessive rates. No other deregulated industry has the power to deny its customers access to competition," Klemme says. "High rail rates flow straight through to Iowa's electric cooperative customers. All of the power suppliers that serve customers of Iowa's electric cooperatives use captive rail for at least part of their coal shipments."
On the captive rail issue, the electric cooperative contingent from Iowa hand-delivered more than 1,400 letters from cooperative directors, employees and member-consumers, to Iowa�s congressional delegation.
The letters called upon members of Congress to urge the Administration to appoint a fair and objective member to a recently vacated position on the Surface Transportation Board - the group responsible for overseeing the rail industry.
The group also discussed the Administration's proposed budget of Rural Utilities Service (RUS) funding. The fiscal year 2006 budget proposes only $4 billion for RUS when $6 billion is required. The Administration could also propose new regulations later this year that could greatly limit RUS loans to electric cooperatives. These cuts would impair the electric cooperatives' efforts in infrastructure development and trickle down to Iowa's rural economies.
The Iowans met at length with Senators Grassley and Harkin; Congressmen Latham, King Boswell and Leach; Joe Wheeler with Congressman Nussle's office and Lloyd Ritter and Richard Bender from Senator Harkin's office. "This is an important part of the process in Washington, D.C., because the lawmakers and key staff play important roles in the development of legislative positions," Klemme says.
"The Iowa delegation has always been very supportive of the co-ops and seemed to respond well to this year's messages," says Brian Kading, executive vice president for the IAEC.
Those representing Iowa RECs were: Roger Arthur, IAEC/Allamakee-Clayton Electric Cooperative; Jeff Bean and Nancy Carlson, Western Iowa Power Cooperative; Terry Bruns, Iowa Lakes Electric Cooperative; John Burbridge and Joe Farley, Harrison County REC; Jennifer Feddersen, Linn County REC; Bill Freeman, Clark Electric Cooperative; Charles Gilbert, Midland Power Cooperative/Corn Belt Power Cooperative; Gerald Klemme, IAEC/North West REC; Norman Kolbe, Sac County REC/Corn Belt Power Cooperative; Tom Miller, Hawkeye REC; Christian Nygaard, Humboldt County REC; Kent Pauling, Northwest Iowa Power Cooperative; Larry Rohach, Grundy County REC/IAEC; Kenric Scheevel, Dairyland Power Cooperative; Roger Rust, Franklin REC/Corn Belt Power Cooperative; Kathy Taylor, Corn Belt Power Cooperative; and Brian Kading and Shelly York, IAEC.
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