The future of energy: Five big myths
Transcription
The future of energy: Five big myths
Powerlines November 2012 | Volume 25 • Number 11 | www.powersouth.com/powerlines | info@powersouth.com The future of energy: Five big myths The electric industry is in a period of significant shifts in public policy toward heightened environmental protection and energy scrutiny. Energy misconceptions include these five energy myths: Myth #1: The U.S. is facing an energy crisis. According to the Energy Information Administration (EIA) and the American Gas Association: • The U.S. produces about 2 billion barrels of oil annually, ranking third behind Russia and Saudi Arabia. • The U.S. is ranked first in natural gas reserves, with at least 300 trillion cubic feet of proved reserves, though that estimate has been as high as 487 trillion cubic feet. • The U.S. has 259 billion short tons of recoverable coal, which equates to about a quarter of the world’s coal. Coal consumption in the U.S. is about 1 billion tons annually. • We have more than 100 nuclear reactors, and only about three percent of the dams in the U.S. are electrified. • We are just now beginning to understand energy efficiency potential, especially in industry. Myth #2: We must make radical energy changes to save the environment. According to the Environmental Protection Agency’s Air Trends Data: • Nitrous oxide (NOx) has decreased 52 percent in the last 30 years. • Sulfur Dioxide (SO2) has decreased 83 percent in the last 30 years. • Ground level ozone has decreased 27 percent in the last 30 years. Myth #3: The U.S. must alter its behavior as an example to the world. According to estimates from the United Nations and International Energy Agency: • China produces 20 percent of the world’s carbon dioxide (CO2), compared to 16 percent 20 years ago. • CO2 increases from 1992 to 2010 in China were 240 percent; India, 157 percent; Iran, 139 percent; South Korea, 97 percent; and Brazil, 91 percent. • CO2 increases in the U.S. from 1992 to 2010 were 10 percent. Myth #4: Renewable sources of power can replace traditional sources. According to the EIA, America’s current energy mix is broken down as follows: Coal 42 percent Natural Gas 25 percent Nuclear 19 percent Hydro 8 percent Wind 3 percent Solar Less than 1 percent Other 2 percent If all our current resources were removed, the existing 4 percent in wind and solar couldn’t fill in giant gaps. For example, the state of Texas met its all-time peak Aug. 2, 2010 of 63,594 megawatts. Of that total, only 500 megawatts was produced by wind. Renewables are simply not capable of meeting demand. In addition, Germany, Greece, Scotland, Switzerland and Spain have already put strict renewable requirements in place, only to experience doubling energy costs, grid instability, loss of reliability and significant debt. Myth #5: The environmental movement has the answers to our energy future. • The Sierra Club is opposing the addition of environmental controls at two Wyoming coal-fired plants. • Sierra Club took $26 million from Chesapeake Energy before deciding to oppose natural gas in principle. “It’s time to stop thinking of natural gas as a kinder, gentler energy source,” says Sierra Club Executive Director Michael Brune. • Nuclear energy is the only source of baseload energy that produces no airborne emissions or CO2. However, the Sierra Club’s Board of Directors reported that it opposes the licensing, construction and operation of new nuclear reactors utilizing the fission process. • Sierra Club has sued to stop a solar power project in California and opposed a wind energy development in Maryland. What is the way forward? “We need to keep all options viable,” says Lance Brown, PACE Executive Director. “Whether it is investment in new technologies or finding solutions to existing ones, we need to aim for a healthy balance of all our resources – fossil fuels and renewables.” “We should learn from others and make it a collaborative effort,” he says. “In order to debunk myths and find answers, we’ve all got to work together.” g Prefer to receive an electronic version of Powerlines? Visit www.powersouth.com/powerlines to subscribe to our e-newsletter. 1 MEMBER SPOTLIGHT A commitment to community Southern Pine EC’s (SPEC) four locations in Atmore, Brewton, Frisco City and Evergreen, Ala., play a key role in community outreach programs year-round. This Christmas season, the co-op is working on four programs – a food drive, Operation Christmas Child shoeboxes, Christmas Angels and a Christmas Card art contest. Christmas food drive This year is the 13th year SPEC will hold a food drive in its service area, gathering canned food items for local food banks. The 2012 recipients include Christian Ministries in Atmore, Excel Baptist Church, New Providence Baptist Church in Evergreen and Healing of the Soul Outreach in East Brewton. Each person donating three non-perishable food items for the drive is included in a drawing for $50 given away at each SPEC location. “Food pantries are in a desperate need right now, and they are always very thankful when we are able to help,” says Melanie Harrison, SPEC Manager of Communications. Operation Christmas Child Since 2002, SPEC has served as an Operation Christmas Child dropoff point. Each year, Operation Christmas Child distributes gift-filled shoe boxes to needy children in over 90 countries. SPEC arranges for a truck and trailer to arrive at each of its four offices. Co-op employees load the shoe boxes in the truck before it is sent to a relay station in Tillman’s Corner, Ala. More than 2,700 boxes were dropped off at SPEC in 2011, and they expect more to be delivered this year. PowerSouth’s Lowman Power Plant hosted its annual charity golf tournament Oct. 6 at Deerfield Golf Club in Chatom, Ala. “We wanted to do something special for the students that emphasized our commitment to the community while assisting with art education in our local schools,” said Harrison. “The students became very excited about the contest, and we received lots of wonderful submissions.” Judges from other electric co-ops in PowerSouth’s service area selected a winner and first and second runners up to receive $60, $40 and $20 art kits. In addition, the winning student’s teacher received $100 toward art supplies for her classroom. The winner’s drawing will be included on the cover of SPEC’s December issue of Alabama Living magazine, and SPEC’s Christmas cards will include artwork from the top three students. The winning drawing will be framed and given to the school for display, and another copy will be displayed at SPEC’s corporate office. “We work to develop programs with our members that relay our commitment to the communities we serve,” Harrison said. “Whether it’s during the Christmas holidays or not, we try to reach out to the people, businesses and organizations in our area to help in every way we can.” g “Operation Christmas Child is a program we feel very strongly about, and it has been well received in the community,” said Vince Johnson, SPEC CEO and General Manager. Christmas Angels Sometimes the smallest efforts make the biggest difference, as is the case with SPEC’s sponsorship of Christmas Angels. Each of the co-op’s four locations select a child or elderly person from the Christmas Angel program. In turn, SPEC buys toys, clothing and other items to ensure the children and elderly have a merry Christmas morning. Christmas Card Art Contest The newest addition to SPEC’s Christmas community programs is the Christmas card contest. This year, fourth and fifth graders from Pollard-McCall School in the McCall Community were asked to create a drawing using crayons, markers or colored pencils. The only guideline was to make it a Christmas theme. 2 Lowman golf tourney raises $1,000 for tri-county Child Advocacy Center All proceeds benefited the Regional Child Advocacy Center, an umbrella agency for the “Almost Home” program, a licensed foster home, and the Center, which provides services to sexually abused and seriously physically abused children in Clarke, Washington and Choctaw counties. Fifty-three men participated in the 18-hole golf classic that included a longest drive award, closest to the pin awards and closest to the dot awards. Participation included 31 PowerSouth employees. First flight winners included Billy Brewer, Lowman Plant Electrician, Curtis Boutwell and Danny Moseley. Second flight winners included Wayne Harrison, Lowman Plant Maintenance Scheduler, Jesse Grimes and Danny Kinchen. PowerSouth employees Derick Dearmon (left) and Justin Williams present a check for $1,000 to Child Advocacy Center Representative Mary English. Closest to the pin winners were Jesse Grimes and Andre Phillips. Closest to the dot winner was Tim Whitley, and longest drive winner was Glenn Gunter, Lowman Maintenance Technician. g A decade of service PowerSouth’s Vice President and Chief Financial Officer Ferrell Walton and his wife, Elaine, were recognized Nov. 2 at the annual Covington County Sav-A-Life banquet for 10 years of service to the Sav-A-Life ministry. Sav-A-Life is a non-denominational Christian ministry that promotes a culture of life, health and morality. Winner of SPEC’s Christmas Card Contest was Grace Morgan, a fifth grader in Mrs. Bell’s class at Pollard-McCall School. 3 PowerSouth maintains A- credit rating Three major credit agencies have affirmed PowerSouth’s rating of A-, a rating that provides significant financial savings for PowerSouth and our members. “Our credit ratings continue to have a positive impact on PowerSouth’s standing in the financial community,” said Ferrell Walton, PowerSouth Vice President and Chief Financial Officer. “We benefit from competitive interest rates on current borrowings, and the Aratings will have a significant effect on future borrowings, particularly bonds.” According to Standard & Poor’s Aug. 31 RatingsDirect report, the rating reflects PowerSouth’s well-managed fleet of generating assets, low-cost purchased power, wholesale rates that allow member co-ops to charge fairly competitive retail rates, a hedging program that helps minimize gas price fluctuations and a comprehensive risk management policy. Also a factor in the rating is S&P’s assessment of a gradually strengthening economy. “The cooperative’s generation facilities are well diversified both in number and fuel type, which provides flexibility as fuel prices change. The addition of nuclear capacity in 2016 will further diversity the cooperative’s resources.” — Fitch Ratings Moody’s Investor Service indicated that drivers behind its positive rating included the stability of all the co-op’s long-term wholesale power contracts with our distribution members, along with wholesale electric rates that are in line with the Southeast region. “PowerSouth’s stable rating outlook reflects our expectation for continued stability in the company’s operations and financial performance,” Moody’s reported. g FITCH AF FIRMS PO WE REVS AT RSOUTH ENERGY 'A-'; OUTL COOPER AT OO PowerSouth’s annual Trustee Update is Jan. 23-25, 2013, at the Hilton Sandestin Beach Golf Resort and Spa. During the meeting, trustees and key operating personnel of PowerSouth’s distribution members will learn about issues impacting PowerSouth and our industry. IVE'S K STABLE Fitch Rati ngs-New Yor following k-24 Septem Pow ber 2012: Developmen erSouth Energy t Board of Cooperative Fitch Ratings has 2011): affir the Town of Chatom revenue bonds issu med the 'A-' ratin g on the , Alabama ed through (out standing in the Industria --$1,300,000 amounts as l of Dec. 31, --$19,200,00 pollution control reve --$50,000,00 0 pollution control revenue bonds, series 198 4M; nue refundin --$120,115,0 0 Gulf Opportunity g bonds, serie Zon 00 e Gul revenue s 2000C; f Opportunity --$74,645,00 Zone revenuebonds, series 2007A; --$26,445,00 0 Gulf Opportunity bonds, serie Zon 0 solid was te disposal e refunding Bonds, series 2008A; facilities refu The Rating nding bonds,s 2010A; Outlook is series 2010B. Stable. SECURITY The bonds are secured certain of its by a mortgag intangible, e interest assets. in substant ially all of PowerSouth's ING DRI tangible, and VERS BROAD SER VIC E TER transmission RITORY: PowerSo Alabama and cooperat ive serving uth Ene ! rgy Coo perative is a fairl bers (419 contracts thro the Florida panhandl 20 mem ,000 y larg e. ugh retail cust The cooperat e generatio 205 0. ome n ive's mem bers have rs) in a broad regionand MIXED ME long-term, MBER all-requirem of ECO However, NOM ents ICS: member load revenue stab is nearly The members exhibit ility thre ; write-offs "# below-avera e-quarters of operatin at the mem residential, ge economi g reve nues ber level are whi c indicato (201 1). rs. within rang ch provides for grea e of industry ter GOOD ME overall $ benchmarks MBER FIN IAL debt service at 0.43% ANC S: The mem rage Current and cove % bers' aggregat 2.4x of & and quic ' a e ratio fina k ratio ncia liquidity leve of s are abov equi ty to capitaliz l metrics are soun e 1x, but ls coup %& led with d, atio cash incl n udin appr on high !"!#$ g hand oaching 50% er write-offs IMPROVING would be a is below-average in 2011. at just 39!!(( greater conc days. Wea given its plan G&T FIN ANCIAL ern. k METRI gene CS: Pow averaged 1.36 to )* rate erSo +,$170 million x- over of addition uth's fina ncia'( produce the+, l met past three years - abov al equity by 2019. rics continue to imp equity/capit and..stea dily - imp rove, Deb e the ) t rovi serv aliza.. 1.2x ng operatin ! ice tion to 14% Fitch's 'A-' g margins that rates are typically coverage has from10.1 ) ratin*/ , g cate . % have ! in 200 desi, gory gned to helped grow med0 ians ) ,*. 1x 7. However, both of 1.34 the ratio /. COMPETITIV and 16.9%, ,. 12 of ,-. respectively.metrics remain sligh 0,*+$ RAT competitive E+, ES: 2 tly belo 0,12 ,/w Pow , !. . erSo 3uth's 3 , !2 regi 4 who4 moderate 2%with onal4 ,-. lesale3 1,! 2 , 1. supp 47 rate3 liers at s annu 8 have ally $76 4dou , . ,102 purchased .41/+, ,*. bled 3 MW& sinc h. 4 power and through 2031, given %& e 4 20005 0,32 s 54 *,32 are fore but fuel costs. expectations Rate 9 rem * cast ain36 3 to for limited increase4 ,*. )0 DIVERSE at 99 new generatio8 a mor 9 e 8 POWER SUP ,12 4 n, as well number and 3 & PLY: The as low %4 coop type capacity in fuel , whi ch provides erative's generatio & 2016 will furth n facilities 45 er diversify flexibility as fuel ) prices chan are well diversified the cooperative's reso both ge. The addi urces. tion of nucl in : ear 9 KEY RAT : 8 : / :; % 8 3 3 % 0 0 :4 3 >&*23030 3 % ? % %8 3 8 3 :24 / 3 / 4 < %% ==2 4 %& = 30* 3 3 %* 30 2% 9 3 4 4 0 >= 24 90 ( 33:4 @2 %? A 8 = 4% % 8 48 1 % %83%30 %0 4 09 4 33 @9 4 498 30 % B"&; % 4 3 9 2 3 3 8 3 0 8 > 303 8 )% 6 8 )? 4 8 % 30 8 % @ . @" 40%4 5 3 "8 = 98 % We are family Due to the amputation of one of her legs, Cindy Hill, guard shack employee at PowerSouth’s Lowman Plant, needed construction work done at her home. “I was in a bind and needed someone to help me get a ramp built so I could get inside my home easily,” she said. “The guys here at the plant came through for me. We’re like family around here…we take care of each other.” Special thanks to (left to right) Jamie Waite, Joey Ramey, Russ Jones, Kenny Weaver, Greg Brunson, Wayne Phillips and Nick Grana. Not pictured are Scottie McBride and Daryl Beck. PowerSouth mourns board member Fitch Ratings also cited PowerSouth’s diverse power supply. Graham named AOPA Boss of the Year The Andalusia Office Professionals celebrated Bosses Day Oct. 16 with a luncheon. At the event, Ron Graham (left), PowerSouth Energy Resources Manager, was named Boss of the Year. Graham was nominated by Kim Arrington, PowerSouth Fuels Department Secretary. Arrington wrote in her nomination of Graham, “Ron loves his community and the kids in the community. He is a member of the Rotary Club, volunteers as a baseball coach, serves as an Andalusia High School Athletic Booster Club officer and active member of Bethany Baptist Church and supports his family in their school, sports and civic organizations as well.” “His employees respect him and admire his concern for them and their families and for his passion to his work, family and community. I feel it takes a very strong, disciplined and organized man to be able to be a great manager, volunteer in the community and still have time to be a loving father and husband. He is well deserving of this title.” 4 2013 Trustee Update PowerSouth board member Ken Nichols died Oct. 3, leaving PowerSouth to mourn the loss of a great leader and friend. Nichols represented Covington EC (CEC) on the PowerSouth Board of Trustees. Nichols earned a bachelor’s degree in business from Troy University. He served on the Andalusia City Council and was a member of the Board of Directors of CEC for 33 years, where he served as Secretary/Treasurer. He was CEC’s representative to the PowerSouth Energy Cooperative Board of Directors for 12 years. “Ken Nichols’ passing is a great loss for the entire PowerSouth family,” said Gary Smith, PowerSouth President and CEO. “He made a lasting impression on our company, as well as Covington EC. He will be missed by many.” Survivors include his wife, Bobbie, two children and two grandchildren. g 2013 advertising kits to be distributed The 2013 advertising kits for PowerSouth distribution members will be distributed to marketing and communications personnel in November. The kit includes advertisements for use in print and radio outlets, as well as feature articles. The ad campaign focuses on answering the question “Why?” behind many energy efficiency recommendations. Topics include heat pump water heaters, energyefficient windows, heating ventilation and air conditioning (HVAC), insulation and weatherization. For more information about the campaign, contact Cheryl Cotton at cheryl.cotton@ powersouth.com or (334) 427-3420. g “The issues that impact our industry are complex and sometimes difficult to understand, and it’s often impossible to fully grasp the implications of decisions we must make on a daily basis,” said Michael White, CEO and General Manager of Gulf Coast EC and Chairman of PowerSouth’s Member Relations and Strategic Planning Committee. “Trustee Update provides us an opportunity to network with our peers and glean vital information from industry experts and PowerSouth team members.” Speakers include Buzz Miller, Vice President of Nuclear Development at Southern Company; Greg Canfield, Director of the Alabama Department of Commerce; Patrick Michaels, Director of the Center for Study of Science at the CATO Institute; Peter Ricchiuti, Economist and Futurist; Sheldon Petersen, CEO of Cooperative Finance Corporation; Bill Willingham, General Manager of the Florida Electric Cooperative Association; and Fred Braswell, CEO of the Alabama Rural Electric Association. Topics at the Trustee Update will include overviews of PowerSouth’s telecommunications infrastructure and power supply perspectives; industry overviews; economic perspectives; and reports from national and statewide organizations. For more information or to register, please contact Mark Ingram at mark.ingram@ powersouth.com or (334) 427-3330, or Wanda Woods at wanda.woods@ powersouth.com or (334) 427-3369. g 5 New analysis finds EPA regs would cost 1.5 million jobs over next 4 years A new analysis of regulations from the Environmental Protection Agency (EPA) that would impact the coal-based electricity industry projects that seven rules would reduce U.S. employment by 1.5 million jobs over the next four years. The analysis was conducted by National Economic Research Associates (NERA) on behalf of the American Coalition for Clean Coal Electricity (ACCCE) and described in a 129-page report, “Economic Implications of Recent and Anticipated EPA Regulations Affecting the Electricity Sector.” “If the EPA is allowed to continue its aggressive anti-coal agenda, the American economy will lose another 1.5 million jobs in the next four years,” said Mike Duncan, president and CEO of ACCCE. “The EPA does not consider the economic consequences of their actions, which in this case will not only erase American jobs; it will raise annual costs to families by hundreds of dollars, the equivalent of a monthly grocery bill.” Key findings of the NERA analysis include: • The regulations will cause employment losses totaling 1.5 million jobs over just the next four years, with a quarter million of those job losses occurring in the Midwest. Employment losses will continue beyond that timeframe, averaging 544,000 to 887,000 jobs annually. • Electricity consumers will spend as much as $67 billion more for electricity. • The average family’s income will drop by $200 to $500 annually, which is equivalent to a family’s monthly grocery bill. • An unprecedented number of coal-fueled power plants will be forced to shut down. Between 54,000 to 69,000 megawatts of coal-fueled electricity generation will be shut down, mostly because of the EPA regulations. This is roughly equivalent to the combined electricity supplies of Ohio, Virginia and Iowa. This is also more than the total electricity supply of either Pennsylvania or Florida. • The electric sector faces enormous compliance costs. Electricity generators would be required to spend $15 billion to $16.7 billion annually on compliance costs over the next two decades. A summary of NERA’s report is available on the ACCCE website at www.americaspower.org. g Source: Business Wire, Oct. 26, 2012 ACRE D.C. trip winners chosen Four PowerSouth employees have been selected as our 2013 Action Committee for Rural Electrification (ACRE) Legislative Conference trip winners. Winners include Dewayne Jackson, Lowman Plant Operating Technician 4, and his alternate, Ronnie Chapman, Lowman Utility Technician 5; Mickey Snell, Lowman Electrical Instrument Supervisor, and his alternate Lane Taylor, Lowman Inventory Control Supervisor; Todd Merrill, Central Generation Operating Technician, and his alternate, Thomas Smith, Central Generation Plant Technician; and Jamie Hawkins, Technician Metering 6, and his alternate, Ralph Gunter, System Operator I. Total number of employees: 125 493 New employees were hired in 2011 618 Operating Technician 69 boardUPDATE 6 Conecuh County....................................................... 2 Crenshaw County....................................................10 Administrative Clerk........................................ 18 HARVEY BRENTS, Operating Technician 6 Escambia County...................................................... 1 Mobile County............................................................ 3 Monroe County.......................................................... 2 Montgomery County.............................................. 4 Pike County................................................................... 2 Washington County............................................106 FLORIDA: Holmes............................................................................. 2 Jackson............................................................................ 1 # of employees Walton.............................................................................. 1 Washington................................................................... 2 11-15 years..........................................................................82 16-25 years......................................................................135 26-30 years....................................................................... 66 31-35 years.........................................................................73 He and his wife, June, have two children, Jessica Smith Meriwether and Jill Smith, and two grandchildren, Sam and Layton Meriwether. g Coffee County...........................................................15 Maintenance Technician...............................36 (Multiple levels/disciplines) 6-10 years............................................................................85 “It is an honor to serve the members of Covington EC, as well as PowerSouth, as part of the board of trustees,” Smith said. “I believe strongly in what we do within the cooperative system, and I hope to contribute positively for years to come.” Clarke County........................................................... 90 Covington County...........................................322 0-5 years.........................................................165 Smith represents Covington EC on PowerSouth’s board, replacing board member Ken Nichols who passed away Oct. 3. Choctaw County....................................................... 2 (Multiple levels/disciplines).......... Utility Technician................................................37 (Multiple levels/disciplines) The Legislative Conference is April 28 through May 4, 2013. The winners will join more than 3,000 co-op leaders from around the country. They will meet with congressional leaders and tour historic sites in the Washington, D.C. area. g Smith is employed by The First National Bank of Dozier, Ala., and is a member of Brantley United Methodist Church. He currently serves as Chairman of Covington EC’s Board of Trustees. ALABAMA: Baldwin County.......................................................... 6 Most common job titles: Years of service: Willie Smith, Jr. of Brantley, Ala., was elected to the PowerSouth Board of Trustees during the Oct. 26 board meeting. Where they live: Butler County.............................................................12 The winner of the $100 gift card for employees who registered new members was Clay Carter, Plant Technician at Central Generation. Covington EC’s Smith elected to board 66 PowerSouth by the numbers 36-40 years...........................................................................5 Educational levels: MISSISSIPPI: Wayne............................................................................... 2 High School Diploma........................................194 2-year Technical Degree.....................................92 2-year Associates Degree...................................58 Some College............................................................38 Bachelor’s Degree................................................184 Master’s Degree........................................................13 Juris Doctorate/PhD................................................ 5 Certified Public Accountant................................ 2 Professional Engineers........................................... 9 Professional Engineers in Training.................. 2 7 EMPLOYEE NEWS Reserve Pt. A Lodge now for events The last day for PowerSouth employees to reserve Pt. A Lodge for PowerSouth 2013 functions is Nov. 9. A memorandum or e-mail request must be submitted to Angela Riley, Procurement Services Department Secretary, stating the date(s) requested for company functions. Scheduling is done in the order received. Employees who wish to reserve the Lodge may do so by completing reservation forms available from Riley in Procurement Services. Forms may be requested after Nov. 9 and returned before 4:30 p.m. on Monday, Nov. 26. Requests will be randomly drawn to determine the order reservations are made. Employees will be informed of their reservations by Nov. 30 and must remit payment to Angela Riley no later than Friday, Dec. 14 in order to hold reservation(s). After Nov. 26, lodge reservations for the 2013 calendar year for PowerSouth functions will be granted on a first-come, first-served basis. After Nov. 30, employees can make reservations by contacting the Procurement Services department. Employee rental prices for the lodge are $50 per day along with a $100 damage deposit, which is refundable if the lodge is left in a clean, undamaged condition. Beginning January 2, 2013, reservations are opened to the public, including churches and civic groups. RV hook-ups are now available for a fee of $20 per day per outlet. There are two 30-amp outlets and two 50-amp outlets. Please refer to the ‘Recreational Vehicles (RVs) & Campers’ section of the Lodge Rental Agreement for further details. You may obtain a copy of this agreement by contacting Angela Riley at ext. 3287. g 8 8 EMPLOYEE NEWS Lose - Lose - Win Gary Smith President and CEO PowerSouth I recently came across a study by Sebastian Rausch and John Reilly titled Carbon Tax Revenue and The Budget Deficit: A Win - Win - Win Solution. Mr. Rausch and Mr. Reilly are with the Massachusetts Institute of Technology (MIT) Joint Program on the Science and Policy of Global Change, an organization for research, independent policy analysis and public education in global environment change. By their own definition, a group that seeks to provide leadership in understanding the effects of global warming or climate change. The study expands on a Congressional Budget Office recommendation to tax carbon dioxide emissions at $20 per ton starting in 2013 and increasing at a rate of 5.8 percent in real terms, annually. The carbon tax would raise more than $1.5 trillion over a 10-year period. The authors state their research indicates the carbon tax could be a win-win-win situation where (1) Congress could reduce personal or corporate income tax rates, extend payroll tax cuts, maintain spending on social programs, or some combination of those options; (2) income tax cuts would spur growth of the economy, encouraging more private spending and hence more employment and investment; and (3) carbon dioxide pollution and oil imports would be reduced. The study models different cases, under which the revenue from the taxes is used in different ratios to reduce income tax rates, maintain or expand social programs and incentivize business growth with increased investment tax credits. As one would assume, these measures could spur economic growth more quickly than investment in social programs. The study also concludes the continuation or expansion of social programs will result in transfers of wealth from those that pay income taxes and those that emit carbon to the poor. The study acknowledges investment in the social programs will have a cooling effect on the economy; however, the economy should benefit because the poor save less than the wealthy and will re-circulate the money into the economy to create demand. The proposition that increased taxes would spur the economy is counter to most economic theory. Even Keynesian economists admit that long-term taxes and government spending harm the economy. The reason the MIT study finds increased taxes spur the economy is because the study assumes full employment (which we do not currently have) and that there will be no loss of revenue from GDP. In essence, everyone will be fully employed and the increased cost of a carbon tax will not result in our products being displaced in the global market with lower-priced products from countries that are not burdened by a carbon tax. Both scenarios appear to be very unlikely, and I would expect the carbon tax would cause our economy to shrink dramatically. However, the study concludes the carbon tax will lower fossil fuel use under all scenarios, reducing carbon dioxide emissions and lowering oil imports. The carbon tax on gasoline would make fuel-efficient vehicles more attractive to consumers and make it easier for automobile producers to sell vehicles that meet efficiency standards. The carbon tax would also create support for renewable energy and encourage those technologies by making “dirtier” technologies more expensive. It is logical that increased gasoline costs would reduce travel and encourage the use of more efficient vehicles, if we can afford them. MIT is an outstanding school with very strong programs in many technical fields. Professors and students do renowned work in many subjects, and it is obvious this study required much time and effort. However, the study demonstrates the results we get when a group has an agenda and bends the inputs of complex variables to meet their ends. In this case, the authors conclude that increased taxes, enhanced social programs, transfers of wealth to the poor will benefit the economy and decrease carbon emissions. I, however, believe the carbon tax would injure the economy, reduce employment and drastically reduce GDP. It would reduce carbon dioxide emissions. Which leaves us with a lose – lose – win situation. It is not a bargain I would strike. I hope you have a good month. g HQ employees to participate in Community Christmas Employees at PowerSouth’s headquarters and Central Generation locations who are interested in participating in the Community Christmas program will be able to receive their children’s request cards beginning Nov. 12. This will be the 10th year PowerSouth employees provide toys, clothing, diapers and other gifts through the Community Christmas program. In 2012, PowerSouth will sponsor 100 children in the program, which allows qualifying families to receive assistance providing gifts for their children through the help of anonymous donors. Andalusia Community Christmas officials expect almost 600 children between 2 and 12 years old will be sponsored this year in the Andalusia, Red Level, Pleasant Home and Straughn school districts. According to PowerSouth Activities Committee Member Wanda Woods, gift packages should be valued at $50-$60 and are to be returned to PowerSouth by Nov. 30. In turn, PowerSouth will deliver the packages to the Kiwanis Building. PowerSouth will have bags available for all gifts. Employees who don’t want to sponsor a child on their own are encouraged to co-sponsor with another employee on one child’s gifts. For additional information, contact any Activities Committee member, including Kim Arrington, Amy Colvin, Lisa Cravey, Lisa Haney, Diane Howell, Dennis O’Neal, John Shaw, Lisa Veasey and Woods. g Are you PowerStrong? PowerSouth’s Human Resources Department is looking for employees interested in serving on the 2013 PowerStrong Team, a company-wide wellness team promoting the importance of physical and emotional well-being. Outgoing 2012 team co-leaders were Kelley Fore and Tabitha Wiggins. Other 2012 team members include Helen Bradley, T.J. Defee, Emily Smith, Skip Spurlin, Jason Stearns, Shannon Wilkerson, Chuck Moore, Bo Welcher and Beverly Wilson. “A healthier lifestyle can boost employee morale and add some enjoyment to the work day,” says Suzanne Craft, PowerSouth Human Resources Coordinator. “We’re looking for employees to be empowered toward promoting a healthy lifestyle.” If you have any suggestions or questions, please contact Craft at ext. 3224 or Lynda Carnley, PowerSouth Human Resources Coordinator, at ext. 3465. Deadline to sign-up for the team is Nov. 30. g newemployeeprofile: Brandon Horn Recent Auburn graduate Brandon Horn was hired Sept. 5 as Engineer III in the T&D Planning and Reliability Department. Horn is originally from Athens, Ala., and received a degree in electrical engineering from AU. “I wanted to work in the power field and PowerSouth had a couple of job openings that interested me,” he said. “PowerSouth seemed like a great company to work for.” During his brief time at PowerSouth, Horn says he has been learning the relays, equipment and programs used in his job. “I have really been impressed with all the technology PowerSouth implements,” he said. During his free time, Brandon enjoys just about anything outdoors, including hiking, camping, fishing and golfing. g System Summary Quick Facts October 2012 System peak (unadjusted): 1,274 megawatts — Oct. 6 September 2012 Average Cost of Service — 71.14 M/KWh Average Cost of Service YTD — 69.76 M/KWh Minimum temperature: 41 degrees Maximum temperature: 89 degrees Average temperature: 70 degrees Gantt rainfall: 0.94 inches for the month CP Demand Billed — 1,605,202 CP Demand Billed YTD — 15,217,114 MWh Sold — 679,519 MWh Sold YTD — 6,142,829 9 EMPLOYEE NEWS Comings and Goings Service anniversaries Barbara Whitehead Lowman Plant 40 years, Nov. 27 Ronald Williamson Central Generation 38 years, Nov. 18 Jimmy Eiland Information Systems 37 years, Nov. 19 Larry Avery Power Delivery 35 years, Nov. 1 Welcome Bryan Parker, Economic Development Representative in the Business Development Division, effective Oct. 1. Roger Hammonds Central Generation 35 years, Nov. 9 Phillip Spivey Substation O&M 33 years, Nov. 19 Stanley Poole Florida District 29 years, Nov. 14 Kevin Brown Lowman Plant 29 years, Nov. 28 Caleb Goodwyn, Economic Development Representative in the Business Development Division, effective Oct. 1. Levi Sasser, Custodian in the Procurement Services Department, effective Sept. 25. Jena Majors, Work Study in the Telecommunication Services Department, effective Oct. 15. Goodbye and good luck Mark Shane Lewis, Maintenance Technician at the Lowman Plant, effective Oct. 19. g Promotions Steve Griffin Lowman Plant 27 years, Nov. 1 Robert Beckham Lowman Plant 27 years, Nov. 5 Dewain Dearmon Lowman Plant 27 years, Nov. 6 Morgan Rogers Lowman Plant 27 years, Nov. 6 Norman Howard Lowman Plant 27 years, Nov. 7 Steve Mathews Building Maintenance 26 years, Nov. 3 Brian Howard T&D Eng. & Const. 22 years, Nov. 3 James Wade Lowman Plant 22 years, Nov. 12 Congratulations to Robert Hadley on his promotion to Substation O&M Specialist II in the T&D O&M Department, effective Sept. 24. He was previously Technician Substation. Congratulations to Tabitha Wiggins on her promotion to General Accountant II in the Finance and Accounting Department, effective Oct. 1. She was previously Administrative Clerk. g Congratulations to Henry Russell Wallace on his promotion to Technician Substation in the T&D O&M Department, effective Sept. 30. He was previously Custodian. Ken Davis Lowman Plant 22 years, Nov. 12 Mark Criswell Lowman Plant 22 years, Nov. 12 Nick Grana Lowman Plant 22 years, Nov. 12 Scottie Henderson Lowman Plant 22 years, Nov. 12 Percy Harris Lowman Plant 21 years, Nov. 11 Mel Moseley Lowman Plant 17 years, Nov. 13 Lamar Crowe Telecommunications 16 years, Nov. 11 Mark Craig Accounting 12 years, Nov. 13 Sympathy Our heartfelt condolences are extended to Brent Bracke (Central Generation) on the death of his father, Harry B. “Butch” Bracke, 69. He died Sept. 28. Scott Patterson Central Generation 12 years, Nov. 27 Brent Bracke Central Generation 11 years, Nov. 5 Jason Stearns Lowman Plant 10 years, Nov. 11 Jaime Waite Lowman Plant 8 years, Nov. 15 Marlin O’Guynn Lowman Plant 8 years, Nov. 15 Suzanne Craft Human Resources 8 years, Nov. 15 John Wiggins System Protection 8 years, Nov. 22 Ashley Sasser Accounting 7 years, Nov. 14 Bill Marler Fleet Services 10 years, Nov. 18 Josh Sightler Information Systems 6 years, Nov. 6 Mickey Simmons Economic Development 9 years, Nov. 3 Derek Dillard Substation O&M 8 years, Nov. 8 Leslie Singleton Lowman Plant 6 years, Nov. 27 Adam Elmore System Protection 5 years, Nov. 12 Board meeting dates Don’t forget: The November and December board meeting dates are Friday, Nov. 16, and Friday, Dec. 21. All employees are asked to wear business professional attire on board meeting days. Eric Hicks Substation O&M 3 years, Nov. 30 Jerold Syphrit Lowman Plant 2 years, Nov. 29 Retirement 10 10 Jim Helms T&D O&M 1 year, Nov. 21 Brock Wallace Information Systems 1 year, Nov. 28 Congratulations to Arnold J. Guy on his retirement, effective Sept. 30. He was most recently IC&E Technician at the McIntosh Plant. g Congratulations to Brett Mack (Environmental Services) and his wife, Angie, on the birth of their son, Rowan James (left), Sept. 25. Rowan weighed nine pounds, eight ounces and measured 22 inches long. He was welcomed home by big sister Everly. kids Coston Wilkerson Central Generation 12 years, Nov. 27 CO-OP Bill Sexton Central Generation 12 years, Nov. 27 Our heartfelt condolences are also extended to Ronald Williamson (Central Generation) on the death of his daughter, Mandy Williamson Bradley, 35. She died Oct. 22. g Happy birthday to: November 1. . . . . . . . . . . . . . . . . . . Windell Bedwell Neil Howell Danny Taylor James Taylor November 2. . . . . . . . . . . . . . . . . . . . . . Benjie Elmore Bubba Evers Ray Smith November 5. . . . . . . . . . . . . . . . . . . . . Kenneth Jones Ashley McKee Mike Mitchell November 6. . . . . . . . . . . . . . . . . . . . . Jennifer Kelley November 7. . . . . . . . . . . . . . . . . . . . . . . . . John Shaw November 8. . . . . . . . . . . . . . . . . . . . . Jamie Hawkins November 9. . . . . . . . . . . . . . . . . . . . . . . Binion Jones Shep Lucas Jessie McConico Kim Nawlin November 10. . . . . . . . . . . . . . . . . . . . . . . Art Brunson Skip Spurlin Patrick Thrash November 11. . . . . . . . . . . . . . . . . . . Jennifer Brooks Nick Grana November 12. . . . . . . . . . . . . . . . . . . . . Clifton Brown Robert Gilley Taylor Williams November 13. . . . . . . . . . . . . . . . . . . . . . . Lisa Cravey November 14. . . . . . . . . . . . . . . . . . Veronica Wallace November 15. . . . . . . . . . . . . . . . . . . . . . . . Kent Ikner Marc Kyzar November 16. . . . . . . . . . . . . . . . . . . . . Willie Jackson Russell Keith November 17. . . . . . . . . . . . . . . . . . . . . . . . Joey Short Sam Sullivan November 19. . . . . . . . . . . . . . . . . . . . . . . . . Jim Kelley Teresa Nelson November 20. . . . . . . . . . . . . . . . Madison Moseley November 21. . . . . . . . . . . . . . . . Roger Hammonds Greg Robbins November 22. . . . . . . . . . . . . . . . . . . . Dwight Dunn Kurt Taylor November 23 . . . . . . . . . . . . . . . . . . . . Mike Hardage David Weems November 24. . . . . . . . . . . . . . . . . . . . Tracy Johnson November 25 . . . . . . . . . . . . . . . . . . . . . Angela Kelly John Turvin November 28. . . . . . . . . . . . . . . . . . . . . . Jamie Jones November 29. . . . . . . . . . . . . . . . . . . . Willie Williams Congratulations to Kim Nawlin (Procurement) on the birth of her grandson, Avery Marcus Nawlin (right), on Sept. 18. Avery was eight pounds, 12 ounces and measured 20 ¾ inches long. He is the son of Jason and Anna Nawlin. Avery is also the great nephew of Waylon Dunn (Central Generation). 11 P.O. Box 550 Andalusia, AL 36420 healthfair Powerlines is published monthly for the employees and members of PowerSouth Energy Cooperative. Communication Manager Mark Ingram Media and Communication Coordinator Christi Scruggs Media and Communication Specialist Emily Smith Photography John Dean Harold Dubose Chris Flood Communication Department PowerSouth Energy Cooperative 2027 East Three Notch Street (36421) P.O. Box 550 (36420) Andalusia, AL info@powersouth.com www.powersouth.com Ouch! That hurt! DeAndra Pyron, Rate Analyst 2, was one of 219 PowerSouth employees to get a seasonal flu shot during PowerSouth’s 2012 Health Fairs. Pyron participated in the Health Fair at headquarters on Oct. 30. Other services provided included vision screenings, blood pressure checks, a complete blood count (CBC blood work) and age-related screenings like Prostate Specific Antigen (PSA) for men over age 40. The fairs were conducted at headquarters and Lowman Plant and were free to all employees. This year’s fairs had a combined 283 attendees. g Powerlines is online at www.powersouth.com/powerlines Send comments or story suggestions by e-mail to info@powersouth.com. To request a printed version of this issue: Sandy Neal (334) 427-3712 sandy.neal@powersouth.com