2012-09-MM

September 2012

Average member will see additional $2.70 beginning October 2012

Wholesale power increases lead to rate adjustment Rising wholesale power costs are driving the need for a rate adjustment approved after thorough study by the board of directors of Blue Ridge Electric.

Beginning in October, the average member using 930 kilowatt hours per month will see an additional $2.70 on their monthly electric bill. It is a 2.5 percent overall rate adjustment.

Wholesale power costs are rising due to the cost of state and federal environmental regulations, closing older coal plants and building new power generation plants to replace them, and upgrading transmission power systems to meet federal reliability and security requirements.

“As rising costs for wholesale power impact utilities and consumers across the nation for the foreseeable future, Blue Ridge Electric is working to keep the impact as low as possible for our members,” said Doug Johnson, chief executive officer of Blue Ridge Electric. “Our wholesale power agreement with Duke Energy provides the lowest cost wholesale power available, but Duke’s costs are increasing this year and are projected to continue increasing over the next few years.

While wholesale power costs make up about 60 percent of our expenses, Blue Ridge employees are doing their part to help control costs by identifying and implementing savings ideas. The employee-led WorkSmart program is reducing operating costs by $2.9 million per year.

Blue Ridge Electric wants to help members keep bills as low as possible even with current cost pressures. Energy efficiency is the best way to do that and the cooperative offers free tools such as an online energy audit at BlueRidgeEMC.com. If a member doesn’t have Internet access, they can call their local district office and a member representative will assist in the energy audit and identifying ways to save money. Blue Ridge Electric also offers a free electricity monitoring tool at MyUsage.com. Energy Savers booklets are also available in local district offices.

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Cost increases for wholesale power are affecting utilities and consumers nationwide. Blue Ridge Electric is working hard to keep members’ bills as low as possible as we address this challenge. This is a long term effort because the cost pressure is significant and coming from three key areas: cost of environmental regulations, closing old coal plants and construction of replacements, and upgrading our nation’s aging transmission power system.

Complying with the growing number of environmental regulations on both state and federal levels is very expensive. Billions of dollars have been spent by utilities required to meet multiple environmental protection rules, such as the North Carolina Smokestacks Act and Renewable Energy and Energy Efficiency Portfolio Standard, as well as the federal Clean Air and Clean Water acts.

These rules are having an impact: our environment is cleaner today according to a recent study by the North Carolina Department of Environment and Natural Resources. But the work — and cost — continue. For example, old coal plants cannot meet new environmental requirements so they’re being closed and replaced by building

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As a cooperative we exist to provide atcost electricity and look out for the best interests of our members, so it’s never easy to pass along increases. We’re pleased, however, that the upcoming rate adjustment of 2.5 percent is lower than what we see coming from many other utilities.

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Working to keep members’ bills as low as possible in a rising costs environment

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new, more expensive power generation plants.

Also putting heavy cost pressure on electricity prices is the need for our nation to make significant investments in upgrading an aging power transmission system. High-voltage transmission lines and equipment are very expensive, but utilities must invest now to continue powering our way of life and our economy.

Because wholesale power makes up 60 percent of our costs, the best way we can help keep members bills as low as possible is with our wholesale power agreement with Duke Energy Carolinas. We’ve secured the best wholesale power cost on the market but these costs are rising due to the factors above.

Employees are also doing their part.

Through our WorkSmart program, employees have initiated operating efficiency ideas worth $2.9 million per year in savings for our members and I’m very proud of their efforts because none of the costs we control are causing the current rate increase.

Rising wholesale power costs will affect our nation for the foreseeable future, but our commitment to you, our members, is that we will do everything possible to mitigate these costs while providing the best reliability and member service in the nation. Even in a rising costs environment, we’re committed to the cooperative principle of keeping your bill as low as possible.

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Energy efficiency still matters Even with the rate adjustment increasing the average member’s bill by $2.70, you can save that amount or more by understanding how energy is used in your home. To help you identify potential low-cost or no-cost savings opportunities, we offer: • Home energy, appliance and lighting cost calculators available at BlueRidgeEmc.com.These tools can easily show the projected dollar impact of changes you may be considering.

• “Kill-a-watt” energy monitoring devices available for loan at your local Blue Ridge Electric district office or county libraries.

This device can identify how much energy 120--volt plug-in appliances such as refrigerators, freezers, etc. are consuming.

• MyUsage.com, a free service helps you monitor your energy usage on a daily basis; you can sign up for free at. Have your meter, account number and email address handy. You can even set daily usage thresholds to automatically receive alerts when your usage exceeds a specified amount.

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More News Looking out for you...

Keeping members informed At Blue Ridge Electric, we’re working to keep members informed and to deliver the best service.

We contact members in advance any time we’ll be on their property performing right-of-way maintenance such as tree trimming. We’re now taking the communications process one step further. When a tree or large brush has been cut but will be removed at a later date, we’re letting members know by leaving a sign near the debris (see photo to the right).

Right-of-way maintenance of our more than 8,000 miles of line is very extensive and requires multiple crews to assist in every aspect. That’s why it’s necessary at times to have different crews cutting, trimming and removing debris. Thank you for patience as we work to provide the most reliable electric service possible and to deliver excellent service to our members!

NC REPS change The NC Renewables/Energy Efficiency line item charge on your bill reflects recovery of costs associated with meeting North Carolina’s Renewable Energy and Energy Efficiency Portfolio Standard (NC REPS).

This law was passed by the 2007 NC General Assembly to encourage all utilities to generate and distribute more electricity from renewable resources and to encourage energy efficiency. It requires cooperatives to meet up to 10 percent of our energy sales through these measures by 2018.

This year, members will see the following monthly changes starting on September bills: the residential fee will move from 47 cents to 30 cents; the commercial fee will move from $2.36 to $3.75; and the industrial fee will move from: $26.07 to $24.95.

The law includes spending caps to protect consumers from extreme cost spikes and to help achieve the NC REPS standards as cost effectively as possible. Expenses to comply with NC REPS will fluctuate annually according to renewable and energy efficiency projects by our wholesale power provider.

Your cooperative is coordinating efforts with our wholesale power supplier, Duke Energy Carolinas. As we work to positively impact North Carolina’s environment and energy future, our goal is to implement effective ideas while providing members with the best value.

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Members Only NEWS

~For Members of Blue Ridge Electric

Saving money on lighting CORPORATE OFFICE PO Box 112 • Lenoir, NC 28645

CHIEF EXECUTIVE OFFICER Doug Johnson EDITOR Renée R. Whitener PRODUCTION SUPERVISOR Susan Simmons DISTRICT OFFICES Caldwell (828) 754-9071 Watauga (828) 264-8894 Ashe (336) 246-7138 Alleghany (336) 372-4646 Wilkes (800) 451-5474 (800) 448-2383 PowerLine® (PowerLine® is an automated account information and outage reporting system.)

The average home contains 40 light fixtures, according to the U.S. Department of Energy (DOE).

tested forebearers, but they cut energy consumption by 25 percent and last three times longer.

This year, the first of several federal lightbulb efficiency standards kicked in, requiring manufacturers to stop making 100-watt (W) incandescent bulbs in favor of ones using less electricity to produce the same amount of light (lumens).

This doesn’t mean the outmoded bulbs went away — you can still find old stock at stores around town. But keep in mind traditional incandescent bulbs are less efficient than halogen or compact fluorescent lamps (CFLs).

Another style we’ve championed for years is CFLs. These swirly bulbs slash energy use by 75 percent compared to traditional incandescent bulbs and last up to 10 times longer.

If you don’t want to stray too far from the bulbs you’re used to, consider halogen incandescent lightbulbs. Color options and dimming abilities mirror their time-

In January 2013, a new set of lightbulb efficiency standards fall into place, this time halting production of 75-W incandescent bulbs. A year later, household lightbulbs using between 40-W to 100-W must consume at least 28 percent less energy than classic bulbs, saving Americans an estimated $6 billion to $10 billion in lighting costs annually.

Sources: Lighting Facts Product Snapshot: LED Replacement Lamps 2011 and www.EnergySavers. gov/Lighting

Toll Free 1 (800) 451-5474 (for members outside the service area) To report an outage at any time, call one of the numbers listed above.

OFFICE HOURS 8:30 am - 5:00 pm, Monday - Friday Night deposit available.

Visit us on the Web: www.BlueRidgeEMC.com

Check out MyVIPSavings.com Cash Back Rewards Mall Touchstone Energy Cooperatives (Touchstone Energy) has added MyVIPSavings. com Cash Back Rewards Mall to its Co-op Connections® Card program. This option fits perfectly into Blue Ridge Electric’s commitment of creating more value for you, our members. Through access to over 1,000 stores, members can earn cash back and save significant money on just about everything purchased through the site. Go to connections.coop and discover all the ways you can save!

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