A group of well-known local community activists, writers, academics and business leaders have contributed to the issue. including Wendell Berry, Vernon Haltom, Stephen George, John Todd, Adam Lewis, Sarah Forbes and many more. An article titled A Cooperative Approach to Renewing East Kentucky was written by KFTC member Randy Wilson and staff person Sara Pennington. Erik Reece contributed an interview with Joe Childers, a founding member of KFTC and current chair of the Kentucky Mine Safety Review Commission.

The premise for the special issue, according to Solutions editors, is a recognition of Appalachia as a special place and one of the most biologically diverse and culturally rich regions on the planet. Central Appalachia has the potential to become a national model of the positive transition to a clean energy future.

This July/August special Appalachia issue of Solutions is now available on newsstands and by subscribing. A year's subscription (6 issues) is $29.99 but if you identify yourself as a KFTC member by using Coupon Code APP2010 you will receive a $5 discount. If you want your subscription to start with the current special issue, please email julie.thorpe@thesolutionsjournal.com and make this request. Most of the content will also be available online, but KFTC encourages support of this nonprofit venture with a subscription or a donation.

Solutions is an online forum and print publication devoted exclusively to showcasing bold and innovative ideas for solving the world's integrated economic, social, and environmental problems.

UPDATE: At Tuesday's public hearing (see more below) the Army Corps of Engineers announced they have extended the deadline and are accepting written comments on the Smith plant's dredge & fill permit until June 18. Comments may be be submitted to the Corps via email: lrl.regulatorypubliccomment@usace.army.mil 

Click here for information to help you compose your comment.

_________________________________________________

More good news on the Stop Smith campaign. Tuesday night, about 125 people attended a public hearing on a proposed permit that would allow East Kentucky Power Cooperative to impact Kentucky waterways and wetlands with coal ash. Of the 32 people who took the microphone, 31 opposed EKPC's plan to build a new coal-burning power plant in Clark County.

This "dredge and fill" permit - also called a 404 permit - would allow EKPC to impact more than 14 miles of streams including 210 stream channels and nearly 5 acres of wetlands, burying about half of these waterways that feed into the Kentucky River under toxic coal ash.

Many speakers focused on the dangers of mercury in the coal ash and other potential long-term effects. The Army Corps of Engineers will consider the comments in deciding whether to grant the permit.

John Patterson, who owns land adjoining the site, said he worries about his family and how the plant will affect future generations. "This is something that, quite frankly, is scaring me to death."

Patterson said Kentucky has an opportunity to be a leader in innovative energy technology. "The eyes of the nation really are upon us," he said.

Miranda Brown, also a Clark County resident, worries about her drinking water. "94 percent of my drinking water comes from the Kentucky River," she said. Brown gets her water from Winchester Municipal Utilities, which has intakes near the site where coal ash will be dumped.

"The people of Clark County know better than to defecate in our own water. Can we trust the Army Corps of Engineers to do the same?" Brown asked.

Only one speaker, William Quisenberry of Winchester, expressed support for the plant, saying it would bring good jobs and that he trusted EKPC and the state to keep the plant safe. But many other speakers disagreed, saying energy efficiency and renewable energy would produce many more jobs. They also cited the recent Gulf oil spill and the Kingston coal ash spill as examples of industry and government not doing their jobs to ensure safety.

Allies KFTC, Kentucky Environmental Foundation and the Sierra Club offered free mercury testing at the hearing to call attention to the already high mercury levels in Kentucky waterways.

If you missed the hearing, you can replay KFTC's live blog of the event, and watch video clips from the hearing at this link: http://www.kftc.org/blog/archive/2010/06/08/live-blogging-smith-404-permit-hearing

For more information about the hearing, follow these links:

Winchester Sun article: http://www.winchestersun.com/stories/2010/06/09/loc.105845.sto

Lexington Herald Leader article: http://www.kentucky.com/2010/06/08/1298302/dozens-oppose-proposed-power-plant.html

WKYT video clip: http://www.wkyt.com/home/headlines/95923954.html

_____________________________

More photos from the hearing:

  

  

  

  

     

The proposed coal-burning Smith plant is refusing to die.

Your voice is needed to end it once and for all!

The coal-burning Smith plant proposed by the East Kentucky Power Cooperative is the living dead. 

It's taken hit after hit in recent weeks from the work of KFTC and our allies – we've had some good success. For example, EKPC has temporarily pulled its request for financing approval, a major audit said the plant is the "biggest risk" EKPC will face in many years, and the U.S. EPA has objections to the state-issued air permit .... yet, EKPC is marching on, seeking a permit to put millions of tons of coal ash from the plant into Kentucky's streams. It's time to tell EKPC and state officials to pull the plug and stop wasting taxpayer money. It's time for good, local, clean energy jobs instead.

You can help stop this coal zombie:

Attend the public hearing held by the Army Corps of Engineers next week, Tuesday, June 8, at 7 p.m. in Winchester. Stand with folks from all over the state to demand a clean alternative to the Smith plant. Help say it's time to end this toxic project once and for all. 

Click here if you're considering attending the hearing.

Background

This hearing is our time to make a public demonstration of our opposition to a federal permit that would allow EKPC to impact 14 miles of waterways, burying about half of them under hazardous coal ash. And, it's time to stand up once again in support of the clean and less-costly alternative of energy efficiency, weatherization and renewable energy. All Kentuckians, whether you receive your power from EKPC or not, are stakeholders in this process as the plant would contaminate the air we all breathe and the water we drink. Already, every waterway in Kentucky is already under a fish advisory warning due to mercury contamination from coal burning power plants. Click here to download a flyer with more information about the hearing and the impacts of the permit.

Now is the time to say, “Enough is enough!” The solution is simple and clear. Energy saving and renewable energy programs won’t need a permit because they won’t pollute our water. We must use this opportunity to speak out, letting the U.S. Army Corps of Engineers and EKPC know that this clean energy solution is the just and healthy choice, not only for EKPC ratepayers, but for all Kentuckians.

Share our Facebook event about the hearing.  If you are on Facebook you can invite your friends to the event.

An important step to achieving a clean and economically viable future for rural electric cooperatives, their member-customers, and their local economies will be the establishment of “on-bill financing” programs which will help overcome the up-front costs of implementing energy efficiency and weatherization measures.

The Rural Energy Savings Program Act

(S. 3102 / H.R. 4785)

On March 10, 2010, the Rural Energy Savings Program Act was introduced in Congress. The bill was introduced in both the House and the Senate with bipartisan support.

Under the new program proposed by the bill, the US Department of Agriculture’s Rural Utilities Service (RUS) will create a $4.9 billion loan program available to cooperatives with a zero percent interest rate. Cooperatives in turn will make this money available to consumer members in the form of micro-loans with an interest rate of no more than 3 percent, which can be paid back primarily through savings on their electric bills. This type of loan program is called “on-bill financing” because the loan payments would be made right on the utility bill. Another key component is that the loan would stay with the real property (i.e. the electric meter) rather than with the utility customer.

Bipartisan co-sponsors of the Senate version of the bill (S. 3102) include Senators Jeff Merkley (D-OR), Lindsey Graham (R-SC), Richard Lugar (R-IN), Jeanne Shaheen (D-NH), Tim Johnson (D-SD), and Michael Bennett (D-CO).

A companion bill in the House of Representatives (H.R. 4785), was introduced by Representatives James Clyburn (D-SC), Tom Perriello (D-VA), Ed Whitfield (R-KY), and John Spratt (D-SC).

The National Rural Electric Cooperative Association is supporting the two bills, and you can find more information on their website.

Why this bill is important and its implications for Appalachia

The East Kentucky Power Cooperative (EKPC) is a non-profit electric utility that provides power to 16 rural electric cooperatives across 87 Kentucky counties and is currently in the permitting process for the proposed construction of a new coal‐burning power plant in Clark County, KY, called the Smith plant. About half of the counties served by EKPC are in Appalachia, and about a quarter are coal-producing counties. Many of these are some of the most economically distressed counties in the nation.

A recent report commissioned by Kentuckians For The Commonwealth, Kentucky Environmental Foundation, and the Cumberland Chapter of the Sierra Club found that an investment in a combination of energy efficiency, weatherization, hydro-power and wind power initiatives in the region would generate more than 8,750 new jobs for Kentucky residents, with a total impact of more than $1.7 billion on the region’s economy over the next three years. This alternative approach would meet the energy needs of EKPC customers at a lower cost than the proposed coal plant.

Federal and state policies that make possible on-bill financing for the energy efficiency and weatherization portion of the alternative are important steps toward a clean energy future for EKPC co-ops and their members. Passage of the Rural Energy Savings Program Act is integral to this future, and the jobs and positive economic impact it will bring.

____________________________________

UPDATE: As of May 12, bill now has 15 co-sponsors for the Senate version. And the House version is now co-sponsored by four of Kentucky's six representatives: Rep. Ed Whitfield (KY-1), Rep. Ben Chandler (KY-6), Rep. Hal Rogers (KY-5), and Rep. Brett Guthrie (KY-2).

Also, we should mention that on the state level, the Mountain Association for Community Economic Development (MACED) is working on a pilot of the on-bill financing idea with four distribution co-ops in eastern Kentucky. MACED and those co-ops are waiting for Public Service Commission approval but are currently working together to get the systems in place to provide on-bill financing options to co-op members. 

A quick and short note out to all our blog readers. A breaking story in the Lexington Herald Leader announces a success in our campaign to halt the proposed coal-burning Smith plant and bring energy efficiency and renewable energy programs instead to Kentucky's rural electric co-ops:

East Kentucky Power Delays Coal Plant

Read all about it at the Herald Leader.

The withdrawal of the request for financing approval is a major victory for environmental groups ... that have hammered the cooperative in recent years for embracing a project that they said was dangerous for Kentuckians because of the health effects of burning coal for electricity...

The groups, including Kentuckians for the Commonwealth, the Kentucky Environmental Foundation and the Sierra Club, have taken actions including commissioning studies showing that the proposed plant would be a major drain on finances and also filing suits to stop the construction process.

And it's great that the article mentions our work toward a solution:

Environmental groups have argued the cooperative would be better off spending money to educate customers about consuming less electricity and to also utilize more renewable sources of energy.

We'll have more soon. But now, time to celebrate that we can go full force on working to bring clean energy to eastern Kentucky's co-ops.

Last week in Washington, D.C., a bipartisan group of U.S. Senators and Representatives introduced a bill that would help rural electric co-ops provide "on-bill" financing for energy saving programs.

The Rural Energy Savings Program Act would provide rural utilities, including the rural electric co-ops, with the means to help folks with the up-front costs of financing energy efficient upgrades to their homes; these utility customers would pay back the utilities on their bill with part of their savings.

Representative Ed Whitfield of western Kentucky is an original co-sponsor of the Act. "[I]t is essential we explore ways to improve energy efficiency and, in turn, better manage the demand for electricity,” Whitfield said. “Increasing our energy efficiency is one of the best proven ways to free up energy on our electricity grid. This bill is a win for American consumers and a win for improving energy efficiency across the country.”

Whitfield is joined by members of Congress from throughout the U.S. and both political parties, as well as by the rural electric cooperatives themselves. Whitfield deserves thanks for stepping out in front on this issue that could be so beneficial to rural electric co-op members across the state. In addition to stopping the proposed coal burning Smith plant, the East Kentucky Power Cooperative could help its members even more with the loans for energy efficiency provided by this bill. It will help their customers save energy, save money, and help prevent further pollution, protecting the public health of Kentucky. If you live in Whitfield's district, you can email him (using the form at this link), or anyone can leave a message for him at his office in D.C. by calling (202) 225-3115. Let him know you appreciate his leadership on the Rural Energy Savings Program Act. 

According to the think tank, The Third Way, "This federal program, run through the Rural Utilities Service, [could] provide low-interest loans to 1.4 million rural households to make energy efficiency improvements, creating 25,000-35,000 jobs each year for the next ten years."

More information on what the Act would do:

Home weatherization improvements create jobs, lower emissions, and save money for consumers. But for most families, the upfront costs are too big and the payoff takes too long. This proposal would eliminate these barriers at a tiny cost to the federal government by providing rural homeowners low-interest loans through rural electric co-operatives. Homeowners would then repay the loans through their utility bills with the cost of the loan fully off-set by energy savings. And if they move, both the loan and the energy savings could be passed on to the next homeowner.

Even the rural electric co-ops, often resistant to progressive energy policy, is backing the bill. According to Hoosier Ag Today:

National Rural Electric Cooperative Association CEO Glenn English said, “This gives us an opportunity to keep the electric bills as low as we possibly can…it gives us the opportunity to avoid building power plants…which will be extremely expensive and have the potential of increasing electric bill costs to our membership.” [...] Typical loans will run between $1500 and $7000, and cover sealing, insulation, heat pumps, heating and ventilation, boilers, and roofs.

Stay tuned to this blog for more information on the bill and what other actions you might be able to take to help move the legislation forward.

___________________________

Links for more information:

• Grist: "How to provide relief to rural Americans, create jobs, and lower emissions ... all at once!"
• Press release from Senator Jeff Merkley, sponsor of the bill in the Senate.
  
• A good article in the Charleston (SC) Post & Courier on the bill: "Energy initiative to expand"
  
• The text of the bill from the Thomas Register.

KFTC members have joined other rural electric co-op customers across the state in signing a letter to the Inspector General of the USDA questioning approval of risky financing for the proposed Smith power plant in Clark County.

The letter was submitted today, and KFTC members Steve Wilkins and Barb Bailey spoke to the media on a telephone conference this morning.

The Rural Utility Service, an arm of the USDA, normally provides loans to electric co-ops, but in 2008 the RUS put a moratorium on loans for financially risky coal and nuclear plants. To go ahead with the Smith plant construction, East Kentucky Power Cooperative needed approval from the RUS to seek $921 million from Wall Street banks.

Not only did RUS grant this permission but it also said EKPC could pay back its private loans before paying the billions it already owes the federal government. That means if EKPC defaults on its loans or goes belly-up, ratepayers will foot the bill.

From the letter:

The decision to proceed with financing and building this unnecessary coal plant will force EKPC to seek approval for electric rate increases at a time when many Kentucky families and businesses are already struggling to pay utility bills. This could eventually lead EKPC, which is already financially unstable, to default on its debt obligations. By subordinating its existing mortgage to other financial interests, RUS is placing in jeopardy the billions of taxpayer dollars it has loaned or provided loan guarantees to EKPC, and effectively guaranteeing that our electric rates will substantially increase.

On the press call today, KFTC member Barb Bailey questioned why EKPC needs a new coal-burning plant, when it hasn’t shown a real need and when renewable energy sources are less risky, cheaper and readily available.

“The fact that EKPC doesn’t even really need this plant, and their finances are so shaky – those should have been a deal-breaker for the RUS,” Bailey said. “EKPC could meet their energy needs at a lower cost with energy saving programs and renewable energy.”

To learn more about the entire EKPC campaign, click here.

This week the National Rural Electric Cooperative Association (NRECA, pronounced: "en-REEK-uh") is holding its annual meeting in Atlanta. Active co-op members across the country took the opportunity to highlight some of the best and worst co-op practices with a national press conference. KFTC member Steve Wilkins participated by phone.

A bit of background on the nation's electric co-ops and the issue of co-op reform from the press release for the teleconference:

Today, 900 co-ops still provide power to 42 million Americans in 47 states, but often these associations look more like big private corporations than the democratically-managed cooperatives of earlier days. These days, co-op members are asking a host of questions about the governance and energy decisions of their co-ops, and what they are doing to move toward democratic transparency and encourage energy efficiency and clean alternative energy production.

Some of the cooperatives represented at the [NRECA] conference, such as Texas’ Pedernales Electric Cooperative (PEC), have had a change in direction and now aim to embrace 21st century energy planning by developing aggressive, cost-effective efficiency programs and integrating renewable energy into their generation portfolios. This mode of operation represents a seismic shift from Pedernales’ previous approach. Board member Dr. Patrick Cox is excited about the co-op’s transparency, democratic board elections and adherence to business planning. He addressed the NRECA conference to spotlight changes at PEC. “I believe advocacy for member rights, ethical leadership, environmental accountability and responsible investment has resulted in and will continue to provide positive changes in PEC’s effectiveness and its relationship to its membership.”

The press conference also highlighted best practices of other co-ops in the country:

The public electric association that stands out as a champion for democratic process and for successful implementation of cost effective renewable energy is Colorado’s San Miguel Power Association (SMPA).  Board leaders have worked to make SMPA a rural electric association that is a true American institution and a model of clearly articulated democratic principles that give members a voice at every board meeting.

In addition to lifting up some of the best practices of the most open and democratic co-ops, the press conference highlighted many of the most regressive policies and decisions of co-ops across the country. KFTC member Steve Wilkins spoke of some of the problems that co-op members in Kentucky face.

In Kentucky, Steve Wilkins, a ratepayer/member of Blue Grass Energy Cooperative, which is one of 16 co-ops that distribute power generated by East Kentucky Power Cooperative (EKPC), says that from what he can see “democracy has been lacking in EKPC where directors are almost universally handpicked by the co-ops and elected without opposition due to a lack of encouragement for open elections.” Given that EKPC “is in a relatively weak financial position because of its large debt, members are baffled that financially safe energy investments such as energy efficiency and renewables are not being pursued instead of building a financially risky coal plant, which is what EKPC is currently committed to doing.”

However, Steve didn't just tell the nation what EKPC members are up against, but also spoke about the solutions that co-op members here in the commonwealth are seeking: the plans for new power that members are sharing with EKPC and the local distribution co-ops, a strategy that would create thousands of new jobs throughout the state in energy efficiency and renewable energy while helping EKPC avoid the further financial risk of a coal burning power plant.

The work that members, including Steve, are doing here in Kentucky would bring EKPC on par with co-ops in other parts of the nation, if EKPC would pay heed:

In Colorado, Texas and New Mexico, member-owners of electric cooperatives have implemented changes to ensure open meetings, voting and election safeguards, and to guarantee other fundamental rights.

And the reforms that other co-op members are working toward, mirror similar options for reform proposed by co-op members here in Kentucky:

Former Georgia Congressman Fletcher Thompson, a Cobb EMC member, believes that adopting a “bill of rights” for the co-op will help..."We want our electric co-op to welcome input from members. We believe that sound business practices go hand-in-hand with sound energy investments.”

You are invited and encouraged to attend the public hearing for the draft air pollution permit for the proposed coal-burning Smith plant on February 4 at 6:30 in Winchester. Stand with Clark County residents and folks all over the state to demand a clean energy solution. 

Click here to let KFTC know you plan to attend the hearing.

Background

This hearing is our time to make a public demonstration of our opposition to an unhealthy and risky coal-burning power plant, and to stand up in support of the clean and less-costly alternative of energy efficiency, weatherization and renewable energy.

All Kentuckians, whether you receive your power from EKPC or not, are stakeholders in this process as the plant would contaminate the air we all breathe. Already, hundreds of Kentuckians die prematurely each year from the illnesses caused by the soot, smog, mercury and other pollution spewed out by coal-burning power plants.

Now is the time to say, “Enough is enough!” The solution is simple and clear. Energy saving and renewable energy programs won’t need a permit because they won’t pollute our air. We must use this opportunity to speak out, letting the Kentucky Division for Air Quality and EKPC know that this clean energy solution is the just and healthy choice, not only for EKPC ratepayers, but for all Kentuckians.

_______________________________

And don’t forget: If you haven’t submitted a written comment yet, you have until February 12 to tell the DAQ that you oppose the draft air permit. Visit kftc.org/airpermit to submit a written comment to the Division for Air Quality, raising your voice in favor of a just energy future and public health.

Two of the four main objectives set out for KFTC’s Stop Smith campaign in 2009 were:

• To oppose the permits for the Smith plant, and
• To build a movement of Kentuckians working for energy efficiency and clean energy solutions in the rural electric co-ops.

In recent weeks, KFTC members have really ramped up action in these areas and the momentum behind these objectives continues to build. This progress can be seen in the media and in the actions of the regulatory agencies.

A little background: At the end of October, KFTC and our allies the Kentucky Environmental Foundation and the Sierra Club along with individual co-op members Wendell Berry, Father John Rausch, and Dr. John Patterson challenged the Kentucky Public Service Commission’s original approval that allowed the East Kentucky Power Cooperative move forward with its plans to build the coal-burning Smith plant. This approval from the PSC is called the Certificate of Public Convenience and Necessity and it was last granted to EKPC for the Smith plant in 2007. The petition before the PSC made three major claims, that:

• The Certificate of Public Convenience and Necessity was invalid because EKPC hadn’t started construction on the Smith plant within a year as is required by Kentucky Statutes.
• The Certificate should be revoked because EKPC would not be receiving low-interest funding from the federal government. Projects that receive such funding didn’t need PSC approval for that funding. However, now that the federal government isn’t issuing loans for coal-fired power plants, EKPC will need further PSC approval for any private funding it seeks. Under the Certificate, EKPC hadn’t received this PSC approval for private funding.
• Simply, the world had changed significantly since the PSC issued the Certificate. Since the original approval was given, a host of factors have changed. For example, EKPC’s financial health has deteriorated, environmental regulations have tightened, the cost of alternatives to coal power have decreased, etc.

Once the groups and co-op members filed their petition before the PSC, members of KFTC and our allied groups began bombarding the Attorney General’s office with requests for them to weigh in on the side of the ratepayers in this case. More than 400 folks sent messages to the AG’s office. KFTC members followed up on these emails with an in-person meeting. Once again, members asked the office to weigh in on the side of ratepayers.

In addition to emails to the Attorney General, KFTC members have flooded state and local newspapers with letters to the editor and op-eds. Dozens of letters in support of our case, asking the Attorney General to weigh in and the PSC to make the right decision, have been published. From Danville, to Winchester, to Lexington and beyond, KFTC members have been informing their neighbors and exerting public pressure to stop the Smith plant from being built. And this public pressure is beginning to pay off.

In December, the Lexington Herald Leader editorialized on the issue, demonstrating their understanding of the full breadth of the petition before the PSC. They wrote:

A group of Kentuckians who are rural electric cooperative members are petitioning the PSC to revoke its approval of the Smith 1 plant. They are concerned about the harm to air, water and human health from another large coal-burning plant.

But they also cite what outside financial analysts and EKPC's own executives say about the utility's deteriorating financial condition and the risk to consumers from taking on even more debt to finance the project.

They acknowledged that “consumers will pay for [EKPC’s] shaky finances and deep debt in the form of higher electricity bills.” They conclude their editorial with the call similar to that which KFTC and our allies have made. They wrote, “Both the utility and PSC should examine and re-examine the demand projections. If it's possible to substitute aggressive conservation for a new power plant, this would be the time to do it."

Later on the same day that the Herald Leader published their editorial, the Public Service Commission issued an order in the case. While the PSC dismissed KFTC and the other groups from the case, and dismissed the first two of the claims listed above, they ordered that the case should go forward with the three individual co-op members, and that EKPC would have to answer to the claims that the world has changed. As the headline in the newspaper put it: “PSC orders East Kentucky Power to justify Clark Co. plant.” In early January, EKPC responded to the seven points the PSC allowed to go forward, and now the ball is back in the PSC’s court. There is no set timeline, but the PSC will review EKPC’s responses and make a decision.

So, while we have momentum, this part of our campaign is far from over. There continue to be multiple venues for the intervention of members and groups in the PSC approval process, and we must continue to call on the Attorney General’s office to step up and step out on the side of the ratepayers. A continued stream of letters in local and state papers may help convince him to listen to the ratepayers who will be most affected by the PSC’s decision, and to speak before the Commission on their behalf. Continued public pressure to encourage these decision makers to make the right decisions for co-op members and for all Kentuckians is needed as much now as ever.

For more information on submitting a letter to the editor or contacting the Attorney General’s office this issue, contact sara@kftc.org or call (606) 276-9933.