February
2003 Issue
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Wisconsin Favorites
30th Birkie Still
Blazing Trails in Snow
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ARCHIVES |
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World Power
U.S. Co-ops Spread Rural Electrification
Globally
Jump River Electric Cooperative Director Allen
Beadles found himself stepping 50 years back in time when he arrived
at the tiny Central American island on Easter Sunday, 1993. Roatan,
just 35 miles from mainland Honduras, was home to about 20,000
of that country’s citizens-only about one-tenth of whom
had electric service.
“You know, when rural electrification began in the U.S.
in the 1930s, that’s about the same percentage of farms
that had power,” Beadles observed in a story Wisconsin R.E.C.
News carried about his weeks as an international volunteer.
He discovered that the relatively few islanders who could afford
electricity were paying a premium price-21¢ per kilowatt-hour-for
power produced by three diesel generators. For most of the population,
electricity was as scarce a commodity as health care, a functioning
water and sewer system, or fire protection.
Roatan and the rest of Honduras didn’t have anything comparable
to this country’s Rural Utilities Service to help finance
upgrades to electric service or provide funds for other rural
development. But they did have help from beyond their borders:
willing volunteers from U.S. cooperatives and the resources of
those co-ops’ national organization, the National Rural
Electric Cooperative Association (NRECA), working in conjunction
with the U.S. Agency for International Development (USAID). Allen
Beadles-a farmer from Sheldon, Wisconsin-was more than happy to
do his part.
Things were improving on Roatan. By the time Beadles arrived in
the spring of 1993, eight months of work by volunteer co-op lineworkers
and other personnel (including a stint by office workers Kathy
Ruscin and Shirley Thompson of Wisconsin’s Eau Claire Electric
Co-op) had dramatically improved system reliability and administrative
processes. Beadles’ task was to help organize the first
election of the Roatan Electric Company’s (RECO) governing
board, a cooperative-like process that became most citizens’
first experience with an election that wasn’t run by the
Honduran military.
On April 25, 1993, more than 2,000 people-half of all eligible
voters-came by bus, boat, and foot to the RECO headquarters near
the center of the island for an inauguration fiesta. Beadles and
a volunteer from Ohio were the official tellers and certifiers
of the election. “They accepted us totally and were so appreciative
of everything we did to help,” said Beadles.
At It for 40 Years
That example from 10 years ago and hundreds of
others during the past four decades is a proud record of achievement
for the International Program at NRECA. More than 50 million people
overseas enjoy electric service today thanks to the establishment
of electric cooperatives in their communities with the assistance
of the program.
Vice President of NRECA International Paul Clark, who has been
with the program since 1981, recalls the early days when the United
States Agency for International Development (USAID) turned to
NRECA and electric cooperatives across the country to help bring
electricity to developing countries.
“Rural electrification through cooperatives was such a success
in the United States that it was natural for USAID to want to
bring electric cooperatives to the developing world. The cooperative
business model was a model they could understand and believe in
and with good reason,” he said.
Clyde Ellis, NRECA General Manager at the time, was a big supporter
of NRECA beginning its international program, explains Clark.
“Ellis believed that not only should every American have
electricity but that every human being should have it.”
International outreach was a particular priority of President
Kennedy, known for his staunch backing of programs such as the
Peace Corps. NRECA inked its first agreement with USAID in a 1962
White House ceremony that featured Kennedy and NRECA’s Ellis
as signatories.
One of the very first projects that the program undertook was
bringing an electric cooperative to Santa Cruz in Bolivia. That
cooperative, Cooperativa de Eléctrificacion Rural, or “CRE,”
is now one of the largest rural electric cooperatives in the world.
According to Clark, CRE has consolidated many of the smaller electrification
projects that started with U.S. help and now serves an area the
size of Wyoming, providing electricity to more than 250,000 members.
“We’ve shown the Bolivian government what a co-op
can do that a private utility couldn’t,” Clark asserted.
More Southern Exposure
In another R.E.C. News story not long after the
one concerning Beadles’ mission, Wisconsin figured into
one of those smaller Bolivian electrification projects. Dan Kanack,
a farmer from Lena and director of Oconto Electric Co-op, volunteered
in one of the most remote Bolivian sites under sponsorship of
the Volunteers for Overseas Cooperative Assistance (VOCA), another
national organization with ties to USAID and NRECA’s International
Program. Clark said NRECA helped finance some of VOCA’s
Bolivian projects.
Like Beadles had seen on Roatan, Kanack found a community in need
of basic services. “It’s a life-sustaining existence,
and that’s about it. There are no real classes of people;
you’re either poor or you’re poorer,” he said
in the story. For the few who had electricity, “service”
consisted merely of one light and one plug per household, at an
average residential usage of 54 kilowatt-hours per month.
The Cooperativa de Servicios Publicos-an electric co-op serving
the city of Monteagudo and three nearby villages-desperately needed
engineering assistance to address serious line-loss problems.
Via radiotelephone, Kanack communicated with his co-op back in
Wisconsin, and after relaying readings taken from the Bolivian
co-op’s system, obtained some of the first professional
engineering advice the Monteagudo co-op had received in years.
The recommendations of Oconto Electric’s engineering staff
were gratefully accepted by the manager and lineworkers of the
Bolivian co-op.
These guys were so eager to learn,” Kanack said of the line
crew members. “They were trying to learn the job on their
own.” It was obviously a dangerous way to train, as Kanack
observed: “Luis, the line foreman, and another guy both
had burns on their arms from contacts [with electric lines]. They
work with leather gloves mostly. There’s just one pair of
rubber gloves.”
Broadening Horizons
While the early days of the program focused on
Latin America, NRECA’s International Program now works in
every region of the developing world. During the 40 years of its
existence, the program has assisted some 50 countries with establishing
cooperatives and electrical systems for the first time or helping
them to rehabilitate ailing systems. One of the largest targets
for these efforts has been Bangladesh, where 67 electric co-ops
now serve some 20 million people.
Clark credited electric cooperative employees and directors for
playing a crucial role in going abroad to help establish new cooperatives
and donate equipment. “When NRECA was celebrating the 50th
anniversary of REA, we published a list of people from our member
co-ops who had participated in our overseas program,” says
Clark. “There were 500 names on that list. Now, we could
be up to 700 or more.” Among them are many other workers
from Wisconsin’s electric co-ops, who frequently take leaves
of absence to assist with overseas projects.
The NRECA International Foundation, formed to organize voluntary
assistance programs to complement the national organization’s
technical assistance program overseas, has provided a big boost.
Since 1985, some $3 million in surplus equipment and materials-wire,
meters, transformers, lineworker gear, and even generator sets-has
been shipped overseas thanks to contributions from NRECA member
electric systems across the United States. Numerous Wisconsin
cooperatives routinely contribute equipment and money to the foundation.
NRECA’s International program is funded with grants and
contracts primarily from the USAID but also funds from other international
lending organizations such as the World Bank.
The Power of Many
Clark points out that while in principal the
cooperative model has been very successful in developing countries,
they have encountered many obstacles as well.
“It takes discipline and organization to set up a cooperative
and the infrastructure for an electrical system, not to mention
political support. The difficulties that we have had to overcome
overseas are testament to the accomplishment of the Rural Electrification
Administration to bring electricity to rural America in the 1940s
and ’50s and the level of sophistication and service quality
that they show today,” he said.
Clark says the core of their program and what has made it work
is the sheer strength of desire and motivation of the people to
get electricity into their communities. Working with scarce resources
and sometimes-limited technical experience, local co-op organizers
and workers have proven themselves both innovative and resilient,
making the most of hardware and manpower contributed by their
American neighbors.
In the words of Allen Beadles, “If ever there was a justified
need for U.S. aid, this is it. It’s succeeding.”-Perry
Baird, with material from NRECA’s Christine Grammes and
photos by Bob Gibson |
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Crowding Capacity
Power supplies may soon face a new test...
Where the electric power industry is concerned,
Wisconsin holds the patent on a new definition of good luck.
In 1997, prolonged maintenance outages hobbled both of the state's
nuclear power plants. That and other factors led to three consecutive
summers of tight power supplies—just in time to sidetrack
an ill-advised frolic with utility restructuring.
Last month, the chairman of the Assembly Committee on Energy
and Utilities opined in a presentation to electric cooperative
managers that "the recession saved us" from power
supply problems. Wisconsin doesn't have enough generation or
transmission capacity, he said, but the slow economy forestalled
a return of the ’90s supply crunch.
If that's true, then a resurgent economy, with increasing energy
demands, is bound to test the limits of the state's electric
infrastructure. And that would dictate Wisconsin building more
power plants and more transmission lines as quickly as possible.
But retaining our "good luck" will require a little
more.
Wisconsin's neighbor to the west is in jeopardy of losing two
major generation assets that are important to a wide swath of
the upper Midwest.
Dark in ’07?
Documents filed in December with the Minnesota
Public Utilities Commission warn that two Xcel Energy plants
furnishing 1,700 megawatts of electricity won't be running by
the end of this decade unless state law is changed to permit
more storage of spent nuclear fuel at the Prairie Island generating
site.
On the Mississippi River near Red Wing, Prairie Island produces
1,100 megawatts and is licensed to operate until 2013. Xcel
would like to extend the plant's life beyond that point, but
the plant will have to close in just four years if additional
storage isn't allowed. That loss would be followed three years
later by the 600 megawatts from Xcel's Monticello plant just
northwest of the Twin Cities, the company says.
Prairie Island has ample space for spent fuel, but a 1994 state
law caps the number of storage casks there at 17. The law further
restricts Xcel by requiring all the casks to be emptied before
the contents of any can be replaced with new spent fuel.
Implicit in the planning documents filed by Minneapolis-based
Xcel was the possibility that it may already be too late to
replace Prairie Island with a baseload power plant of comparable
size, given the years needed to build one.
Price, siting, and reliability
The early shutdown of Commonwealth Edison's
Zion plant near Chicago was a regional power drain during eastern
Wisconsin's supply problems of the 1990s. Losing two large plants
near the electricity-hungry Twin Cities might be similarly troublesome
for western Wisconsin, where interlocking Xcel and Dairyland
Power Cooperative service territories resemble a jigsaw puzzle
and transmission facilities are frequently shared.
But the impact would presumably be felt across the far wider
area of the Mid-continent Area Power Pool (MAPP).
MAPP is a regional reliability council, facilitating utilities'
energy and operational needs in an area including western Wisconsin
and Illinois, Iowa, Minnesota, the Dakotas, and parts of Montana,
Ontario, and Manitoba.
In the view of Larry Thorson, vice president for power marketing
at GEN~SYS, (the marketing arm of Dairyland Power Cooperative),
losing Prairie Island would put upward pressure on electricity
prices in the MAPP region.
Today, lost generation is likely to be replaced with units—several
in this case—fueled by natural gas. And as Thorson says,
since gas is "the generation on the margin, meaning each
incremental bit of generation that has to be turned on to meet
demand is likely to be gas, the price of gas is then setting
the price of everything that's running—and that's more
expensive than either coal or nuclear."
"The lion's share of these costs will be borne by Xcel
and its customers," Thorson says, but he notes, "The
overall effect is that the price of electricity in MAPP goes
up."
Reliability might also be a concern, because of resistance to
siting electric facilities. Minnesota hasn't built a large,
base-load power plant with the capacity to replace Prairie Island
or Monticello since the mid-1970s. It's foolish to think building
one won't involve costly delays through litigation, and whatever
is built must be built in the right place.
"The transmission system around these units evolved over
20 to 30 years, so there's interdependence," Thorson explained.
"Reliability could be affected if replacement generation
isn't built in the right places. If the transmission system
doesn't get voltage support where it's needed, local load-serving
would feel the impact."
Some want them closed
The utility's December call for prompt legislative
consideration of expanded storage brought a rapid response from
the Minnesota Sierra Club and other environmental groups, who
said they'd mobilize tens of thousands of members against Xcel's
plans, according to a Reuters report.
The environmental groups said they want to pressure Xcel to
replace its nuclear capacity with renewable energy.
The Prairie Island Indian Community, the plant's nearest neighbors,
were also quick to issue a statement opposing additional storage
at the site. The existing agreement under the 1994 law can't
be altered without their permission. The tribe indicated willingness
to negotiate with the state and Xcel, suggesting more financial
support for tribal "health and safety needs" should
be on the bargaining table.
For lawmakers, the decision may come down to what's least painful:
siting at least two new base load plants, building major new
transmission lines, or changing the law they passed eight years
ago.—Dave Hoopman
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Going
Hollywood
Editorial by Pery Baird
About a year ago, a story in the New York Times
that got scant attention in other media told of a desperate—some
might say obscene—attempt by energy conglomerate Enron to
wring profit from one of its failing business ventures.
Branching well beyond its original energy-trading business, the
Houston-based company sought to cash in on the growing market
for high-speed Internet service. But, as with its other over-hyped,
under–capitalized, and financially convoluted enterprises,
Enron’s broadband unit began to fail.
Ever creative in keeping ahead of creditors, Enron executives
reportedly approached General Media Corporation (owner of Penthouse
magazine) with a scheme to offer pornography on demand via its
Internet service. The Times article noted that Enron apparently
made a similar proposal to Playboy Enterprises, but no deal resulted
from either overture. A General Media spokesman was quoted expressing
surprise that if a supposedly mainstream company such as Enron
turns to pornography, “they’re desperate.” As
it turned out, indeed they were.
Take It To the Tube
When I first saw the story the thought occurred
to me that Enron and its leaders—already known to possess
greed, ruthlessness, arrogance, and deceit—had finally stooped
to dabbling in a crass, as-yet untapped sin: perversion.
So, with all of that requisite evil going for it, where would
be the next stop for the Enron story? Why, network television,
naturally. How foolish to think Hollywood wouldn’t consider
this slimy morass a hot property.
A made-for-TV movie in January (titled “The Crooked E”)
presented a tale with all elements of a prime-time soap opera,
particularly the seduction and betrayal of a hapless employee
who bought into the Enron mystique and then suffered personal
loss and disillusionment. It was an all-too-common theme among
real-life employees of the bankrupt company.
I had a hard time swallowing the scene where an upper-level manager
(played by Brian Dennehy) has a pang of conscience as Enron is
collapsing, and he says he actually “looks forward to jail.”
From what we’ve seen thus far from the countless regulatory
and judicial proceedings in the wake of Enron’s fall, those
who made off with the big cash seem pretty unrepentant.
Working up the ladder
A few days before the program aired, news reports
told how government investigators were continuing to squeeze mid-level
managers to build cases against the former top bosses. “Working
up the ladder,” is how one observer characterized the prosecution’s
process. Near the top rung is former President Jeffrey Skilling,
whom investigators think was central to setup and profit taking
from the telecommunications venture that reportedly courted pornographic
content.
Yes, in more ways than one, you could say Enron’s profits
were obscene. And we can only hope that those managers who had
cause to even fleetingly long for the peace and solitude of jail
will get their wish.
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30th
Birkie Still Blazing Trails in Snow
From humble beginnings in 1973, in which a mere
35 skiers vied for the first American Birkebeiner title, today’s
“Birkie” is heralded as the largest cross-country
ski race in the world. The event, staged annually in the Cable–Hayward
area, is now part of the Worldloppet circuit of international
ski marathons, and the three days of Birkie activities encompass
many races for all ages and abilities. Altogether, American Birkebeiner
staffers estimate 9,000 skiers and 20,000 spectators from all
over the world will attend the 30th-anniversary version of the
event, while some 20 million American and European viewers will
see the Birkie on TV.
Races for the top skiers—the 51K Johnson Bank American Birkebeiner
and the 23K Kortelopet, with a combined total of some 6,500 skiers—begin
Saturday morning, February 22, at the Cable Union Airport. The
Birkie’s finish line is in downtown Hayward, while the Kortelopet
trail doubles back to finish at Telemark Resort, located on Bayfield
Electric Co-op lines near Cable.
Races that lead up to the Birkie and Kortelopet include the Salomon
Elite Sprints, in which top skiers race head to head; the Sons
of Norway/Swiss Miss Barnebirkie, for children 3–13 years
of age; the CenturyTel Junior Birkie; the Chequamegon Telephone
Cooperative 10K Family Ski Run; and the Hayward Chamber of Commerce
Citizen Sprints. Ski demos and an expo will also be held at Telemark
Resort Thursday and Friday.
The Birkebeiner and the Kortelopet begin
at 8:20 and 8:30 a.m., respectively, at Cable Union Airport on
Saturday, February 22. Related cross-country events begin on Thursday,
February 20. For more information, call 715/634-5025 or visit
www.birkie.org.
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