Plugged In

Get plugged in to issues affecting public power communities in North Carolina. Whether it's providing updates on Duke/Progress Energy merger or sharing information about ElectriCities ongoing efforts to control electric rates, Graham Edwards will share his insight and opinions on news and events that impact ElectriCities and the 70 communities it serves.

• Talking About Value

  5/2/2012 5:42:55 PM

  Recently, I’ve heard many organizations talking about the value of their work to their greater community. Value is a concept that we at ElectriCities take very seriously. As a management and service organization, what we do to add value to our members and their communities is at the top of our list. We often describe our value in terms of the services we provide, such as economic development, electric department safety training, residential energy efficiency programs and state/federal government relations. In 2011, we also created a new model to show our value in real dollars. Our “Value of ElectriCities” website shows the quantifiable value that we provide to our members on an annual basis. We’ve updated that number for the current year – and found that the combined value of our services is nearly $184 million. Our value website also contains some helpful information about the process we use to calculate our value and supplemental information about the impact of our most popular services.

  We also chose to communicate value in our 2011 Annual Report, entitled Headway: Value, Agility, Preparation. In the report, we highlight the value provided by several of our member communities, New River Light & Power in Boone, the City of Kinston and the City of Statesville. All of these communities have made significant contributions to their greater community and continue to work to improve both their electric systems and the quality of life.

  Going forward, we will continue to uncover more opportunities to add value to our members and to the state of North Carolina.

  Find the calculations and descriptions of our services on our Value of ElectriCities Website

  Read more about our focus on value in the 2011 ElectriCities Annual Report.

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• Legislative Subcommittee Update

  4/19/2012 5:26:29 PM

  A legislative committee that has been studying electric rates in eastern North Carolina wrapped up its work earlier this month. The Joint Municipal Power Agency Relief Committee heard from city officials, electric customers and others during four meetings that examined the issue of high electric rates. 

   

  When I presented to the committee in January, I told them that ElectriCities has been diligent in looking for ways to lower our costs. [Click here to view my presentation to the committee.] We have reduced the NCEMPA debt by $1.5 billion since 1993 and have taken several additional steps to control our costs. Throughout this process, we have worked with the subcommittee to communicate the steps we are taking to control costs. We will continue to communicate with transparency.

   

  The fact that this legislative committee could not find any additional solutions demonstrates that we have taken every reasonable step to control our electric rates. 

   

  "Lawmakers studying the municipal power issue have found no solutions," WRAL's Laura Leslie reported. "Refinancing the debt would cost more in the long run, they [legislators] said, and any attempt to sell off the power plant shares is on hold until Progress Energy and Duke Energy can complete a merger, which has been stalled by regulatory hurdles."

   

  As I have updated many times, we wish there was a "magic bullet" that could reduce the debt we acquired when the municipalities bought in to the power plants with Progress Energy and Duke Energy, but no such opportunity exists. That's the unfortunate but harsh reality. If there was an easy solution, we would have fixed this problem decades ago.

   

  The subcommittee’s draft recommendations can be viewed here.

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• The Power of Great Customer Service

  4/2/2012 1:16:18 PM

  I recently came across a fact that speaks directly to the value of public power and the power of great customer service:

  Last year, every business in North Carolina that was given a choice of electric providers chose to partner with a public power provider instead of a large utility.

  Price typically isn’t the deciding factor. It is the value of the customer service provided by our member cities.

  Businesses appreciate knowing that they can call someone right down the street if they need anything. Being part of the community allows us to provide exceptional customer service and develop creative solutions that meet their needs.

  It’s the power of customer service. And it’s attracting new customers across North Carolina.

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• Recruiting Jobs Every Way We Can

  2/2/2012 4:48:48 PM

  Economists are predicting a year of modest growth this year in our state and the nation. We’ve had several years of modest growth during this slow economic recovery, yet many public power communities had great economic development success in 2011. Overall, public power communities added 2,600 new jobs with nearly $380 million in investment last year. We know there is still much work to be done in bringing jobs to public power communities.

  Economic development is an area with an ongoing international conversation – often in a very crowded environment. Getting the ElectriCities message out and highlighting the positive attributes of public power communities is our overriding goal. Our economic development staff is always looking for creative, innovative ways to communicate our message and to bring attention to our member cities.

  This year, we chose to feature economic development and available industrial properties in our 2012 NC Public Power calendar set against a long-standing tradition in North Carolina: barbecue.

  So, we traveled the state in search of the best barbecue North Carolina has to offer. We found the Southern traditions of craftsmanship and quality in all of the locally owned establishments we visited. These restaurants are just a sampling of the many fine locally owned eateries in public power communities. 

  Features of the 2012 calendar include QR codes on each page to link site selection consultants immediately with ElectriCities economic development team. We’ve also created a complementing web presence on the ElectriCities website with available industrial sites in the communities. Our Facebook page features the calendar concept and starts a conversation around our state’s legendary tradition, craftsmanship and history.

  We think NC Public Power communities are the perfect places to do business – and we know you will agree. Here’s to a 2012 filled with new opportunities!

  See our 2012 NC Public Power website and Facebook page.

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• Subcommittee on Municipal Power Agency Relief

  1/12/2012 8:51:36 AM

  I had the opportunity to make a presentation Tuesday to a legislative study committee that is addressing electric rates in eastern North Carolina. The committee shares our desire to find solutions that will allow us to achieve competitive wholesale electric rates.

  I explained to the committee that the cities and towns that formed the NC Eastern Municipal Power Agency (NCEMPA) in the late 1970s made the best decision at the time, given the circumstances brought by the 1970s energy crisis. But the decision to buy into five generating units operated by CP&L left us with a sizable debt that continues to impact our rates today.

  The Power Agency’s outstanding debt (approximately $2.1 billion) accounts for nearly 35% of our electric costs and remains the greatest obstacle to achieving competitive wholesale electric rates. The most recent data indicates that residents who live in NCMEPA cities pay, on average, about $1 day more for electricity than Progress Energy customers.

  We have reduced the debt by $1.5 billion since 1993, and we continue to explore all opportunities to reduce the debt, including debt restructuring and the potential sale of our power generation assets.

  We appreciate the committee’s interest in the challenges facing our members and welcome their input and ideas. We have been transparent about our electric costs and have openly shared information requested by the committee about our efforts to manage the power agency’s debt.

  We will continue to cooperate with the committee as we work toward achieving competitive wholesale electric rates for our members.

  The legislative committee also heard presentations from Thomas Stith, a director of economic development at UNC’s Kenan Institute of Private Enterprise; Mark Williams, town manager of Wake Forest; and Ron Elks, general manger and CEO of Greenville Utilities Commission. All of the presentations are available on our website.

  Click here to learn more about the committee on Municipal Power Agency Relief.

  Click here to read The Kinston Free Press: Legislative committee gathers information on electric issues in ENC.

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• Outreach to Elected Officials

  12/8/2011 2:08:23 PM

  Many of our member communities recently held municipal elections and we are pleased to welcome some new faces to the public power family. City and town council members are responsible for a wide variety of city functions, issues and planning. ElectriCities strives to be a resource to educate new elected officials on public power and the power agencies. The history of our business is rich and complex. We know there is some misinformation about the history and our current state. Our goal is to provide elected officials with the information they need to understand public power and its role in our state’s growth and development.

  With that purpose in mind, we are planning a series of regional meetings with elected officials in early 2012. More information will be coordinated through city and town managers as the dates are set. I strongly encourage all elected officials to attend these meeting, which will be held conveniently in our member communities.

  I look forward to seeing y’all.

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• Another Chance to Help a Neighbor

  11/15/2011 12:46:33 PM

  North Carolina Public Power crews had another opportunity to help a neighbor in need last week. Crews from High Point, Greenville Utilities and Wilson headed northward to help public power communities in Connecticut and Massachusetts, where thousands were without power following an early-season ice storm.

  Our crews have had plenty of opportunity in the past year to work in emergency circumstances, with April’s deadly tornadoes and the aftermath of Hurricane Irene. Add in this latest experience and they are just about as prepared as they can be for whatever Mother Nature dishes out. Restoring power under tough circumstances helps our linemen build crucial skills to keep the power on back home.

  Helping out other public power communities when they need assistance is a key element of our Emergency Assistance Program. But it’s also an opportunity for the crews to develop their skills and pass along that valuable experience. We take pride that power was restored safely and no one was injured during the Hurricane Irene restoration.

  Being exposed to dangerous circumstances, often during extreme weather, is part of the job when you’re a lineman. We are extremely proud of our Power Restoration Crew from public power communities and their commitment to getting the power back on, wherever it takes them.

  If you haven’t had a chance to see our video of the Hurricane Irene restoration, please take a look to see what these crews faced.

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• Reflecting on FERC's Consideration of the Duke Energy/Progress Energy Merger

  10/7/2011 1:29:11 PM

  The Federal Energy Regulatory Commission (FERC) issued an order last week giving conditional approval to the merger of Duke Energy and Progress Energy. But FERC raised concerns about the new company's market power, saying it could have an adverse effect on competition.

  That's an issue that is likely to arise anytime you merge the two largest investor-owned utilities in the state. It's too early to tell what impact, if any, the FERC order could have on the power agencies that serve our members. We'll be talking with officials at Duke and Progress Energy and watching to see how they address those concerns. A response to FERC is expected by mid-October.

  Since the merger was first announced in April, we have consistently focused on the four key issues that impact our costs:

  • Protecting public power customers from increased costs;
  • Passing along merger-related savings to customers;
  • Maintaining our competitive position; and
  • Maintaining access to competitive wholesale markets.

  I will share more information with you once Duke and Progress Energy respond to FERC.

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• Legislative Committee to Study Electric Rates

  9/28/2011 4:21:43 PM

  The Legislative Research Commission has assigned a joint legislative subcommittee to study potential options to lower electric rates. The Municipal Power Agency Relief Subcommittee will consider the feasibility of refinancing or restructuring the debt of the power agencies and look into the option of selling assets to reduce the debt and lower electric rates.
   
  Achieving competitive wholesale electric rates is one of our top priorities and a cornerstone of our strategic plan. We recognize that many people are concerned about electric rates, and we have been studying these same issues for years. While we have successfully lowered our debt by more than $1 billion since 1993, we must come to terms with the fundamental challenge facing our power agencies: its assets are worth less than its debt.
   
  We are committed to achieving competitive rates for our members and look forward to the committee's insight and ideas. We value transparency and will work closely with the committee members to offer our assistance. That includes openly sharing financial information and other data that might prove valuable during this process.
   
  I will keep you updated once the committee begins its work in late October.
   
  PS - As always, public power customers can find helpful tips and tools for reducing their energy use at www.ncpublicpower.com and www.energydepot.com/electricities. In addition, free energy audits are available from your local energy provider.
  

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• Sharing Our Playbook

  9/26/2011 12:00:00 PM

  With football season in full gear, coaches and players are busy working on plays that will lead them to victory. We're doing the same thing here at ElectriCities, and I shared details about our playbook at the ElectriCities Annual Conference last month.

  Our playbook is focused around the strategic plan we unveiled in the fall and the key issues we need to tackle. Paying down our debt and lowering our wholesale costs is at the top of that list.

  At the same time, we cannot ignore other challenges posed by the continued economic uncertainty, new federal rules and regulations, the impact of potential legislation, and other emerging issues.

  The good news: This year, we created a legislative steering committee and minimized the impact of proposed legislation on public power communities. We negotiated an agreement with Duke and Progress Energy that protects customers from increased costs and passes along merger-related savings to public power customers. We attracted more than 2,300 jobs and $630 million in investments to public power communities. When we analyzed and quantified the value that ElectriCities delivers to its members, the benefits totaled more than $148 million.      

  In the coming months, our team will continue working to address our wholesale costs, improve our credit rating, and enhance our service to members. Our players have their eyes on the ball and are determined to move the chains. As we move forward, we will be keeping score and will regularly let you know how we are doing.

  Click here to view my presentation from the annual conference and learn more about our playbook.

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