In the height of the energy crisis in the 1970's, the United States Congress
passed the PURPA law which allowed individuals to install their own alternate
energy sources, such as wind or solar.  This bill also allowed individuals to
sell their excess energy to their own utility company.

Central Iowa Power Cooperative (CIPCO) is a wholesale electric power supplier
for thirteen rural electric cooperatives plus an association of muncipal
utilties.  About 250,000 Iowans in 51 Iowa counties derive their power from CIPCO.

Last summer CIPCO applied to the Federal Energy Regulatory Commission for a
waiver that would allow CIPCO to buy the excess energy from a person who had an
alternate energy source, as opposed the cooperatives buying the excess
energy.  The net effect of this request is that the excess power would be purchased
at a wholesale rate by CIPCO.  However when the individual with solar or wind
power needed to purchase supplemental power, the power would be purchased at
retail rates from the cooperative.

This week FERC denied CIPCO's waiver.

This ruling also requires the use of net metering for REC customers.  The
investor-owned utilities in Iowa already must provide net-metering.

In a strongly worded decision, FERC chastized CIPCO and Midland Power
Cooperative for using every effort possible to try to avoid purchasing the excess
energy from alternate energy sources.  FERC stated that "for over five years
Midland has abused its role, as a non-regulated electric utility under PURPA to
frustrate" attempts by its customers to exercise their rights as an alternate
energy source.

Several groups, including the Sierra Club, ISEED, ICAN, Iowa Farmers Union,
ICCI, Union of Concernced Scientists opposed this waiver by speaking at the
public hearing as well as writing to FERC.

The cooperatives that purchase power from CIPCO are Clarke Electric
Cooperative, Consumers Energy, East-Central Iowa REC, Eastern Iowa Light and Power
Cooperative, Farmers Electric Cooperative, Guthrie County REC, Linn County REC,
Maquoketa Valley Electric Cooperative, Midland Power Cooperative, Pella
Cooperative Electric Association, Rideta Electric Cooperative, South Iowa Municipal
Electric Cooperative Association, Southwest Iowa Service Cooperative, TIP Rural
Electric Cooperative.  However it should be noted that Linn County REC chose
not to participate in the waiver.

CIPCO owns part of the coal-fired power plants in Council Bluffs and in
Muscatine, as well as part of the Duane Arnold nuclear plant in Palo.  In addition
CIPCO owns a coal-fired power plant in Montpelier and an oil and natural gas
plant in Creston.  Finally CIPCO purchases hydro-electric power from the
Western Area Power Administration.

For further information about this, contact Wally Taylor at
[log in to unmask]

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
To view the Sierra Club List Terms & Conditions, see:
 http://www.sierraclub.org/lists/terms.asp