Just got this newsletter from ALP.   I will transmit the article from the general managers desk, Al Crowser, that is written in the newsletter:

Where are electrical energy costs going and what can we do?  Over the years ALP has had reasonable electric rates and good reliability.  Our power supply costs have been low and we have been able to invest in adequate system improvements to keep the lights on.  However, the costs of power supply are increasing.

About 80% of ALP’s electrical department budget is the wholesale purchase of electricity.  These purchases come from two wholesalers.  One is the Federal Department of Energy’s hydroelectric system on the Missouri River (35%).  The other is Missouri River Energy Services and the energy comes mostly from fossil fueled plants (65%).  In recent years  both power suppliers have significantly increased their rates.  This has certainly provided upward pressure on our retail rates and we have been raising our rates accordingly.  (In 2010 we expect a modest rate increase.)

Unfortunately, there is another external force that will likely be driving up costs.  That is the cap and trade legislation pending in the Senate which deals with Carbon Dioxide emissions.  The estimated cost increase to ALP would be 25%.  The actual impact depends upon what is eventually passed by Congress. 

In the face of these rising energy costs, what can we do?  Traditionally most of us have not been very good at using energy wisely.  I suspect that as rates increase our behavior will change.  Conservation on the part of customers is good for ALP and our customers in that it reduces the amount of electricity they both need to purchase.

There are cost effective ways in which both residents and businesses can conserve electricity and I would encourage everyone to do so.  One good resource to help you do so is our website www.alputilities.comAlso, you are always welcome to visit…

 

ALP CUSTOMER INFORMATION

YEARS——————————————–2000——————-2009

  • Electric Customers                                   8,100                          9,400       
  • Energy Used – kWhs                        225,000,000                 272,000,000
  • Water Customers                                       2,700                             3,600
  • Water Used (M Gallons)                       396,000                           565,000

Keep an eye on energy costs, it may be our next big crisis.  Although, living in Alexandria, MN…we never do get those psychotic swings that some of the larger metro areas get.  Alexandria, MN…why live anywhere else?