SECO Energy Attends 2023 NRECA Legislative Conference
SECO Energy sent three representatives to the 2023 National Rural Electric Cooperative Association (NRECA) Legislative Conference in Washington, D.C. from April 16 – 19. The purpose of SECO’s attendance was to meet with federally elected officials and staff to encourage support for several key issues facing electric cooperatives today.
SECO Energy Board of Trustees President and District 3 Trustee Gerald Anderson, District 7 Trustee Joseph Kusiak and SECO Energy’s Senior Consultant for Civic, Charitable & Government Relations Kathy Judkins joined over 2,000 fellow cooperative attendees who gathered to affect a positive impact for the energy industry through information and education.
In meetings held with US Representatives, Senators and staff, electric cooperative delegates took time to introduce, clarify and recommend remedies to mitigate burdens experienced by SECO Energy and other cooperatives. The co-ops called for action to improve three primary concerns when meeting with elected officials.
Supply Chain Bottlenecks
Having ample supplies and equipment on hand is crucial for electric cooperatives. Maintaining service, restoring power after natural disasters and sustaining the growing demand for electricity are paramount to consumer members. In recent years, stocking vital inventory at a reasonable price has been challenging. Compounding the uncertainty surrounding supply costs and availability are labor and raw material shortages. These pressures create an over-reliance on producers from outside the U.S.
Disaster Relief Assistance Reform
SECO Energy has a tried-and-true Disaster Relief Plan that is put into action during major storm events. The tab for power restoration after major storm events can run into the millions and a portion of these expenses is reimbursable through FEMA. When the speed and consistency of funding disbursement lags, recovery costs rise significantly. Without FEMA assistance, disaster-stricken areas would be confronted with escalated electricity rates. Commitments made by electric cooperatives to costly restorations of infrastructure are largely dependent on promised FEMA relief. Delays in the distribution of relief bring the burden of interest charges imposed on the cooperative.
SECO Energy expressed support for legislation that would require FEMA to pay interest on loans used to restore electricity to communities while waiting for the federal reimbursements. The issue is expected to be addressed in the 118th Congress.
Opening the Pipeline for Progress
Nationally, there is concern about the health and sustainability of the electrical grid. Modernizing the nation’s electric grid is an arduous process with inefficient permitting requirements that are overly complicated. This burdensome red tape causes delays and a direct negative impact on communities slated to receive these infrastructure improvements. Infrastructure projects are potentially supported by Federal loans, but projects requiring environmental approvals can be delayed substantially. During this time, the carrying costs of the loans in the form of interest payments and labor costs to interact with inspection authorities must still be borne by the cooperative.
CEO Curtis Wynn recognized the SECO Energy delegates’ attendance at the 2023 NRECA Legislative Conference. Wynn stated, “Thank you to President Anderson, Trustee Kusiak and Ms. Judkins for representing SECO Energy 2023 NRECA Legislative Conference. Their presence gave a voice to electric cooperatives’ challenges in supply chain constraints, expediting FEMA funding after natural disasters and our ability to align resources to harden our local and national electrical infrastructure while reducing permitting red tape. Our elected officials were receptive to the challenges cooperatives face in today’s economy.”
Wynn continued, “Electric cooperatives provide power to millions of Americans and we at SECO are committed to member satisfaction in the communities we serve. With the support of our elected officials, electric cooperatives will continue to thrive in our state and in our nation.”
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