Advisory Communication from Empire's Board of Directors
February 26, 2009
RE: Future electric rate increases - contact your legislator


Please select which box best represents how much you want your electric rates to go up over the next five years or so:
 50 Percent  75 Percent  100 Percent
 Let the Environmental Protection Agency (EPA) choose
 Let Congress Choose
YOU DO NOT ACTUALLY HAVE TO VOTE. IN FACT, YOU WON'T GET TO VOTE.

WE ARE INFORMING YOU ABOUT THE VERY REAL PROSPECT OF ELECTRIC RATE INCREASES THAT ARE OUTSIDE THE CONTROL OF EMPIRE'S BOARD AND STAFF.

The National Rural Electric Cooperative Association (NRECA) is our national trade association which monitors lawmakers' activities and advocates on behalf of rural electric cooperatives (like Empire) across the country. NRECA recently informed electric co-op leaders that House lawmakers plan to move climate change legislation regulating carbon dioxide (CO2) out of committee by Memorial Day. It would then move to the full House and then on to the Senate. This legislation is on a fast track, and if not ultimately signed by the President, it is highly likely that CO2 regulation will be turned over to policy makers at the EPA, a federal agency.

NRECA further advised that federal legislators prefer to empower Wall Street via a "cap and trade" scheme as their preferred method of regulation. Cap and trade (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. The other method of legislative regulation is a direct carbon tax. Both have advantages and disadvantages. NRECA advises that either type of legislation will result in huge increases in your electric rates in the ranges listed above.

What you should do: We are asking you (as one of 42 million rural electric customers across the U.S.) to contact your federal legislators (regardless of your belief about climate change) and let them know that should they choose to regulate CO2, they need to write the bill so that it can be understood by every American citizen and to tell us how much they project our electric rates will go up along with how and where the money will be spent. For example, how much will be spent on technical solutions along with research and development activities. It is important to note that a cap and trade approach is much more vague than a straight forward carbon tax and it will be difficult to project the increased cost of electricity. Use the language on the reverse side of this letter as a model to contact your two senators and congressman. It is available under www.eea.coop (see link below) for you to copy and paste to your letter. In an effort to save postage, you may email your letter to your respective legislators at the addresses listed on the back side of this letter or return them with your next payment to Empire and we will forward the letters for you. Access www.ourenergy.coop for additional information about the looming electricity crisis and how to contact your legislators electronically. Legislators have one chance to get their regulations right. Let them know the citizens come first, not Wall Street, the government, or the EPA.

Download the form to send to your legislators

For more information: (970) 565-4444 or Utah members (800) 709-3726