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Utility president expresses concerns about cap-and-trade costs

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Much of the attention in Washington, D.C., is focused on the health care overhaul legislation. But cap-and-trade legislation, designed to reduce carbon emissions, is still out there and one of Missouri’s largest utility companies is warning about possible consequences of that passing.

Kansas City Power & Light’s President and Chief Executive Officer Bill Downey insists the company is not opposed to cleaning our environment. In fact, he makes it clear KCP&L favors moving in the direction of a cleaner environment, but he has concerns about the path that is being proposed to get there. [Read more…]

Cold Weather Rule takes effect this weekend

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Missouri’s Cold Weather Rule goes into effect Sunday, November 1st, prohibiting the disconnection of service when the temperature is forecasted to drop below 32 degrees for the following 24 hour period.

“The Cold Weather Rule is in place to help low income customers when the weather gets extremely cold,” said Missouri Public Service Commission Chairman Robert Clayton in an interview with the Missourinet. “We try to have an orderly system set up to address times when perhaps low income customers cannot afford to pay their bill but it’s also very cold outside, so November 1st is when the Cold Weather Rule becomes in effect.”

[Read more…]

PSC auditors to determine whether Ameren rate hike request warranted

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AmerenUE’s request for an 18 percent rate increase set the wheels in motion for Public Service Commission approval or rejection of that request. And, it’s going to be some time before commissioners sit down to discuss the merits of what Ameren wants.

Public Service Commission Chairman Robert Clayton says the PSC will respond to Ameren’s filing by sending auditors and other staff members to Ameren’s offices in St. Louis to begin studying the company’s books to determine whether an increase is warranted.

"We have to look at the evidence," said Clayton in an interview with the Missourinet. "And, keep in mind that we don’t look at the actual percentage increase – that’s not really a factor that we consider. What we look into, as the staff audits the books of the utility, is whether all the expenditures that they have asked for inclusion in rates – make sure that all of those expenditures are prudent expenditures, that they were reasonable under the circumstances. Only after that will the staff and the Commission recommend increasing rates based on those."

There is a whole array of proofs that must be presented to PSC auditors.

"They have to prove their investments," said Clayton. "They have to prove their fuel costs. They have to prove their labor costs. Anything that they say has gone up to suggest a higher utility rate they have to prove. And our staff will conduct a thorough audit to make sure those investments have actually been made."

The staff is expected to complete its investigation and report back to commissioners in about three or four months, with a recommendation regarding Ameren’s rate hike request. Ameren and the PSC would then haggle over the amount of the increase – provided one is to be granted. Clayton says an evidentiary hearing by PSC commissioners will take place in about eight months.

Download/Listen: Steve Walsh report (:60 MP3)

Ameren asking for $402 million rate hike

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The state’s largest electric utility is asking for more money from its customers.

AmerenUE is filing an increase request with the Missouri Public Service Commission to raise rates by 18 percent in a bid to rake in $402 million. In a press release the utility claims this would amount to less than 50 cents per day for the average household.

The release further claims that almost half the request is driven by investments made to continue system-wide reliability improvements for customers, increases in costs essential to generating and delivering electricity, and higher financing costs. The remainder would cover higher fuel costs and lower revenues from sales outside the company’s system.

Any increase must be approved by the Public Service Commission.

NRC conducting inspection at Callaway

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A special investigation by the Nuclear Regulatory Commission is underway at the Callaway Nuclear Power Plant .

A spokesman for the NRC, Victor Dricks, says inspectors will be reviewing how the plant handled a recent problem. Operators at Callaway had problems with the turbine driven auxiliary feedwater pump during routine testing in late May. The problem was fixed on the scene by Callaway operators and the pump restarted. The pump is used to supply water to the steam generators at Callaway that kick in if the AC power is cut off.

Two NRC inspectors, one from Callaway another from the Cooper Nuclear Power Plant in Nebraska, began their work this week. It is expected the inspection will last days.

Dricks points out the problem with the pump never posed a safety hazard. He says it appears Callaway handled it correctly, but the inspectors will review the causes of the problem and the steps taken to correct it. They will file a written report to the NRC in 30 to 45 days after the inspection is complete.

The Callaway plant is Missouri’s only nuclear power plant. It is located near Fulton and operated by AmerenUE.

Utility officials discuss cap-and-trade study, express concerns over possible rate hikes

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Missouri’s utility officials are watching the federal climate-change legislation. The Waxman-Markey bill is could be taken up by Congress this week … key legislators are still working with agriculture officials on controversial measures in the bill the ag industry says would unfairly penalize rural areas.

The study, by the Missouri Public Utility Alliance, says cap-and-trade for carbon emissions could increase the electric rate in Missouri by 10 percent in 2015 … and raise it by as much as 80 percent in 20 years.

Robert Clayton, chairman of the Public Service Commission, says Missouri would be one of the states harder hit by the legislation, since a lot of our state’s energy comes from coal. However, Clayton says legislators continue to rework the language of the bill, and a lot depends on the final version of the bill.

And, he says, the PSC wants to be proactive rather than reactive in lowering carbon emissions. Clayton says the federal stimulus funding has provided numerous grants and programs, such as for weatherization in low-income homes, and he says Missourians need to take advantage of what’s are available. The PSC is working with the Department of Natural Resources on some of those programs, he says.

“That’s the message we’re trying to get out to consumers,” he says. “You need to take advantage of programs out there to take control of your energy and cut down on how much energy you use because ultimately that will help you save money.”

Energy program information is on the commission’s Web site at psc.mo.gov.

And he says the PSC wants to be a resource for legislators looking at the bill, and provide useful analysis and research.

Missouri should continue to look at nuclear power.

Legislators are still working with the Agriculture industry, which says rural areas would be hardest hit by the increases. Clayton says a lot depends on the final language of the bill, which could be taken up by the end of this week.

Missouri should continue to look at nuclear energy, he says, despite the failure of a bill this session that would let Ameren UE charge rate payers while the plant is under construction.

“Nuclear is expensive to build but then is efficient and may be an appropriate source to look at in future cap-and-trade rules,” he tells the Missourinet.

Echoing the main concern of this week’s forum looking at the study, Clayton says, “Any legislation that restricts carbon emissions is going to affect a state that relies on coal energy. We’ve benefitted from the low cost over the years and I hope our congressional legislation is mindful of actions they can include,” such as rebates for residential or commercial interests that would be majorly impacted. “I think they have that in mind.”

Heat reaches dangerous levels

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Missouri is under a heat advisory through Wednesday with temperatures in the mid to upper 90s. Combined with the humidity, that brings the heat index to 105 or 110 degrees.

Lori Harris-Franklin, an epidemiologist with the Department of Health and Senior Services says anyone can fall victim to heat exhaustion or heat stroke, but especially children, the elderly and those who are ill, mostly because they can be on medications that are dehydrating or can impair the body’s ability to sweat and cool down.

Some of those medications include antihistamines, heart drugs, over-the-counter sleeping pills, antidepressants, antipsychotics, tranquilizers and some prescriptions medications for Parkinson’s disease. People should check with their doctor or pharmacist to find out if their medications make them more sensitive to heat, the department says.

Harris-Franklin says signs of heat exhaustion include heavy sweating, muscle cramps, dizziness or fainting, headaches and nausea. Even more severe is heat stroke, in which victims are  not sweating, have an extremely high body temperature, skin that is red, dry and hot to the touch, a rapid pulse, dizziness, nausea, confusion and sometimes fall unconscious.

Ten Missourians died last year from heat-related causes; three of them were 65 or older. Seven were 25 to 64 years of age.

Incidentally, the department kicked off its Summer Weather Safety Week today.

Seniors and others on fixed incomes sometimes do not have air conditioning or cannot afford the expense of running it. For that reason, Harris-Franklin says a buddy system is recommended: Check on elderly family members and neighbors regularly to be sure they are not suffering from the effects of the heat. It’s also a good idea to use the buddy system when exercising or working outdoors in extreme heat, she says.

To report seniors or those with disabilities suffering from heat and needing assitance, call the state’s abuse and neglect hotline at (800) 392-0210. 

Children need to drink plenty of fluids during hot weather and should never be left unattended in hot environments, especially cars, even when the windows are down or if the car’s running with the air conditioner on.

Windshields can still intensify the inside temperature to dangerous levels, Harris-Franklin says. A car’s interior takes only a few minutes to reach oven-like temperatures, putting anyone left inside at risk of overheating.

Keep an eye on children playing in or around cars, the department says, since small children can get trapped inside because they are not big enough to open the door or roll down a window to escape. Older children are at risk if they fall asleep in a hot vehicle or play or hide in the trunk of a car.

What to do if suffering from heat exhaustion:

– Rest in a cool, preferably air-conditioned, area.

– Loosen clothing.

– Cool down with a shower, bath or sponge bath

– Drink plenty of non-alcoholic and caffeine-free beverages.

– Seek medical attention if symptoms worsen or last longer than one hour.

What to do in the event of heat stroke, which can be life threatening:

– Call for immediate medical assistance.

– Move the victim to a cool or shady area.

– Cool the victim rapidly using whatever methods possible, such as immersing the victim in a tub of cool water; placing them in a cool shower; spraying with cool water from a garden hose or sponging their skin with cool water.

- Monitor body temperature, and continue cooling efforts until the body temperature drops to less than 102 degrees.

– Do not give the victim alcohol to drink.

Tips to prevent heat-related illness:

– Be aware of the warning signs of heat-related illness, such as light-headedness, mild nausea or confusion, sleepiness or profuse sweating.

– While outdoors, rest frequently in a shady area so that your body’s thermostat has a chance to recover.

– Schedule outdoor activities carefully, preferably before noon or in the evening,

– If unaccustomed to working or exercising in a hot environment, start slowly, pick up the pace gradually and limit your exercise or work time.

– Wear sunscreen to protect skin from the sun’s harmful rays. Sunburn affects your body’s ability to cool itself and causes a loss of body fluids.

– Wear lightweight, light-colored, loose-fitting clothing.

– When working in the heat, monitor the condition of your co-workers and have someone do the same for you. If you are 65 years of age or older, have a friend or relative call to check on you twice a day when hot weather health advisories have been issued.

– Stay indoors and in an air-conditioned environment. If air conditioning is not available, consider a visit to a shopping mall, public library, movie theater, supermarket or other air-conditioned location for a few hours.

– Increase your fluid intake regardless of your activity level. Don’t wait until you feel thirsty to drink fluids. Ensure infants and children drink adequate amounts of liquids.

– Avoid drinks containing caffeine, alcohol, or large amounts of sugar because they will actually cause you to lose more fluid. Also, avoid very cold beverages because they can cause stomach cramps.

– Electric fans may be useful to increase comfort and to draw cool air into your home at night, but do not rely on a fan as your primary cooling device during a heat wave. When the temperature is in the upper 90s or higher, a fan will not prevent heat-related illness. A cool shower or bath is a more effective way to cool off.

– Check regularly on those at greatest risk of heat-related illness: infants and children up to 4 years of age, people 65 years of age or older, people who are overweight, people who overexert during work or exercise and people who are ill or on certain medications.

– Avoid hot foods and heavy meals.

– Ask your doctor whether medications you take affect your body’s response to the heat.

– Do not leave infants, children or pets unattended in a parked car or other hot environment.

As temperatures and humidity levels are forecasted to be high all week, AmerenUE’s energy experts are offering a number of tips for cost-effectively keeping cool this week and all summer long.

The biggest cause of higher energy prices in the summer is electricity used to power air conditioning. For customers who expect to have problems paying bills as temperatures rise, AmerenUE’s Budget Billing will "average out" a customer’s monthly bills to minimize the effect of higher prices or higher seasonal usage. Visit   www.ameren.com for more.

UE’s Web site also features a recently updated version of the Energy Savings Toolkit-UE customers’ online resource for detailed information about making the most of household cooling systems.

To cool your house efficiently, Ameren says your air conditioner needs to be cool itself. Keep it in the shade. If your air conditioner is already in the sun, you can use a trellis with a vine on it to provide summer shade — just don’t place the trellis so near the unit that it blocks the air flow.

Don’t use vents to close off rooms. Doing so can decrease efficiency.

When your home is warm, setting the thermostat really low won’t help it cool down any faster. When the air conditioning is on, it runs at the same "speed" regardless of the temperature setting.

Set the thermostat as high as possible. The recommended energy efficient summer temperature is 78 degrees.

Visit the Web site for more energy efficiency tips during hot weather. 

Lori Harris-Franklin talks about heat-related illnesses

Power still out for some 11,000 customers in Southeast Missouri

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The Association of Missouri Electric Cooperatives report the power is still out for about 11,100 of its customers after storms pounded the southern half of the state Friday.

Spokesman Bob McEwen says there were about 70,000 co-op customers without power, spread out across 20 cooperatives, Friday.

McEwen says some areas where multiple trees and poles were snapped, mixed with flash flooding and muddy conditions is make restoration more difficult.

Everyone’s expected to be back online by the end of the week, but Wednesday’s forecast has crews keeping an eye on the weather. More storms could be headed our way, adding to the delays.

AMEC reports more than a thousand poles were broken in the Black River co-op area, some sections where 40 or more poles are snapped in a row. Trees, large ones, are completely uprooted.

Work continues to restore power for about 1,900 residents in the Perryville and Altenburg areas.

As is the case throughout southern Missouri, most of the damage in Citizens’ service territory is attributed to fallen trees.

"We saw a lot of trees that were actually uprooted – some really big oak trees — that look like the hand of God came down and pulled them out by the roots and tossed them into the road," says Barb Casper, manager of member services for Citizens’ 26,000-member system.

Licking-based Intercounty Electric Cooperative also saw nearly 10,000 members without power following the May 8 storm. As of Tuesday morning, power is still out to 1,200 members there.

Restoration work is nearly complete at West Plains-based Howell-Oregon Electric Cooperative and Bolivar-Based Southwest Electric Cooperative, which each report about 50 members without power Tuesday morning. Mansfield-based Se-Ma-No Electric Cooperative restored service to all members Monday evening.

During power outage emergencies, Missouri¹s electric cooperatives reach out to other co-ops in unaffected areas for help. The Association of Missouri Electric Cooperatives has dispatched more than 230 cooperative linemen from Missouri, Arkansas, Kentucky and Illinois to assist in recovery efforts, says AMEC Director of Risk Management and Training Rob Land.

To view AMEC’s interactive map on outages throughout the state, visit: http://www.amec.org/IceStormInfoCtr/AffectedSystems.html

 

Jessica Machetta interviews Bob McEowen [Download/listen MP3]

Sen. Bond: Math doesn’t add up for Obama’s green jobs initiative

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Sen. Kit Bond says President Obama’s green jobs initiative will hurtmanufacturing jobs in the Midwest.

Sen. Bond When putting together a final budget deal, democrats stripped Bond’s amendment to protect workers, which passed the U.S. Senate earlierthis month. Bond’s provision would have given Congress the ability to stop climate legislation that would cost a significant amount of jobs.

He says proposals that raise carbon based revenue and energyprices will also disproportionately hit coal- and manufacturing-dependentregions, specifically the Midwest, Great Plains and South.

The current plan to increase green jobs will cost huge subsidies, he says, to create jobsthat only pay around $13 dollars an hour, not even close to what goodmanufacturing jobs pay.

In criticizing democrats for removing his protective amendment to the bill, Bond says they "are giving a green light to killing Midwesternmanufacturing jobs. As many hard-hit communities in theMidwest know, manufacturing workers are already suffering."

The amendment passed the Senatein March by a vote of 54 to 44

The industrialsectors Bond pointed out as being put at risk are auto assembly, steel, aluminum,plastics, chemicals, glass, fertilizer and pharmaceuticals.

"TheNational Association of Manufacturers estimated that the $6.7 trillionLieberman-Warner cap and trade bill defeated by the Senate last yearwould kill 3 million to 4 million jobs by 2030," Bond’s office reports.

President Obama’s proposal,which contains stricter emissions cuts and full use of cost maximizingauctions, is expected to be even more onerous and kill even more jobs.

Bond’s "Yellow Light on Green Jobs" report can be viewed here.

Jessica Machetta reports [Download/listen MP3]

Senate sponsor of CWIP bill claims opponents were not willing to compromise

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The State Senator who sponsored the now dead Construction Work in Progress (CWIP) bill says the legislation was doomed as a result of the failure to reach consensus. CWIP would have allowed AmerenUE – the state’s largest electric utility – to charge ratepayers for the costs of building a second nuclear plant in Callaway County while the facility was still being built. Senator Delbert Scott (R-Lowry City) says it was impossible to change the opinions of opinions.

“We never could really get the opponents to identify what they were against,” said Scott. “It was more of a bigger concept and I think that varied from opponent to opponent. Noranda said, ‘We’re not for a little bill, we’re not for a big bill, we’re not for part of a bill, we’re against everything.'”

Scott adds Governor Jay Nixon might have contributed to the bill’s demise.

“I think one real killer was that the Governor told Ameren and some other folks that he would veto a bill that had CWIP in it,” said Scott. “So, there’s really no reason to go to that effort if the Governor’s going to kill it.”

Scott says the last meeting involving Ameren and other interested parties was on Wednesday of last week in his office and it became apparent, at that time, the desire to reach compromise did not exist.

Download/Listen: Steve Walsh report (:60 MP3)