CEO Letter Archives

THE PRICE OF ENERGY is vitally important to our quality of life. As electric cooperatives, we have been fighting in Washington D.C. to keep energy affordable for several years. The overwhelming involvement of our members through our SCTellEPA campaign has shown our government that we are watching. We gave them our opinions and sent them a clear message that we wanted reliable and affordable energy -- and they heard us. As a result of the campaign, the Environmental Protection Agency’s (EPA) final rule for the Clean Power Plan has now included South Carolina’s nuclear plants under construction as part of our process to meet their stringent requirements. That was a real win for South Carolina. But, while the success we had may help minimize energy increases, unfortunately, costs will rise. Still, it’s a huge improvement over the draft rule first proposed by EPA, which did not give the nuclear units being constructed the same credit for carbon reductions that it gave other non-carbon emitting sources. Some background Santee Cooper, formally known as the South Carolina Public Service Authority, is a state-owned utility and the primary source of the power distributed by Palmetto Electric and the state's 19 other independent, consumer-owned electric cooperatives. Santee Cooper co-owns, with SCE&G, the V.C. Summer Nuclear Generating Station at Jenkinsville in Fairfield County. The state utility and the investor-owned utility are constructing two additional generation units there. Santee Cooper has been proactively working to reduce emissions through a number of initiatives, such as these new nuclear units, closing of four coal units and adding renewables. Through such efforts, Santee Cooper projects that it will cut CO2 emissions 44 percent by 2030 compared to 2005 levels. Where credit is due Palmetto Electric is especially grateful to Congressman James Clyburn, Senator Lindsey Graham and Senator Tim Scott, who listened to our concerns and understood the importance of correctly counting nuclear projects under construction in the state’s emissions-reduction plan. We are also extremely grateful to the members of Palmetto Electric and other South Carolina electric co-ops, and other citizens of the state, who helped us get our message to EPA. Approximately 11,000 Palmetto Electric members commented to EPA regarding this issue. We need time to fully analyze this final EPA rule and its impact on members, and we will work to minimize the cost to comply as much as we possibly can. We'll keep you posted as we determine just how much the EPA rule will affect the cost of electricity. No increase can be good, of course, but thanks to members who made their voices heard, it will not be as steep as it might have been. Thanks again for your support.

IN MAY, the Environmental Protection Agency (EPA) and the U.S. Army Corps of Engineers (Corps) finalized a water regulation that removes power and responsibility from local officials and relocates it to Washington, D.C. It’s called “WOTUS,” standing for “waters of the U.S.,” and defines what is subject to federal regulation under the federal Clean Water Act. These “waters” include the “60 percent of streams in the United States [that] flow only seasonally or when it rains” as Ken Kopocis, the EPA acting assistant administrator for water, explained recently. Currently, most of these are subject to state control. In this new regulation, the EPA and the Corps maximized their regulatory reach by suggesting only federal employees can adequately protect our water. And they did this without consulting with their state and local co-regulators. They continued down the path of more Washington-based decision making, meaning that federal agencies will be regulating everything from the Coosawhatchie River to ponds and dry creek beds that only temporarily have water after rainfall. What does this mean for members of Palmetto Electric Cooperative? Well, more regulated streams (with or without water in them) mean more federal permits to maintain and expand our electric distribution network – that’s about 3,500 miles of power lines. And past experience does not suggest a quick and timely response. The reliable electricity you pay for every month depends on a robust and well-maintained system—and our ability to quickly make necessary adjustments to keep your lights on. That’s why we seek a new rule. Palmetto Electric takes our responsibility to protect our land and water seriously – after all, we live here, too. But we believe this task belongs close to home, here in South Carolina, where folks understand the opportunities and challenges. We believe Congress knew what it was doing when it gave the EPA, the Corps and the states shared responsibility for protecting our water – federal jurisdiction over waters that support commerce, interstate waters and U.S. territorial waters; state jurisdiction over everything else. Co-ops across the country are working together with other interested groups in supporting Congressional action directing the EPA and the Corps to withdraw the rule, return to the drawing board and consult with affected parties – especially state and local governments – before re-proposing anything.

G. Thomas Upshaw | President & CEO The Washington Youth Tour and Bright Ideas are grade-A examples of Palmetto Electric Cooperative's commitment to education and the community. The three fine young citizens pictured below on Capitol Hill give us confidence in a bright future for America. Part of the credit goes to their teachers, who molded their energy and talent into future community and co-op leaders.

Terri Stansfield has won several Bright Ideas grants. "We love having the Bright Ideas Grant Patrol come!" she says. "That big cardboard check takes a place of honor in the classroom—all year long."

Representing Palmetto Electric on this year's Washington Youth Tour were Hilton Head Island High School seniors Evan Reier (left), son of Heather Reier, and Kara Klein, daughter of Nathan and Karen Klein, and Wade Hampton High School senior Joseph Wilson, son of Kevin and Rhonda Wilson.

G. Thomas Upshaw | President & CEO In September 1663, on a voyage of exploration, Captain William Hilton entered Port Royal Sound and spotted a headland—a high point that would be called Hilton's Headland, or Hilton's Head. Three hundred and 20 years later, Hilton Head Island became the Town of Hilton Head Island. Late this month, the town will begin its 350/30 anniversary blowout to commemorate both events. Palmetto Electric Cooperative is proud to be among the sponsors of the event, which officially kicks off Monday, September 30, and runs through October 5. The website CelebrationHHI.org offers a full schedule as well as a fascinating historical timeline of the island. Palmetto Electric's role began in 1950, which the timeline notes was the year the Hilton Head Company was organized. Leslie Richardson, a member of the celebration's volunteer organizing committee whose family's roots on the island reach back to that era, recognizes the difference co-op power made. As Leslie wrote to us, "Since Palmetto Electric Cooperative brought the first electricity to Hilton Head Island in 1950, it has played an integral role in the growth of the island. As the island developed and the population grew, Palmetto Electric continued to serve its citizens with new and expanded community-oriented programs." Our cooperative will celebrate an anniversary of its own in 2015, marking our 75th year. Our history dates back to 1940, when Palmetto Electric was chartered to bring electricity to the underserved rural areas of Beaufort, Hampton and Jasper counties. World War II necessarily slowed all electric cooperatives' progress but, after the war, the co-op got back to work. Our early leaders—members of the co-op themselves, just like today's trustees—recognized the potential that electric service could unlock in places such as Hilton Head Island. Where others found the task to serve the island too daunting, those co-op pioneers found a way to get the job done. Today, the Town of Hilton Head, its residents and its many visitors all reap the benefits of cooperation. As Leslie put it, "All I can say is how wonderful it is to step into an airconditioned room in August on Hilton Head Island." We're glad to help bring modern comfort and convenience to the island and to all the communities we have served for almost three-quarters of a century. Congratulations to the Town of Hilton Head Island. And to Captain Hilton, who must have known a jewel when he saw one, we say, "Good eye!"

G. Thomas Upshaw | President & CEO We work hard to earn and keep your trust. We also look out for our members by alerting them to possible scams. Some scammers are brazen enough to walk right up to your door. A new but equally low breed uses technology and telephones. First, we want to help you identify your co-op's employees and those of the contract utility companies we hire, such as those that help us maintain our rights of way.

Co-op employees like 1st Class Lineman Donald Cook will produce identification upon request. Contractors will either be in utility vehicles, have proper magnetic signage or have official Palmetto Electric windshield stickers, like the one shown below, which are updated annually.

If you receive a suspicious call regarding your co-op bill, call Palmetto Electric. A service representative can confirm your bill and let you know of any problems with your account.

G. Thomas Upshaw | President & CEO We've long taken an "all of the above" position when it comes to power generation. We recognize that, as the electricity industry is now structured, there are three primary means of producing base-load power—coal, nuclear, and natural gas. Renewables also play a part in the energy mix. The best established form of renewables— that is, energy produced using renewable resources as fuel—is hydro power. In recent decades, wind, solar and biomass have also gained prominence.

Green Power Solar School dedicated in Hardeeville

The Jasper County School District, Palmetto Electric Cooperative and Santee Cooper recently dedicated Hardeeville Ridgeland Middle School as a Green Power Solar School. The statewide Green Power Solar Schools program was launched in 2006 at Hilton Head Middle School, also served by Palmetto Electric. The program continues efforts by the co-ops and Santee Cooper, the state-owned utility that generates most of the power co-ops distribute, to promote renewable energy. Green Power Solar Schools encourage student interest in the environment and demonstrate the feasibility and limitations of renewable power. A 2-kilowatt solar power system has been installed at the Hardeeville school, providing hands-on learning opportunities for 6th grade students. Teachers and students can use a specially designed renewable energy curriculum that meets state science standards. A provided computer and Internet-based monitoring system allows them to see how much power their cells are generating. The school outreach program fulfills a commitment to reinvest Green Power funds back into renewable resources across South Carolina. Show your support for renewable energy by purchasing Green Power from Palmetto Electric. Call us today for details.

Spring cleaning' delivers safe, reliable power G. Thomas Upshaw | President & CEO SPRING GIVES US a chance to thaw out after a chilly winter. Most of us take advantage of longer daylight hours by doing a little spring cleaning and yard work. Similarly, to protect our lines and keep power flowing safely to your home, Palmetto Electric Cooperative maintains our rights of way. Think of it as spring cleaning for power lines. The difference is, here in the Lowcountry, where vegetation grows almost non-stop, we do our "spring cleaning" throughout the year. Right-of-way (ROW) maintenance keeps tree limbs and other obstacles away from high-voltage power lines. It's an important part of the service we provide to you, our members, for three reasons: safety, reliability and cost. Power lines are a constant part of our landscape; it's easy to forget they are around. We work hard to keep the area around our lines clear, but we need your help. Be alert this spring. Don't plant trees or tall vegetation under power lines, and keep an eye out for power lines when working in your yard.Our primary concern is the safety of our workers and members. Properly maintained ROW keeps our crews safe when they are restoring service and maintaining our system. Keeping trees clear of power lines also keeps your family safe. From making sure a child's tree house doesn't hit power lines to creating a safe environment while doing yard work, a well-maintained ROW helps avoid tragedy. If severe weather blows through — as it did this winter and can do at any time of year — a well-maintained ROW leads to fewer outages and faster response time. Trees are less of a threat. When trees do fall, crews are able to restore service more quickly than they could with poorly maintained areas. As a not-for-profit cooperative, Palmetto Electric strives to keep costs affordable for you, our members. Maintaining our ROW is an important part of controlling costs. Fewer and shorter outages save money for everyone. When crews work in well-maintained areas, we can reduce risks for employees and equipment too — another way to keep costs low. Safety, reliability, and cost: this is why we believe in ROW "spring cleaning." If we compromise on one of these areas, it impacts the others. At Palmetto Electric Cooperative, we aren't willing to compromise. Maintaining our ROW is a priority for your safety, comfort, and pocketbook.