PAONIA – Facing rising energy demands, changing fuel prices, new government regulations, and global warming, change in the world of electric cooperatives is often a difficult, uphill battle.
So how does an electric co-op like the Delta-Montrose Electric Association, whose service territory covers a politically conservative portion of Colorado’s Western Slope, come off so progressive and open-minded when it comes to alternative forms of energy and energy consumption in an often slow and antiquated co-op culture? The answer from longtime DMEA Boardmember Ed Marston: It’s all about having a conversation on options and bottom line economics.
Among the 44 electric co-ops (including the San Miguel Power Association) who purchase wholesale power from Tri-State Generation and Transmission Association, DMEA has been the voice of change. With energy efficiency programs, a geo-thermal loop tariff program, annual energy symposiums, plans to build a local hydro-power plant, and the stalwart refusal in 2007 to extend its contract with Tri-State from 2040 to 2050, DMEA simply does not follow the crowd. Marston, who lives in Paonia and has been a boardmember at DMEA since 1983, said DMEA’s past decisions to think outside the box when it comes to energy consumption is not driven by politics or any desire to be the black sheep co-op demanding change. Rather, he said, it’s the DMEA Board of Director’s desire make decisions that make sense for DMEA, instead of being swayed by a co-op culture that is often close-minded and dedicated to traditional methods of generating electricity.
Those decisions, Marston said, start with conversation.
“We are willing to say, ‘you know, there are different ways to do all this so let’s just talk about it,’” Marston said in an interview last week. “As much as anything we do, we are willing to talk about alternatives and we are willing to not only talk about them but do new things if it makes sense.”
For example, he said, the DMEA Board had a discussion about generating a portion of its own power locally. A variety of alternative power generating methods were discussed including solar, wind, hydro, coal mine methane, and the use of waste wood from local lumber companies.
“The first thing that was decided in that conversation is that we don’t have the wind and solar capabilities,” Marston said. “Economically, they are way off.”
Marston said other Tri-State co-ops knew that solar and wind wouldn’t work economically so their conversation on alternative forms basically stopped there, whereas DMEA’s conversation continued. That continued conversation lead to last month’s announcement that the co-op would collaborate to build a hydroelectric plant on the South Canal near Montrose as it leaves the Gunnison Tunnel.
Marston said co-ops tend to stick together when facing change but believes that now that DMEA and a few other co-ops are working toward alternative forms of energy production, others will eventually follow.
“It’s a very strong culture and very united and therefore very hard to change,” he said.
Take Tri-State’s request that its 44 co-ops sign a contract extension from 2040 to 2050 in order to qualify for the financing on two new coal-fired power plants, one of which would have been built in western Kansas. While many energy consumers, especially in SMPA’s service territory, urged their co-ops to not sign the extension, all but two signed it – one of them being DMEA. From the outside, the decision to not sign the extension with Tri-State may have seemed like a politically fueled stand against coal and Tri-State’s dedication to coal. On the inside though, the decision was strictly business based.
“Our decision wasn’t ideological and it wasn’t just about global climate change,” Marston said. “It was strictly made in the best financial interest of our members. It was strictly bottom line economics. We only wanted to commit ourselves for what we needed. Not for what some oil and gas co-op needed.
“Bottom line economics say that you need to develop local energy sources at home,” he continued. “Last year we sent $41 million to power plants in Craig and Hayden for electricity. This is a very poor area. Think what that would mean if that money stayed here.”
Marston said he believes rural co-ops will soon be at an advantage because they still have a variety of resources to generate their own power and become more autonomous and less tied to a large power supplier’s umbilical cord.
“As long as we are buying power from a distant supplier, we are the slave,” Marston said. “Rural co-ops can begin to steer the ship more through efficiency, load management and local generation of electricity. We live in interesting times and the world is changing.”