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PowerSouth Energy Cooperative Increases Wholesale Power Cost for Wiregrass Electric Cooperative Its Other 19 Member Sys

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PowerSouth Energy Cooperative Increases Wholesale Power Cost for Wiregrass Electric Cooperative Its Other 19 Member Sys

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    1. PowerSouth Energy Cooperative Increases Wholesale Power Cost for Wiregrass Electric Cooperative & Its Other 19 Member Systems August 6, 2008

    2. WEC Service Territory Houston, Geneva, Coffee, Dale and Covington Annual Growth Rate of 2.3% 74% of customers added in 2006 were in Houston County

    3. PowerSouth Energy Cooperative

    4. We are Living in A Global Marketplace

    5. The World Wants Energy!!!

    6. Prices for Coal and Natural Gas Continue to Increase

    7. Electric Rates Are Increasing

    8. Three Points to Understand Wiregrass Electric Cooperative is not the reason for the increase in rates to our members. Reason for rates increasing. Energy Conservation. Things you can do! Political landscape. Congress needs to hear and understand the energy crisis issues and help us do something about it.

    11. PowerSouth Fuel & Purchased Power Costs 446 % price increase in natural gas since 2000. 72% price increases since January 2008.

    15. Energy Usage Up

    16. U.S. Coal Generation Plants (Operating)

    17. U.S. Coal Generation Plants (Planned)

    18. U.S. Utility Industry Spending Requirements

    20. Breakdown of $1 of Revenue

    22. Bad Debts – In Collection Accounts Receivable Write-offs – thru July 10th 2008 2004 $248,810 or $20,734 per month (.82% of Rev) 729 accounts @ $341.30 each 2005 $262,715 or $21,893 per month (.77% of Rev) 764 accounts @ $343.87 each 2006 $266,775 or $22,231 per month (.72% of Rev) 898 accounts @ $297.08 each 2007 $264,857 or $22,071 per month (.68% of Rev) 776 accounts @ $341.31 each ($20,345 from one account) 2008 $119,454 501 accounts @ $238.43

    23. Controllable Costs (total distribution costs including margins) have remained at about $10 million per year since 2004. This is equal to about $40 per meter per month, 30 mills, or about 3 cents of our rate, and has not gone up in 5 years. Wholesale power costs have gone from $11 million in 1998 to $32 million in 2008, tripling in 10 years. This is going from 4 cents to over 8 cents in 2008, and will be 10 cents by the end of 2009. Four cents of increase equals $40 for every 1000 KW our members purchase. The average residential member at WEC has increased usage significantly over the last 5 years. Average monthly residential usage has increased from the low 1200's to mid 1300's.

    29. No One Silver Bullet

    30. Energy Conversation

    31. Environmental Restrictions “Global Warming” (Political Environment) View Dr. John Christy's video at www.wiregrass.coop

    32. America Needs To Voice Their Concerns

    33. WWW.WIREGRASS.COOP

    34.

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