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The “Essence” of cybersecurity

The online world can be a dangerous neighborhood. News of another huge data theft or malicious computer virus seems to arrive almost weekly. One study found that 740 million online records were hacked last year. Target, the giant retailer, revealed cyber-criminals had stolen information on as many as 70 million of its customers alone.

While it hasn’t received nearly as much publicity, cooperatives and other electric utilities haven’t been immune from this assault. Craig Miller, chief scientist for the National Rural Electric Cooperative Association (NRECA), says there are thousands of probes, big and small, into utility systems. These threats to the security and stability of the nation’s grid are only expected to grow.

But an ambitious effort by the Cooperative Research Network (CRN), the research and development arm of NRECA, and several partners is underway to make sure the systems delivering your power remain safe and secure. It’s called “Essence” and through the project, researchers are developing the next generation of automated cybersecurity for the industry.

That’s particularly important for co-op members and other consumers, who not only count on the power being there when they need it, but also on their electricity provider protecting their privacy. “The success of Essence will improve the protections around their personal information and it will improve the reliability of their power systems,” says Miller.

Miller says most of the attempts to hack into utility systems have been efforts to grab personal data or business information. Consumers obviously want to be sure bank account information, social security numbers or other personal data don’t fall into the hands of identity thieves.

But there have also been more ominous attacks that should concern any U.S. citizen. “There have been attempts on control systems. They are much rarer because they require a much higher level of expertise, and there’s no potential monetary gain,” Miller says. “But people have done it.”

The assumption, he says, is that some of these efforts are by “state actors,” other nations probing for potential weaknesses. Defense analysts also believe a cyber-attack on the nation’s power grid could be attractive to terrorists for its potential to create widespread chaos.

The essence of Essence is to protect Americans from all these threats. There are existing software programs with the same goal, but it’s how Essence safeguards utility systems that makes it a major advance in cybersecurity.

Most computer systems are protected through firewalls, special software that blocks suspicious attempts to connect or upload software. But these programs largely depend on lists of known threats that have to be constantly updated. “One of the challenges is that these security systems require expert users who are hyper-diligent about staying current,” says Miller. “They also have the potential for human error. This creates vulnerabilities.”

But Essence changes the balance of power in this constant battle. “Instead of monitoring what’s going in and out of the network, it monitors the network itself and uses advanced algorithms (procedures) to determine what is normal,” explains Maurice Martin, CRN’s project manager for cyber security. “Essence looks for anomalies – stuff that shouldn’t be happening – and then raises a red flag when it sees something that’s amiss.”

This means Essence doesn’t have to depend on lists of the latest dangers out there, or on humans keeping it up-to-date. It doesn’t need to know exactly what hackers are up to because anything that’s not right with the system will get its attention.

All this is accomplished by an unassuming device, small enough to be held in one hand, which can be added to a utility system in key spots to unobtrusively monitor what’s happening on the network.

Project managers also have taken several steps, including using storage in the cloud and open software standards, to keep costs down and make sure Essence doesn’t require extensive expertise to manage. “It’s going to bring state-of-the-art cybersecurity to co-ops of every size, from the biggest to the smallest,” says Martin. “The philosophy is no co-op left behind. Everyone will be able to use this.”

Essence is being developed through a $4 million grant awarded by the U.S. Department of Energy to research next-generation cybersecurity devices. CRN has partnered with Carnegie Mellon University, the Pacific Northwest National Laboratory, and the cyber security firm Cigital on the project. Several large corporations are also following the effort.

Researchers hope to have the first version of the Essence device in the field for tests early next year. If it’s as successful as expected, commercial partners will be brought in to produce the product, providing electric utilities with an affordable, automated cybersecurity system they can depend on.

That will be good news for consumers everywhere. As Martin notes, “Maintaining cybersecurity for your co-op or utility is a something that matters to anyone who’s on a power line.”

Reed Karaim writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives.

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Prevailing winds

By David Callis, executive vice-president, Tennessee Electric Cooperative Association

Despite a few high-profile scandals, I like to believe that most corporations abide by the law. Some do so because it’s the right thing to do. Others do so because of existing regulations and laws.

Along those lines, how do electric utilities respond when regulatory bodies force operational changes? If federal energy policy enacts changes that alter your strategy, sound business practice demands that you comply. Obeying the law ensures continued operation; doing the opposite invites fines, failure or possibly even incarceration.

It’s not an unusual happening in the energy industry. Our government is empowered to ensure that the economy functions well, and sound energy policy keeps the engine of industry running. Over the years, the federal government has taken action in a variety of ways: establishing and maintaining a Strategic Petroleum Reserve, restricting exports of fuels that are in short supply and even mandating that certain fuel sources be avoided.

That last point is a troubling one. Successful businesses plan for the future, doing their best to anticipate changing economic and market conditions. Most businesses plan strategically for the next two to three years; others take longer looks, three to five years and beyond, depending on their forecasting ability. In the electric utility business, routine planning for us means that we plan 20 to 30 years into the future.

The electric utility business is a very capital-intensive business. That simply means it costs a lot of money to build large electric generating plants and transformers and string wire. When you are constructing and maintaining a costly infrastructure, it requires meticulous long-term planning.

That’s particularly true for utilities such as the Tennessee Valley Authority that build facilities that generate electricity. In planning for the needs of our state and the surrounding area, TVA is currently in the midst of doing just that. Its Integrated Resource Plan (IRP) will be completed later this year.

Exploring the capital-intensive nature of our business, if a utility in, say, 1974, was planning for a 30-year future, one decision is what fuel to use. It needs to be a source that is abundantly available. The utility would make the best economic choice, taking into consideration the cost of the fuel, pollution standards and safety concerns.

What if one of those sources was taken off the table by regulators?

Around 1974, the 94th Congress passed S. 622, better known as the Energy Policy and Conservation Act. The law was signed by President Gerald Ford on Dec. 22, 1975. The official summary of the act reads: “Extends through June 30, 1977, the authority of the Administrator of the Federal Energy Administration under the Energy Supply and Environmental Coordination Act to issue orders prohibiting power plants and major fuel burning installations from using natural gas or petroleum products as fuel if they had been capable on June 22, 1974, of burning coal.” (emphasis mine)

The message delivered in 1975 was that burning natural gas is bad and burning coal is good. That’s a bit different than what we’re facing in 2014.

There were sound reasons for the decisions made in 1975, yet those decisions had consequences. We have a significant amount of coal-fired generation in this country that will be costly and difficult to replace.

Congressional action typically involves a thorough, deliberative process when setting energy policy. However, policy dictated by an agency without that process is subject to far less scrutiny.

As we’ve told you before, you have an opportunity to let your voice be heard. The Environmental Protection Agency is taking comments on its proposed Clean Power Plan until Oct. 16. TVA continues to invite comments on its IRP until Nov. 25.

Go to takeactionTN.com today and send a message. We need sensible solutions that provide for affordable and reliable power.

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My next coffee stop

By Mike Knotts, director of government affairs, Tennessee Electric Cooperative Association

One of the things I love about working for electric cooperatives is the opportunity I get to travel around the state and meet with the employees of your co-op. They are hardworking, dedicated folks who spend every day on the job focused on one thing — keeping the lights on. Whether engineers, billing clerks or accountants, they perform a service we all need, and not unlike the dedicated folks working at the fire station or the police department, they don’t often get a “thank you” for doing it. While I’m typically there to tell them about the things that are happening in Nashville or Washington, D.C., expressing some of my personal gratitude is usually on the agenda.

Gratitude is especially deserved for electric linemen. For years you have probably seen their photos in this magazine and maybe even grown accustomed enough to their image to skip right past and enjoy the next feature or article. Perhaps you only think about the work a lineman does when he knocks on your door to say that power will soon be restored. Or, similar to policemen or firemen, we only think of the risk they take just by doing their job on some special day of recognition or, even worse, when a tragedy occurs. That is a shame.

I’m thankful for their work every single day. As I sit at my desk and write these words, their work is evident in many things: in the lights in the ceiling that allow me see across the room, in the cool air blowing out of the vents that tempers the 90-plus-degree temperatures outside, in the telephones that I use to talk and text with friends all over the world, in the computer on which this article is being typed, saved, edited and prepared for publication. The list could be much longer because electricity affects nearly everything we do.

First and foremost, being an electric lineman is dangerous. Depending on the source, some say it is the third, fifth or eighth most dangerous job in America. We all teach our children not to stick their fingers in the socket, but these brave men and women deal with live electricity and “hot” lines every single day. In addition to working directly with bulk electricity delivery, their workplace can often be 50 feet in the air or in a confined underground space. The unfortunate reality is that someone’s first mistake could very well be the last. Accidents are rare, but the consequences are very serious.

That’s one reason why co-ops invest so much time, energy and money in safety training for our linemen. Here in Tennessee, electric cooperatives are proud to join together with our friends from municipally owned utilities to provide rigorous and relevant training to all of our linemen through the Job Training and Safety program. We are thankful that the state of Tennessee recognizes how important this is and incorporates this program in the College of Applied Technology at Murfreesboro.

Second, the work a lineman performs is physically difficult. They climb poles, lift heavy equipment, turn wrenches, etc. The old slogan about “neither rain, sleet, snow or storms will ever stop the U.S. Post Office” is just the starting point for a lineman. Think about when you have needed power restored the most; it is probably during a storm or some other type of severe weather. While we seek shelter, the lineman is often out in the elements.

Much has been and will continue to be said about the health of our nation because of our diet and lack of exercise. Though I won’t make any of those arguments in this article, human resource experts will tell you that it is becoming more difficult to recruit people who are willing to take on physical labor in their jobs. This is also true in the electric utility industry.

Third, becoming a lineman is a long, sometimes grueling process. On-the-job training through apprenticeship programs is required and takes years to complete. Besides requiring a lot of patience and determination to master the skills necessary to be safe on the job, linemen must know, understand and respect the engineering specifics of the electric system on which they are working.

For all of these reasons and more, say thanks the next time you see a lineman. Better yet, a thought just came to me. While on layovers at airports, I have occasionally anonymously paid for the meals of men or women in uniform as a way of thanking them for their service to our country. The next time you are buying a coffee at the gas station or eating at the local diner or your favorite lunch stop and you see one of your co-op’s big bucket trucks pull up, tell the waitress that one of the coffees or sandwiches is on you.

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Short start to a long process

By Mike Knotts, director of government affairs, Tennessee Electric Cooperative Association

Over the past year, you may have read in these pages about your local electric cooperative’s concerns about government regulations and how those regulations might affect electricity generation at new power plants that might need to be built to keep our homes cool and power our modern economy. Many of you have expressed your agreement or disagreement with my words — sometimes in colorful language — and I am appreciative of the feedback you have provided me.

Regardless of where we all may fall on the political spectrum, I think we can agree that our modern society demands a constant supply of reliable and affordable electric energy. Our world simply wouldn’t be the same without it. And the fine folks at your local co-op, for whom I work, are where “the rubber meets the road” on these important issues. It is serious and complex work.

In what is probably the most significant regulation ever proposed by an agency of the United States government, the U.S. Environmental Protection Agency (EPA) recently released a proposed rule that would limit the emissions of carbon dioxide from existing, rather than new, power plants all across America. These rules are far-reaching and unique. And since you own your co-op, you will be impacted in some way.

What the rule does

The Obama administration had previously proposed a national goal of reducing carbon emissions by 30 percent below 2005 levels by 2030. Instead of an across-the-board reduction, however, the proposed rule sets state-specific goals and creates guidelines to be used in making proposed methods to meet those goals. After approval of the rule, state governments will be required to develop detailed implementation plans that will determine what specific actions are taken to achieve the required reductions in carbon emissions. EPA will have the ability to approve or disapprove those plans.

Sources: Goals from “Clean Power Plan Proposed Rule” (p. 346-8); 2012 Emissions Rate from “Goal Computation Technical Support Document” (p. 25-6)

Sources: Goals from “Clean Power Plan Proposed Rule” (p. 346-8); 2012 Emissions Rate from “Goal Computation Technical Support Document” (p. 25-6)

There are significant differences in the requirements placed upon the states. Washington state, for instance, will be required to reduce its carbon emission rate by 76 percent while North Dakota will only be required to reduce its rate by 11 percent. Tennessee’s required reduction will be 39 percent, ranking 13th on the list of most impacted states. The accompanying chart shows the three most- and least-affected states as well as the required reductions for Tennessee and our neighboring states. It is unclear how states will be able to develop plans when a particular power plant serves customers in several states or is owned by the federal government instead of private company, as is the case for every power plant here in Tennessee.

How the rule works

Because of the nature of the rule, the nuts and bolts of what must be done to achieve the goals set by EPA won’t be clear for some time — possibly as far out as 2016. EPA set the state-by-state goals by developing a “best system of emission reductions,” and there are thousands of pages of technical details that accompany the rule and detail how these goals were set. At the time this article was authored, those details are still being evaluated, page by page. States will have several years to submit their plans to EPA for approval, and that is the point in time when the tough decisions will have to be made.

We do know, however, that this rule will force a significant number of coal-fired power plants to shut down or convert to using natural gas as fuel. We know that the rule encourages states or groups of states to implement a cap-and-trade model of carbon emission allocations. We know that in order to comply, actions will be required that are “outside the fence” of a power plant — actions like requiring utilities to implement energy-efficiency or demand-management programs. We also know that new nuclear generation will help states achieve their goals, as nuclear power does not emit any carbon into the atmosphere.

What can I do?

While it will be many years before the full scope of this plan could be implemented, there is short window of time in which the EPA will be actively soliciting comments from the public about the proposed rule. Starting with the day the rule is published in the Federal Register, there will be a 120-day comment period. As you become more educated about this rule, make your voice heard by visiting takeactionTN.com and submitting a comment to the EPA about your thoughts.

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Tennessee among states hardest hit by EPA regulations

Tennessee’s electric cooperatives call for consumers to take action.

NASHVILLE – Tennessee’s electric cooperatives express concern following the release of the U.S. Environmental Protection Agency’s proposed guidelines that will limit emissions from thousands of existing power plants, including 11 coal plants operated by the Tennessee Valley Authority.

“Estimates indicate that Tennessee will be among the hardest hit by the state requirements, calling for a 38 percent reduction in carbon dioxide emissions by 2030,” says David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “These regulations will hurt Tennessee families, and we are just beginning to understand how severe the impacts will be.”

Tennessee has already taken significant steps to improve energy efficiency and reduce carbon emissions. “The average monthly residential energy use in Tennessee has fallen 16 percent since 2010, and TVA has reduced its carbon emissions by 30 percent since 2005,” says Callis.

“It is important that we make our voices heard. Affordable energy and a strong Tennessee economy depend on an all-of-the-above approach to energy generation.”

The EPA will hold a 120-day public comment period, and you can submit your comments to the EPA by visiting takeactionTN.com.

“The economic challenges faced by many cooperative members make it critical that EPA regulatory programs be cost effective and provide environmental benefits that exceed the implementation and compliance costs,” says Callis.

The Tennessee Electric Cooperative Association is a trade group representing the interests of Tennessee’s 23 electric distribution cooperatives and the 1.1 million rural and suburban consumers they serve. The association publishes The Tennessee Magazine and provides legislative and support services to Tennessee’s electric cooperatives. Learn more at tnelectric.org.

 

Contact:
Trent Scott | tscott@tnelectric.org | 731.608.1519

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Taking the co-op message to DC

More than 100 Tennesseans joined more than 2,500 co-op leaders from across the nation to participate in the NRECA Legislative Conference on May 4-6 in Washington, D.C. The conference provided CEOs, directors and co-op staffers with insights from Washington insiders and briefings from NRECA lobbyists to use during meetings with lawmakers.

Tennessee co-op leaders met with Senators Alexander and Corker as well as Representatives Black, Blackburn, DesJarlais, Duncan, Fincher, Fleischmann and Roe.

A number of issues important to electric co-ops were discussed during the legislative visits, including

“People will know that Co-op Nation is here,” NRECA CEO Jo Ann Emerson said at the first conference session May 5 at the Hyatt Regency Washington on Capitol Hill. “You do this because you know how important relationships are with your legislators and with your regulatory officials.”

View photos from the legislative conference here.

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Are you ready for midterms?

by David Callis, executive vice-president and general manager

If you use the word “midterm” in a conversation with high school or college students, they’ll likely frown about exams they aren’t completely prepared to take. If you mention “midterm” to political junkies, the meaning is quite a bit different. You’d better be prepared to spend some time listening to their concerns and about the importance of the upcoming midterm elections.

Even if you don’t pay attention to politics (and you really should), by now you’ve noticed that elections are coming up in the next few months. Every vacant lot and busy corner is filled with campaign signs for every elected office — from county commission to the U.S. Senate.

You shouldn’t try to read all of those signs while you’re driving. Distracted driving isn’t conducive to good health and long life. You shouldn’t ignore voting in the midterms, either. These elections could have long-term effects on you and your town, county, state and nation. And, it really doesn’t matter your political viewpoint; it’s just not good practice to allow a minority of the population to select our leaders. That’s the problem, so the analysts say, with the midterms.

What exactly is a midterm election? Elections are held for the U.S. Senate every six years, providing for gradual change in the makeup of that body. Elections are held for president every four years and for the entire House of Representatives every two years. House elections held without a corresponding presidential election are commonly called the midterms.

Americans don’t exactly take home the gold when it comes to election participation, and midterms lag behind the averages. We typically turn out in numbers averaging around 55 percent. That percentage of eligible voters has held constant for the past four decades. Even in the high turnout year of 2008, about 62 percent of eligible voters elected our president and the Congress for the next two years.

You’ve heard pundits argue, “What’s the bigger problem: ignorance or apathy?” The answer, with tongue firmly in cheek, is, “I don’t know, and I don’t care.” From the statistics on voting, it looks as though four of every 10 people let a lack of knowledge or enthusiasm keep them from exercising their constitutional right.

This year, we have the opportunity to elect 33 percent of the Senate and 100 percent of the 435 members of the House of Representatives. That’s a significant portion of Congress, enough to make a difference on a variety of legislative issues. Seems like a pretty worthy reason to shake off the lethargy and exercise your right to vote.

To begin the process, go to www.tn.gov/sos/election. You can find details on national and state elections as well as your voting status and information on county elections.

Please take advantage of your right to vote. Electing your leaders is as much an obligation as it is an opportunity. All it takes is a little knowledge — we’ve pointed you in the right direction — and a little effort to actually cast your vote.

While you’re in the voting mood, there is a local opportunity where your vote actually counts a little more than in national elections. You’re a member-owner of an electric cooperative. You can elect directors and vote on bylaws and other issues. Your electric co-op holds an annual meeting every year, usually promoted in The Tennessee Magazine, where the leadership reports to you about your co-op’s financial condition.

Voting is important, whether it’s for a co-op director or a U.S. senator. Lyndon Baines Johnson, our 36th president who also helped found an electric co-op, recognized the need to stay involved. He said, “The vote is the most powerful instrument ever devised by man for breaking down injustice and destroying the terrible walls which imprison men because they are different from other men.”

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The buck stops where?

by Mike Knotts, director of government affairs

Have you ever wondered where the phrases “the buck stops here” or “pass the buck” actually came from? In January 1953, President Harry S. Truman said, “The president — whoever he is — has to decide. He can’t pass the buck to anybody. No one else can do the deciding for him. That’s his job.” More recently, President George W. Bush agreed with this sentiment and referred to himself as the “decider-in-chief.” I’m sure many of you will recognize the iconic image of the sign on President Truman’s desk in the late 1940s that told anyone in sight of it who was in charge. The modern-day connotation of this famous phrase is about an individual taking ultimate responsibility for an action, as the quote from President Truman shows. But I never understood the full meaning because I was confused about the word “buck.”

I recently learned that the phrase originated from an action that took place while deciding who should deal the next hand in a game of poker. In this case, “buck” is not another word for money, like I have always incorrectly assumed, but instead refers to a buckhorn knife that was placed on the table, pointed toward the person whose turn it was to deal. If a player didn’t want to be the dealer, he would “pass the buck” to the next player. He literally would move a knife across a table. My mental image of Wild West cowboys passing money back and forth across a saloon table now seems a bit silly. Armed with this knowledge, I have a new appreciation for these common expressions.

This year, our lawmakers made a decision that changes exactly where the buck will stop on something that has a very tangible impact on many rural and not-so-rural Tennesseans. For nearly 60 years, Tennessee’s cities have been able to expand their borders and incorporate new tracts of land simply by the city council taking a vote. Approval of the annexation of the previously unincorporated land came through an ordinance.

The problem? The citizens most impacted by the decision, those who were not residents of the city prior to annexation, had little ability to influence the outcome of the council’s vote. That’s because only residents of the city elect the members of the city council. And, therefore, those council members represent and respond only to citizens of the city and not those who live outside the city. At the moment the vote is taken, those to be annexed had no representation on the governing body that decided whether their property would become part of the city. This system is referred to as forced annexation or annexation by ordinance. As has been done in most other states, it is now a thing of the past.

The General Assembly overwhelmingly passed legislation sponsored by Sen. Bo Watson (R-Hixson) and Rep. Mike Carter (R-Ooltewah) that bans forced annexations. Now, approval must come through a referendum of those individuals who are to be annexed. This should give residents of the county a direct voice and choice over whether they will be included in the city. An important exception, however, applies to agricultural land. Only the written permission of the specific property owner(s) is required in these cases.

When it comes to annexation, the buck used to stop at the mayor’s office, but now the buck stops with you. As I see it, the most important result of this change will be increased communication among counties and cities as they perform the nuts and bolts of local government. Planning of urban growth boundaries, extension of services, determining boundaries of school systems and other similar projects will likely require more coordination among city councils and county commissions to ensure the will of the entire public is adhered to. Communities will have to cooperate with each other to achieve common objectives.

Let’s see, then: If we have more communication, better coordination and cooperation among ourselves, I think that is a good thing. Wouldn’t you agree?

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Pickwick EC awarded $1 million development loan

SELMER – USDA Rural Development State Director Bobby Goode today joined Rep. Marsha Blackburn, Pickwick Electric Cooperative President Karl Dudley and other local leaders to announce funding for jobs in McNairy County. The announcement was made at the McNairy County Industrial Park.

“In McNairy County and across the country, the best stimulus program is a job. For almost 30 years, Monogram Refrigeration has manufactured jobs and boosted the local economy in Selmer and beyond,” said Blackburn. “Today’s expansion announcement will provide more high quality jobs and strengthen Monogram’s footprint in West Tennessee.”

Pickwick Electric Cooperative (PEC) has partnered with the Selmer/McNairy County Industrial Development Board (IDB) and USDA Rural Development (RD) to purchase an existing industrial building in Selmer. The 125,000 square foot facility will make it possible for Monogram Refrigeration, a subsidiary of General Electric to add a new production line creating up to 40 jobs and keep the company from needing to relocate 160 existing jobs to another location.

According to Plant Manager Ray Deming, “Monogram has been manufacturing high quality household refrigeration equipment in McNairy County for almost 30 years.” The company plans to introduce a new line that is expected to go into production in 2015.

“Working together Pickwick Electric, Selmer/McNairy Industrial Development Board and USDA help leverage the region’s existing strengths and assets,” said Goode. “Helping businesses, like Monogram, that are already here to grow means the good jobs created by expansion are a natural fit and pay dividends for the workers, their families and the entire community.”

The industrial building purchase is financed with a $1 million zero-interest loan from USDA to PEC that will be passed-through to the Industrial Board for the purchase of an existing industrial building. Monogram will lease the building from the IDB. The building was formerly home to Midwest Woodworking.

Others participating in the event included Sen. Lamar Alexander’s Representative Matt Varino, TN Dept. Of Agriculture Deputy Commissioner Jai Templeton, Selmer Mayor John Smith, McNairy County Mayor Ronnie Brooks, McNairy Regional Alliance Executive Director Ted Moore, Southwest TN Human Resource Agency Exec. Director Mike Smith and RD Area Director Arlisa Armstrong and Specialist Joel Howard.

“This kind of public/private partnership is key to USDA’s StrikeForce for Rural Growth and Opportunity initiative to grow rural economies, increase investments and create opportunities in communities that are often held back by high poverty, geography or other barriers,” said Goode.

While poverty is a challenge in bigger cities as well, the reality is that nearly 85 percent of America’s persistent poverty counties are in rural areas. StrikeForce provides additional hands-on technical assistance from USDA local field staff because, Goode said, “Not every community is equipped to research, apply for or manage federal, state or non-profit resources that could help.”

During the last four years USDA Rural Development has assisted more than 1.5 million Tennessee families and businesses in 158 communities, investing more than $3.7 Billion into local economies through affordable loans, loan guarantees and grants for jobs, homes, infrastructure and community development.

For more information on the meeting or USDA Rural Development programs available in southwest Tennessee contact the Jackson Area Office at 731-668-2091 x2, or 800-342-3149 x1495. Visit us online at www.rurdev.usda.gov/TN.

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The pace of change

Few issues seem more polarizing than climate change and renewable energy — even when trying to reach a level of mutual satisfaction. A point I’ve tried to make over the past few months is that you can’t effect change overnight. What I’ve discovered is that readers often interpret my comments through the prism of their own beliefs. I’m not being critical; that tends to occur when we’re passionate about an issue.

Some co-op members aren’t pleased when we voice support for coal-fired generation. One particular reader classified it as unrealistically clinging to the past. Some members aren’t pleased about our support for solar and wind power when we have abundant gas, oil and coal resources in the U.S.

Our position is not about mandating a particular power source but a call for diversity and stability. We don’t hate coal; we don’t want to wreck the environment. Our mission, quite simply, is to keep the lights on. And to do so safely and efficiently.

We make economic-based decisions grounded in reality, not partisanship. Over the years, we’ve had disagreements on energy policy with both sides of the aisle. Principled disagreement doesn’t equate with personal dislike or political opposition.

Some policy shifts are minimally disruptive. But when policy shifts dictate changing energy sources, it’s going to take a long time and a lot of money. And it’s not going to be happen overnight. For example, it can take more than a mile for a fast-moving supertanker to stop and turn around. It’s a matter of physics, not desire.

If we were to immediately shut down all of the coal plants in the U.S., it would make a negligible change in worldwide carbon dioxide levels. We’d also be in the dark. Yet, over the past several years, older coal plants have been shuttered. Huge financial investments have been made to scrub the emissions of those remaining. Investments have been made in renewable energy sources where and when it was economically wise.

Our power supplier, the Tennessee Valley Authority, has moved from having coal represent a majority of its generation to a long-term goal of a mix that is 40 percent nuclear, 20 percent coal, 20 percent natural gas and 20 percent hydropower and renewable sources.

An “all-of-the-above” energy policy isn’t just a slogan. It’s not “code” that means we don’t support renewable energy. Each power source has benefits and drawbacks. Fuel costs vary. Some sources are readily available; some are not. Any type of generation depends on transmission lines to carry the electricity from the source to your local power company. Just planning and building those lines can take years to accomplish.

The sun is free, but solar power isn’t. Wind power is a great option, but the wind does not blow in all the right places at all the right times. Nuclear power is dependable and a steady, long-term power source. It also creates long-term waste problems. Coal is a plentiful and cheap power source. Yet, as we’ve seen in the Valley, it isn’t easy to dispose of coal ash, and we have yet to master the handling of carbon dioxide. Hydropower is inexpensive, clean and totally dependent on the weather. Natural gas burns cleaner than coal, but when overused, supplies dwindle and prices increase.

As we’ve seen this past winter, there are times when all are needed.

Take your pick about which of those sources you dislike. But, if you remove it from the mix, do you have a workable plan to replace it? Changing policy is easy; making the changes required by that policy is not. As frustrating as the pace of change is for some, a change of pace on this level takes time and care.

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The Lesson I Learned from Pat Summitt’s Shoes

Editor’s note: The Tennessee Electric Cooperative Association is losing a valued staff member as Chelsea Rose recently accepted a new position to serve as executive director of the Tennessee Future Farmers of America Foundation Inc. As a going-away present, Mike Knotts gave Chelsea the last word and his April column.

As a high school senior, my parents took me to the campus of Vanderbilt University to watch the Tennessee Lady Vols basketball team take on the Commodores. This was a real treat because I just so happen to be among the biggest Pat Summitt fans around.

I remember stressing over selecting the right Lady Vols T-shirt to wear. I even thought about what I could bring to the game should I get close enough to Coach Summitt to get an autograph. I settled on an orange fleece scarf.

The game was thrilling. I had seen many Lady Vols basketball games on television, but this was special. I was in the same room with these near-celebrities. When the game ended and Coach Summitt was giving radio interviews on the sideline, with my scarf in hand I slipped and snuck my way to the velvet rope separating the living coaching legend from hundreds of adoring fans.

As she wrapped up her last interview and turned toward the locker room, I watched her in amazement, completely taken aback by her intimidating stature. In an attempt to take in every moment near the woman who had been such an inspiration to me in my own athletic career, I looked her over from head to toe and could not believe my eyes. Pat Summitt, coach of the 12-time (now 18-time) Southeastern Conference Champion Lady Vols, and little ol’ me had the same shoes!

This revelation seems like nothing now, but in that moment I finally looked past the seven national championship titles (now eight) and could see a woman I could identify with. Pat Summitt was a human being.

Have you ever brushed shoulders with a famous figure? It can be surreal. I am far from that moment when I got to shake the hand of the woman I had cheered for through so many games and nail-biting moments. However, even now, I get butterflies in my stomach remembering that brief interaction and the instant when I realized that she is human, like me.

In my career, I interact with elected officials from across the state on a regular basis. We, the voters, elected these men and women from our home communities to represent us, and they go to work in the Capitol with our concerns in mind.

However, many constituents visiting their lawmakers are nervous and hesitant to fully voice their policy concerns. I suspect that is because, similar to Pat Summitt, these public figures are constantly seen on television, heard through the radio or featured in newspapers.

Despite the media attention and the larger-than-life imagery sometimes associated with Tennessee’s lawmakers, they are human. We elect them, and they sculpt their political posture based on our feedback. Their reasons for seeking office are varied, but one fact is true about all Tennessee legislators: They are accountable to us, the voters.

As electric cooperative members, we are the caretakers of our low-cost, reliable power supply. That means we should readily communicate with our elected leaders and let them know that the cooperative model of business matters. That model of business was established by our parents and grandparents and, today, gives us ownership of arguably the most important resource we use — electricity.

So, in this election year, let’s abandon our nervousness and confidently approach the elected leaders who are there to defend what matters to us. After all, they are human.

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TECA brings young leaders to Nashville

Forty-six high school juniors from across Tennessee attended the Tennessee Electric Cooperative Association’s 2014 Youth Leadership Summit March 24-26 in downtown Nashville. Two students from each of the state’s 23 electric cooperatives attended the annual event.

“The Youth Leadership Summit teaches these exceptional students how important electric cooperatives are to Tennessee’s communities and provides them an opportunity to see the legislative process in the Capitol,” said Todd Blocker, TECA director of member relations. “Local electric co-ops, school officials and guidance counselors chose these deserving students to attend the summit based on their interests in government and strong leadership abilities.”

The summit began Monday evening, March 24, with dinner at the group’s hotel, the Millennium Maxwell House. Get-acquainted activities and an introduction to cooperatives followed, led by electric co-op leaders, and the night ended with a leadership development presentation by Amy Gallimore of TRI Leadership Resources LLC.

Students rose early on Tuesday, March 25, for breakfast and preparations for a visit to Legislative Plaza. TECA Director of Government Affairs Mike Knotts introduced Sen. Mike Bell of Riceville and Rep. Cameron Sexton of Crossville, who welcomed the students to Nashville and answered their questions about legislative issues. The 11th-graders then toured the Capitol and saw state government in action at Senate and House committee meetings before posing for photos in front of the historic building.

Following the visit to Capitol Hill, the group enjoyed lunch and leadership activities at a Nashville-area YMCA camp, where the students were also treated to a hot-line trailer demonstration by Sequachee Valley Electric Cooperative and Sunbelt Rentals. SVEC employees showed that electric power does a tremendous amount of work for us, but because it is such a powerful force, we must be careful around it and always exercise safety around power lines. The fun continued with dinner and games at Dave & Buster’s, and the busy day was capped off by special guest speakers Miss Tennessee Shelby Thompson and Tennessee Titans cheerleader Anne Peterson.

Wednesday morning, the students were divided into teams and formed their own co-ops and worked together to “buy” and “sell” power distribution supplies and resolve day-to-day issues local electric co-ops face like power outages and rights-of-way conflicts. Then they got an overview of the history of electric cooperatives and answered trivia questions about electric co-ops and the state in the “Energy Battle” competition.

“These students will soon be our community leaders — and electric cooperative member-owners,” said David Callis, executive vice president and general manager of the Tennessee Electric Cooperative Association. “We want them to see what makes their electric cooperative special, appreciate all their co-op provides for their communities and understand why it was so important to form electric co-ops in the first place.”

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TECA receives Paul Revere award

(NASHVILLE, TENN.) — The National Rural Electric Cooperative Association (NRECA) today awarded the Tennessee Electric Cooperative Association (TECA) its Paul Revere Award. NRECA recognized the association for its ability to mobilize cooperative consumer-members on behalf of the electric cooperative industry.

Tennessee electric cooperatives faced an expensive and difficult fight with the cable industry in 2013 over the issue of pole attachments. The cable industry spent hundreds of thousands of dollars pushing legislation that would have created a $13 million subsidy paid by co-ops to the cable companies and stripped local co-op boards of control.

Cable’s attacks were countered in typical co-op style. TECA’s Government Affairs Director Mike Knotts deployed a grassroots strategy to activate advocates across the state, urging them to contact state legislators, share information on social media channels and write letters to local papers in support of more reasonable legislation. Ultimately neither party prevailed, which amounted to a win for co-ops and a setback for the cable industry.

“The power of a well-implemented grassroots campaign cannot be overstated, and TECA demonstrated that in spades. Against a well-funded opponent, they thoughtfully and effectively tackled the issue legislator by legislator,” said Jo Ann Emerson, CEO of NRECA. “TECA’s approach provides a road map for co-ops across the country on how to organize, educate and execute a plan for a victory.”

“We are honored to receive the award,” says David Callis, executive vice president and general manager of TECA. “Protecting the pocketbooks of our members is our most important mission. We share this award with the co-op members across the state who picked up the phone, sent letters and emails, or otherwise took action to defend their co-op when it was threatened.”

The National Rural Electric Cooperative Association is the national service organization that represents the nation’s more than 900 private, not-for-profit, consumer-owned electric cooperatives, which provide service to 42 million people in 47 states.

The Tennessee Electric Cooperative Association is a trade group representing the interests of 23 electric distribution cooperatives and the 1.1 million members they serve across rural and suburban Tennessee.

More than 8,500 representatives from cooperative electric utilities across the nation are attending the NRECA Annual Meeting March 2-5, during which they will set NRECA’s legislative and organizational agenda for 2014. In addition to considering and acting upon policy resolutions, delegates receive reports from NRECA officials, hear addresses by key public figures and business experts, and attend educational forums on major issues affecting electric cooperatives and their consumer-owners.

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Hometown Heroes

Mike Knotts, director of government affairs for the Tennessee Electric Cooperative Association

Several months ago, I attended a speech given by U.S. Agriculture Secretary and former Iowa Gov. Tom Vilsack. While most of the speech was geared toward the federal government’s involvement in farm policy and agricultural interests, he quoted some statistics that have really stuck with me. He said that while only 16 percent of America’s current population lives in areas that are considered rural, more than 40 percent of our nation’s military personnel come from those rural areas. That disproportionate level of enlistment says a lot to me about the culture of America’s farms and small towns and the values that permeate those communities.

Don’t forget that this is the Volunteer State, a moniker that’s not just a nickname for sports teams at a certain university in Knoxville. We have a well-deserved reputation of providing huge numbers of recruits to fight our nation’s battles, especially in wartime. If you’ve visited the Alamo in Texas, you’ve seen the many state flags that commemorate the fallen from that famous battle. And it is the Tennessee flag that shows the highest price paid.

That tradition continues today. One of the most frequently deployed brigades in the Army calls Tennessee its home. The 3rd Brigade Combat Team of the 101st Airborne Division (Air Assault) is based at Fort Campbell, straddling the Tennessee and Kentucky state line. The “Rakkasans” have spent as much time on the other side of the planet pursuing their “Rendezvous with Destiny” over the past 10 years as they have spent training at Fort Campbell.

Many of you reading this page simply call these folks your neighbors, as Cumberland Electric Membership Corporation provides electric service to so many of these hometown heroes. Fort Campbell is not just home to the 101st but also to numerous other Army and even some Air Force assets. So while we may just think of them as our neighbors, these men and women do some pretty awe-inspiring things.

Few are as impressive as the Night Stalkers, the best helicopter pilots in the world. I have loved aviation since I was a kid and have some experience flying small aircraft in daytime, visual conditions. However, helicopter-flying requires a level of skill I have not mastered. The warriors of the 160th Special Operations Aviation Regiment (SOAR) fly the world’s most advanced helicopters, on the most dangerous missions, usually at night, often without lights, and always under the stress of battle. While the Navy SEALs may get the spotlight of the public’s admiration for high-profile missions (like the assault that resulted in the death of Osama bin Laden), the Night Stalkers frequently give them their rides to and from work. I am in awe of what they do, and they are right here in our backyard.

So it was only fitting that Dr. Mark Green spoke to electric cooperative leaders in Nashville in early February about the important role that electric co-ops play in our communities. I will leave the details about the specific public policy and legislation that were discussed that day to a future column because I found his comments to be more inspiring.

Dr. Green’s path to politics is different from that of any elected official I’ve met. A medical doctor who was raised in rural Mississippi and graduated from West Point, Dr. Green came to Tennessee after being assigned to Fort Campbell as a special operations flight surgeon in the 160th SOAR. He examined Saddam Hussein the night he was captured, and during his speech to co-op officials, Dr. Green spoke of that experience as well as the personal relationships he had with many of his fellow Night Stalkers who perished in the mission now immortalized by the book and movie “Lone Survivor.” He noted from firsthand experience that those in the special operations community pay an especially high price for their service.

When Dr. Green’s time in the Army ended, he found Tennessee to be the place he wanted to start a business and raise his children. Now, he is further serving his community by representing them in the legislature as a state senator from Clarksville. In just his first term in the Senate, he serves as vice-chair of the Committee on Commerce and Labor.

The men and women Dr. Green described in such detail serve with dignity and have asked precious little of us in return. They simply feel a duty to make the world, this country and their local communities better. It is my hope that by reading these words you and I may live each day in such a way that we honor the sacrifices they have made for us. God bless them.

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Not a training ground

I really missed the mark in my February column. While writing in early January that “little evidence is left of the record cold weather,” I had no doubt that winter’s cold wouldn’t last much longer. No one anticipated the Tennessee Valley Authority would set five of its top 10 record peak demands in the first few weeks of the year. Unfortunately, I was half-right: High bills continue to strain budgets throughout the region.

On those five coldest days, TVA and the local power companies generated and delivered 3,399 gigawatt-hours. Without delving into the math again (see inset), that’s enough energy to power Nashville for 10 months. Everything didn’t work to perfection, but the power stayed on. It’s quite an accomplishment to achieve once, but to meet the demand again and again is remarkable. And you don’t achieve the remarkable by accident.

Former Defense Secretary Donald Rumsfeld, when discussing the dangers troops were encountering in Iraq, created some new classifications for problems: “There are known knowns … there are known unknowns … there are also unknown unknowns.”

When you lead — whether it’s troops into battle, hikers on an outdoors excursion or utility employees keeping the current flowing — you need a certain amount of technical expertise. Good leadership also knows a thing or two about failure. It’s good to learn early what doesn’t work. Some ideas that look great on paper just don’t turn out so well.

For example, in the early 1990s, many of us in the electric utility industry were certain that fuel cells would eventually allow us to serve remote loads efficiently and inexpensively. The technology was “just a few years away.” A couple of decades later, it’s still just a few years away.

That’s just a small example of how “experts” can miss the mark. With new technologies, it becomes even more challenging. Longtime utility workers may not know that wind turbines can’t operate below certain temperatures or in extremely high wind speeds. There simply aren’t any simple answers. The steady hands at the helm of our utilities have years of seasoned experience. If there were an easier, less-expensive way to do what we do, that’s how we would be doing it.

For our nation to have a workable energy policy, we need experts with true subject-matter knowledge and a few battle scars. What we don’t need is policy designed by people who don’t know what it takes to keep the lights on.

It seems the political leaders driving our nation’s energy policy are following that path. Many simply don’t know enough about our industry to be discussing energy policy — much less drafting it.

In the utility industry, we have our share of “known knowns” and “known unknowns.” We’ve learned to work through those. But building the next century’s energy policy with “unknown unknowns?” Designing the electricity grid that powers our lives shouldn’t be a training ground.

To lean more and become part of the conversation focused on a sensible, balanced approach to the Environmental Protection Agency’s planned new rules for power plants, go to takeactionTN.com.

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MLEC, CoBank Partner in School Grant Program

Meriwether Lewis Electric Cooperative is a recipient of CoBank’s “Sharing Success” matching grant program. MLEC combined the $5000 grant with its existing Adopt-A-School grant program to award $10,000 to local schools.

“Our school grant program makes $1000 available annually in each of the five counties we serve,” says President and CEO Hal Womble. “However, with the help of our partners at CoBank, we are able to give $2000 in each county this year to help more educators and reach more students.”

Winning projects range from establishing reading libraries and science lab materials to electronic tablets and classroom equipment. With the awarding of this year’s grants, MLEC’s Adopt-A-School program reached $100,000 milestone in giving. Since 1991, MLEC has awarded 130 grants through its adopt-a-school program.

“Co Bank is pleased to offer our ‘Sharing Success’ matching grant program to assist our customers in supporting their local communities,” says William D. LaDuca of CoBank. “MLEC’s grant program is an excellent example of how we can assist the cooperative in its efforts to provide financial support for teachers and students in its service territory.”

Meriwether Lewis Electric Cooperative, a Touchstone Energy® cooperative, is a non-profit organization offering reliable, low-cost electricity to over 35,000 members in Hickman, Houston, Humphreys, Lewis and Perry counties. Member – electric power companies of Middle Tennessee. Remember to play it safe around electricity.

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Co-op members deliver powerful message to legislators

One voice can still make a difference, and more than 180 board members and employees representing electric cooperative member-owners across Tennessee spoke with one voice during the 2014 Tennessee Electric Cooperative Association Legislative Conference in Nashville on Monday and Tuesday, Feb. 3 and 4. Attendees met with their legislators on Capitol Hill to help them better understand electric cooperatives and the issues that impact delivering safe, reliable and affordable power to their communities.

Attendees reminded legislators that co-ops are not-for-profit, member-owned and -regulated private businesses. Legislators were told of the enormous impact co-ops have on their communities. Co-ops own and maintain more than $2.8 billion of infrastructure, including 86,000 miles of power lines, pay $63 million in taxes, employ more than 2,600 Tennesseans and have a payroll of $94 million. Tennessee’s electric co-ops kept the power on 99.96 percent of the time in 2013 and secured more than $4 million in economic development loans for their rural communities.

Attendees also shared the results of a recent member satisfaction study. Tennessee co-op members are extremely pleased with the efforts of their local co-op, giving them high marks for satisfaction, trust and loyalty.

“Educated and informed legislators are a key component of low-cost, reliable power in Tennessee,” says Mike Knotts, director of government affairs with TECA. “The collective voice of co-op members makes a powerful impression on Capitol Hill.”

The primary issue discussed with legislators this year was a bill requiring all electric co-ops to join the Tennessee One-Call system, a company that provides services to utilities that own and operate underground infrastructure. While many Tennessee co-ops do participate, a few have virtually no underground utilities, so the service would provide little to no benefit. Co-ops believe that the local board should decide if the co-op should join One Call, not Nashville bureaucrats.

“We believe that our members are best served when local decisions are made by local board members elected to run the cooperative,” says Knotts. “We are concerned when legislation limits a board’s ability to act in the best interests of its members.”

“Tennessee’s electric cooperatives maintain a visible presence in Nashville and Washington, D.C., to be certain that the interests of co-op members are protected,” says David Callis, TECA general manager. “We are here to protect rural Tennesseans. Our legislators make decisions and pass laws that can have serious consequences for Tennessee’s electric cooperatives and the members they serve. It is important that we tell the electric cooperative story and inform and educate legislators on the impacts of proposed legislation.”

[button link=”http://teca.smugmug.com/Legislative/Legislative-Day-2014/i-VNhhbZ3″]View Event Photos →[/button]

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Tightening the Net

Co-ops innovate to secure members’ digital data

Amidst continuing cyber threats from crafty computer hackers, electric cooperatives are mounting sturdy defenses to safeguard members’ digital data and ensure reliable power delivery.

Utilities are bulking up cyber security with tools from the Cooperative Research Network (CRN), the research arm of the Arlington, Va.-based National Rural Electric Cooperative Association (NRECA). CRN’s Guide to Developing a Risk Mitigation and Cyber Security Plan and supporting documents, released in 2011 with funding support from the U.S. Department of Energy (DOE), helps utilities of all types develop a process to shore up cyber defenses.

Three innovations promise to advance cyber security efforts: pattern recognition software, an update of CRN’s revolutionary Guide, and securing data.

Cyber Cooperation

Most home and business computer networks use a firewall— a virtual barrier or hardware—to protect linked computers from hackers, viruses, and other virtual invaders. Utilities use firewalls to secure systems, too. But sophisticated cyber threats make firewalls an aging technology.

“Firewalls are less able to provide the level of security we require,” shares CRN Program Manager Maurice Martin. “We want to make sure that our co-ops have the tools they need to work securely.”

To meet the challenge, CRN’s developing a way to replace firewalls with a security tool that monitors computer network traffic. The system memorizes the normal pattern of operation. When the system detects an abnormal pattern (a possible intrusion), it sounds an alarm.

A DOE grant of $3.6 million, with an additional $1.1 million from CRN and partner Honeywell Corp., funds the research. Allies such as Pacific Northwest National Laboratories, Carnegie Mellon University, and Cigital Inc. will work with CRN to develop the cyber security tool.

“We’ll combine high-level functionality with an easy-to-use platform,” predicts Craig Miller, chief scientist at CRN. “The system will simplify cyber security management for small utilities with limited resources.”

Evolving Guidance

CRN’s Guide to Developing a Risk Mitigation and Cyber Security Plan and accompanying template help utilities of all sizes craft a cyber-security plan. The cooperatively-developed resources, free for any utility, have been downloaded more than 8,000 times. Large and small utilities across America and in countries as far away as India and Italy use the Guide.

“The content and ideas were important to share,” explains Martin. The Guide and tools were developed as part of a $68 million DOE smart grid grant three years ago.

But responding to emerging cyber threats is not a one-time effort. It requires constant education, awareness, and vigilance.  New resources—products, services, and educational tools—are on the way. Expected early this year, an updated Guide will work in harmony with new cyber security initiatives from the DOE.

Securing Data

Threats to security—online and to the power grid—are real. Hackers take pride in undermining computer systems and finding a system’s Achilles’ heel. But thanks to innovative cloud computing, utilities are discovering ways to work together to strengthen co-op security and upgrade IT architecture.

“NRECA turned to the Science Applications International Corp. (SAIC) for its solid understanding of the smart grid marketplace and how new technologies can be used to benefit the consumer member at the end of the line,” explains Martin.

That project aims to shore up technologies that capture, store, and secure data and information. Once completed, this work will benefit both co-ops and their members. SAIC is producing a series of reports to help utilities fully implement the smart grid. The reports will evaluate IT developments (cloud computing, new types of databases, and more) with an eye toward how such developments can support the co-ops and even solve their needs. The goal? SAIC will map out an “IT architecture” to explain how the tools fit together to maximize reliability, customer service, and cyber security.

All utilities are vulnerable to digital invasions. But a continually evolving set of cyber security resources and innovations should help keep co-ops and their members a step ahead of the “bad guys.”

Sources: Cooperative Research Network

B. Denise Hawkins writes on consumer and cooperative affairs for the National Rural Electric Cooperative Association, the Arlington, Va.-based service arm of the nation’s 900-plus consumer-owned, not-for-profit electric cooperatives. Megan McKoy-Noe contributed to this article.  

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Welcome back to Nashville

By Mike Knotts, Director of Government Affairs

One of the things that makes your cooperative different from “a regular old power company” is that it is owned and controlled by its individual members. Good people like you take time out of their lives and put themselves up for election to serve on the board of directors at your co-op. They are your neighbors, and that local connection is what makes a tremendous difference in the priorities that guide their work. While you might hear other utilities owned by huge, multinational corporations talk the talk about things like commitment to community, your electric co-op walks the walk simply because the co-op is your community.

This commitment to serving your community is the reason we devote a lot of effort to communicating with elected officials and why this page is so frequently dedicated to those concerns. We want to ensure that lawmakers understand the important things your co-op does to power our modern lifestyle. Whether in Nashville or Washington, D.C., your co-op has made a commitment to work with lawmakers to ensure that public policy does not impede our ability to provide the reliable and affordable electric service on which you and your family depend.

As the Tennessee General Assembly has recently returned to Nashville to begin its business of considering new laws, I thought I would share with you some of the big issues we believe will take the lion’s share of your state representative’s and senator’s time in Nashville this year. The following summary was prepared by our excellent partner in these efforts, the law firm of Bass, Berry & Sims. And see page 28 to learn how you can contact your elected representatives using our General Assembly app.

Several bills from last session await further consideration by the legislature. The wine-in-grocery-stores bill is a prime example. Both Lt. Gov. Ron Ramsey and Speaker Beth Harwell have said that the time has come for wine in grocery stores and that last year’s bill to allow voters to decide the issue by referendum will likely be resurrected from the House Local Government Subcommittee where it died last session after a surprise “nay” vote by Chairman Matthew Hill (R-Johnson City).

Several Republican members may attempt to restore a bill that would prohibit the state from taking advantage of the Affordable Care Act’s Medicaid expansion. The Senate Commerce Committee amended this bill last session to simply require legislative approval for expansion. That amendment could be stripped in the Senate Finance Committee or on the Senate floor to return the original prohibition language to the bill. Any attempt to do so, however, will be opposed by hospitals and business groups that support expansion.

Another issue from last session that the legislature is likely to revisit involves a moratorium on adversarial municipal annexations. In December, the Tennessee Advisory Commission on Intergovernmental Relations recommended that the moratorium be extended for a year. The original moratorium resulted from legislation sponsored by Rep. Mike Carter (R-Ooltewah) and Senate Speaker Pro Tempore Bo Watson (R-Hixson) that required public referendum votes on nonconsensual residential and farm annexations within urban growth boundaries. Rep. Carter intends to push the issue by filing a similar bill in 2014.

A bill requiring prescriptions for products containing pseudoephedrine may get more traction in 2014 than in previous years. A Vanderbilt University poll indicates that 65 percent of registered voters would accept prescriptions to fight illegal methamphetamine production. Law enforcement officials likely will attempt to capitalize on this momentum while the pharmaceutical industry and other retail and business groups will oppose the prescription requirement.

On the education front, the legislature will consider legislation challenging Common Core standards for K-12 schools, giving state entities the power to authorize charter schools, establishing a statewide school voucher program and reviewing the Tennessee Textbook Commission. Higher education initiatives also are expected to be a focus of Gov. Bill Haslam’s legislative agenda for 2014 and include his Drive to 55 effort to encourage more Tennesseans to earn a certificate or degree beyond high school.

The state’s 2014-15 budget will be the toughest yet for Haslam. In recent years, the legislature has eliminated, reduced or phased out taxes such as the gift tax, inheritance tax, unprepared food tax and the Hall income tax on investment earnings. With revenues expected to be down $123 million at the end of the current fiscal year, additional tax cuts and reforms are unlikely in 2014. After the 2014 elections, however, potential areas for legislative action include the franchise and excise tax and the gasoline tax.

With re-election being top of mind, legislators will be inclined to introduce bills that will be popular with their voting bases back in the districts — so stay tuned for bills that may make for interesting late-night entertainment fodder!

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Polar Opposites

By David Callis, Executive Vice President and General Manager

The ice has melted, and burst water lines are repaired. Little evidence is left of the record cold weather — other than high heating bills. As painful as the financial impact is, the alternative could have been much more uncomfortable.

The extreme temperatures pushed the Tennessee Valley Authority to a new record demand as we all tried to stay warm. With heating systems running nonstop, lines and substations were pushed to their limits. In a few instances, the strain caused temporary outages.

Occasionally, experts make harsh assessments about the condition of our electric grid. The fact is, TVA, a very reliable generation and transmission network, successfully handled this challenge.

How much energy?

As the polar vortex moved in on Monday, Jan. 6, consumers in the Tennessee Valley used 683 gigawatt-hours of electricity. The next day was even colder with an average temperature of 4 degrees. TVA reached a peak demand that day of 32,490 megawatts, its second-highest all-time peak. By the end of the day, we set a new use record — 703 gigawatt-hours.

A big number but exactly how much electricity is that? The average home uses about 1,200 kilowatt hours each month. In just 24 hours, we used 703,000,000 kilowatt hours. That’s enough electricity to power almost 50,000 homes for an entire year. That is a lot of power.

Where did TVA get the energy?

On that record-setting day, TVA got electricity from everywhere it could to meet the need. The mix included:

  • 28 percent from coal-fired plants
  • 21 percent from nuclear plants
  • 14 percent from combined cycle natural gas plants
  • 11 percent from hydroelectric dams
  • 10 percent from conventional gas turbines
  • 2 percent from renewables (wind)
  • 13 percent purchased off the competitive power market — and not at bargain-basement prices.

Under normal operations, TVA generates power as cheaply as possible. During periods of high demand, TVA generates or purchases power based on need — not efficiency, not economics. There are a number of responsibilities of an electric utility, and keeping the power on is pretty high on the list, especially during life-threatening temperature extremes.

How close did we come?

When major utilities near their limits of capacity, they’re required to notify the North American Energy Reliability Council (NERC). Nine utilities, including TVA, contacted NERC and declared that they were in an Energy Emergency Alert 2, which is the last step before they run out of energy. The area impacted reached from Texas to Florida to New York. Only South Carolina ultimately had to resort to rolling blackouts.

What lessons are to be learned?

First and foremost is this: It is critically important that we have every available weapon in our arsenal. If you remove coal completely from the energy portfolio, the outcome above is quite different. That’s not a theory; it’s simple math. Every energy source has benefits, limitations and drawbacks.

Second is that utilities are powered by dedicated people. When temperatures finally crested the freezing mark, dispatchers, linemen and plant operators breathed sighs of relief. Some were able to see their families for the first time in several days. But the ultimate praise is that millions of Tennesseans avoided having to experience outages.

Third, the vortex became a stark reminder of what we’ve said for years: By removing coal from the mix, the Environmental Protection Agency (EPA) is doing the opposite of what is needed. Extremes emphasize the need for an all-of-the-above approach to generating electricity from nuclear, coal, natural gas, fuel oil and renewables.

We don’t know when the next polar vortex might arrive. Whenever it does, we’ll be prepared. But an unnecessary, manmade power vortex — created by the EPA — could leave us all in the cold.

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