WFEC's power supplier perpares for growing demand
Accounting scandals that have deflated the stock value and wiped out the credit ratings of many of the nation’s investor-owned energy companies could dent energy supplies nationwide. With fewer buyers and sellers available to participate in the electricity market, and aging, low-capacity transmission lines serving some areas, price and supply problems are becoming increasingly likely in regions that previously have relied on a handful of energy traders to provide extra power as needed.
Struggling with shaky finances and lacking the incentive of outlandish trading profits, surviving electricity suppliers are expected to slash the number of new generation plants planned for start-up around 2005. Consequently, the odds of shortages and blackouts will increase, and the costs of producing electricity will rise because many of the new plants that are canceled were intended to replace less-efficient existing facilities.
At least, that’s how it works in the world of for-profit electric utilities, some industry experts say.
On the other, access to a steady, low-cost power supply isn’t likely to be a problem for West Florida Electric, your consumer-owned, not-for-profit Touchstone Energy® cooperative. In fact, WFEC’s power supplier, Alabama Electric Cooperative, recently added 500 megawatts of generating capacity to meet the growing needs of electric co-op consumers in northwest Florida and south and central Alabama.
The new James A. Vann Plant increases AEC’s total generating capacity to approximately 1,650 megawatts. But, unlike for-profit energy traders, AEC won’t be selling any of its generation to the highest bidder on the open market; long-term, all requirements contracts stipulate that AEC sell its power only to the 21 distribution cooperatives it serves, including WFEC.
Using a combined-cycle process of natural gas and steam, the Vann Plant’s waste heat-recovery features maximize the plant’s cost-effectiveness while minimizing environmental impacts on air and water. The plant is located adjacent to AEC’s McWilliams Power Plant at Gantt, Ala., north of Andalusia, Ala.
Headquartered in Andalusia, AEC is a Touchstone Energy® generation and transmission cooperative owned by 21 electric distribution cooperatives, including WFEC, in Florida and Alabama. In addition to ensuring adequate generation resources, AEC’s long-range strategy for providing affordable, reliable power to its member-owners includes reliable transmission system operation and effective purchase of power. For additional information, log on to AEC’s Web site at www.powersouth.com.
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