accomplish
this expectation, we need the proper mix of gener-
ating plants with a diversity of fuel types. Recent at-
tacks on coal generation relative to climate change give us a great concern as
there are many, many credible scientists who do not accept human causation
of global warming. Despite media and political frenzy, this is still an open
discussion among scientists. As this insert attempts to show, in order to meet
the ever-increasing electric requirements at the 400,000 meters which serve
our ultimate customers, well need more base load generation provided by
both coal or nuclear fuel.
We face ever-increasing demands for electricity. This is due both to increases
in population and businesses as well as larger homes and the use of more
power-consuming appliances. Not long ago, the average household on our
system used 1,000 kilowatt hours per month. Now, average usage is close
to 1,200 kilowatt hours per month. This is not necessarily a bad change. As
the title of this article indicates, electricity makes possible many things not
thought of 100 years ago. Life expectancy and our standard of living have
increased. Electricity is invisible yet essential.
Thus, it causes me great concern that suddenly, without adequate data to
support such a conclusion, electric usage is considered to be harmful. Cer-
tainly we should conserve, be as efficient as possible in all energy use, and
promote these principals in order to control growth in demand. But some
advocate increasing the cost of electricity to reduce usage, and we simply do
not agree.
We need to make wise use of our natural resources. After all, the greenest
power is power which we do not use. But a world without an adequate supply
of electric energy is a dark world indeed.
We have lived for years with the concept that electricity came from an inex-
haustible source. Price was the only thing that we complained aboutnever
availability. However, if some politicians in Washington have their way, there
will not continue to be a sufficient quantity of base load sources of electricity
that we have relied on for decades for low-cost power. As the one charged
with the responsibility of meeting the electric power needs of more than one
million people, I hope that our political leaders do not rush to judgment on
the carbon issue and will, instead, responsibly weigh the benefits that uni-
versal electric service provides. Certainly, the potential cost increases which
will be necessary to reduce carbon emissions associated with electric power
generation give reason to pause and be certain as to the science of global
warming. Reliable estimates have been given that proposed legislation in
Washington, if enacted, would lead to $100-$125 increases short-term, and
$225$335 increases long-term in monthly residential electric energy costs.
Over the next several months, we will provide additional inserts that will ex-
plore these power supply and rate issues. I hope that you will read all of the
articles and have a better appreciation of the difficulty which we face as we
make important decisions on how we can continue to provide affordable
electric power to our rural electric members.
The Power of 12
G R O W I N G M I S S I S S I P P I
Electricity: Energy Costs on the Rise
Demand for electricity is also steadily increasing
SMEPA at a Glance

Our Mission
Deliver the Souths best value for safe and reli-
able electric energy and serve as a common
resource for our Member-owners.

Our Competitive Strengths
An experienced, talented work force
A commitment to employee safety and system reliability
A long-term contractual relationship with our Member Systems
Financial health, including our Members
Sustained load growth in our Members service territories
Long-range planning for cost-effective generation resources
Fuel diversity in generation resources
Environmental stewardship
SMEPA Statistics
Overall Assets: $1,210,410,774
Miles of transmission lines: 1,678
2007 Sales to members: $665,591,680 (9,818,174 MWH)
Employees: 290
Costs and Expenses
(approximate)
Purchased Power: 62%
Fuel: 16%
Interest: 6%
Depreciation and Amortization: 4.8%
Maintenance: 3.4%
Production (excluding fuel): 3%
Transmission and Distribution: 2.6%
Administrative and General: 1.4%
jim compton
General Manager -
South Mississippi Electric
Power Association