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Rising inflation cripples electric co ops amid renewable mandates

September 11, 2024 | Natural Resources: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation, Legislative, Federal


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Rising inflation cripples electric co ops amid renewable mandates
During a recent government meeting, representatives discussed the significant impact of rising inflation on electric cooperatives, particularly in relation to the costs passed on to consumers. A representative highlighted that the price of transformers, essential for electricity distribution, has surged to four times its pre-COVID cost, without any increase in efficiency.

The conversation also touched on the challenges posed by renewable energy mandates. Electric cooperatives are striving to meet energy demands using a mix of traditional and renewable sources. However, the representatives expressed concerns about the unpredictability and increased costs associated with these mandates. They noted that the intermittent nature of renewable energy sources, such as solar power, necessitates backup generation from traditional sources to ensure a reliable energy supply.

Additionally, the meeting included a discussion on the Biden-Harris administration's Justice 40 initiative, which aims to promote environmental justice but has faced criticism for potentially undermining reliable energy sources. The meeting concluded with a focus on the pressing issues of drought and wildfire management in Colorado, emphasizing the need for effective water storage and forest management strategies.

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