Published: Wednesday, August 29, 2007 11:16 PM CDT
Alan Lewis Gerstenecker, Editor
The challenge was made, and Tracey Watson, the woman with the temperament of a bulldog, has found a company willing to supply electricity to Rolla for a rate competitive to Rolla Municipal Utilities.
Rolla Mayor William S. Jenks, III, during the City Council meeting on Aug. 6, asked Watson to find the city a better electrical deal. "I'm serious about it," Jenks said then. "If she can find us a better contract, I'm all for it..."
Wednesday afternoon, Intercounty Electric Cooperative General Manager Dwayne Cartwright, said his company is capable of supplying power to Rolla utility customers.
"We can handle a 70 megawatt load here," Cartwright said. "We are driven by growth. We have 26,000 members and 29,000 meters. We have offices in Rolla, Licking and Mountain Grove," said Cartwright from the Rolla office located at 1310 South Bishop.
On Wednesday, when he learned that Watson had contacted Intercounty Electric Cooperative, Jenks was less than impressed. "This is not a serious option," Jenks said before entering the City Council's Budget Workshop on Wednesday night. "What do they (Watson's group) expect us to do?... Give the utility away. It'll cost $50-, $60-, $80 million to repurchase that. Who's going to pay for that? It'll be the rate-payers. They'll have to build a substation, and the tooth fairy isn't going to pay for that," Jenks said. "What we need is a contract for cheaper rates."
For his part, Cartwright, does not want to meddle, but he feels he has been asked. Technically, he cannot provide a contract to the Watson or city officials, something Jenks requested of Watson. "We can't offer the people of Rolla a contract," Cartwright said. "We have to be asked to provide power, and while it sounds a little like that may be the case, we still need to be asked from the city," Cartwright said referring to Jenks' edict.
Voicemail office messages to RMU General Manager Dan Watkins went unreturned.
A message left for Operations and Public Relations Coordinator Rodney Bourne also was not returned.
However, RMU Board President Dr. James Stoffer, contacted at home, did confirm that Watkins and Cartwright had talked, but Stoffer did not know the substance of those talks. "Without seeing the documents, I can't really comment," Dr. Stoffer said.
City Administrator John Butz reached after the city's Budget Workshop, said he has had dialogue with Cartwright in the past about the city's relationship with Intercounty. "As far as the sale of a utility, it happens all the time. I understand Owensville is considering selling its utility. I guess everything is up for discussion, but the assets are tremendous. It's my feeling, and those of the council, that electrical rates are stabilizing."
Cartwright said his company currently is selling electricity for an average of 6.85 cents per kilowatt hour, but the rate increases to 7.4 cents per kilowatt hour for the first 1,000 kilowatt hours. Currently, RMU customers are paying 9.3 cents per kilowatt hour. According to Leisa Stilley, the Intercounty Services Representative, who attended the meeting with Cartwright, the average Intercounty customer uses 1,231 kilowatt hours a month, and their bill is $106. According to its figures, Rolla Municipal Utilities offers the first 1,000 kilowatt hours for $103, but the more usage, the costlier kilowatts become. "I've asked Rodney (Bourne) not to compare our rates to RMU's. It's just not fair in that way," Cartwright said. "I know we can beat their (RMU's) rates."
Cartwright said Intercounty, which is part of Show-Me Power, and is under the Associated Electric Cooperative, Inc., (AECI) umbrella. That organization is known to sell electricity to Missouri Public Energy Pool (MoPEP).
"I know Intercounty can sell power to Rolla cheaper than MoPEP," Watson said. "MoPEP is buying it from the parent of Intercounty." Even though Watson has met the edict mandated by Jenks, she says she's not finished.
"There is so much more to do," Watson said. "We need to get this audit of RMU completed and then push this thing to the ballot, bring it to the voters. You don't think RMU is just going to let Intercounty come in here? It'll have to come to the voters."
To its credit, Associated Electric Cooperative has generation plant capabilities, something top RMU officials have lamented as not having in Rolla. According to its resume, AECI has two coal-fired generating plants, a gas-fired generating plant, a hydo-generating plant and wind farms.
"We're very diversified in our generating capabilities," said Cartwright, who has been with Intercounty for 11 years, the last 1-1/2 years as its general manager.
Rolla has a system of generators it uses to produce power during peak or interrupted service times. It does not have a generating plant, per se.
RMU and Intercounty do have a history, even somewhat competitive. When areas of south Rolla were annexed, there were existing Intercounty customers in the area. When annexed, RMU and Intercounty battled over who would service those existing homes, and in the end, those customers who were Intercounty before the annexation, stayed Intercounty. Those subsequently developed homes became RMU customers.
For his part, Cartwright does not want to get in the middle of a customers vs. RMU squabble. However, he believes Intercounty can provide electricity to Rolla for less than customers are now paying.
"I know we can supply electricity to the people of Rolla for less than they are paying. This can be good for the people of Rolla, and it can be good for Intercounty. I may be biased, but I happen to believe we are the best supplier in Missouri. A lot of people think of a cooperative as some Mississippi backwoods electric company stringing power lines from tree to tree. We're very modern and forward thinking, and we're very efficient, and the people of Rolla may see that."