Co-op continues to look for new energy sources

The Flathead Electric Cooperative will

hold its 74th annual membership meeting at the Christian Center, in

Kalispell, on Saturday, March 19, with registration at 8:30 a.m.,

entertainment at 9:30 a.m. and the meeting beginning at 10 a.m.

A mail-in ballot election will be held

after the meeting. Three incumbent trustees on the Co-op’s board

are up for re-election — Duane Braaten, District 6, West Valley;

Paul Holland, District 8, Bigfork; and Earl Messick, District 9,

Libby.

With the current economic recession

presenting challenges, the Co-op board continues to look for new

energy sources while trying to keep rates affordable for its 47,963

members.

Starting this year, the amount of

low-cost federal power that the Co-op can purchase from the

Bonneville Power Administration is capped. As demand grows, the

Co-op will have to find other sources of electrical power. At the

same time, the board has chosen not to raise rates for Co-op

members even after the BPA imposed a significant wholesale power

rate increase.

Among the options the Co-op is looking

at for new energy sources are gas at the Flathead County landfill

and geothermal at Hot Springs, as well as biomass, hydro, wind and

other renewable energy projects. The city of Whitefish’s

hydroplant, which should be operating this fall, will fit into this

mix.

The board also believes efficiency is a

key to saving energy. Last year, the Co-op provided members with

$1.9 million in energy-efficiency rebates, most of which were

funded by the BPA. The Co-op also installed additional new meters

with two-way automated communication systems that will help the

Co-op examine the cost-effectiveness of smart-grid technology.

The Co-op’s operations include 29

substations, and more than 3,470 miles of power lines across 8,800

square miles. Costs for operations and maintenance fell from $9

million in 2009 to $8.4 million in 2010.

About 51 percent of the Co-op’s budget

goes to purchasing power — about $86.3 million. About 10 percent

goes to interest on its debt. The Co-op’s long-term debt increased

from $136 million in 2009 to $156 million in 2010.

Net margins — the Co-op’s phrase for

profits — fell from $6.6 million in 2009 to $4.7 million in 2010.

Nonetheless, the Co-op issued 47,000 capital credit checks totaling

$2.3 million to former and current members for the years

2002-2003.

For more information, visit the Co-op

online at www.flatheadelectric.com or call 751-4483.