Wisconsin Newspaper Opinion Columns

Date:

Dear Editors,

Wisconsin's farm families ought to speak up soon or forever hold their peace about the deregulation of electric companies in Wisconsin. While some legislators are attempting to keep the issue under their hats until after the fall elections, executives at Wisconsin's largest utility companies are moving behind the scenes to change forever, the system of checks and balances that has long provided low electric rates and reliable service to Wisconsin's family farms.

Under the current system, Wisconsin's electric utilities are guaranteed fair profits in exchange for their commitment to provide reliable service at a reasonable cost to everyone, even hard to serve customers like Wisconsin farms, which are relatively spread out geographically, and not overly lucrative in terms of total sales. Under deregulation, electric companies will serve whoever they want at whatever price they choose. Recent events indicate they will choose to offer low cost deals to out of state industrial energy users who draw lots of power at a single site, while cutting back service and raising prices for small customers like family farms.

Many Wisconsin farmers have reduced their energy costs by joining rural electric cooperatives. These cooperatives are now fighting deregulation tooth and nail to prevent big utility companies from luring away their largest customers with special sweetheart deals, leaving small family farms to pick up infrastructure costs and rendering the cooperatives ineffective.

Don't think Wisconsin farmers will have somewhere else to turn if Wisconsin's big utility companies give them a raw deal. Shopping around for electric power will be a lot more difficult than switching phone companies. Furthermore, Wisconsin's current rates are some of the lowest in the nation. Everyone else is more expensive. Our rates can go nowhere but up.

Rates in Wisconsin are relatively low today because of the energy conservation and careful planning required of utilities - and paid for by consumers - under the current system. Unlike other states, Wisconsin doesn't allow utilites to build unnecessary plants, requires conservation measures whereever they are cost-effective and has insisted on the development of renewable energy resources for the future. This too, will be lost under deregulation. Wise investments in energy efficiency and renewable energy resources that keep costs down over the long term are viewed as anti-competitive by utility executives because they require short-term investment which drives up short term costs. Better, they say, to rely on old dirty coal plants and not worry about conservation. Better for their bottom line, perhaps. But bad for Wisconsin consumers.

Investments made today in efficiency and development of clean renewable energy resources found right here in Wisconsin have always been part and parcel of our energy strategy in Wisconsin because they make sense. Its unfortunate that big utilities are hoping to opt out of that strategy at a time when those technologies are becoming extremely cost effective. Clean energy resources like crops and forest products are recognized as the fuel of the future and are cost effective now. Wisconsin farms and industries could benefit greatly because of our vast supply of both. All that is required is the construction of Wisconsin's first biomass plant. Also, Wisconsin farmlands offer open country to supply wind energy. Both wind and biomass energy production offer farmers a way to diversify and stabilize their income. This opportunity should not be lost.

Family farmers need to contact their state legislators now to head off a political juggernaut that is fueled by the well stocked coffers of big utility companies and their favored customers. If you speak out too late, they will deregulate. Wisconsin farmers bought and paid for Wisconsin's low-cost energy through their rates. Big utilities shouldn't be able to sell that power off to out of state customers, leaving small businesses, farms and residents holding an empty bag.

John Kinsman
Family Farm Defense Fund