As we begin the New Year, I would like to take this opportunity to briefly reflect on the year 2008 and inform you of what the year 2009 may have in store for all of us as energy consumers.

The year 2008 will be remembered for many things including the economic recession, the bailout of the financial industry and the increased costs in virtually all forms of energy.  In early 2008, the global supply of coal was tightening due to decreasing supply from other countries and increasing demand by developing countries such as China and India.  This decrease in supply combined with increasing demand resulted in the cost of Illinois Basin coal increasing from $36 per ton in February to a peak of $93 per ton in late August representing a 158% increase in cost.  The market price of coal has declined slightly since August and is currently averaging $84 per ton which is still a 133% increase in cost during 2008. 

Although your Cooperative's wholesale power supplier is working diligently to find cost effective solutions during this time of increasing costs, the average member will likely experience an increase in the charge titled "Wholesale Power Cost Adjustment Charge" that equates to a 6 to 9% increase in the retail rate in 2009 due to the increased cost of coal and carbon.  In addition, the Cooperative will increase the base rates by 3% on invoices received in April 2009.

As we begin the New Year and the new administration takes over in Washington, it is very likely that the U.S. Congress will pass federal climate change legislation in 2009.  Cooperative's are asking members of Congress to work closely with the energy industry and the consuming public to create legislation that is based upon a realistic approach, economic realism and balances the need to a cleaner environment with what consumers can afford.  Any climate change legislation requirements that supersede the technological capabilities of the industry and results in increasing energy costs at alarming rates is not acceptable, especially given the current state of the economy.  You may voice your concern about this legislation by visiting your Cooperative's website at www.seiec.com and click on the link to www.ourenergy.coop and complete the letter that is available. 

Lastly, your Cooperative will continue to work diligently to improve and enhance the level of service and reliability that you receive.  Your Cooperative will continue to make the necessary investments in the distribution system and maintenance activities to help ensure a reliable electric supply.  In addition, your Cooperative is continuing the significant investments in the vegetation management program to improve the quality and reliability of electric service to members.

See you next month and as always,

"We'll keep the lights on for you."