 As WPPI completed its 25th year in business, we redoubled our focus in 2005 on power supply planning and resource development in order to secure an adequate, reliable and competitive power supply for our 40 members over the long term.
Faced with the challenges of increasingly volatile and expensive wholesale electric markets, as well as growing opposition to the siting of new generation and transmission projects, it is essential that we keep our sights on the need to achieve long-term stability and competitiveness. This means aggressively developing a variety of new resource options; reinforcing our commitment to environmental stewardship through substantially increased conservation and efficiency efforts; and continuing to stand behind our members so they can provide excellent retail electric service to their customers.
Every utility in Wisconsin and the Midwest, including WPPI, experienced significant cost increases in 2005. The primary drivers were much higher prices for natural gas, coupled with an increased reliance by the region on gas for the production of electricity, increases in the costs of coal and rail transportation, and extended nuclear plant outages. In addition, rail congestion limited deliveries of coal to the region, forcing even greater dependence on natural gas. On top of this "perfect storm" of fuel-related problems, the Midwest ISO market's administrative and uplift costs have significantly outweighed the benefits of the market to date and Wisconsin continues to be in the midst of a transmission and generation building cycle. All of these factors are causing electricity rates to rise across the state.
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It is WPPI's job to manage the level of increase experienced by our members and to make sure that this increase remains lower than the rate of increase for other utilities. We will work towards this goal by taking a long-term view of power supply planning and resource development, and by executing efficiently. We will also continue to advocate for a coherent electric energy policy for Wisconsin — one that is built on a modern infrastructure, energy conservation initiatives, and aggressive development of renewable energy sources.
As "planting the power" becomes more complex and urgent, we believe that the municipally owned utilities of WPPI are well-positioned to take the lead, and to serve their communities as only locally owned utilities can.
Roy Thilly
President and
Chief Executive Officer |
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John O. Andler
Chair, Board of Directors
Superintendent,
Columbus Water & Light
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1425 Corporate Center Drive