West Florida Electric Cooperative Association, Inc.

A message from WFEC Board President

John E. Worthington

As your representatives, we who serve on West Florida Electric Cooperative’s board strive to stay abreast of any issue that might affect your electric service. For the past few years, one of the activities we’ve been closely watching has been electric utility industry deregulation.

Currently, 16 states have either enacted or are in the process of enacting retail competition in the industry. There is one state -- California -- that has already tried deregulation for a while, then backed out after it turned into a fiasco there. The measures these states have passed, allowing customers to choose their electricity supplier, is what most people think of when they hear mention of deregulation.

But deregulation also can take place in the wholesale electricity market, and this is what has been proposed recently in the state of Florida. A little over a year ago, Gov. Jeb Bush appointed a state task force, called the Energy 2020 Study Commission, to look at the state’s electricity industry, including the prospect of deregulation, and report to the Legislature by Dec. 1. One of the commission’s objectives has been to consider letting out-of-state, independent companies build so-called "merchant" power plants in Florida that would generate electricity to sell on the open market.

The commission has just turned in a 113-page report covering everything from who should control all the power lines in the state to who should approve site plans for new power plants to be built. But the fate of electric utility industry deregulation in Florida is still unclear.

Of course, the strongest proponents of deregulation in Florida have been the companies who want to come generate or sell power here. In fact, one of the major players has been Enron, a company that trades, buys and sells electricity and natural gas. When California deregulated, Enron became one of the state’s biggest sellers of electricity.

I don’t know about you, but right now I’m mighty glad I don’t own much Enron stock. In the past year, it has fallen from $84 to less than $1 a share, and Enron has now filed Chapter 11. The Securities and Exchange Commission is investigating the company’s finances and its employees are suing over their retirement benefits.

These developments bear watching because of their potential impact on deregulation in Florida and because Enron is part owner of the Florida Gas Transmission pipeline, the state’s main supplier of natural gas. WFEC serves a pumping station for this pipeline at Hinson Crossroads.

If the electric utility industry sounds somewhat complicated, well, that’s because it is. Keeping up with all that’s going on takes a real effort on the part of every WFEC board member. But we make a concentrated effort because being informed is essential to carrying out our duties.

One way co-op trustees get a grasp of electric industry issues is through the training offered by the National Rural Electric Cooperative Association, or NRECA. In fact, WFEC’s own Randy Bush, from District 7, recently completed all five courses required for NRECA certification in just six days’ time. The folks at NRECA have said that no other co-op trustee they know of anywhere in the nation had accomplished this feat before. John Patrick, from District 3, is also on his way to becoming NRECA-certified.

As WFEC board president, I’m grateful to my fellow board members for the dedication they have shown to their responsibilities. On behalf of WFEC’s board, I’d also like to express appreciation to the hard-working employees and strong management team that have achieved unparalleled results in creating a solid company for WFEC’s members.

The events of the past three months have given special meaning to this holiday season. In this time for family closeness, recognition of our many blessings, remembrance of holidays past and renewal of friendships, we on WFEC’s board extend best wishes for a joyous season and most prosperous new year.

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