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 The Southeastern Power Administration
May 1, 2009
At intervals along the Savannah River stand three large U.S. Army Corps of Engineers dams: Hartwell, Russell, and Thurmond. These dams and the reservoirs behind them provide a number of important amenities including water supply for area municipalities and utility districts, flood control, and recreation.
Blue Ridge Electric Cooperative members also benefit from these facilities. The Southeastern Power Administration (SEPA) operates the hydro-electric generators at these dams, selling a portion of the electricity to the cooperative.
$2 million per year in savings
Since there is no fuel component with hydro-power, Blue Ridge pays a lower price for the electricity than is the case with conventionally generated electric energy. This lower rate saves the cooperative about $2 million per year on wholesale electric bills.
Revenues from SEPA-generated power enable these dams to pay their own way. The debt service on the facilities and all other associated expenses are underwritten by these revenues. In addition, about 90 percent of the costs of the common facilities at the three lakes are covered by the sales of wholesale electricity.
Important peaking power
The generators at Hartwell, Russell, and Thurmond offer other important advantages. For one, they can provide almost instantaneous peaking power. The generators can be placed in operation immediately at times of the day when electrical demands are at their highest.
Earlier, I mentioned that it doesn’t require fuel to operate hydro-electric generators. If these dams weren’t generating power, then Blue Ridge and other wholesale customers would have to look to other sources to replace this electricity. Most of that replacement power would ultimately come from carbon-emitting generation plants.
Hydro-power is a renewable resource. It is, therefore, expedient for these three dams to generate as much electricity as is practical.
As I conclude this report, I want to direct your attention to the information on adjacent pages about the May 11 Blue Ridge annual meeting and the Blue Ridge Fest charity fund-raiser on May 15-16. I’m looking forward to both of these events, and I hope we’ll see a fine turnout for each occasion.
Sincerely,
Charles E. Dalton
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