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other state except California," he said.
Farmer also stated that since deregulation of the wholesale market in 2000, prices have gone nowhere but up.
“Deregulation," he said, “was a misconceived notion that it would drive prices down...it didn’t.”
Farmer also explained that big investor-owned power companies like Dominion and Allegheny would prefer to serve larger cities and that serving rural communities was not as profitable. Hence the need for rural electric cooperatives like REC.
But REC must still buy its power to distribute to its members and those prices are higher than what Allegheny has been charging its current customers in the county he said. REC also has fewer customers - notwithstanding that this acquisition would make it the largest coop in Virginia - to spread fixed costs.
Farmer said that, pending approval of the acquisition of AJlegheny distribution assets, REC would keep whatever rates Allegheny has in place at the time- until July 1, 2011.
Farmer also talked about the need to build more power plants in the state and to be able to strike a balance between environmental protection and the need for power.
As to how this acquisition would affect current REC customers in the county, Farmer said that they would benefit by “more stable rates for a longer period of time.”
REC also has a long history of conservation incentives for its customers, said Farmer, such as demand management and renewable energy credits.
Farmer gave such an indepth and impressive presentation of the electric utility business, Supervisor Bryant Lee remarked, “You’re a powerful good spokesman...you make me want to pay more for my electric.”
Perhaps to soften the blow a little. Farmer also mentioned that REC was in talks with Virginia Broadband and about using towers and other “high locations' to bring broadband to the county as well.
County Administrator John McCarthy, however, also stated later in the meeting that the county was still planning to seek federal grant money to help pay for broadband Internet access in Rappahannock.
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