Strict New Source Review Policy Hurts Rural America; Current NSR Policy Places Rural Communities at Further Risk, Says Report 5/9/2002
From: Dr. Bernard "Bud" Weinstein of the University of North Texas, 940-565-4049 WASHINGTON, May 9 -- A new report by the University of North Texas Center for Economic Development and Research said today current policy targeting electricity generators known as "New Source Review" could have a major negative impact on already struggling rural communities. The findings were released in a Capitol Hill briefing by the director of the Center and lead author of the report, Dr. Bernard Weinstein. The report's release coincides with "Stand Up for Rural America" week when thousands of rural electric co-op worker visit Congressional lawmakers to discuss issues important to rural communities including New Source Review. "It is important to understand that policies like New Source Review have a disproportionate effect on rural America," Weinstein said. "Already, our rural communities are at risk. If their energy costs increase, these communities will face additional pressures that will be even harder to overcome." The report's findings include: -- Rural economies are in perhaps their worst shape since 1930. -- As now interpreted, NSR will place additional pressures on rural America, where 76 percent of the electricity is generated from coal, by: o Increasing electricity costs on consumers and businesses, particularly small businesses and rural manufacturing o Reducing the reliability of electric power in rural areas o Forcing rural co-op electricity generators to cut back on support of local economic development o Requiring costly delays and shutdowns at rural co-ops that lack capital, economies of scale and access to technology. -- Rural America , especially poor areas, is disproportionately harmed -- Restrictive policies like NSR add to the disincentives of rural living and accelerate the loss of population, family farms and businesses in rural America. The study was done to provide information for members of Congress and related groups expressing an interest in the impacts of the New Source Review policy on rural communities. It is expected to be the beginning of a broader and more detailed study of the economic impacts of regulations that appear to be hindering economic development in rural America. For more information on the study, see the Center's Web site: http://www.unt.edu/cedr. --- Additional Contacts: New Source Review impacts on Rural America Dr. Bernard "Bud" Weinstein University of North Texas 940-565-4049 Mac McLennan National Rural Electric Cooperatives Association 703-907-5809 mac.mclennan@nreca.org Greg Jones Olgethorpe Power Corporation 770-270-7600 Otter Tail Power Company Cris Kling 218-739-8200 Scott Segal Electric Reliability Coordinating Council 202-828-5845 |