Southern Illinois Electric Cooperative (SIEC), headquartered in Dongola, Illinois, is an electric distribution cooperative. All the power that SIEC purchases to distribute to its members is purchased from Southern Illinois Power Cooperative (SIPC), headquartered at Lake of Egypt in Marion, IL. SIPC is owned by seven distribution cooperatives.
The seven are Clay County Electric Cooperative, Inc., Clinton County Electric Cooperative, Inc., Egyptian Electric Cooperative Association, Monroe Electric Cooperative, Inc., SouthEastern Illinois Electric Cooperative, Inc., Southern Illinois Electric Cooperative and Tri-County Electric Cooperative, Inc.
SIPC provides power from coal fired units, natural gas units, hydro-power and wind turbines.
Recently, a plan was approved by the 28 member SIPC Board of Directors to retire the coal fired Unit 4 located at Lake of Egypt. Regulatory approvals are still required as is a formal Board decision. Both are anticipated by the end of July 2020.
The plan is estimated to reduce costs by $125 Million over the next 10 years. This will begin to be realized by the seven distribution cooperatives once approved.
Here at SIEC, our portion of the savings are projected to be about $11.4 Million over the ten-year period. Power cost currently make up about sixty percent of our overall expenditures. We are excited that, pending remaining approvals, we may reduce our power cost each year for the next ten years by an estimated $1.14 Million. This will help position SIEC so that it can continue to provide reliable electricity to our membership at lower costs. I wish to emphasize that this estimated cost savings is based upon the best estimates of SIPC and its consultants and may be more or less depending upon many outside factors beyond the control of SIPC or SIEC.
The decision also affords SIPC the opportunity to diversify its power supply portfolio even more. Renewables could replace the power lost from closing Unit 4 and therefore reduce the SIPC carbon footprint by 50%.
If you have any questions or wish to discuss any matter, please contact us at 618-827-3555.