The almost 100 Valley Electric Association members attending the District 1 meeting at the Bob Ruud Community Center Monday were asked to sign a petition to Nevada's congressional delegation that was on the table by the front door.

It urges Congress to take action on the availability of power amid talk of reducing greenhouse gas emissions. Valley Electric Association Chief Executive Officer Tom Husted warned the alternative could be higher rates.

"There's a storm that's brewing right now," Husted told VEA members.

VEA is having to meet growth, which Husted said is still accelerating at 3 percent this year, despite the slowdown in the economy. Last year, he said, the cooperative grew at a 4.7 percent rate.

At the same time Husted said the price of materials to construct the improvements to meet that growth is "going through the roof." He mentioned the price of gold as an example, which recently topped $1,000 per ounce.

The value of VEA plant infrastructure already rose from $124 million in 2004 to $190 million today, he said. Total debt will almost double from $46 million in 2004 to $90 million by the end of this year.

About $20 million of the cooperative's debt payments are up for negotiation over the next four years, which will probably result in higher payments, he said.

The worst hit, Husted said is the wholesale cost of power -- 61 percent of the budget. The cooperative budgeted $32.6 million this year for wholesale purchases of power, more than double the $14 million in 2004, he said.

"Our present power contract expires at the end of this year. After the end of' '08 -- unless we enter into another contract, which we're working very hard to do right now -- we're exposed to market prices," Husted said.

Cheaper hydroelectric power accounts for only 18 percent of the Valley Electric portfolio, Husted said. Natural gas prices have risen from $2.07 per BTU in January 1999 to $10.15 last week, he added.

Husted blamed some of the price increases on climate change initiatives, hence the petition. "One of the other things that's driving our costs today is the lack of a consistent, national energy policy."

In 1978, Husted said the federal government banned construction of power plants using natural gas. He said his utility in Kansas, which sat on the edge of a large natural gas field, built a coal plant instead. The act was repealed in 1987. Now, Husted said, the government wants to stop construction of coal plants and his former utility wants to expand its coal plant but can't.

"We were working with 40 other utilities in surrounding states on a coal-fired project in Utah. That project is now defunct," Husted said getting back to Valley Electric. "You can't put a coal plant anywhere in this country at this point in time."

Husted said it doesn't matter whether people believe in global warming or not. "The train has already left the station. Things are being done because people believe it is happening. Legislation is being passed and it's being passed now. We got all our eggs in two baskets -- natural gas, you've seen where the prices are going -- and alternatives. It's not going to do it. We're going to have to raise rates. "Every day we deal with members that cannot afford the rates today. So what we have to do is we have to make sure that the folks in Washington, our elected representatives, know how we feel," Husted said.

Alternative energy was a hot topic during the question and answer session.

Husted said solar energy is the biggest potential alternative energy source in this area. Several companies are interested in using the proposed VEA transmission lines for solar projects.

When asked about wind power, however, Husted said there must be areas more feasible for wind power, or companies wanting to build wind power would have visited this area.

There weren't any comments from the audience about the new impact fees, which add about $2,300 to the cost of a typical home. But Colleen Taylor, a new resident of Pahrump, asked about incentives for bringing in commercial businesses.

"If we were to offer a subsidy for commercial industry to come in here, then that would come at your expense," Husted said.

A few audience members suggested requiring more energy-efficient construction. Husted said VEA worked with Nye County on a revised building code that increases energy code standards.

The Valley Electric board is considering reducing impact fees for builders putting in energy-efficient homes, Husted said. He said there's also talk about letting people on solar power or other alternative energy to sell power back to the grid, what's called net metering.

Carol Curtis said most of the members in the room couldn't afford to retrofit their homes to make them more energy efficient. Husted responded that one step could be to purchase solar-powered water heaters, but added they cost about $4,000.

Results are expected soon on a VEA pilot program, studying the cost savings of solar-powered water heaters.

Mike Maheri asked if VEA would require builders to provide alternative energy amenities with their homes, like solar panels. VEA District 4 Director Bob Hartman, from Fish Lake Valley, said that should be left up to the builder.

"How much of a police state do we want with the utility?" Hartman asked.

Valley Electric can provide a service by giving out information to members on ways to remodel their homes more efficiently, he said.

Husted said the cooperative increased sales in 2007 by 50 million kilowatt hours, a 10 percent increase. Revenues rose $4.1 million, or 8 percent, surpassing $50 million in total revenues. Profits were roughly $4 million, a decrease of $433,000 from 2006, he said.

The cooperative's management decided not to provide post retirement medical benefits to employees any longer. That is expected to reduce expenses by $1.5 million annually, he said.

A discussion with officials in Nevada Power shows the benefits of working with other power suppliers, Husted said. In November VEA was able to purchase $250,000 in excess power from Nevada Power, saving $35,000, he said.