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Co-ops, Climate, and Capital

By RK Upadhya - Science for the People, March 2022

Cooperatives are generally seen as a radical and upstart form of organization, and a way for progressives and leftists to immediately implement democratic and egalitarian ideas on how the economy ought to be run. Thus, at first glance, rural electric cooperatives (RECs) seem to be one of the most promising institutions in the modern United States. Over 900 of these localized, nonprofit, democratically-governed, and consumer-owned utilities exist across virtually the entirety of the American countryside. These RECs control nearly half of the country’s power distribution system, which delivers electricity to their roughly 40 million members.1 Such a vast network should be well positioned to become the backbone of a society that has moved beyond capitalism and its compulsions for ever-greater profits, ever-increasing concentrations of wealth, and ever-deepening social and economic inequalities.

Furthermore, in contrast to most other types of co-ops, RECs are natural monopolies; due to the prohibitive costs of building independent power lines, as well as government regulations, the rights of power distribution in any given area are generally held by a single utility. In most cases, anybody who wants electricity in the service territory of a REC must become a member of the co-op. Insulated from capitalist competition, and with guaranteed yearly revenues in the millions, RECs are thus in a substantially more stable situation than the typical small metropolitan co-op.2 Indeed, with their stability and scope, RECs resemble local governments more than anything else, further underscoring their potential as a vehicle of radically democratic and collective practices around technology and local economic development—a potential that is ever more urgent today, given the role of electricity in the climate crisis.3

And yet, as thoroughly analyzed in Abby Spinak’s 2014 PhD dissertation, RECs have largely not lived up to this vast promise. Most RECs are indistinguishable in their day-to-day operations and guiding visions from their for-profit counterparts: they see themselves as single-issue businesses run by competent managers and specialized workers, whose sole purpose is to provide electricity.4 Democracy figures little in this vision, and broader socioeconomic and political ambitions even less so—a fact reflected in abysmally low voting rates, and in how RECs not only depend disproportionately on fossil fuels, but have actively lobbied against climate action and clean power regulations.5

Part of the reason for why RECs act as technocracies rather than as community institutions lies in their history, where they were developed and shaped by the US government more as forces of capitalist entrenchment, rather than as proper cooperatives built by and for local communities. Furthermore, as the dynamics of recent campaigns around RECs show, the forces of capitalism tend to exclude ordinary working-class people from social movements and democratic and cooperative institutions. For RECs and similar organizations to truly flourish and unlock their radical potential, it is necessary for them to actively push back against capital and its anti-democratic and anti-cooperative impulses.

Roads to an Energy Commons

By Simon Pirani, Larry Lohmann, and David W. Schwartzman - People and Nature, February 17, 2022

This publication brings together articles that appeared on peoplenature.org about the role of fossil fuels in capitalist society, and the meaning of “energy” and related concepts. The discussion covered issues about the transition away from fossil fuels, and away from capitalism.

The first article, by Simon Pirani, discussed the way that energy has been turned into a commodity under capitalism, and asked whether and how it could be decommodified. The second article, by Larry Lohmann, argued that the very concept of “energy” had to be challenged more robustly. Further contributions followed, from Larry, Simon and David Schwartzman, who writes on solar energy. The last two articles have been published today, here and here.

While none of us think the last word has been said on these issues, we hope that the discussion will be taken up, and maybe taken in other directions, by others. With the pamphlet we hope to make our conversation accessible to a wider readership. If you wish to contribute, please email peoplenature[at]protonmail.com.

Read the report (PDF).

Workers Can’t Wait: Just Transition Now – Building Global Labour Power For Climate Justice

Climate-Safe Energy Production–From Below

By Jeremy Brecher - Labor Network for Sustainability, February 2022

Climate-safe energy is being produced locally all over the country in ways that also produce jobs and increase racial, social, and economic justice – fulfilling the basic principles of the Green New Deal.

Protecting the climate requires meeting the original Green New Deal proposal’s goal of 100% of national power generation from renewable sources within ten years.[1] That requires greatly expanding climate-safe sources of energy. It involves an unprecedented transformation of the energy system, and that requires national investment and planning. But much of the transformation will actually be composed of local building blocks – and those can begin right now. Indeed, hundreds of local initiatives around the country, ranging from community solar to municipal ownership to local microgrids, are already expanding renewable energy production.

Sunlight, Jobs, and Justice

Solar gardens are sprouting up all over Denver.

On November 3, 2020, Denver voters overwhelmingly approved Ballot Measure 2A, the Climate Protection Fund, to raise approximately $40 million per year dedicated to climate action. As stated in the ballot measure, the intent of this fund is to “fund programs to eliminate greenhouse gas emissions and air pollution and adapt to climate change. Funding should maximize investments in communities of color, under-resourced communities and communities most vulnerable to climate change.”[2]

Community solar gardens use photovoltaic (PV) panels to produce electricity from sunlight for an entire neighborhood. Now such solar gardens are dotting sites owned and financed by the City of Denver, including rooftops, parking lots, and vacant lands. The power generated from the solar gardens will be shared between city facilities, income-qualified residents, and publicly accessible electric vehicle charging stations.

In accord with the principles of the Green New Deal, Denver’s solar garden program has a strong justice dimension. Since Denver owns the project, it can set its own standards. Ten percent of the energy generated by the solar gardens is allocated to low-income housing through the Denver Housing Authority. An additional 10 percent will be allocated to low-income households through Energy Outreach Colorado, and will be exempt from subscription fees. A paid workforce training program available to Denver residents will provide 10 percent of the city and county’s solar workforce.

The solar gardens are designed to contribute to the goal of Denver’s “80 x 50 Climate Action Plan” to transition Denver to 100 percent renewable electricity for municipal buildings by 2025; achieve 100 percent community-wide renewable electricity by 2030; and reduce Denver’s greenhouse gas emissions 80 percent, as compared to a 2005 baseline, by 2050.[3]

Trade Union Program for a Public, Low-Carbon Energy Future

By various unions - Trade Unions for Energy Democracy, November 9, 2021

The following “Trade Union Program for a Public, Low-Carbon, Energy Future” (“Program”) is the result of the work of a Trade Union Task Force consisting of more than 30 unions. Focusing mainly on the power sector, the Program is an attempt to rally the international trade union movement behind an ambitious political effort to bring about a fundamental shift in climate and energy policy. This shift is needed both to correct the failures of the market model and to ensure that the energy transition is socially just, economically viable, and effective in terms of reaching climate goals.

Recognising That:

  • Access to a healthy environment has been declared a human right by the UN Human Rights Council, in recognition of the interconnected human rights crises of environmental degradation and climate change.
  • Lack of adequate access to energy remains a major source of poverty, inequality and insecurity, in violation of human rights and contrary to the aims of the UN’s Sustainable Development Goals.
  • Widespread electrification of many energy-dependent processes will be necessary to meet agreed, science-based decarbonisation targets.
  • Ensuring access to affordable, safe, secure, reliable, low-carbon electricity will therefore be essential to meeting most future energy needs.
  • All known methods of capturing, transforming, and distributing energy for use involve some degree of environmental disruption.
  • Neoliberal climate and energy policies – which are tied to privatisation and commodification – have failed to halt the rise of greenhouse gas emissions.
  • Privatisation, marketisation, and liberalisation of electrical power systems have led to price increases, falling levels of service quality, and inadequate investment.
  • The transition required to meet decarbonisation targets will entail substantial changes affecting workers, especially in many energy-related areas of employment, and many of these changes may be very disruptive if their impacts are not addressed.
  • Many countries in the global south continue to face a crippling legacy of colonialism and debt, constraining their ability to procure the technologies and resources needed to ensure universal access to electricity.

Transforming Eskom: Working Class Climate Justice

Transforming Eskom: Africa’s Biggest Polluter

Transforming Eskom: Youth Securing a Just Climate Future

Union Struggles Against Climate Change

A Green New Eskom: Transforming Power, Transforming South Africa

By staff - Climate Justice Coalition, November 2021

The campaign for a Green New Eskom is being led by the Climate Justice Coalition, a coalition of South African civil society, grassroots, trade union, and community-based organisations. We are calling for a rapid and just transition to a more socially owned, renewable energy powered economy, providing clean, safe, and affordable energy for all, with no worker and community left behind in the transition.

The Problem: Eskom’s old, unreliable and polluting coal power stations plunge us into rolling blackouts i.e. load-shedding or load reductions. Eskom has been mired in corruption, which has driven it deep into debt, sent electricity prices soaring, and robbed the public purse of trillions of rands.

Looking at Eskom now, it can be hard to think that it can be part of the solution to our problems rather than the cause of them. It can be hard to think of Eskom as anything but a headache, a drain on the taxpayer, and one of the gravest threats to our economy and environment.

The Solution: A better Eskom is possible. One that provides affordable, reliable and clean energy. An Eskom that drives a just transition to a more socially-owned renewable energy future that empowers and benefits communities, workers, businesses and all South Africans.

Not only is a transformed Eskom possible, it is absolutely vital. We simply cannot ensure a prosperous and sustainable future for South Africa without fixing Eskom. This may be one of the biggest and most important tasks in creating a better South Africa for all.

Read the entire statement (PDF).

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