The Future of Demand

R. Gary Harrison

PAYMENT

This month, I am blessed to have been part of the cooperative for 35 years and I can honestly say we have seen a lot of advancements during that time. Recently, we added rates for electric vehicle charging and time of use. Both rates were designed to encourage members to incorporate habits that would result in electric load transferring from a high use time of day to a time slot where electric use is typically lower.

Why is this important? Well, we must design our electric system to meet electric demand on the hottest day of the year as well as the absolute coldest day. These days represent the point when our total load, or total electric demand, is at its peak.

Because of the time involved in system upgrades, we can’t wait until the extreme weather is almost here and then suddenly decide to upgrade 2,600 miles of power lines. Instead, we must use data analysis and modeling to predict extreme conditions to plan for our future electric needs. We must also ensure we have adequate maintenance schedules for our rights of way and electric system. The recent Christmas deep freeze is a perfect example of why our engineers must plan ahead and design our electric system to handle extreme temperatures.

Winter peaks are more nerve racking for us than summer. Why? In the summer, once all air conditioners are running at the same time, your load will peak without much potential of increasing the load on the system. In an extended cold weather event, people will run their heat and then go buy extra heaters if their central unit is not meeting their heating needs. A few extra heaters may not seem like much, but if thousands of members keep adding one here or there, it will continually increase our overall load and ultimately our peak demand.

As important as it is for our engineers to correctly design the electric system, it is equally important that we have adequate staffing to handle any outages related to extreme weather events. I am so thankful we have linemen who are willing to go out in the howling wind with a wind chill of zero degrees and get in a bucket or climb a pole to make repairs. They do this willingly while often missing family events or leaving behind damage at their own homes to ensure our members have power. You really realize just how valuable our linemen are in critical situations such as these.

Even with a good electric system design and great linemen to handle outages, we still couldn’t ensure a reliable source of electricity without PowerSouth Energy Cooperative, our wholesale power supplier. They have the important task of making sure they have enough power generated to meet the electric demand of all their member systems.

Utilities are required to have a 15 percent spinning reserve during all conditions so that if a generator trips offline they will still have enough electric capacity to meet demand. Years ago, after a winter close call, PowerSouth Energy Cooperative decided to go above and beyond and keep a 30 percent spinning reserve to ensure their members' needs are met. On Christmas Eve, I think every unit that could run to produce heat was running throughout the state, so having a larger reserve was a tremendous help. News media was reporting that TVA had rolling blackouts in North Alabama and Duke Energy in North Carolina was also experiencing blackouts due to insufficient generation capacity. I recently read an article that said the largest United States electric grid that runs from New Jersey to Illinois had a 23 percent power plant failure during the December storm. That is why I am so thankful for the planning efforts of PowerSouth Energy Cooperative because they were able to get us all through the storm with a reliable supply of electricity.

Of course, prices for natural gas and fuel oil went through the roof during this period of extremely cold temperatures, but we would definitely prefer managing increased costs versus rolling blackouts and we knew that turning off power was not an option.

My point is that with so many new regulatory issues coming along trying to limit new power plants, the electric systems throughout the United States are going to be much closer to reaching their maximum capacity. That is why things like electric vehicle and time of use rates are so important because they encourage members to shift their electric use to off-peak times. The more we can encourage our members to utilize electricity offpeak, the longer PowerSouth can continue to operate without the need to build even more generation plants.

So, when you hear us talking about electric system demand, just know there is a limit to the amount of generation capacity available as demonstrated in other parts of the country during this recent cold snap. That is why we will be working together in the future to find ways to manage our system peaks with your help.

At Dixie, we are always looking out for you.  Gary Harrison is President/CEO of Dixie Electric Cooperative, a member-owned electric utility serving more than 26,000 businesses and homes in portions of eight Alabama counties.

2023 Cooperative Scholarship Program

The 2023 Cooperative Scholarship deadline is Feb. 17, 2023. We will be awarding ten $3,000 scholarships in 2023. To apply, please visit the scholarship page on our website at www.dixie. coop/scholarshipprogram and download our free application. If you have any questions, please feel free to contact our communications manager at 334-387-1534.

Statement Of Nondiscrimination

Dixie Electric Cooperative is the recipient of federal financial assistance from the Rural Utilities Service, an agency of the U.S. Department of Agriculture, and is subject to the provisions of Title VI of the Civil Rights Act of 1964, as amended, Section 504 of the Rehabilitation Act of 1973, as amended, the Age of Discrimination Act of 1975.

In accordance with federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA’s TARGET Center at (202)720-2600 (voice and TTY) or contact USDA through the Federal Relay Service at (800)877-8339. Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue, SW, Washington, D.C. 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov.

This institution is an equal opportunity provider, employer, and lender.