electricity

Energy inflation

sbradford — Fri, 22 Apr 2022 14:32:38 +0000

Energy inflation

May 1, 2022

We are becoming all too familiar with the unpleasant reality of high inflation rates for nearly everything we buy. A significant factor in the higher cost of goods and services is the runaway price of most forms of energy — the price of crude oil, gasoline, natural gas, coal, and propane have all increased, by 30, 40, even 50% over the past year.

The Russian invasion of Ukraine has made what was a difficult market situation much worse. Energy prices feed into the price of making and transporting nearly everything — and that includes the cost to make and deliver electric service. From the fuel inputs to our power plants to powering bucket trucks and heavy equipment needed for electric distribution, we are realizing higher costs across the board.

In addition, the cost of using the high-voltage transmission system that moves bulk power supplies from our power plants to your co-op’s electric distribution system has been increasing dramatically. Utilities that own the high-voltage grid have been rebuilding much of this system due in part to its age and condition but also because of changes to the network configuration as a result of the recent retirement of many older power plants.

These factors are putting pressure on the cost your co-op pays for power supplied to its system, on top of the rising cost of operating its own equipment. As consumer-owned cooperatives, we are doing what we can to keep your bill down; electricity costs are increasing, but not nearly as much as other forms of energy.

One of the ways we slow those rising costs is with the use of our diverse power-supply portfolio. We carefully — and constantly — monitor our mix of fuel inputs from day to day and make adjustments depending on fuel availability and price, to achieve the lowest cost possible.

Unfortunately, bills will be going up over the next several months. Please know that your electric cooperative is using every resource at its disposal to keep your supply of electricity reliable as well as affordable.

Looking back on 2021

sbradford — Tue, 23 Nov 2021 20:47:58 +0000

Looking back on 2021

December 1, 2021

Pat O'Loughlin

Up Front

This past year was one of transition. COVID-19 began to have less effect on our lives through the year as vaccines became available, and many businesses returned to more normal operations. The federal government underwent a shift in power between the parties and adjusted its focus to different priorities. The recovery in economic activity was hampered by shortages of materials and labor as businesses tried to recover production capacity and supply chains struggled to supply needed goods. The price of goods and services we use in everyday life surged higher, as inflation reached levels not seen in decades. That’s a lot of big changes for one year — and we’ll continue to work through these issues in the coming year.

Some things, though, remained consistent. Your electric cooperatives continued to provide a reliable supply of electricity at relatively the same price as past years. While we may not be completely immune from upward pressure on prices, our diverse mix of fuels and our steady approach to investing in needed infrastructure allowed us to keep the cost of electricity mostly steady. Once again in 2021, you scored your electric cooperative at near-record-high levels for consumer satisfaction. Thanks for noticing.

Last winter, we witnessed the devastating consequences of frigid weather in Texas, including prolonged outages and sky-high electricity prices. Ohio’s electric cooperatives are doing everything possible to prepare for whatever weather this winter brings. However, we continue to be only a small part of the overall electric system that serves this part of the country. Both fuel supplies and materials to build and repair electric systems are more scarce than we would like across much of the country. Preparations for this winter once again make it obvious how important a robust and diverse electric supply system is to our well-being.

Thanks to each of you for your continued support and patronage of your electric cooperative. We wish you and yours a blessed and happy holiday season.

The coal hard facts

sbradford — Wed, 30 Jun 2021 17:48:48 +0000

The coal hard facts

June 30, 2021

Pat O'Loughlin

Up Front

It’s clear that coal is no longer “king.” It’s also clear, though, as our associate editor, Rebecca Seum, explains succinctly in her story, that it’s still an essential element of a reliable power generation system.

The use of coal as a fuel source for electricity production has been on the decline because of increasing environmental requirements and the decreased costs for alternatives like natural gas and renewable generation sources. Concerns about the level of carbon dioxide emissions from coal generation further limit its future use, but the practicality and, yes, the reliability, of coal are undeniable. The truth of the matter is that fossil fuels, including coal, play an essential role in keeping the nation’s lights on. In fact, it’s coal that not only makes the integration of renewable power — namely, wind and solar sources — possible, but allows use of those sources to expand. Coal generation is “dispatchable,” meaning it can be controlled by electric grid operators. Coal can produce more energy when demand goes up or when other intermittent supplies wane. We can’t “turn up” the sun if demand spikes on a cloudy day, so fossil fuels, especially coal, provide the backbone of our regional supply mix.

A balanced approach is the key to reliable, affordable power generation — just look at what happened in California and Texas recently. Ohio’s electric cooperative network, as well as most of the country’s electric cooperatives, employ an “all of the above” approach — fossil fuels, biomass, hydropower, wind, and solar generation all play a role in providing your electric supply needs.

The benefits of continuing to cultivate our use of renewable generation sources are clear — wind and solar power are clean and inexhaustible supplies of energy — but they also have some clear shortcomings: Wind and solar power simply are not always available, and without dispatchable generation to pick up the slack, they’re simply not reliable enough to do the whole job.

We need a comprehensive fuel mix, which includes continuing growth in renewable resources. Decisions about that mix, however, must be based in realities, such as affordability to consumers, risk management, environmental impact, and reliability of supply. Today, we depend more than ever on a steady supply of electricity to power our homes and businesses and to keep us safe and secure. When the weather threatens us, when the stakes are high, we can count on coal. Now, more than ever, we need to get the mix right.

Pat O'Loughlin is president and CEO of Ohio's Electric Cooperatives.