By Jared Routh, High West Energy general manager
Electricity is often taken for granted, as we flip a switch, plug in a device, or adjust
the thermostat, and expect instant results. Yet, behind the scenes, your local cooperative or public power district (PPD) is constantly working to balance supply and demand. One challenge that electric utilities face is what we call “peak demand.”
Peak demand refers to those times when the use of electricity across electric systems is at its absolute highest. When the air conditioning is running in the heat of the summer or on a bitter winter morning, when heaters and lights all come on at once, there is a spike in demand. While these moments sometimes only last a few hours, they can require a significant amount of electricity.
Now, why does this matter? Unlike investor-owned utilities, cooperatives and PPDs don’t exist to make profits for shareholders; rather, we exist to serve you, our member-owners. To achieve this, we must plan and invest in sufficient power supply and infrastructure to handle the highest loads. This is a significant challenge because building and maintaining the infrastructure to cover those few hours each year can be costly. Power plants, transmission lines, and substations must be sized to handle the maximum load, even if they sit underused most of the time. When demand exceeds our supply, these additional costs can ultimately be passed on to the members we serve.
When discussing peak demand, we also must factor in the matter of reliability. When too many people draw too much electricity at once, this can put stress on the grid. When the grid is overloaded, this can increase the risk of outages or force utilities to rely on backup generation, which is often more expensive.
However, we can manage peak demand together. The choices we make at home or in our business truly matter, like waiting to run the dishwasher until after 9 p.m., turning up the thermostat a few degrees on a warm afternoon, or charging an electric vehicle overnight. When thousands of members take small steps, the impact can be significant.
While it’s important for members to understand peak demand and how their actions can help manage it, public power districts and cooperatives also take steps to lessen the impact of high demand on the grid. These steps could include installing smart meters, offering load management programs, and investing in battery storage.
High West Energy helps manage peak demand through our Generation and Transmission Association, Tri-State. Limits have been set in place, specifically for members with large loads, such as data centers. When demand is high within the transmission grid, Tri-State communicates with these members and requests a load curtailment. This doesn’t shut off their power, but it reduces usage to a minimum, helping keep the grid stable for everyone.
While electricity is vital to our lives, managing peak demand is one of the smartest ways we can protect its affordability, reliability, and sustainability. As a rural cooperative, we’re committed to providing the power you need, when you need it.