Amid a heat wave that has some U.S. power networks asking customers to conserve energy, Kentucky’s electric cooperatives are committed to doing everything in their power to protect the reliability and affordability of electric service to their members.
With some utilities in other states issuing warnings about stress on the electric grid, Kentucky co-ops are prepared to handle this summer’s energy demands without interruption to members. Co-ops, however, do have concerns about the long term future of the grid amidst hurried transitions to less reliable energy sources.
Coops support a transition to renewable energy that protects the reliability and affordability of electric service for coop members. Unfortunately, current government policy and administration statements are pushing a transition timeline that is incompatible with those goals. The policies have led to the premature retirement of coal and nuclear plants, replacing them with less dependable wind and solar energy sources.
In addition, by signaling the demise of coal power, these policies have also put a strain on the availability of coal supplies, increasing market prices and threatening reliability.
Kentucky’s electric cooperatives embrace an “all-of-the-above” energy strategy, including significant investments in renewable energy sources in partnership with regional power networks. Since 2010, carbon emissions by Kentucky cooperatives are down nearly 40%.
Because electricity needs to be generated simultaneously as it is used, the electric system has to be built large enough to meet the biggest demand at any one time. Kentucky’s electric cooperatives urge policymakers to heed the heat wave blackout warnings and rethink the current timeline that threatens the well-being of cooperative consumer-members.

Extreme weather conditions, high seasonal demand and supply and shipping delays could pose reliability challenges for the nation’s electric utilities this summer, the North American Electric Reliability Corp. said in a new report.

“The utility industry prepares its equipment and operators for challenging summer conditions, but persistent, extreme drought and its accompanying weather patterns create extra stresses on electricity supply and demand,” said Mark Olson, NERC’s manager of reliability assessments, in a May 18 briefing on NERC’s Summer Reliability Assessment.

“Grid operators in affected areas will need all available tools to keep the system in balance this summer,” he said. 

Olson outlined industry concerns, which include ongoing inventory disruptions that are delaying generation and transmission construction and upgrades, cybersecurity threats, supply challenges for coal-based generation, and an anticipated active late-summer wildfire season in the western United States and Canada.

The report notes that reliability challenges are being compounded by evolving demands on the power grid, which has grown increasingly complex as renewable energy assets are added and consumers assert more control over their electricity use. 

“There’s clear, objective, inclusive data indicating that the pace of our grid transformation is a bit out of sync with the underlying realities and the physics of the system,” said John Moura, NERC’s director of reliability assessment. 

“We look at that long-term, and we see the transformation that’s happened over the last 10 years with our traditional baseload generation resources like coal and nuclear retiring, and lots of new natural gas and variable generation, mostly solar and wind,” said Moura.

NERC officials discussed the potential impact of summer weather and associated demand on regional transmission operators who manage large portions of the nation’s power grid. 

Seven areas face risks of energy shortfalls this summer, said Olson. “Their anticipated generation resources may not be sufficient to meet the operating reserves of a peak summer day in an average year.”

But 2022 is not shaping up to be average. Drought conditions and the early beginning of wildfire season in the West and Southwest coupled with low winter snowfalls could pose problems for the Midcontinent Independent System Operator. That prompted a “high risk” designation for MISO, which serves 15 states and Canada’s Manitoba province. 

“Drought can lead to reduced output from several types of generation, and it can also set weather conditions for higher temperatures,” said Moura.

Areas facing elevated risks include:

• The Southwest Power Pool: Drought conditions could contribute to low output from thermal and hydro generation needed to balance wind output.

• Texas: Increased wind and solar have eased capacity concerns, but drought conditions and summer heat may challenge the Electric Reliability Council of Texas and prompt manual load shed events during periods of low wind and high power plant outages.

• While the Pacific Northwest and California should have sufficient reserves under normal conditions, regional heat events could cause transmission congestion and energy emergencies. Wildfires, drought and supply chain issues could pose localized risks. 

“The risk of energy shortfall in these areas is elevated because more extreme conditions that drive above-normal demand or low resource output could deplete the reserves and lead to an energy emergency,” Moura said. He added that hydroelectric output could be curbed by drought conditions, particularly in California. 

NERC officials also warned that as older generation is retired, smaller baseload and peaking plants are being driven harder, increasing the risks of mechanical failures and forced outages. Officials also warned that some utilities are facing slowdowns in coal delivery, creating additional concern about falling reserve margins.

NRECA reacted to the report with a statement to reporters that noted “the ongoing energy transition must recognize the need for time, technology development and be inclusive of all energy sources to maintain reliability and affordability. A resilient and reliable electric grid that affordably keeps the lights on is the cornerstone of the American economy. American families and businesses rightfully expect the lights to stay on at a price they can afford. And a diverse energy mix that includes adequate baseload supply is essential to meeting those expectations day in and day out.”

Derrill Holly is a staff writer for NRECA.

Electric cooperative’s board names new CEO

The Board of Directors of Taylor County RECC is pleased to announce that after a nationwide search, Jeff Williams has been unanimously elected CEO of the electric cooperative.
Williams will succeed the longtime CEO of Taylor County RECC, Barry Myers, who is retiring after the co-op’s annual meeting on July 15. Myers has served as the co-op’s chief executive since 1985.
A native of Owensboro, Williams brings more than twenty years of co-op experience to Taylor County RECC which serves nearly 26,000 consumer-members in the Central Kentucky counties of Adair, Casey, Cumberland, Green, Hart, Marion, Metcalfe, Russell and Taylor.
“After a very careful and conscientious review of the cooperative’s needs, our board enthusiastically agreed that Jeff’s expertise and cooperative experience are an excellent fit for Taylor County RECC,” said Board President Donald Dean Shuffett. “We are excited to introduce Jeff to our dedicated employees and valued consumer-members.”
Williams joins Taylor County RECC after serving four years as Jackson Purchase Energy Cooperative’s Chief Financial Officer and VP of Finance and Accounting. Immediately prior to that, Williams was Manager of Budgets for nine years with Big Rivers Electric Corporation, and for ten years worked with Western Kentucky Energy, a subsidiary of Louisville Gas & Electric.
“I’m honored that the Board has placed their trust in me to lead a great group of employees,” Williams said. “I look forward to helping the members of Taylor County RECC and the communities we serve to prosper. At Taylor County, the members, the employees and our Board of Directors are all in this together. That is the essence of what a cooperative is.”
Williams and Shuffett expressed gratitude to Barry Myers as he begins a very well-deserved retirement. Myers’ 37 years as Taylor County RECC CEO makes him by one year the longest-serving manager in the co-op’s history. Earl Tomes, the first CEO of the cooperative, led Taylor County RECC for 36 years, from 1938 to 1974.
“I also want to thank the Board, employees and members of Jackson Purchase Energy,” Williams added. “I have been privileged and blessed to know and work with a great group of people.”
Williams and his wife of 29 years, Trinna, have four grown children: Joshua, Cassie, Caleb and Emily.
“My wife and I enjoy camping and the outdoors,” Williams said, “The Taylor County RECC service area is in a central location and is such a wonderful destination. We are humbled and happy to be so graciously welcomed to our new home.”

In the latest co-op profile video by your statewide association, we are pleased to feature Logan Reeves. 

In his 2 1/2 years as a system controller for Kenergy, he has demonstrated the power of positivity and is an inspiration to all of his fellow colleagues after overcoming a huge obstacle in his life.

Does your co-op have an interesting story to tell or other developments to share? If you have an idea for a video produced by the statewide co-op association, please email wharris@kyelectric.coop or mdennis@kyelectric.coop. 

The Biden administration’s proposed 2023 budget would increase funding for the U.S. Department of Agriculture’s ReConnect broadband program by 33%—from $450 million in fiscal year 2022 to $600 million.

The ReConnect program provides loans and grants to electric cooperatives to help pay for the construction, improvement or acquisition of facilities and equipment to bring high-speed internet to rural communities that have little or no service.

The COVID-19 pandemic has underscored the importance of broadband as people have relied on it to work from home, attend virtual classes and access telemedicine appointments.

President Joe Biden’s budget proposal is, like that of all presidents, a request to Congress. Legislators have the power of the purse and ultimately will decide spending priorities and levels for federal agencies and programs.

“While we recognize that the final decision lies with Congress, we welcome the administration’s support for increasing broadband funding to help close the digital divide that is keeping rural America from reaching its full economic potential,” said Hill Thomas, NRECA’s vice president of legislative affairs.

Turning to another USDA program vital to co-ops, the administration’s proposed budget calls for continuing to fund the Rural Utilities Service Electric Loan Program at $6.5 billion. Congress increased funding for the program by $1 billion in fiscal year 2022 from $5.5 billion in 2021.

Co-ops use RUS loans to help build and improve infrastructure that provides reliable, affordable electric service to their consumer-members. Repayment of those loans with interest to the U.S. Treasury helps reduce the federal deficit. 

“We are glad to see that the administration’s budget supports the increase that Congress provided to the RUS loan program that is so crucial to electric co-ops and the communities they serve,” Thomas said.

In a departure from the Trump administration’s budget proposals, the Biden administration is not seeking to sell off transmission assets that provide affordable hydropower from federal dams to hundreds of co-ops.

The Trump administration—in an effort that drew bipartisan opposition in Congress—had proposed to privatize assets held by the Tennessee Valley Authority, Bonneville Power Administration, Southwestern Power Administration and Western Area Power Administration.

The Trump administration had also sought to increase rates for federal Power Marketing Administrations by changing the cost-based rate structure to make it comparable to rates charged by investor-owned utilities.

In its budget plan for 2023, the Biden administration proposes increased funding for climate-related activities at nearly every federal agency. That includes a boost of almost $17 billion, for a total of $45 billion, to the five agencies with the most climate-related programs. The budget requests a record $11.9 billion—a nearly 29% increase—for the Environmental Protection Agency alone.

Erin Kelly is a staff writer for NRECA.

Secretary of State partners with Kentucky’s electric cooperatives in non-partisan campaign 

Hoping to build on the increase of civic engagement in the areas they serve, Kentucky’s electric cooperatives launched their 2022 Co-ops Vote campaign at the Kentucky State Capitol on Wednesday. Secretary of State Michael Adams and about 100 high school students representing electric cooperatives across Kentucky kicked off this year’s non-partisan initiative.
 
Co-ops Vote began in 2016 with the goal of reversing a downward trend in rural voting. In both the 2016 and 2020 elections, voting in Kentucky’s rural counties increased. Following a bipartisan effort between Adams and Gov. Andy Beshear to help accommodate Kentucky’s election process to pandemic concerns, the General Assembly also worked across party lines to enact significant election reform endorsed by Adams and signed into law by Beshear. The reforms aim to make Kentucky’s elections more accessible and more secure.
 
“Kentucky’s electric cooperatives appreciate any effort that encourages voter participation in the communities we serve, and we are grateful to Sec. Adams for his partnership on Co-ops Vote,” said Chris Perry, president and CEO of Kentucky Electric Cooperatives. “Co-ops Vote is non-partisan and does not endorse any candidate. The consumer-members of rural electric cooperatives democratically elect their co-op boards, and it’s important their voices are also heard at the ballot box.”
 
In the 2020 election, Kentucky’s rural counties recorded a 61.9% voter turnout compared to a 60.8% voter turnout in metropolitan counties. The last time Kentucky voter turnout topped 50% in a mid-term election was in 1990, when 52.5% of registered voters cast a ballot.
 
Kentuckians can connect with elected leaders and stay informed on issues facing rural Kentucky on RuralPowerKY.com, a grassroots portal that links to Co-ops Vote resources. The deadline for Kentuckians to register for the May 17 primary election is April 18, 2022. The last day for Kentuckians to register for the November 8 General Election is October 11, 2022.
 
“I appreciate the continued efforts of Co-ops Vote to increase voter turnout in our rural communities,” said Sec. Adams. “Following the significant improvements in our election process over the past two years, it has never been easier to vote in Kentucky than it is today.”
 
This year marks the fiftieth anniversary of the first Kentucky Rural Electric Youth Tour. Since 1972, the statewide association of Kentucky’s electric cooperatives has coordinated the youth tour to both Frankfort and Washington, D.C. Co-ops select rising young leaders in their service territories to gain a personal understanding of American history, civic affairs, and their role as citizens and members of electric cooperatives. Students will embark on the Washington Youth Tour in June.
 
Since its inception, co-ops have sponsored more than 1,600 Kentucky high school students in the youth tour program. Notable alumni include Sen. Paul Hornback and Rep. Samara Heavrin who addressed the youth tour delegates on Wednesday.

 

NRECA and other nonprofits are asking the U.S. Postal Service to abandon an unprecedented postage rate hike now that Congress has passed legislation to bolster the agency’s operations and provide financial relief.

The Postal Reform Act of 2022, which the Senate approved last week and President Joe Biden is expected to sign into law soon, was drafted to strengthen how the beleaguered service does business and ultimately save it money.

But the measure will not ease the record-high rates authorized last year or deter additional biannual postage increases.

“While this legislation will help shore up some of the Postal Service’s financial challenges, it does not provide immediate relief for electric co-ops and other postal users that face record rate increases in the coming years,” said Bobby Hamill, NRECA’s government relations director on this issue.

“NRECA continues to work with our Alliance of Nonprofit Mailers coalition in urging the Postal Service and the Postal Regulatory Commission to moderate the planned rate increases, particularly in light of the recent financial support provided by Congress.”

The Postal Regulatory Commission last August authorized nonprofit marketing mail rates to increase by an average of 7.8%. This included 5.7% for first-class letters, 10.4% for large envelopes, newsletters and magazines and 8.6% for parcels.

NRECA joined with the ANM to fight the new rates, and ANM joined a lawsuit against the commission for allowing the nonprofits’ postage rates to jump higher than current inflation.

However, the U.S. Court of Appeals for the D.C. Circuit ruled last November that the rate hike was within the commission’s authority under the 2006 Postal Accountability and Enhancement Act and that it satisfied the Administrative Procedure Act’s requirement of “reasoned decision-making.”

ANM Executive Director Stephen Kearney said that with a record $24 billion in cash and $107 billion in relief from Congress, the Postal Service does not require 6.8% to 8.8% rate hikes as authorized. USPS will file the level of its next rate increase with the commission in April.

“We and other mailer groups are now trying to convince the USPS to not use its full rate authority,” Kearney said. “Mailers are also being hit by other cost increases for paper, fuel and trucking that are driven by supply and demand.

“If USPS uses all the authority, it will lead to a second record set of increases in less than a year. USPS could and should defer its use of the full authority.”

Cathy Cash is a staff writer for NRECA

NASHVILLE, Tenn.—Continued collaboration among electric cooperatives will help all co-ops face the challenges of an uncertain future, NRECA President Chris Christensen told co-op leaders Tuesday at NRECA’s PowerXchange.

“It’s that diversity of experience that allows us to work together to tackle common challenges,” the Montana rancher and former teacher said. “Some are specific to the electric cooperative network. Others are consistent across the entire electric sector, and we can share common solutions just as broadly.”

That doesn’t mean there’s a one-size-fits-all approach when it comes to co-ops, said Christensen, who serves as a director at NorVal Electric Cooperative in Glasgow, Montana.

“Our friends at Pedernales in Texas and their 872 employees are going to approach a common issue like a rate change differently than our newest NRECA member, Isle au Haut in Maine, which has one full-time employee,” he said.

“Nonetheless, we can and should continue to collaborate as much as possible—here in Nashville and after we’ve returned home. There are always experiences to learn from, and our commitment to collaboration must remain a hallmark of electric cooperatives.”

As NRECA’s president, Christensen has visited co-ops throughout the country and seen firsthand how they build on shared ideas. One example came when he told colleagues from other co-ops about NorVal’s requirement for directors to earn certain NRECA leadership credentials.

“In the weeks after I shared that experience, several colleagues shared with me that they not only put that idea into practice, but they built on it,” he said. “And some adjusted it to suit their specific needs, adding additional local learning opportunities or tying learning to rewards. Sharing our experiences and learning from each other, that’s the cooperative spirit that helps us face an uncertain future together.”

Attending PowerXchange and learning from one another is a way that leaders are “taking a proactive step for our co-ops.”

“Apply what you’ve learned here,” Christensen said. “Take ideas you get today back to your co-op and put them to good use. Continue to educate yourself and share your experiences with your fellow leaders back home.” 

Cooperation among co-ops is key to ensuring that leaders are taking action “to be successful for future generations for our members,” he said. 

“I say bring it on. Our co-ops are smart, capable and stronger when we work together.”

Author: Erin Kelly

NASHVILLE, Tenn.—NRECA CEO Jim Matheson welcomed more than 5,000 attendees to the 2022 PowerXchange with a message lauding electric cooperatives’ reputation and accomplishments as well as their aspiration to move their communities forward.

“That’s what I respect most about the work you do,” Matheson said at the March 7 general session. “And it’s my motivation to keep improving—to keep searching for ways we can be better.”

Matheson noted that electric co-ops are viewed as a trusted source by Republicans and Democrats on Capitol Hill about where their communities stand, and he discussed how NRECA has worked to fortify that reputation. 

NRECA is using more effective ways to reach elected officials, including digital and social media tools, modernizing its grassroots outreach, and creating stronger connections between members of Congress and the electric co-op communities they were elected to represent, Matheson said. 

“We’ve actually tested the results and measured our progress. We know these efforts are paying dividends for NRECA and for you,” he said. “Today, our reputation in Washington is more durable than ever.

“When policymakers look at every other organization in the energy industry, they see a partisan set of special interests. They see a friend or a foe, based on their politics. But when they look at America’s electric cooperatives, they see communities. They see people. They see you. As a result, in Washington D.C., we stand out,” he said.

Matheson outlined four co-op values he highlights when meeting with policymakers: 

• Co-ops strengthen communities through innovation and member support.
• Co-ops provide essential services such as broadband where no one else will.
• Co-ops provide reliable service from a resilient system.
• Co-ops accelerate the advancement of technology in rural America.

“This is our job at NRECA,” Matheson added, “to help create the foundation so you can do your best work to serve your members. To be a voice for the good you represent and the possibilities you create in your community.

“We always say the electric co-op is about serving the member at the end of the line,” he said. “But when you challenge yourself … and aspire to a larger purpose and a greater good, the thing about the end of the line becomes the fact that you never really get there. There’s always something more we can do to keep our communities moving forward.”

Author: Cathy Cash

A joint effort between Pennyrile Electric and Hopkinsville Electric System to bring high-speed fiber internet to consumer-members is underway.

In a new video posted this morning by Kentucky Electric Cooperatives, Pennyrile Electric CEO Alan Gates says the first phase of the “energynet” buildout now underway is expected to be complete within two years. 

“And beyond that, I mean our ultimate goal is to reach every end member of Pennyrile Electric within five years,” Gates says, explaining that large communication providers declined to serve rural areas where co-ops serve only two or three customers per mile of line.

Click here to watch the video which includes comments from Pennyrile Electric members excited about the broadband service to help with education, farming, health care and quality of life.

“We want great member satisfaction. We feel that this is a way to connect to our members, providing a service that no one else was willing to bring them, much like we did with electricity in 1936 and 1937,” Gates says.  We’re a service company, so we want to do everything that we can to serve our membership, and just try to be able to do that without affecting the electric rate, from that, we will provide connectivity to our entire membership.”

Funds allocated through Christian, Trigg, and Todd County Fiscal Courts will allow Pennyrile Electric to move forward with the project, while preserving a business model that protects the integrity of the electric side of the business.

“What’s so good about what we’re doing is it’s going to be out in the rural areas,” says Clayton Miller, lead fiber technician with Pennyrile Electric. “The rural areas, they don’t have access to this. So, this is really going to be a big jump for them compared to people who live in the city. So you can have the big city feel and the technology side but still live out in the country.”

Three packages are offered for the energynet service:

• 200 mbps home package is offered at $59.95/month.
• 500 mbps gamer edition package is offered at $79.95/month.
• Full speed service with speeds up to 1 gigabit is offered at $99.95/month.  

Each energynet package includes whole-home wifi and 24/7 local support with unlimited data usage and no contracts.