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TRANSMISSION & DISTRIBUTION
Digital Solutions Provide Great
Benefits for Cooperative Utilities
Although cooperatives may not have the financial resources of large investor-owned
utilities, valuable digital solutions are still within their grasp. Because they have
fewer resources to employ, co-ops may even benefit more from advanced technology
than their deep-pocketed brethren.
Lisa Stannis
A
ccounting for almost half of America's
distribution lines and working
in some of the country's most
rural areas, cooperative (co-op) utilities
offer a profoundly unique experience for
their members, but they're facing a major
change in the way they operate. Co-ops
have historically lacked the access to debt
and capital that would allow them to benefit
from newer technologies. However,
following a government boost of almost
$11 million last year, co-ops may be more
equipped than ever to take the next steps
and utilize digital solutions to make energy
more affordable for their members.
Community at the Fore
Working to serve their members rather
than drive profits for shareholders, coops
have their foundations in seven
operating principles. Ranging from democratic
membership control to education
and training, these are all grounded in
supporting and protecting the local communities
they power.
In fact, this commitment to community
has seen co-ops stay one step ahead
of trends across the utility industry. For
example, in Illinois recent changes to law
dictate that utilities cannot shut off the
power to customers who haven't paid
their bills when the temperature exceeds
90F. This is something that the Egyptian
Electric Cooperative Association, headquartered
in Murphysboro, Illinois, has
been offering voluntarily to its members
for many years.
Make no mistake, utility co-ops strive
to bring the best service at the lowest
possible cost to their members. But the
high cost of maintaining the infrastructure
needed to cover large areas (Figure 1),
often lacking large cities and dense populations,
can make balancing the books
difficult. Considering their typically rural
operating areas, co-ops have the unenviable
job of delivering power to homes
that may be several miles from their next
32
1. More than 800 distribution cooperatives
make up the U.S.'s electric co-op network,
which serves more than half of the nation's
landmass. Source: Envato Elements
neighbor, leaving them with large quantities
of transmission and distribution (T&D)
assets over vast areas-which then need
to be inspected and kept up to standards.
Collectively responsible for more than
2 million miles of distribution lines, accurate
and regular inspection is no mean
feat. Budgets are often tight for co-ops,
who aim to keep prices low. The fact that
co-op revenue comes from servicing
only about 12% of the population, but
expenses stem from maintaining three
times the number of miles of powerlines
serviced by privately owned utilities,
means efficiency is paramount.
Technology to the Rescue
Meanwhile, co-ops serve about 92%
of U.S. counties designated as being
in persistent poverty, so utility jobs are
considered extremely important to local
communities. In some cases, the fear
of job losses has slowed the uptake of
digital solutions. The reality, however, is
that technology doesn't eliminate jobs, it
enhances productivity.
Artificial intelligence (AI)-driven solutions
for T&D operators work as partner
tools for existing employees, providing
them with dynamic real-time data that
allows them to make smarter decisions.
An example is utilizing purpose-equipped
helicopters or drones to perform accurate
data collection to build rich 3D models
of T&D assets including surrounding
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vegetation and buildings. At a glance,
employees can immediately see problem
areas and allocate resources, meaning
workers no longer need to make
educated guesses at where their presence
is needed and can immediately get
right to the heart of any problems. This
leads to greater employee efficiency and
satisfaction-as well as more effective
allocation of resources and money.
Furthermore, in parts of the country
where qualified electrical workers are an
aging population, a tech-first approach
could also help co-ops entice new, younger
workers, who may help carry forward
existing expertise for the next generation.
Future-Proofing
Looking forward, the potential benefits
of digitalization for cooperatives are
clear. By adopting solutions like digital
twins, co-ops can take a proactive approach
to asset management, using precision
AI to stay one step ahead of the
challenges they face.
With a more thoughtful approach to
operations and maintenance, co-ops can
ensure that asset health is carefully monitored,
as well as managing nearby vegetation
to keep the lights on year-round.
Not only this, but with communities that
demand the lowest possible prices for
their electricity, co-ops can maximize
their budgets by inspecting hundreds
of miles in one day with a drone or helicopter,
rather than tens of miles with a
worker and a ladder.
Co-ops have a unique working model,
and a unique set of challenges that come
with covering a vast expanse of rural land,
so they need a specialist digitalization
partner that speaks their language. Once
equipped with a tailor-made solution,
these cornerstones of our electricity industry
have the potential to be trailblazers
in the power sector-all to the benefit of
the deserving communities they serve. ■
-Lisa Stannis is customer development
director at Sharper Shape.
POWER | April 2024
http://www.powermag.com
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