Cooperative Living August 2017 - 27
How co-ops face the energy future
T
rends in the fuels that generate the
nation's electricity - less coal and
more solar, wind and natural gas -
affect electric co-ops a little differently than
they affect other utilities.
Co-ops serve a larger share of residential
users and their coal-fired power plants tend
to be newer. A new report by the National
Rural Electric Cooperative Association
(NRECA) describes those trends and
differences to help electric co-ops plan for
the next decade.
" In this changed energy landscape, low
natural gas prices, increased penetration of
solar and wind and large amounts of baseload
[large coal plant] retirements have
made planning for the future even more
challenging for electric cooperatives, " says
the NRECA report.
For the typical utility in the United
States, about 38 percent of its customers
are residential. For electric co-ops that
share is 54 percent. One impact of that
difference is co-op electricity use can be
more affected by weather. Milder
temperatures in the past couple of years
have slowed the growth in co-op electricity
use, which usually grows faster than the
rest of the country. That's expected to
return to historic trends, says Michael
Leitman, an NRECA strategic analyst and
one of the authors of the NRECA report.
" The expectation for co-ops in general
is that they will continue to outpace
the nation. "
The report says co-ops generate about
5 percent of the electricity in the U.S., and
they are part of the national trend of
rapidly increasing generation from
As environmental trends lead to more renewable generation, electric co-ops have a unique role.
renewable energy. Co-op renewable energy
capacity grew by five times in the past 10
years, and in 2016 co-ops added more
renewables than in any previous year.
Wind power dominates co-op (non-hydro)
renewable capacity.
While many utilities are closing their
coal-fired power plants, the decisions can
be different for co-ops because their coal
plants tend to be newer. The report notes,
" Cooperative [coal] plants faced fewer
foreclosures due to environmental
regulations than the rest of the industry. "
The report states that by describing the
background and predictions for electricity
fuel trends, it " aims to help electric
cooperatives as they position themselves to
weather potential challenges and take
advantage of new opportunities in this
rapidly shifting environment. "
Paul Wesslund writes on cooperative issues for the
National Rural Electric Cooperative Association,
the Arlington, Virginia-based service arm of the
nation's 900-plus consumer-owned, not-for-profit
electric cooperatives.
www.co-opliving.com
August 2017 | Cooperative Living | 25
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Cooperative Living August 2017
Table of Contents for the Digital Edition of Cooperative Living August 2017
Cooperative Living August 2017 - 1
Cooperative Living August 2017 - 2
Cooperative Living August 2017 - 3
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