January 2024 Editorial

Marshal Albright, president/CEO Cass County Electric Cooperative

The North American Electric Reliability Corporation recently said, “More than half of the United States is at risk of electricity shortages this winter due to regional generation shortfalls, increased demand for power, and potential fuel delivery challenges during sustained cold weather events.”

As our nation continues the journey toward a carbon-constrained future, electricity reliability is top of mind for many regional utilities and cooperatives. On a given day, in the MISO region from Manitoba to Louisiana, 25-40% of the power generated comes from coal, 30- 40% from natural gas, 10-12% from nuclear, 1-30% from wind, and about 1% from solar.

High demand periods, generation maintenance outages, transmission line congestion and maintenance, days with low wind energy production, a reduction in baseload power (from coal and nuclear), and occasional limited fuel supply (for natural gas generation) are leading to more extreme price volatility in the wholesale power market. Unpredictable hourly price fluctuations for utilities selling into or buying from the power market put rate stability and power availability at risk. The market fluctuates from negative pricing during low-demand periods with high wind output to extreme prices caused by the abovementioned issues, leading to wholesale prices that can exceed $2/ kWh. An average retail consumer pays around $0.12/kWh.

A more significant concern emerged recently from Dubai’s United Nations Climate Summit (COP28). The Biden Administration is forging ahead with its green agenda by committing the United States to not building new coal plants and phasing out existing plants. John Kerry said, “The first step is to stop worsening the problem: Stop building new unabated coal power plants.”

Abated power plants are those that have implemented the required pollution controls as required by the Environmental Protection Agency (EPA). Currently, Minnkota Power Cooperative’s power plants are in full compliance with EPA limits. To reduce carbon dioxide (CO2) in the future, Minnkota is considering using carbon capture and storage (CCS) at the Young Station in Center, N.D., to reduce CO2 by up to 90%. CCS would allow the plant to continue to operate through its useful life until viable alternatives become available.

Last month, President Biden said that coal plants “all across America” would be shut down and replaced with wind and solar.

The electric industry knows that replacing coal generation with wind and solar is not a one-for-one replacement in generation capacity and will not keep the lights on.

Organizations regulating, supplying, and using electricity warn the Biden Administration that its proposal will not support a reliable power supply.

As an electricity consumer, I share these challenges with you to ensure you are informed about the future of the electric industry. Cass County Electric Cooperative and Minnkota Power Cooperative will continue to focus on providing reliable and affordable electricity to our members.