Electric Consumers Encouraged to Conserve Energy

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On Monday, July 18, Pioneer Electric was notified that Southwest Power Pool’s (SPP) grid conditions had evolved to a “Conservative Operations Advisory.” The advisory, issued as a response to persistent high temperatures and reduced wind generation across the SPP’s 14-state region, is expected to last until 10 p.m. on Thursday, July 21.

Pioneer Electric encourages members to consider energy conservation methods as grid conditions continue to evolve.

“Conserving energy, regardless of weather conditions, is always a good idea,” said Anita Wendt, Pioneer Electric’s vice president of energy services. “Taking small steps towards conservation may help reduce your summer energy bill. During these hot days, we would encourage members to look around their homes – unplug electronics and cords that are not being used, remember to turn off lights and consider saving chores that require large appliances, like laundry and dishes, for times outside of the peak energy use hours between 12 p.m. and 8 p.m.”

Members are not currently being asked to conserve to preserve regional grid operations. Load shed events may occur at an Energy Emergency Alert (EEA) Level 3, when curtailment is required by the SPP. In the event of a load shed event or rolling outage, Pioneer Electric does not determine location or duration of the outage.

Members with questions may contact Pioneer Electric’s office during regular business hours (Monday – Friday, 8 a.m. – 5 p.m.) by calling 620-356-1211. Additional information regarding grid conditions and energy conservation can be found on the Cooperative’s website and Facebook pages.

Pioneer Electric Cooperative, Inc. is dedicated to providing members with safe and reliable electric service. Headquartered in Ulysses, Kansas, Pioneer Electric is a distribution cooperative owned and controlled by its members. Pioneer Electric serves approximately 15,900 retail electric meters across 10 counties in southwestern Kansas. The system is made up of more than 117 miles of transmission line, 3,600 miles of distribution line and 21 substations. All of Pioneer Electric’s electricity is procured by Sunflower Electric Power Corporation, which is owned by Pioneer Electric and five other Kansas electric co-ops. Pioneer Electric is a Touchstone Energy Cooperative.

Committee on Nominations Selects 2022 Board of Trustees Nominations

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Each year, members are appointed to serve on the  Committee on Nominations. This committee, acting as the voice of the members, is tasked with selecting candidates who would make qualified trustees. Candidates selected by the Committee on Nominations are placed on the trustee ballot for election at the Cooperative’s Annual Meeting. Those nominated to the ballot must reside in the district they wish to serve and meet the qualifications outlined in the Cooperative’s bylaws.

The 2022 Committee on Nominations met on July 13 at Pioneer Electric’s headquarters and selected the following nominees for this year’s election:

District 5 

Fred Claassen (incumbent)

David C. Light (nominee)

District 6                         

James N. Bell (incumbent

Michael O. McCulley (nominee)

District 9

Charles E. Milburn (incumbent)

Donald W. Beesley (nominee)

Members residing in the above districts may also nominate a candidate through a petition. Petitioned Nominees are held to the same requirements as those appointed by the committee, must complete a nomination petition form and procure the necessary member signatures. The form and all other materials must be returned to the Cooperative no later than 5:00 p.m. on Monday, August 1 to be included on the 2022 Board of Trustees election ballot. Late submissions will not be accepted.

Those interested in learning more about the petition process may contact Anita Wendt, Vice President of Energy Services at 620-356-1211.

Sunflower Prepares For Summer Peak Conditions

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Summer will not officially arrive until June 21, but we all know that Mother Nature doesn’t adhere to the calendar in Kansas. We have already seen a wide range of temperatures, with some areas of the state reaching at or near 100 degrees as early as May.

High temperatures increase electric demand when electric consumers crank air conditioners to stay cool. In recent reports, the North American Electric Reliability Corp. (NERC) and the Federal Energy Regulatory Commission (FERC) said these high temperatures, combined with other conditions, could lead to an unstable electric supply during peak summer conditions. Other conditions include widespread droughts, which increase electricity demand for irrigation; the growing possibilities of extreme weather events; naturally diminished wind energy output during hot days; and rail shipping interruptions and export issues for coal deliveries to power plants.

The reports by NERC and FERC indicate that the Southwest Power Pool (SPP), the regional grid operator that manages the transmission grid in 14 states including Kansas, is included in the areas of elevated risk for summer reliability issues.

While the recent reports by NERC and FERC were not optimistic news for electric utilities—like Pioneer Electric and Sunflower Electric Power Corp., which provides us with wholesale transmission and generation—meeting electricity demand is always at the forefront of operational and financial strategies. Sunflower continually evaluates anticipated electric demand and takes strategic steps to meet not only the typical energy demand of electricity consumers served by its seven member distribution utilities but also the energy demand in energy-peaking situations, such as very hot summer days.

The recent reports underscore the importance of Sunflower’s balanced generation resource portfolio and calculated operating strategies. Sunflower’s fuel-diverse generation fleet—which includes coal and natural gas units, as well as energy contracts for wind, solar and hydro—serves as a hedge against rising prices of a particular fuel resource. For example, the price of coal is very stable compared to the volatility of natural gas pricing and is an effective hedge against the price of market energy, which is usually correlated to the price of natural gas. Coal-based Holcomb Station was certainly a shining star during the Winter Strom Uri event in 2021.

As previously mentioned, however, current coal deliveries have been impacted by railroad staffing issues. Therefore, Sunflower is re-evaluating how to deploy the unit to capitalize on its benefits during summer peak conditions. Sunflower has also proactively purchased more market energy products to guard against possible exceptionally high prices this summer and continue its mission of providing reliable energy to its member-owners at the lowest possible price.

“There are a lot of variables intrinsic to supplying reliable energy as economically as possible,” said Corey Linville, Sunflower’s vice president of power supply and delivery, “but we are analyzing future scenarios to best prepare for possible unusual summer conditions. We believe we have a strong operating and financial hedging plan in place to help guard against electric interruptions and high cost spikes.”

SPP is also modifying its strategies to fortify the electric grid during extreme conditions. The SPP requires its member utilities to have fuel resources that equate to 12 percent more than their annual peak load requirements, but Winter Storm Uri revealed potential issues with available capacity during such events. Some of these issues are associated with forced outages, as well as electric generating resources that have fuel supply issues, such as natural gas, during these times. The lack of availability of energy from renewable resources is also an issue. Last summer there were several periods when the reliability margin (difference between available capacity and load + contingency reserve requirements) in SPP dropped below 20 percent.

It will take several years to fully implement SPP’s new supply adequacy rules and for load serving entities to firm up existing capacity and procure any needed new capacity to comply with the new rules. In the meantime, SPP will, at times, continue to operate with a relatively low reliability margin at times.

“The electric industry is ever evolving,” said Stuart Lowry, Sunflower’s president and CEO. “The regional energy market brings many benefits but also many new challenges, including the risk of generation resource and operational decisions made by other utilities. Our members and those they serve can have confidence that we will analyze and respond to these risks with their best interests in mind.”

 

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