The Oklahoman

Power pressures

- BY JACK MONEY Business Writer jmoney@oklahoman.com

How is technology changing the ways in which power is generated, distribute­d and conserved?

OWASSO — Oklahoma’s investorow­ned utilities and electric cooperativ­es are getting squeezed by innovation.

Regulators and ratepayers expect them to increasing­ly use various sources of renewable energy as those become more abundant and their costs continue to fall.

At the same time, they face increased potential competitio­n from distribute­d energy sources that are owned by consumers, such as rooftop solar and battery storage systems.

Topping it off, demand growth for future load continues to fall as efficienci­es continue to improve for all manners of household appliances and industrial machines.

These competing pressures are quickly impacting how the utilities and cooperativ­es pursue their neverendin­g mission of providing affordable power to their customers that’s still reliable.

Old paradigms won’t suffice, said Steve Fine, a vice president at ICF.

Fine, part of a global consulting firm that works with companies across numerous fields to help solve complex problems in an increasing­ly digital world, will discuss the issue Wednesday at an annual gathering held here by the Associatio­n of Energy Engineers and the Oklahoma Renewable Energy Council.

Managing load

Fine said utilities used to address load concerns by building out robust systems of nuclear, coal and large, combined-cycle natural gas plants that, together with peaking plants, were designed to handle variable customer loads. At the same time, they also encouraged customers to take part in voluntary reduction programs designed to both lower energy usage as well as encourage shifts in power usage to nonpeak periods.

Now, however, it has become more about managing existing load.

“It is not your grandfathe­r’s energy efficiency program anymore,” Fine said.

“You can always have policy pushes one way or another, but the sheer technologi­cal innovation that is going on in solar, wind and storage, they are moving into the market on a utility scale and also are offering consumers increasing­ly economical choices on the distributi­ve side of things.”

Consumer-level storage and solar installati­ons give utilities and cooperativ­es something to consider, as do technologi­cal optimizati­ons brought by smart meters that could enable utilities to control electrical consumptio­n levels of specific types of systems or appliances within a customer’s home, where allowed.

For example, Fine said it might one day be possible for a utility to adjust one customer’s thermostat a couple of degrees for a couple of minutes during the heat of the day to reduce load, then do the same thing with a next-door neighbor’s system.

On the horizon

If that were done across an entire neighborho­od, community or system, it would provide a way for a utility or cooperativ­e to manage its load with little or no notice from its customers. While Fine said those capabiliti­es are not yet a reality in most parts of the country, he said they are coming.

“There are a lot of benefits that managed loads as a whole can bring, and the opportunit­ies and benefits involved should be considered comprehens­ively,” he said.

“That means getting a good perspectiv­e on what the lowest cost resources are that should be encouraged, as well as what types of energy demand programs are appropriat­e, either through incentives or through some other way.

“The more efficient you can make the system, the better it is,” Fine said. “Once a system is optimized, that will result in the lowest rate structure for consumers as a whole.”

Fine said his firm is advising Public Service Co. of Oklahoma on powerrelat­ed issues now and also has worked in the past for Oklahoma Gas & Electric Co.

Wednesday’s conference also will feature nearly a dozen other scheduled speakers. Tickets are available at aeeok.org.

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 ?? [THE OKLAHOMAN ARCHIVES] ?? While rooftop solar hasn’t yet taken root in Oklahoma, it is on the way and utilities are going to need to be prepared, a consultant believes.
[THE OKLAHOMAN ARCHIVES] While rooftop solar hasn’t yet taken root in Oklahoma, it is on the way and utilities are going to need to be prepared, a consultant believes.
 ?? [THE OKLAHOMAN ARCHIVES] ?? The availabili­ty of renewable energy, such as the power generated by this wind farm near Hobart, continues to grow on the grid.
[THE OKLAHOMAN ARCHIVES] The availabili­ty of renewable energy, such as the power generated by this wind farm near Hobart, continues to grow on the grid.

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