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January 1, 2024 |

NERC Reliability Assessment Warns of Potential Energy Shortages

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, the North American Electric Reliability Corp. (NERC) says.

NERC’s Winter Reliability Assessment, released Nov. 8, “again shows that our nation faces looming grid reliability challenges while demand for electricity continues to soar,” said NRECA CEO Jim Matheson. “That’s unacceptable and should be cause for concern for all Americans.”

 NERC noted the following for Southwest Power Pool (SPP), our power supplier, Corn Belt Power’s, regional transmission organization: The Anticipated Reserve Margin (ARM) of 38.8 percent is over 30 percentage points lower than last winter; this is driven by higher forecasted peak demand and less resource capacity. While the reserve margin is adequate for normal forecasted peak demand and expected generator outages, higher demand levels and outages that have occurred during extreme cold weather result in shortfalls that can trigger energy emergencies. The vast wind resources in the area can alleviate firm capacity shortages under the right conditions; however, energy risks emerge during periods of low wind or forecast uncertainty and high electricity demand.

 SPP and MISO, SPP’s neighboring regional transmission operator, continue to experience energy emergency alerts (EEAs) and resource advisories. These alerts further display what we already know: the energy transition must consider all forms of generation.

 More renewable energy sources like wind and solar power are coming online, while traditional sources like coal, nuclear and natural gas are retiring. While there are clear benefits to renewable energy, your local electric cooperative and Corn Belt Power believes and advocates for an all-of-the-above energy approach. All-of-the-above promotes the idea that the United States depends on a reliable and sustainable fuel supply that includes developing and incorporating domestically produced renewable energy resources to supplement baseload generation that includes biofuels, natural gas, nuclear, hydropower and coal.

 “While we haven’t seen EEAs as severe as what we saw in 2021, we continue to keep a close eye on the situation,” said Ken Kuyper, executive vice president and general manager, Corn Belt Power. “We have a plan in place should the situation ever escalate. We drill on the plan multiple times a year.”

 We continue to demonstrate the value of our abundant baseload generation sources in an all-of-the above energy mix. If not for reliable baseload generation, predominately made up of fossil fuels, many of us would be in the dark during times of peak electric demand. Our goal is to provide our members with safe, affordable, reliable and sustainable forms of energy in a way that moves us toward a cleaner energy future.