Addressing increased power demand and new regulations
Advocating for balanced policies
By Rick Lemonds, President & CEO
At our spring member meeting in Pickerington, I was asked during our Q&A about news reports regarding the increasing demand for power from large manufacturers and data centers moving to the area, and whether that could have an impact on both power costs and power supply.
The answer I provided was something that I find myself saying more and more often: It is time to sound the alarm about increasing electrical demand, even as policies are created that make baseload power generation difficult.
In May, the EPA released new regulations that would require all coal-fired power plants to eliminate their carbon dioxide emissions by 2032 or face shutdown. This presents a significant challenge to our industry as the technology required to achieve this is still being developed and is not yet commercially available. Without this technology, our ability to provide the reliable, affordable electricity that you depend on could be compromised.
Cardinal Power Plant, which is responsible for nearly 70% of the generation capacity for Ohio’s electric cooperatives and delivers power to more than a million people, is specifically at risk. Buckeye Power, a member-owned entity operated jointly by Ohio’s cooperatives, has invested more than $1 billion in emission controls at Cardinal, transforming it into one of the cleanest-operating coal-fired plants in the world. The electricity produced at Cardinal has kept rates low for Ohio’s cooperatives, and helped mitigate the volatility of fluctuating energy prices.
We understand and support the strategic transition to cleaner and lower-carbon sources of energy. Efforts are underway at South Central Power Company, like all major utilities nationwide, to upgrade transmission and distribution systems, leverage new technology, and build a smarter grid that is efficient and prepared for handling new, greener, and intermittent sources of power like solar and wind. However, this transition should not be rushed to the point where it threatens the reliability of the electric grid.
This is why leaders from Ohio’s cooperatives have traveled to both Washington, D.C., and Columbus this past spring to educate federal and state officials about potential reliability threats from the new EPA regulations and to request support for congressional action to prevent their implementation. We continue to advocate for realistic time frames for reducing carbon emissions and ensuring the continued supply of reliable, affordable electricity.
Our member in Pickerington asked me, “What should we as members of the cooperative do to support these efforts?” The answer is: you can contribute in several ways. First, educate yourself on the issues at hand. Understand the implications of the EPA rules. If you choose to take action, we’ve tried to make it easy for you. You can visit our website, click on “advocacy” and join Voices for Cooperative Power (VCP), a grassroots effort to promote responsible energy policy. VCP offers a web-based interface that allows you to send letters to your elected officials to ensure your views on these issues are heard.
At South Central Power, we will always stand up for reliable, affordable energy for our members. We are committed to being environmentally responsible and believe in a balanced approach to energy generation. Thanks to our environmental upgrades at Cardinal and our multi-faceted strategy, we are on the path to a greener future. However, such transitions take time and it is important that we do not rush and compromise the reliability of our power grid in the process. We hope that you will join us in our efforts as we navigate these
challenging times and continue to strive for a sustainable future.
From the July 2024 issue of Ohio Cooperative Living.