MESSAGE FROM THE GENERAL MANAGER T he value of informa T ion

I believe our members can handle bad news. What they can’t handle is no news.

By President/General Manager Tim Street

Our nation is facing unprecedented challenges to the reliability of the electric power system — challenges that threaten the things we often take for granted. America’s families and businesses expect the lights to stay on. Sadly, as a nation, we are trending toward rolling blackouts becoming normal during extreme weather events.

While bad news can be difficult to hear, I don’t want to cause our members distress. But I believe our members can handle bad news; what they can’t handle is no news. I share important information and insights to help all of us prepare for the challenges we face together, because being informed allows us to make educated decisions.

Before I elaborate on the difficulties we are facing, I am reminded of our electric cooperative network and our history of excellence in providing our member’s reliable electric service.

Working for our members

As I sit here in my office and reflect on the work of our co-op in this community and the service we provide our members, we have so much to be proud of and so much to celebrate.

You probably know that you’re a member of our local electric cooperative. Logan County Electric Cooperative was founded in 1935 by this community and operates as a not-for-profit cooperative, meaning it is owned and governed by those who receive electric service from the cooperative.

As an electric distribution cooperative, we are responsible for the delivery of electricity, which includes operating and maintaining the local power lines, substations, and equipment on our system. We work hard every day to ensure our local delivery system is reliable through planned maintenance and responsive service to power outages.

However, we do not generate the electricity we deliver to our members. LCEC joined 25 distribution cooperatives to form a generation and transmission cooperative that provides the wholesale power we purchase.

Purchasing power from a G & T

Because the electric cooperatives in Ohio are joined together as one mutual source of power, your service is more affordable than it would be if each distribution cooperative operated alone.

Buckeye Power, our generation and transmission provider (G&T), generates enough power for the 400,000 members of Ohio’s electric cooperatives.

Buckeye Power was founded in 1958 and is owned by the electric distribution cooperatives in Ohio. As a G&T cooperative, Buckeye is responsible for generating and transmitting electricity to its members. It owns and operates several power generation facilities, including coal-fired, natural gas-fired, and renewable energy facilities. These power plants collectively have a capacity of almost 3,000 megawatts.

Our nation is facing unprecedented challenges to the reliability of the electric power system.

Buckeye Power’s primary objective is to provide its member cooperatives with reliable, affordable, and environmentally responsible electric power. The cooperative collaborates with its members to plan and manage the generation and transmission resources needed to meet the electricity demands of the communities they serve.

And to date Buckeye generates and purchases enough electricity to meet Ohio’s electric cooperatives demand.

Connecting to a larger region

What you may not know is that you’re a part of something much bigger than Ohio’s electric cooperatives. We’re connected to a network of power companies across 13 states that work to provide the electricity that powers our life. This network is called the PJM Interconnection (PJM).

PJM is one of the largest regional transmission organizations (RTOs) in the United States. As an RTO, PJM plans the generation and movement of wholesale electricity for 65 million people across 13 states (Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, and West Virginia) and the District of Columbia.

Facing a new reality

On Dec. 24, 2022, PJM declared system-wide emergency and prepared to reduce enough load in order to maintain the reliability of the PJM system.

But PJM wasn’t alone in the struggle to provide Americans with reliable electric service during the extreme winter conditions.

• Midcontinent Independent System Operator (MISO) declared a maximum generation emergency and had unplanned generation outages (rolling blackouts).

• Tennessee Valley Authority – For the first time had to direct targeted load curtailments (rolling blackouts) due to extreme power demand.

• Duke Energy Carolinas – Expressed regret to their customers for not being able to provide advanced notice of rolling blackouts and acknowledge that they lasted far longer than expected.

Ohio’s Electric Cooperatives released a statement about the reality we are facing: “We can no longer take 24/ 7 availability for granted. Since 2020, each time a large area of the country has experienced extreme temperatures for more than a day or two, the supply of electricity has proved inadequate to meet demand and forced regional grid operators to shut off power toconsumers for hours, or even days at a time, to keep the system from crashing.”

Understanding rolling blackouts

These rolling blackouts are sometimes referred to as load shedding, or rotating outages. Rolling blackouts are intentional systematic interruptions of electrical service to large areas. These blackouts are directed by RTOs to balance the supply and demand for electricity. The blackouts help prevent a complete system failure.

Rolling blackouts can occur when the demand for electricity surpasses the available supply. This can happen during periods of extreme weather conditions (such as heatwaves or cold snaps), when air conditioning or heating systems are used extensively, or during times of high economic activity.

When extreme weather events occur, each power company agrees to share the burden. In extreme situations, we may experience rolling blackouts. By working together, we can avoid longer, more widespread outages and resolve the problem faster for everyone.

Threatening the power supply

It’s important you understand why power reliability is at risk and why the demand for electricity is now surpassing the available supply.

• Consumer demand for electricity is higher than ever as we are trending toward depending on electricity to power more of our economy, including the transportation network.

• Poorly designed electricity market rules undercompensate reliable baseload power plants that provide baseload electricity, while over-compensating less reliable, intermittent sources.

• Unreasonable goals and time frames to achieve greater reductions in carbon emissions from electricity providers, even though the U.S. electric sector has cut CO2 emissions by 36% since 2005 while producing nearly 5% more electricity.

• Supply chain challenges have resulted in unreasonable lead times on obtaining new transformers (see page 18C) and line trucks needed for service.

As the nation leans on electricity to power more of our economy, failing to live up to the fundamental premise of affordable, reliable electricity could devastating to American families and businesses.

Advocating to preserve reliable electricity

The National Rural Electric Cooperative Association (NRECA), who represents more than 900 not-for-profit electric cooperatives, has been pushing the message to lawmakers and federal agencies that transitioning to intermittent renewable energy is happening to fast and is having disastrous consequences.

NRECA CEO Jim Matheson warns of the risks of energy shortfalls if too much baseload generation is retired before the end of their useful life. “We are facing the disorderly retirement of baseload coal and nuclear power plants because of poorly conceived and harmful energy policies,” Matheson said.

Despite the warning, baseload generation sources are still being retired and that is threatening our ability to keep the lights on.

In December, rolling blackouts hit nine states as demand for electricity exceeded available supply. Two-thirds of the U.S. could face energy shortfalls during periods of extreme heat this summer. We can’t afford to get this wrong. Today’s energy decisions determine if there are enough resources for the lights to come on tomorrow.

Even in Ohio, we have seen the supply of reliable electricity decrease due to the retirement of coal power plants. In 2009, Ohio had 21 coal power plants and by the end of 2023 just 4 will remain in operation.

Intermittent sources of power, such as wind and solar, have come online but do not provide reliable electricity and are unable to meet electric demand.

“Rolling blackouts cannot become the new normal in America,” NRECA said in a statement. “Policymakers must recognize the need for time, technology development, and new transmission infrastructure before taking our nation down an energy path that prioritizes speed over practicality. And lawmakers must support policies that are inclusive of all energy sources to maintain reliability and affordability.”

Action needed

While Ohio is classified as having a “low threat” of experiencing rolling blackouts this summer, we want you to be informed and prepared.

To reduce the risk of rolling blackouts, Logan County Electric Cooperative may need ask you to limit electric use during those high-demand times this summer. And if you or someone you care for is dependent on lifesupporting medical devices, you should have a backup plan in case you are without service.

We would also ask that you share this information with neighbors or loved ones who may also be affect but may not otherwise receive these important updates.

Facing these challenges together

Reliably keeping the lights on is vital for local communities, the economy, and national security. Today’s energy decisions will determine if there are enough resources to meet tomorrow’s energy needs.

As I look forward, I see significant opportunities. I also see a few challenges our cooperative needs to be prepared to meet. Our industry is undergoing a significant and transformational change as we incorporate more renewable energy, utilize more distributed resources to balance the electric grid, and prepare to deliver more electricity to our communities than ever before to support electric demand.

We will meet those challenges through investments in technology and through advocacy at the state and national level for smart, grid-enhancing infrastructure improvements that keep the lights on and keep electric bills affordable.

Conclusion

I will continue working with Buckeye Power to advocate to state and federal officials about the threat that unreasonable energy policies present to our ability to maintain reliable electric service. I’ll also work to keep our members informed as we receive more information on this important matter. In the meantime, if you have any questions, I invite you to talk to me and I’ll be happy to answer your questions.