Electricity is essential for nearly every aspect of daily life - so essential that we rarely think about how it's produced and delivered to our homes. You might be surprised to learn that behind the scenes, a network of experts is working daily, and even by the minute, to anticipate how much electricity you need before you even use it.
Ensuring the right amount of electricity for all involves a complex process of forecasting energy demand, planning for capacity, and securing enough supply to meet Americans' needs.
Powerful Sources
Electricity must be generated at a power plant using traditional sources, such as coal, natural gas, or nuclear energy, or renewable sources, such as solar, wind, or hydropower.
At Valley Electric, we work closely with our local wholesale power partners to secure enough electricity for our communities, using a diverse mix of energy sources to generate the power we deliver to your home or business. By maintaining a diverse energy mix - solar, hydro, long-term power purchase agreements, and market purchases - Valley has options to ensure reliable power at a competitive cost.
Electricity supply changes throughout the day based on consumers' demand. For example, Valley knows that we need to ensure more electricity in the mornings when you're starting your day and in the evenings when you're cooking dinner, running appliances, and watching TV. Demand also increases when weather patterns change, such as extremely warm or cold temperatures.
Managing Supply & Demand
Across the country, other electric utilities are managing the same task of balancing supply and demand, which is why we have a larger network of professionals in place to ensure enough power is delivered across the grid.
In most cases, the amount of electricity generated and how much is sent to specific areas are coordinated by regional transmission organizations and independent system operators. In other areas, individual electric utilities perform these tasks.
RTOs, ISOs, and electric utilities act as air traffic controllers for the electric grid. They forecast when you, your neighbors, and communities across a large region will need more power. These organizations take measured steps to ensure there is enough supply to meet demand.
Looking Ahead
As the energy sector undergoes rapid change, it's important for consumers to understand the basics of electricity supply and demand.
Electricity use in the United States is expected to rise to record highs this year and next, with the demand for electricity expected to at least double by 2050. At the same time, energy policies are pushing the early retirement of always-available generation sources, which will undoubtedly compromise reliable electricity.
At Valley Electric, we are preparing for increased demand and other challenges that could compromise our local electric supply. Valley remains committed to providing affordable, reliable energy to the members we serve, no matter the challenges.