CEO’s Message – September 2024

EPA’s Power Plant Rule Threatens Electric Reliability

Dear Members,

Mark Stallons
Mark Stallons

At Valley Electric, keeping the lights on at a cost you can afford is the focal point of everything we do. In addition to sharing Co-Op success, we have a responsibility to tell you about the challenges.

In May, the U.S. Environmental Protection Agency issued a rule that impacts energy production from power plants. The power plant rule will undoubtedly threaten access to reliable electricity for our local communities and others across the country.

The rule constrains existing coal and new natural gas plants by requiring them to install carbon capture and storage - a technology that has potential but has not been proven to reduce greenhouse gas emissions. No power plant in North America currently uses CCS at the scale and levels mandated by the EPA. When power plants aren't able to comply with EPA's CCS requirements, they will be required to shut down, switch fuels, or significantly limit operations. These unrealistic standards will force the unnecessary and early shutdown of many power plants that currently provide reliable electricity, 24 hours, 7 days a week.

Renewable sources, such as solar and wind, are essential components of our generation mix. However, we cannot depend on them because the wind doesn't always blow, and the sun doesn't always shine. The need for always-available power resources remains essential.

Many states have already experienced rolling outages, and if the supply of electricity is further threatened by EPA's power plant rule, the problem will only get worse. In fact, the North American Electric Reliability Corporation, the nation's electric reliability watchdog, recently forecasted that during the next 5 years, all or parts of 19 states are at high risk of rolling power outages during normal peak electricity demand conditions.

It's also no secret that when demand is high and supply is low, costs go up. We're concerned about threats to reliability and cost increases for our members.

I don't say this to worry you, but I do want our members to understand the challenges that lie ahead. We will look for solutions that serve our members best. We are joining electric co-ops across the country to fight these regulations, and we are working with our local elected officials to help them understand the consequences this would have on all Nevadans.

Co-ops are no strangers to innovation, and we're taking steps to address today's energy challenges and tomorrow's energy needs. We've led the charge on investing in clean energy endeavors, such as our Vista Solar Project in northeast Pahrump, our long-term purchase power agreement with Townsite's solar and energy storage project in the Boulder City area, and our recent United States Department of Agriculture grant application exploring battery storage options. We'll continue to explore new technologies that bolster reliability and our local grid.

If you're interested in learning more about policy impacts on power reliability or in making your voice heard on this matter, visit the EPA Action Center website.

Until next month,

Mark Stallons, CEO
Valley Electric Association