National Rural Electric Cooperative Association responds to Energy Department grid report

Electric cooperatives are ready for the changes happening in the electric grid, National Rural Electric Cooperative Association (NRECA) recently said in response to the grid study conducted by the U.S. Department of Energy (DOE).

U.S. Energy Secretary Rick Perry ordered the study to examine the reliability and resilience of the electric grid and assess how electricity markets are evolving. The report concluded that electricity markets will continue to see increased use of natural gas and renewable energy resources, lower demand for energy and more consumer choices resulting in less reliance on baseload coal and nuclear generation.

NRECA said that it is currently reviewing the study. Fuel diversity is critical, the organization noted and said it is working on innovative ways to navigate the changing energy environment and serve its members with affordable and reliable energy.

“This is a well-researched, comprehensive report,” Pam Silberstein, NRECA senior director of power supply, said. “While there doesn’t appear to be anything shockingly new here, we’re pleased that the report zeroes in on some of the challenges in the wholesale markets that our members have had struggles with.”

The “advantaged economics” of natural gas generation, the report found, was the most influential driver of the early retirement of coal and nuclear facilities. It also listed regulatory compliance costs and deadlines, increased use of renewable energy and low growth in electricity demand as other contributors.

“The key will be: What’s next?” Silberstein said. “Will DOE or [the Federal Energy Regulatory Commission] act on any of these findings, and if so, how? We’ll be watching for that.”