July and August are historically the warmest months of the year in this region and with that hot weather comes high demand (peaks) on the electric system. The highest peak we have ever experienced was in August of 2023. So why does this matter? Well, our system demand is measured and billed by our power suppliers based on the highest electrical peak during a single half-hour period during the month. Approximately half of our yearly power supply bill is based on just six hours a year! We expect to spend a total of $65 million for power supply in 2024 so over $32 million is based on those six hours of peak demand.

The electrical system is designed and built to support the maximum amount of electricity a member would conceivably need, even during high use times. However, as members continue to add electric load to their homes and businesses, demand rises. Sioux Valley Energy has responded to that growing demand through system upgrades. The Cooperative is well-positioned and prepared to serve that growing demand across its system.

While we are ready to serve our members during times of peak demand, there is an element that is out of our control – resource availability on the regional electric grid. Sioux Valley Energy, through its power suppliers, is part of a Regional Transmission Organization (RTO) called the Southwest Power Pool (SPP). A few of our Minnesota members are part of a similar RTO – Midwest Independent System Operator (MISO).

There are three separate power grids in the U.S. and we are part of the Eastern Interconnection. SPP is one of the RTOs within that Eastern Interconnection and coordinates transmission and balances the supply of electricity based on resource availability throughout a 14-state region.

SPP is forecasting adequate electric generation this summer. However, under rare conditions – such as extreme weather, low output from wind and other variable energy resources, and unexpected power plant outages – SPP could call for temporary rolling outages to keep the supply and demand of electricity on the system in balance. Simply put, if the system is out of balance it will start to implode and shut down in a very damaging fashion. When this happens it can cause a cascading effect that will produce long-lasting outages across the entire power grid.

Sioux Valley Energy and its power suppliers receive advisory notifications and alerts from SPP during extreme weather to raise awareness about grid conditions. Once grid conditions hit a certain level, SPP will ask the public to conserve power. If that happens, Sioux Valley Energy will send out notifications via social media and email asking members to conserve. If grid conditions would require temporary rolling outages, we would do our best to notify impacted members. However, if the power needs to be shut off to save the electric system, there may not be much notice and we would have no control over that.

This situation would be extremely rare, but it has already happened once on our system. In February of 2021 SPP called for the immediate shut down of power for thousands of our members during extreme cold temperatures.

So, while locally we are prepared to serve our members, even during extreme weather events; some of that is out of our control during rare circumstances. Our commitment to you is that we will do everything we can to keep you informed if this situation should ever arise. In the meantime, we encourage you to be aware of and limit your electric use on hot days during high-use time periods (mornings and early evenings). For example, delay running your dishwasher and clothes dryer until after 10 p.m. Utilize a grill outside instead of cooking in the oven or on a stovetop. Close your shades to keep the sun from heating up your home, making your air conditioner work harder. These small changes can impact the demand on our system and how much we are charged from our power suppliers – eventually impacting your individual electric rates.

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