Understanding Supply & Demand
Electricity is essential for nearly every aspect of daily life. It’s so essential, that we rarely think about how it’s produced and delivered to our homes. Behind the scenes, a network of experts works 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 your needs.
Powerful Sources
Electricity must be generated at a power plant using either traditional sources—coal, natural gas, or nuclear energy—or from renewable sources, such as solar, wind, or hydropower.
At United Electric, we work closely with Bonneville Power Administration, our wholesale power partner, to secure electricity for our communities primarily using clean and reliable hydropower. However, by analyzing a range of resources such as market purchases, natural gas, solar, nuclear, and wind, United Electric continually explores options to ensure reliable power at a competitive cost.
Managing Supply & Demand
Electricity supply changes throughout the day as demand fluctuates based on consumers’ needs. For example, demand increases when weather patterns change, such as extremely warm or cold temperatures.
Across the country, other electric utilities face the same challenge of balancing supply and demand, which is why we have a large network of key players in place to ensure enough power is delivered across the grid.
In many areas, the amount of electricity generated and the amount sent to specific areas is coordinated and monitored by regional transmission organizations and independent system operators. In other areas, individual electric utilities do 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.
Looking Ahead
As the energy sector rapidly changes, it’s important for consumers to understand the basics of 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 compromise reliable electricity.
United Electric is committed to providing affordable, reliable energy to the members we serve. That’s why we are preparing now for increased demand and other challenges that could compromise our electric supply.
We are grateful to our members and the communities we serve. We look forward to the challenges and opportunities the future holds for electric utilities.
From all of us at United Electric, we wish you a happy new year.
Sincerely,
Michael Darrington, General Manager