CEO’s Message – April 2025

Balancing Act

3 years ago, Wiregrass Electric Cooperative (WEC) hosted an event to announce that nitrile and latex glove manufacturer ISA Corporation was expanding its Oregon operations to the Geneva County Industrial Park in Hartford.

It was a proud moment, and WEC was proud to play a part by partnering with Geneva County and our wholesale energy partner, PowerSouth Energy Cooperative, on the speculative building.

Keeping a reliable and affordable distribution system is a constant balancing act. A new industry like ISA can impact both the affordability and reliability of our electrical system.

Economic development projects not only bring jobs to our communities, but they also help WEC diversify its consumer base of residential, commercial, and industrial members. Having a large residential membership means our members are more likely to need power simultaneously, which can translate into big swings in demand during peak times. A healthy mix of member types spreads the fixed usage out more during off-peak times, so peak demands are not as dramatic. And that helps keep rates lower overall.

That’s why economic development projects like ISA Corporation or the widening of State Highway 52 are important. That’s why we work with local economic development groups, chambers of commerce, state legislators, and county and city governments to bring those projects to our area. We use Growing Alabama tax credits to make loans to economic development projects to help recruit new industry. We support community organizations and local educational institutions because they lead to a better-trained workforce and more opportunities for everybody.

There are things beyond our control that impact both reliability and affordability — wholesale energy prices, supply chain issues, prices on manufactured goods, federal policies, etc.

We are fortunate that our area has not reached the point where rolling blackouts are necessary to relieve the demand strain on our electrical generation and distribution systems. But there are finite resources available to help us keep the fragile balance between reliability and affordability.

Take the period back in January when WEC hit peak demand. Energy demand skyrocketed from 60 MW 1 week to a peak demand of 142 MW, then back down to 49 MW the following week. How does any utility manage that?

We must make sure we can meet that 142 MW demand even though we won’t need to supply that most days. Even when we aren’t at peak demand, there are fixed costs that still must be paid to meet that peak level of reliability. Even our wholesale costs are based on that peak level.

Equipment, of course, is part of the equation for maintaining the balance between reliability and affordability. We’ve updated our technology, installing and maintaining better equipment so our members’ power is on when they need it.

But people also help maintain the balance. Employees train to improve at their jobs and boost efficiency. Our accountants keep our budget in line. Members of the WEC Board of Trustees make tough decisions, listen to what senior staff bring to them, approve investments in new technology, and take an active role in community development.

Members are part of maintaining this balance by adjusting energy usage at peak times so the impact is not as costly.

Earlier this year, a crew of lineworkers manned WEC’s booth at the annual Worlds of Work career fair. You can read more about that event in this edition.

Before heading to the career fair, those same lineworkers got up at 4 a.m., joining other WEC lineworkers to repair outages caused by a storm system. But they didn’t head home to go back to bed once that job was done. No, they headed to the National Peanut Festival Fairgrounds in Dothan to spend the rest of their morning showing 10th graders what lineworkers do on the job.

Now that’s reliability.