Leading the way in generating electricity economically
Electricity played a vital role in transforming the world. Today, utilities face many challenges in generating and distributing that power in a changing global energy landscape.
Wiregrass Electric Cooperative and its wholesale energy supplier, PowerSouth Energy Cooperative, are among the utilities embracing innovation and collaboration to offer sustainable, reliable and affordable energy to their communities.
“We’re choosing to look at these challenges as an opportunity,” says Brad Kimbro, WEC’s chief operating officer. “We’re diversifying fuel sources, and producing electricity in a more efficient and effective manner than ever before.”
Diversifying Energy
next door was slated to close due to the cost-prohibitive environmental regulations.
To ensure a healthy energy supply, PowerSouth’s long-term plan includes implementing cutting-edge technology, operating a new natural gas generating plant and a utility-scale solar project, and adding nuclear energy to its portfolio.
“We’re focusing on opportunities to collaborate, innovate and modernize our infrastructure and the ways in which we provide electricity,” says Gary Smith, PowerSouth CEO. “That’s not an easy task, but we’re doing everything we can to manage more demand for electricity and increased costs of natural gas and supplies.”
In today’s world, ensuring diversity in fuel sources used for power generation has become increasingly crucial. With regulations phasing out the use of coal, and intermittent renewables playing a greater role in the energy mix, natural gas has emerged as the most reliable and costeffective fuel source to meet electrical demand.
One of the significant changes in PowerSouth’s power mix was the shuttering of the Charles R. Lowman Power Plant in Leroy. After a proposed fine for the plant’s coal ash disposal, PowerSouth was forced to close the coal plant in October 2020.
Natural Gas
A new combined-cycle natural gas plant called the Lowman Energy Center — constructed on the same property as the former coal plant — will begin generating power by this summer. The state-of-the-art facility will have a significant impact on the overall efficiency of PowerSouth’s generated power. It uses excess heat to boil water for a steam unit, capturing energy that would have otherwise been wasted. Thanks to this efficiency, it will release around 50% less carbon dioxide into the environment than the coal plant.
“When it is online, it’ll be the most efficient natural gas power plant in the country with a very competitively positioned natural gas price,” Smith says. “Technology in this industry is moving quickly right now, but we’re on the cutting edge of these advances and we’re proud to be in that position, whether that holds for a few months or a few years.”
Once the 693-megawatt Lowman facility starts burning fuel, natural gas will comprise an estimated 80% of PowerSouth’s total energy mix.
Once the 693-megawatt Lowman facility starts burning fuel, natural gas will comprise an estimated 80% of PowerSouth’s total energy mix.
“This new facility, while it makes generating energy with gas more affordable, does make us heavily dependent on natural gas as a fuel source,” PowerSouth COO Damon Morgan says. “We are creating diversity, though, with other projects using various sources of energy.”
As reliance on coal decreases, PowerSouth sees nuclear and solar energy playing a larger role in generation while also helping meet reduced carbon emission goals set by environmental regulators.
Nuclear
Recently, PowerSouth started purchasing nuclear power from the Municipal Electric Authority of Georgia. This energy is generated from the Vogtle Nuclear Power Plant’s 2 new units. PowerSouth does not own the plant, but can purchase a portion of the energy produced there, adding a combined 125 megawatts of power to its supply.
This safe, always-on power source enables PowerSouth to supply uninterrupted power to its members at an affordable cost while promoting diversity in its energy portfolio.
Solar
As consumer interest has increased, PowerSouth is leaning into renewable energy with the construction of Wing Solar in Covington County. The 80-megawatt solar project will provide enough energy to power about 13,000 homes annually. Other smaller-scale solar farms are planned in member co-op service areas.
Solar energy has become more feasible for large-scale power generation due to lower costs and improved efficiencies. Although it does diversify the energy mix, it doesn’t contribute much to capacity during peak times. For instance, on early winter mornings when WEC is experiencing peak
electrical demand, the sun hasn’t risen yet. So, solar energy doesn’t play a significant role in providing electricity to the grid when it’s used most.
By year’s end, PowerSouth’s energy mix is projected to be 84% natural gas, 8% coal, 5% renewable sources and 3% nuclear. Next year, nuclear power will comprise 8%-10% after Vogtle Unit 4 comes online.
“Unpredictable events can affect the market, making natural gas prices go up and down,” Morgan says. “To keep things running smoothly, we must plan wisely. We do that with diverse electric generation sources, negotiated purchased power agreements and financial strategies like hedging natural gas prices.”
Hedging involves locking in prices for natural gas with futures contracts to reduce the risk of price volatility.
Pool of Power
Power pooling is a practice in which multiple utility companies share their power generation resources. This way, they better manage the variability of electricity demand and supply. For example, if one utility experiences a spike in demand, it can draw on the resources of other utilities to meet that demand without having to build and maintain its own power plants.
PowerSouth’s power supply is interconnected with Southern Company, which pools power produced by Mississippi Power, Alabama Power and Georgia Power.
“In times when we have surplus energy to sell, we have an established partnership with Southern Company to sell that excess,” WEC CEO Les Moreland says. “Moreover, in the unlikely event of a generator breakdown, we have access to a diverse fleet of power plants. This not only provides us with a safety net, but it also helps keep our costs more affordable.”
It’s all about economies of scale. By working together through purchased- power agreements utilities optimize the use of their resources and provide a more reliable and cost-effective electricity supply.
Powering Tomorrow
Collaboration is vital for balancing the future energy landscape, driven by rising demand on the electrical grid from population growth, technological advancements, environmental concerns, electric vehicles and industry growth. Utilities also face challenges to supply this energy, like geopolitical and economic factors, including international trade policies and global energy markets.
Utilities must adapt to these trends. WEC, for instance, is exploring new ways of doing business, like community solar and demand-based rates, to provide more flexible energy options for members.
“We’re making decisions that are going to affect future generations, so we’re making choices now to ensure the electric grid is reliable and resilient for decades to come,” Kimbro says. “Being a cooperative, we appreciate the value of working together to create better opportunities for all.”
WEC and PowerSouth Energy are leading the way in modeling how working together can better address the energy challenges of today and tomorrow.