As we explained last month, peak energy demand has resumed a dominant role in energy prices across the nation. For decades energy demand had been relatively flat. While that did alleviate high peak demand costs Tideland faced in the 1980s and 1990s, it also resulted in generation and transmission companies flat-lining major investments in the grid.

Analysts now predict the nation’s electricity needs will double by 2050. It is important to understand that utility grid expansion has traditionally depended on multi-decade investment cycles and planning. For an industry defined by the simple flip of a switch and light being there when you need it, the reality is that both generation and grid expansion are long-term, capital intensive projects and reducing that timeline only increases construction costs. In the meantime, existing resources are subjected to the time-tested laws of supply and demand. Namely, when demand outpaces supply, along with a strained delivery system, prices rise. Operationally, there can also be service availability and reliability implications when demand outpaces supply or delivery capacity.

I want to pause for a moment and say that Tideland’s generation and transmission cooperative, NC Electric Membership Corporation (NCEMC), anticipated some measure of these changes years ago. With Tideland serving as the initial proving ground, NCEMC began construction of microgrid projects of which we are proud to host two: one at Ocracoke and the other at Rose Acre Farms. We are also doing our part to contribute to the solution through our Ecobee thermostat program and battery energy storage facilities at our Fairfield Harbour substation.

However, the rate of growth resulting from new technologically driven enterprises caught the
entire electric utility industry by surprise. Consider for a moment that a single computer chip
manufacturing facility is projected to need as much electricity as New Hampshire and Vermont combined. This is a nationwide challenge for the utility industry.

There are many stakeholders involved in crafting energy policy at the state, regional and federal level. Each bring to the table different perspectives, resources and priorities, as well as enforcement authority. At the bottom of that hierarchy are the nation’s 3,000 electric utilities, whether they are co-ops, municipalities or investor-owned power companies, who must design their own electric sales rate structures. One of the trends currently emerging among a handful of utilities, including two in North Carolina, is across-the-board on-peak pricing for all consumers, both residential and commercial.

Tideland did not entertain that type of rate structure during our rate review. Our preference is to incentivize an off-peak lifestyle that rewards program participants based on their individual efforts to manage energy consumption during on-peak hours. While maybe not the best analogy, we prefer carrots over sticks. We also know there may be a subset of co-op members who have no feasible way to independently manage their own energy use. By making the new time-of-use rate optional we hope to avoid a one-size-fits-all approach to rates.

That being said, you should take into account this evolving energy landscape when making buying decisions related to your home’s use of electricity. Here are some strategies that will not only
reduce your overall energy burden but can better position you to take advantage of time-of-day discounts.

• Avoid the purchase and installation of electric on-demand (tankless) water heaters.
• Invest in a programmable thermostat if you heat with an electric furnace or heat pump.
• When selecting a new HVAC system, consider a heat pump that does not require supplemental heat strips or provides programmable control over the operation of the heat strips. Our climate is ideally suited for inverter technology heat pumps, which don’t require supplemental heat and can be centrally ducted. Another option is a dual-fuel heat pump.
• Invest in a timer for pool and spa equipment.
• When purchasing a new dishwasher consider one that allows for wash scheduling to avoid on-peak hours.
• Retrofit any remaining incandescent lightbulbs with LEDs.

To support these recommendations, Tideland is increasing our rebates for heat pump water
heaters, whole-house inverter technology heat pumps (HyperHeat/cold climate technologies) and dual-fuel heat pumps.

Beyond these initiatives, and regardless of the rate you choose to participate in, it is more important than ever that you utilize Tideland’s member portal and enroll in high energy use alerts. It is in your best interest to learn how, when and where you use power.

You may be familiar with the saying: “What can’t be measured, can’t be managed.” The member portal provides the measurements you need to then manage your energy use. On the portal you will find both your daily and hourly energy use history. (Note: if you have one of our newest meters you will actually get 15-minute data in lieu of hourly).

No two homes have the exact same energy profile. Even if you have the same floor plan as your neighbor, the “how, when and where” of your energy use pattern is unique to you and your family. The portal data can help identify your energy traffic jams but only you know if there is a manageable way to avoid them during the on-peak hours. That should be your guide when deciding whether or not our new time-of-use rate is right for you.

Regardless of rate type, high energy use alerts not only help prevent high bills they can minimize damages related to water heater leaks and ill-performing HVAC systems. Please call us if we can assist you in setting up an alert.

In closing, I encourage you to stay engaged with Tideland as we navigate this changing energy environment. We’re here to help you make the energy decisions that best meet your needs.