EPA rule threatens electric reliability

By
Posted on Sep 14 2024 in Warren County REMC
Charlie Dunn
CHARLIE DUNN
CEO

As a consumer-member of Warren County REMC, keeping the lights on at a cost you can afford is the focal point of everything we do. Transparency is one of our core values, so in addition to sharing co-op successes, I believe we also have a responsibility to tell you about the challenges.

In May, the U.S. Environmental Protection Agency (EPA) issued a rule that impacts energy production from power plants. The power plant rule will challenge access to reliable electricity for our local community and communities across the country.

The rule constrains existing coal and new natural gas plants by requiring them to install carbon capture and storage (CCS) — a technology that has potential but has not been proven to be viable as required. No power plant in North America currently uses CCS at the scale and levels mandated by EPA. When power plants cannot comply with EPA’s CCS requirements, they will be required to shut down, significantly limit operations, or switch fuels. These unrealistic standards will force the unnecessary and early shutdown of many power plants that currently provide reliable electricity 24/7.

The timing of the power plant rule is equally troubling. Utilities are facing a surge in electricity demand — driven by the onshoring of manufacturing, the growth of the American economy, and the rapid expansion of data centers to support artificial intelligence, e-commerce, and cryptocurrency. This growth in demand requires more reliable generation to ensure power is available to homes and businesses 24 hours a day.

It’s also no secret that costs go up when demand is high and supply is low. We’re concerned about threats to reliability and cost increases to our members.

I don’t say all of this to worry you, but I want our members to understand the challenges ahead. As we’ve always done, we will look for solutions that serve our members best. We are joining electric co-ops across the country to challenge these regulations, and we are working with our local elected officials to help them understand the consequences this would have on all Hoosiers.

Co-ops are no strangers to innovation, and we’re taking proactive steps to address today’s energy challenges and tomorrow’s energy needs. We have led the charge on industry endeavors and will continue exploring new technologies and strategies that bolster reliability and our local grid.

Electric cooperatives like Warren County REMC deliver power to 42 million Americans. Our top priority is meeting our members’ energy needs, and we must have reliable electricity available to do that.