Striking The Balance -
Reliability and Affordability
Power consumption in the U.S. is expected to rise to record highs this year and next, and the demand for electricity is expected to at least double by 2050. As our country’s economy continues to grow, the increased demand for electricity along with lagging infrastructure development could place many regions in the U.S. at risk of power supply shortages
over the next five years.
Mountrail-Williams Electric Cooperative (MWEC) is prepared to face these challenges and will actively engage and communicate with our members to outline the hurdles and opportunities that lie ahead.
Reliability
As highlighted in previous articles, diversification of both electrical generation sources and transmission sources supplying power to MWEC is the key to reliability. We’re also investing in innovative technologies to bolster grid resilience and enhance data management to improve operational efficiency, expedite outage response times and minimize service disruptions.
Increasing capacity (energy available) is also vital when it comes to reliability. At MWEC we work closely with our local generation and transmission cooperative, Basin Electric Power Cooperative (BEPC), to generate the electricity we distribute to our members. BEPC continues to make large investments to support our members’ growing energy needs. A few of these projects include:
Pioneer Generation Station Expansion – The ongoing expansion of the Pioneer Generation Station will add 583 MW of simple-cycle natural gas generation, bringing the total generating capacity of the site to approximately 825 MW. The project will be complete this summer and is located 15 miles northwest of Williston, N.D.
Proposed New Generation Project – This project will add 1,400 MW of combined-cycle natural gas generation. The power plant will be located in Williams County, 7 miles southwest of Ray, N.D.
Pioneer-to-Judson Transmission – This project includes 15 miles of KV 345-kV transmission line and was completed in October 2024. This line will support the added generation of the Pioneer Generation Station expansion noted above.
Leland Olds Station-to-Tande Transmission – This project includes 175 miles of 345-kV transmission line with a completion date of 2026. This line routes around the east side of Lake Sakakawea, completing a 345-kV transmission loop in MWEC’s service area.
Wheelock- and Tande-to-Saskatchewan Transmission – This project includes Two 55-mile 230-kV transmission lines, with a completion date planned for 2027. These lines are needed to enhance both the export and import capabilities between the United States and Canada.
These investments in new generation and transmission facilities are vital to reliability and supporting the future energy needs of our members.
Affordability
Rate increases are on the horizon for many electric cooperatives across the country. In fact, as of January 1, MWEC’s cost of wholesale power from BEPC increased by about 7 percent. These cost increases were driven by several factors, including:
• Inflation
• Load growth and investments in reliability
• Power Market Volatility
Our power supply cost is our largest operating expense, and with additional increases forecasted, this is a challenge that lies ahead. How will this affect you, our member-owner? I am happy to share that due to MWEC’s growth and financial health, we do not anticipate an overall rate increase as we enter 2025.
However, one immediate change you will see is that the power cost adjustment (PCA) credit of .001/kwh, will no longer be a credit applied to your electric bill. While this is great news for MWEC members, I share this news with caution, as future rate increases are likely. We will closely monitor and analyze our financial position on a monthly basis and communicate any future rate changes with you.
MWEC was built by the community it serves, providing essential services that drive growth and pave the way for an energy future that prioritizes reliable electricity at a cost local families and businesses can afford. As your member-owned electric cooperative, we will continue to strike the balance for you, our members, to provide reliable and affordable electricity.