News > CEO’s Message – December 2023

CEO’s Message – December 2023

Winter Reliability

As winter officially settles in, I want to talk about reliability of the electric grid and what we at Stearns Electric are doing to prepare for our coldest season of the year. 

You might have read or heard some recent headlines that question the reliability of the nation’s electricity supply this winter. In November, the North American Electric Reliability Corporation (NERC) released its annual winter reliability assessment, which stressed the need to improve the reliability of North America’s power grid. While these headlines are attention grabbing, I want to reiterate that here in Minnesota and across the Midwest, our wholesale power provider, Great River Energy (GRE), in partnership with other generation and transmission companies in our region, spend countless hours preparing the power grid to ensure a high level of reliability, especially in the winter. 

Here are a few other headlines, or key takeaways, I want to reiterate this month: 

GRE’s generation facilities are adequately prepared for the coldest days of the year.
GRE continues its transition to carbon free energy to meet Minnesota’s Carbon Free by 2040 mandate. GRE is adding many renewable energy generation sources to its portfolio and it also maintains several fuel-based peaking stations that can produce precise amounts of energy when needed. These peaking facilities play an important role kicking in immediately to produce more energy when demand is high, generally on the coldest days of the year. 

GRE has also equipped three of its existing generation facilities with backup fuel options, allowing the utility to generate electricity with fuel oil or natural gas. This optional fuel switching better ensures both affordability and reliability in extreme weather scenarios. Recently, the Minnesota Public Utilities Commission approved GRE’s plan to integrate diesel fuel energy at its natural gas peaking plant near Cambridge, bringing the total dual fuel generating facilities up to four. This is very beneficial to energy consumers in Minnesota. 

In Minnesota, we work together to help maintain electric reliability and affordability.
GRE and its 27 member-owned cooperatives, including Stearns Electric, have a wide network of members like you signed up for load control programs. Participating members elect for their qualifying electric loads to be curtailed during times of highest energy demand, reducing overall demand and improving reliability in our region. In return, participants pay a reduced energy rate. 

Transitioning to carbon free energy generation too quickly poses challenges.
As utilities across the country work to meet carbon free energy generation mandates, it is important that we don’t shut down fossil fuel generation facilities prematurely. Doing so has potential to impact the affordability and reliability of electricity that we have come to expect. Reports like the recent one published by NERC continue to help guide the industry on this historical new path toward carbon-free energy. In fact, the New York Independent System Operator announced in November it will keep four peaking plants operating past their expected 2025 retirement date to maintain adequate electric reliability. 

As always, at Stearns Electric we are working daily to deliver reliable electricity to you. Please contact me with any questions or concerns. 

Wishing you a wonderful holiday season!

Sincerely,

Matt O’Shea
Chief Executive Officer