Managing Daily Power Supply, Market Transactions and Resource Planning
Energy Services coordinates the company’s participation in the Midcontinent Independent System Operator (MISO) market in a number of ways. First, we work with Power Production to offer the capabilities and output of our generating units and long-term power purchase agreements into the market in a way which maximizes our margins from these assets. Second, we forecast the company’s next-day load requirements with the goal of minimizing the cost of that load. Third, we utilize physical transactions and financial tools to hedge our exposure to market prices for capacity and energy and to congestion between our resources and our load. Lastly, we represent the company within the MISO stakeholder process through committees, work groups and task forces to ensure that our interests are represented.
Energy Services is also responsible for identifying longer-term counterparties who might benefit from the company’s low cost generation portfolio, to the extent that we have availability beyond that necessary to serve our Member-Owners. We contact municipal utilities, cooperatives, and utilities across the Midwest in search of such potential customers. Transactions like these can provide value to Member-Owners and benefit employees, coal suppliers, other vendors and the regional economy.
The Energy Services Department aggressively pursues opportunities to increase electric sales in this way, which will help lower electric rates for western Kentucky.
Other Energy Services responsibilities include:
- Managing Demand Side Management (DSM), Energy Efficiency programs and other shared services for our Member-Owners
- Preparing the company’s biannual long-term load forecast and triannual Integrated Resource Plan
- Managing the company’s portion of hydroelectric power from the Cumberland River System from the Southeastern Power Administration