Electricity provides powerful value

As a member-owned cooperative, Trico does everything in our power to ensure our costs stay reasonable and that electricity remains a great value for our Members. It’s not always easy, as there are several factors that impact the price of electricity—some within our control and many outside our control. We are always working hard to develop smart, innovative ways to control expenses and ensure we provide cost-effective service.

The cost of electricity can fluctuate due to supply and demand, required infrastructure investment, preparing the grid for the future, maintenance and operational expenses, and many other factors. Weather also contributes, affecting both demand and generation capabilities, with extreme conditions leading to heightened energy usage and disruptions. In my column this month I want to share some of the lesser-known ways that Trico works to keep your costs down.

One way Trico controls the cost of energy we provide is by selling excess energy and capacity from our resources to other utilities. There are times (especially in the summer) when we use all the energy and capacity in our resource portfolio. However, when usage on Trico’s system is lower and there is demand in other regions, we make sales to other utilities. As a non-profit, the proceeds of these sales go directly toward reducing costs to our Members.

Trico also works to “hedge” its fuel costs by making advance purchases when the market price for natural gas is down. By planning ahead and making smart buys at the right time, we lock in reasonable fuel prices. This reduces the risk that Trico will suffer from a spike in natural gas prices. We take the same approach to our diesel and vehicle fuel prices. We focus on these efforts because they provide real savings for our Members over the long-term.

Another way we work to provide value is by pursuing grants to offset the cost of needed projects. Hopefully you have read about our success with several awards. We have been fortunate to receive awards that include a low-interest, partially forgivable loan from the Powering Affordable Clean Energy program through the U.S. Department of Agriculture (USDA). This award will support the construction of four solar and battery projects that will provide needed energy and added resilience. We have also been awarded a grant through the Department of Energy’s Grid Resilience and Innovation Partnerships program for improved right-of-way maintenance and wildfire mitigation. These programs will save Trico Members millions of dollars overall, and we are working hard to earn other grants.

The energy needs of our community will continue to grow as more aspects of our lives are powered by electricity. Just consider the number of devices you charge every day from phones to tablets to smart devices. Now consider the increased number of electric vehicles you see on the road and the new devices you see at stores, schools and community events. The demand for electricity is expanding and Trico is dedicated to making sure our Members have cost-effective, sustainable energy solutions. Trico will always put our Members first and work each day to provide you with great value. Thank you for being a valued Trico Member.