July and August are historically the warmest months of the year in this region and with that hot weather comes high demand (peaks) on the electric system. The highest peak we have ever experienced was in August of 2023. So why does this matter? Well, our system demand is measured and billed by our power suppliers based on the highest electrical peak during a single half-hour period during the month. Approximately half of our yearly power supply bill is based on just six hours a year! We expect to spend a total of $65 million for power supply in 2024 so over $32 million is based on those six hours of peak demand.
Is a Demanding Summer Ahead?
Tim McCarthy
Sioux Valley Energy
General Manager/
Chief Executive Officer
The electrical system is designed and built to support the maximum amount of electricity a member would conceivably need, even during high use times. However, as members continue to add electric load to their homes and businesses, demand rises. Sioux Valley Energy has responded to that growing demand through system upgrades. The Cooperative is well-positioned and prepared to serve that growing demand across its system.
While we are ready to serve our members during times of peak demand, there is an element that is out of our control – resource availability on the regional electric grid. Sioux Valley Energy, through its power suppliers, is part of a Regional Transmission Organization (RTO) called the Southwest Power Pool (SPP). A few of our Minnesota members are part of a similar RTO – Midwest Independent System Operator (MISO).