The electricity business has grown in complexity over the years. Today utilities may purchase a large percentage of their energy needs in an open electricity marketplace, not unlike the markets for grain, oil and other commodities. The characteristic that makes electricity markets so challenging is that, unlike other commodities, wholesale electricity cannot be stored.
PPI is exploring various ways to manage market purchases of electricity, including the use of Distributed Energy Resource Management Systems (DERMS). DERMS help manage our purchase requirements through consumer oriented programs. DERMS are software platforms that enable grid operators to monitor, control, and optimize distributed energy resources (DERs)—such as rooftop solar, batteries, electric vehicles, and smart thermostats—to maintain grid stability, enhance reliability, and improve efficiency. By aggregating these assets, DERMS facilitate demand response, frequency regulation, and voltage support in response to electricity market conditions. Traditionally, during peak demand periods electric cooperatives may have reduced load by controlling water heaters and air conditioners. Today, new smart grid technologies such as DERMS expand on traditional capabilities to help improve grid efficiency.
As with any market activity, a great deal of data is necessary to enable wise participation in the market. PPI continuously evaluates opportunities in meter data management and load management, explores new technologies, and analyzes how they may integrate into other PPI activities to assist in managing the costs of electricity purchased for our Members.