Energy Strategies

Purchases

With our 50% stake in the coal-fired Clover Power Station in south-central Virginia, our 11.6% stake in North Anna, and our ownership of three combustion turbine facilities (Rock Springs, Louisa, and Marsh Run), we own about 50% of our generating needs at ODEC. To supply the remaining 50% of our 11 member-distribution systems needs, we turn to the energy marketplace, striking contractual arrangements with different utilities to get the best deals available.

Disciplined strategies help us reduce the impact of volatile market prices on ODEC member co-ops. One is to buy power over a period of years to avoid short-term price spikes, which have occurred in the past and will no doubt reoccur in the future. Buying in advance and staggering purchases assures a reliable supply of energy into the future that takes advantage of less expensive periods to offset higher priced ones for a cost-averaging effect.

ODEC participates in the PJM regional transmission organization.  PJM is a regional transmission organization (RTO) that coordinates the movement of wholesale electricity in all or parts of 13 states and the District of Columbia.  As a federally regulated RTO, PJM must act independently and impartially in managing the regional transmission system and the wholesale electricity market.  PJM ensures the reliability of the largest centrally dispatched grid in North America.  PJM coordinates the continous buying, selling and delivery of wholesale electricity over its service territory.  PJM system operators continuously conduct dispatch operations and monitor the status of the grid.  PJM also oversees a regional planning process for transmission expansion to ensure the continued reliability of the electric system. 

Resource Planning

ODEC has an on-going resource planning process to best meet the future electrical needs of its members. This planning effort has historically included consideration of the construction of new generating stations as well as purchasing power from others to meet the future needs of the member cooperatives throughout Virginia, Maryland and Delaware. These plans consider the cost of new plant construction, the type and cost of fuels used, emissions from such plants and other key factors to determine the most reliable and low cost means of meeting its obligations going forward.

Once a plan is developed, ODEC will develop detailed cost estimates of building the new generation itself. It will then typically seek bids from others that may be able to provide the power on a more cost effective basis. This helps to ensure that the lowest cost power is procured for its members.

ODEC has plans to also consider adding additional renewable energy resources in its future planning efforts. It has also been working with its members on pursuing energy conservation and energy efficiency programs to help reduce energy usage as many such programs can benefit not only ODEC and its member, but the members at the end of the line as well. 

Renewables         Conservation

Each of these resource types (renewable generation, energy conservation, purchasing power from others and construction of fossil fuel based generation) are being studied on a regular basis to best meet ODEC’s future needs.
 

Clover Power Station