CEO’s Message – August 2025

The Summer Surge: What’s Behind the Power You Use

Summer brings sunshine, vacations, cookouts, and a big jump in electricity use. When temperatures climb and air conditioners kick on across homes and businesses, the electric grid is pushed to deliver more power, fast.

This spike in demand happens most evenings, right after work hours. People head home, turn on lights, cook dinner, and lower the thermostat. Behind the scenes, electric utilities and grid operators must work in real time to make sure enough electricity is available to meet that surge.

But temperature isn’t the only factor driving demand today. In recent years, a new kind of power user has emerged: the data center. These facilities, housing the servers behind cloud computing, streaming, and AI, use huge amounts of electricity around the clock. Unlike homes or offices that have daily usage patterns, data centers run 24 hours, 7 days a week, and often require new substations and transmission upgrades to connect to the grid.

Although these companies pay for their power, their constant demand can accelerate the need for major infrastructure investments. That affects the entire system, including co-ops like Union Rural Electric Cooperative (URE), and can contribute to higher regional costs. At the same time, these grid upgrades can improve reliability and capacity for everyone.

So, How Does the Electric Grid Meet These Growing & Changing Demands?

The key to meeting demand is to have a mix of generation types available, including baseload, intermittent, and peaking sources of power.

Power is produced from a variety of sources: fossil fuels like coal and natural gas, nuclear plants, and renewable resources like solar, wind, and hydro power.

Some sources are designed to run all the time and form the backbone of our power supply. These are called baseload generators, typically large coal, nuclear, or hydroelectricity plants that operate continuously and supply the majority of the electricity we use.

But baseload plants aren’t built to respond quickly to sudden spikes in demand. That’s where peaking, or intermediate, generators come in, usually natural gas plants that can start up quickly and increase output as needed.

Then there are renewables like wind and solar. These sources don’t use fossil fuels and are increasingly affordable, but they depend on the weather. They can’t be dispatched on command, and during extreme weather events, like a calm, cloudy heat wave, they may not generate much power at all.

That’s why grid operators rely on a diverse mix of energy sources. Having a balanced generation portfolio helps ensure reliability and affordability year-round.

What About Batteries?

Battery storage is 1 of the most promising tools for managing renewable energy. It allows utilities to store excess power when demand is low and release it when needed.

But large-scale battery systems are still developing. They require rare materials, come with high costs, and are currently best suited for short-duration support, measured in hours, not days. While more battery projects are being added every year, they aren’t yet a full replacement for traditional generation.

What Can You Do?

The most important thing to remember is that your choices matter. Upgrading to high-efficiency lighting, appliances, and HVAC systems reduces your energy use and lowers demand on the grid, especially during peak times. Small changes in how and when you use electricity can have a big impact.

At URE, we’re committed to delivering safe, reliable power at the lowest possible cost. We’re also here to help you use energy wisely. From rebates to expert advice, we’ll help you stay comfortable while managing your energy bill.

That’s the cooperative difference.