JULY 2025 19ELECTRICAL BUSINESS REVIEWCXOINSIGHTSBy John Stephens, Director-Power System Control, City Utilities Of SpringfieldREDEFINING STANDARDS OF THE ELECTRICITY PARADIGM"The new frontier for providers and participants in the electric energy market is retail participants connecting to lower-voltage distribution systems throughout the country."To some, this may seem like `old news,' but consumers are taking a more active role in providing the electricity needs of their homes and businesses. In fact, the supply and delivery of electricity have been evolving since its creation, but particularly during the past 25 years. During my 27-year career in Power System Operations and Planning, I have witnessed the transformation of the electric power industry from a stodgy, regulated, business-as-usual environment to a complex, deregulated, acronym-laden maze. For the most part, this transformation has been limited to wholesale transactions and occurred at the transmission level of the electric system (generally, facilities rated 100kV or higher). The new frontier for providers and participants in the electric energy market is retail participants connecting to lower-voltage distribution systems throughout the country.As the electricity market has evolved, I have noted several changes: More participants have joined the production, delivery, and consumption cycle. Diversity of resource and fuel types has increased. Lower but less stable pricing has been evident. Mandatory Reliability Standards became `a thing'.However, human needs and the laws of physics still dictate certain basic facts: Supply and demand must balance continuously to avoid instability and disruption. Electric demand follows clearly defined patterns--night/day, mild/extreme weather. Consumers want a low price but demand reliable service.What is Changing?As the electricity business enters this next phase of its evolution, I think it is fair to conclude that we will continue to see a change in the same parameters noted above, but human needs and the Laws of Physics are not likely to bend.More participants have joined the production, delivery, and consumption cycle. As the population and electrification of our nation increased, the number of entities producing, delivering, and consuming electricity proliferated. Open Access and deregulation have further increased the number (and types) of entities participating.Diversity of resources and fuel types has increased. Technology, pricing, and public policy have led to increasing divergence from the traditional base load/peaking mix of resources used to satisfy America's electricity appetite. These same factors are likely to change, but we should be wary over dependence (i.e., losing diversity) on any class of resource as demonstrated by past disruptions created by those same factors.
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