President’s Message – January 2025

Balancing Electricity Supply & Demand

Electricity is essential for nearly every aspect of daily life—so essential that we rarely think about how it’s produced and delivered to our homes. You might be surprised to learn that behind the scenes, a network of experts is working daily—and by the minute—to anticipate how much electricity you need before you use it.

We’re all connected to the electric grid, so ensuring the right amount of electricity for all members involves a complex process of forecasting energy demand, planning for capacity, and securing enough supply to meet your needs.

Powerful Sources

First, electricity must be generated at a power plant using traditional sources, such as coal, natural gas, or nuclear energy, or from renewable sources, such as solar, wind, or hydropower.

At Gulf Coast Electric Cooperative (GCEC), we work closely with PowerSouth Energy Cooperative, our wholesale power partner, to secure electricity for our communities through a diverse mix of energy sources. By maintaining a range of resources— coal, natural gas, solar, nuclear, and hydropower—GCEC has options to ensure reliable power at a competitive cost.

On a larger scale, electricity supply and demand are managed through a market that includes long-term planning agreements in which electricity is bought and sold just like other goods and services. Because GCEC works with a power generation cooperative, we can pool resources and expertise to deliver affordable power to our local communities.

Managing Supply & Demand

Electricity supply changes throughout the day because demand fluctuates based on consumers’ needs.

For example, we know demand increases in the morning and evening hours and with extreme weather conditions. At GCEC, we plan to ensure the right amount of electricity is available at the right time.

Across the country, other electric utilities face the same challenge of balancing supply and demand, which is why we have a large network of key players in place to ensure enough power is delivered across the grid.

In many areas, the amount of electricity generated and where it is directed is coordinated and monitored by regional transmission organizations, or RTOs, and independent system operators, or ISOs. In other areas, individual electric utilities perform these tasks.

RTOs, ISOs, and electric utilities act like air traffic controllers for the electric grid. They forecast when you, your neighbors, and communities across large regions will need more power. These organizations work to secure supply to meet demand.

Looking Ahead

As the energy sector rapidly changes, it’s important for everyone to understand the basics of electricity supply and demand.

Electricity use in the United States is expected to rise to record highs this year and next, with demand projected to at least double by 2050. At the same time, energy policies are pushing the early retirement of always-available generation sources, which will undoubtedly compromise reliability.

GCEC remains committed to providing affordable, reliable energy to the members we serve. That’s why we are preparing now for increased demand and other challenges that could compromise our electric supply.

Managing the balancing act of electricity supply and demand is complex, which is why we rely on a network of utilities, power plant operators and energy “traffic managers” to keep electricity flowing smoothly across the grid.