Public power utilities are at the forefront of pursuing efficiency in many forms. In addition to highlighting trends in customer-focused programs, this issue features an array of operational examples such as more efficient delivery of mutual aid for utilities hit by devastating storms, the use of artificial intelligence for utility applications, heightened security and safety awareness when using new technology, and our push to streamline the federal permitting process.
As tools for efficiency change, so must awareness of and attention to the risks and challenges that come with these tools. The explosion of AI applications is a prime example. Utilities are being deliberate about learning how to leverage AI-based applications safely before deciding to use them.
American Public Power Association members in several regions are also assessing how to manage significant data-driven load growth that will be compounded with escalating AI adoption. As AI-based models become smarter, they thirst for continually increasing computing power along with the electricity to drive it. A report from the International Energy Agency noted that the average AI search requires energy equivalent to that used by a 60-watt light bulb for close to three minutes — about 10 times that of a normal Google search. Some estimates show data loads doubling by 2026, with AI leading the growth wave.
Rapid efficiency developments, such as advanced chip and server design, will be critical to offset the enormous growth in energy demand. With data centers, transportation, and other increasingly electrified end uses, there is a renewed drive for finding efficiencies where possible to manage and offset some of the growth without adding untenable costs or undermining grid reliability.
At times, policy proposals to pursue efficiency are not adequately informed by other considerations. In its first draft of a new efficiency standard for distribution transformers, the Department of Energy proposed shifting most of the steel used in transformers to an amorphous core type not yet widely available. APPA repeatedly questioned the feasibility of implementing such standards amid an ongoing supply chain crisis, and DOE listened. The final rule flips the percentage of affected transformers to allow most to continue using grain-oriented electrical steel and lengthened the implementation timeline. While not all we wanted, it is a notable improvement over the first proposal.
After decades of implementing efficiency standards and incentives, much of the “low-hanging fruit” of residential appliances and lighting has been picked, and utilities are refocusing their efforts. Federal funding made available through the Inflation Reduction Act offers opportunities to target and incentivize households that have higher potential to boost efficiency by implementing a suite of upgrades.
APPA recognizes efforts to boost efficiency within utility operations and among customers via our Smart Energy Provider designation. Even utilities that do not earn the SEP designation can use the application as a tool to benchmark their efforts and identify areas for improvement, whether in enhancing outreach efforts or adjusting program offerings.
Being efficient with our energy, technology, resources, and time is a hallmark of how public power works to stretch customer funds and bring value, affordability, and reliability to communities. APPA will continue to listen to our members on how best to help them in this work through our advocacy, communications, technical support, and training.
