Co-ops Add Microgrids to Improve Resiliency

By Sarah Smith

Access to reliable electricity is top-of-mind for CREA and its member electric cooperatives. But natural disasters such as wildfires and winter storms can affect that reliability by taking down electric infrastructure and isolating rural areas (sometimes for long periods of time).

Two projects exemplify how Colorado’s co-ops are implementing microgrids, which are autonomous energy systems that serve specific areas and provide backup electricity with common-sense solutions when needed in emergencies. Poudre Valley Rural Electric Association in Fort Collins went live with a microgrid in Red Feather Lakes in October. Holy Cross Energy in Glenwood Springs is moving forward with another microgrid project on the Western Slope.

Poudre Valley REA wors with Red Feather Lakes representatives to install battery storage for its microgrid.

Red Feather Lakes is 60 miles away from PVREA’s headquarters. Historically, it has been prone to disasters that have major impacts on its single transmission line bringing electricity to the town. High elevation, heavy snowfall, dangerous winter driving conditions, fallen trees, wildfires and even tornadoes put this mountain town at risk for losing power.

PVREA leaders decided to create a microgrid after the local library won a grant to install solar panels and a battery to improve resiliency and cut electricity costs. The microgrid was installed at the local fire station, which has diesel generators and is located across the street from the library. PVREA controls the microgrid and owns the 140-kilowatt/448-kilowatt-hour battery. Now in place, the microgrid will provide secondary power for several hours if a disaster occurs.

“This project is rooted in community, which is a huge part of who we are as a cooperative. The Red Feather Lakes community came together to solve a need and approached us with the project. As we learn more about this microgrid, we can share that information with other cooperatives across the nation so that we all may better serve our members,” said Sam Taggart, strategic communications director for PVREA.

The small community in northern Colorado gets its electricity delivered by a single transmission line and will benefit from its new microgrid if that line goes down.

The project also would not be possible without the assistance of PVREA’s partners. The National Rural Electric Cooperative Association led the initiative in Red Feather Lakes, which is one of four microgrid projects involving five co-ops nationwide. NRECA connected the co-ops with a U.S. Department of Energy project, which provided $1.3 million in energy storage grants. Pacific Northwest National Laboratory and Sandia National Laboratories are also partners in the project. In addition, PVREA’s board of directors provided matching funding for its microgrid.

“The partners we had on this project were extremely important to us. We could not have completed this microgrid without our local, regional and national partners,” Taggart said.

HCE is also making headway with the creation of a microgrid system. The electric co-op is working on a feasibility study with Pitkin County and the Roaring Fork Transportation Authority to determine the practicality of a microgrid connecting a cluster of public facilities near the airport. The microgrid would be powered by renewable energy, independent from the larger electric grid. These facilities, which include the Aspen-Pitkin County Airport, the county’s public works facility, and RFTA’s bus barn, also would be protected from outages if service to the rest of the area is temporarily compromised by an outage. The feasibility study is funded by a $200,000 grant from the Colorado Department of Local Affairs.

With most of the research completed, HCE is looking ahead and fully anticipating making the microgrid a reality.

The urgency to create a microgrid in HCE territory emerged after the Lake Christine Fire in July 2018, which scorched more than 12,500 acres. The wildfire shut down power to the Upper Roaring Fork Valley, which includes the towns of Aspen, Snowmass Village and Basalt, with a year-round population of around 18,000. Three out of the four transmission lines running into Aspen were disabled and if the fourth line had gone down, it could have led to days or even weeks without electric service. This is not a possibility HCE is willing to face again for its members.

With the research phase of the microgrid project nearly complete, HCE is busy planning the next steps and the next phase of the project. Several grant opportunities are in the approval process, including one from the Colorado Department of Local Affairs. HCE will also cost-share part of the project, with funding going toward staffing needs and a protection plan to ensure the main grid is still being protected.

“Microgrids are really good on ‘black sky days’ and serve as a secondary source of power during a crisis. But there is also a great benefit to the grid on ‘blue sky days,’ and there is value in adding these batteries,” said Chris Bilby, research engineer for HCE.

“By installing a microgrid, we are actually going back to the old days. Many mines and train stations used to operate on microgrids, but because of the pollution, these transmission factories were moved farther away from populated areas, so people didn’t have to breathe that bad air in. With a clear path to clean energy in the near future, we can now move these microgrids back to communities,” Bilby continued.

In the face of a crisis, and especially when it threatens the resilience of the electric system, CREA and its electric cooperatives are working with their communities and other partners to find solutions. PVREA and HCE are examples of what it means to lead and overcome challenges to make reliable electricity readily available, despite any circumstance. Microgrids were the way of the past and now are an important step toward the future.


Sarah Smith is a freelance writer with a fondness for Colorado’s electric co-ops and the rural areas they serve.

Cooperation Among Cooperatives Addresses Wildfire Mitigation

Seeking solutions to be proactive about wildfire prevention and mitigation strategies, San Luis Valley Rural Electric Cooperative looked at Brighton-based United Power’s previous fire mitigation work. The electric co-op based in Monte Vista replaced three-phase line and 34 poles in parts of its service area with Hendrix Aerial Cable. United Power switched its power line to Hendrix Cable in its mountainous Coal Creek Canyon service area in September 2020 and invited SLVREC to review its projects.

Hendrix cable is an insulated conductor and provides a high level of protection in the event that a tree falls onto and makes contact with a power line. With the stronger, covered cable, the risk of wildfire caused by electrical equipment is drastically reduced. Hendrix cable also withstands severe weather events, helping prevent outages if the line is struck by a tree.

This innovative use of collaboration and infrastructure materials offer the benefits of wildfire prevention and improved reliability for co-op consumer-members. And it’s another example of an important cooperative principle at work: cooperation among cooperatives.

Electric Co-ops Seek Fairness Among All Utilities

By Erin Kelly

Electric cooperatives are not-for-profit entities and therefore do not pay federal income taxes. Usually that is a good thing. It means co-op electric rates are set to only cover co-op costs. There is no incentive to charge more than is needed; any profit (known as a margin in the co-op business model) is returned to consumers as credits.

But when it comes to government incentives to transition to newer, cleaner fuel sources, not paying taxes is a problem. Other utilities have long received federal tax breaks for providing power from solar, wind and other renewable energy sources. Co-ops cannot tap into those programs because they are exempt from those taxes.

The National Rural Electric Cooperative Association is working to change that. It is urging congressional leaders to provide electric co-ops with direct payments to develop clean energy projects. These would provide incentives comparable to the tax breaks granted to investor-owned utilities such as Xcel Energy and Black Hills Energy.

In a letter to top congressional leaders, NRECA, the American Public Power Association and the Large Public Power Council asked for direct payments to member-owned and community-owned utilities to help employ technologies such as battery storage, carbon capture and electric vehicle charging networks.

“Allowing public power utilities and rural electric cooperatives to receive these tax credits in the form of direct payments for building clean energy infrastructure would ensure that all utilities serving all Americans would have equal access to these federal resources,” said the May 14 letter, which was signed by NRECA CEO Jim Matheson, APPA President/CEO Joy Ditto and LPPC President John Di Stasio.

“The direct payments would be used to help offset project costs — increasing the incentive for further investments — and would enable public power utilities and electric cooperatives to own these facilities directly. It would also mean more local projects, with local jobs, under local control,” the letter stated.

The issue is one of NRECA’s top legislative priorities for this session of Congress.

The letter points out that co-ops and community-owned electric utilities together serve nearly 30% of all retail electric customers.

“The president and Congress have ambitious climate goals that cannot be met by leaving nearly 30% of the nation’s electric utility customers without access to incentives and support,” the three association leaders wrote.

President Joe Biden has set a goal of eliminating carbon dioxide emissions from the power sector by 2030 to help slow climate change. Matheson and the other association leaders called that “a daunting challenge” with a hefty price tag that will be borne in part by co-op consumer-members and public power customers.

“As such, we cannot afford inefficient or ineffective policies,” they wrote.

Erin Kelly is a staff writer at the National Rural Electric Cooperative Association.