Welcome to the section of our newsletter where we take a closer look at power supply, what goes into it, questions worth considering, and the many factors that shape the long-term reliability and cost of electricity for our customers.

What is capacity, and why is it important? 

Capacity simply means having enough dependable electricity available when customers need it most, measured in kilowatts or megawatts. It is different from energy, which is the electricity used over time. Wheat Belt PPD and our power supply partners plan and work to ensure adequate resources are available during the highest-demand conditions, along with a prudent reserve. This preparation helps keep power available during peak periods and supports the dependable service that you, our customers, rely on. 

How do capacity shortages influence wholesale electricity prices? 

When dependable capacity becomes scarce, suppliers compete for a smaller pool of resources, which can raise the cost of firm capacity and increase energy prices during peak or emergency conditions. Wheat Belt prepares for these situations by evaluating contracts, available resources, and long-term supply options before shortages occur. This thoughtful planning helps limit cost pressure while preserving the reliable service customers count on. 

What goes into the cost of generating electricity? 

The cost of generating electricity includes more than fuel. It also covers purchased energy, plant construction and financing, operations and maintenance, employees, environmental controls and regulations, insurance, applicable taxes or assessments, transmission access, and eventual retirement obligations. Variable costs determine which resources run from hour to hour, while fixed costs keep dependable units ready even when they are not generating. 

What happens when electricity demand increases? 

Growing electricity demand can bring new opportunities to our communities. As demand increases, more energy, dependable capacity, and transmission may be needed to serve the new peak. When existing resoures can absorb that growth, added sales may help spread fixed costs over more kilowatt-hours. If new generation, capacity purchases, or grid upgrades are necessary, Wheat Belt PPD carefully evaluates their timing and cost. This balanced approach supports growth while helping protect existing customers from unnecessary cost pressure.