The energy industry is constantly evolving. Yet, one thing has remained steadfast throughout my career: our unwavering commitment to provide reliable, affordable electricity to our members. As we look to the future, utilities like Benton REA must adapt and innovate to meet the rapidly changing energy landscape.

In Washington state, electricity demand has surged in recent years, and the trend is only going to accelerate. A report released in May 2024 by the Pacific Northwest Utilities Conference Committee predicts electricity demand will grow by more than 30% over the next decade. This represents a significant departure from the historical annual growth rate of 1% to 2%. The way utilities currently manage demand is in the process of changing radically.

Population growth

The factors driving this growth vary. Population increases are one key contributor. For example, West Richland has experienced consistent expansion, with a 2.5% growth rate in 2023.

By 2035, the city’s population is expected to double. Residential developments, such as the Heights at Red Mountain Ranch and new phases of housing off Paradise Way, reflect this trend. But residential growth is just one piece of the puzzle. The electrification of transportation, phasing out of natural gas in new construction and higher energy demands in commercial, agriculture and industrial developments are also on the rise.

Rise of data centers

Another significant challenge lies in the potential for data centers to connect to our system. Data centers power the digital economy by supporting cloud computing, artificial intelligence and robust network operations demanded by modern commerce. However, they are extremely energy-intensive facilities. Data centers consume 10 to 50 times the energy per square foot compared to typical commercial office buildings.

The implications are clear: data center growth will require not only sufficient energy generation, but also substantial investments in our transmission infrastructure to reliably deliver power where it is needed.

Opportunities, challenges

For Benton REA and other regional utilities, this growth presents both an opportunity and a challenge. We welcome new members and the vibrancy they bring to our communities. Also, new loads often bring greater opportunity for our community and the potential for future economic growth. At the same time, we must ensure our energy infrastructure, both the lines that bring the energy to our homes and businesses as well as the facilities that generate the power, can keep pace with their needs.

This mission, to ensure reliable power is delivered to your homes and businesses, is complicated by well intentioned, but misinformed efforts by some policymakers to remove generating resources from our region before replacements have been built, or, in some cases, before reliable alternatives have been proven. In the spirit of blind optimism these individuals assume that utilities will be able to keep the lights and heat on even while they take away the tools we need to protect the grid.

In the Northwest, utilities are committed to meeting these demands. Northwest public power’s energy mix is already a model of sustainability, thanks to the federal hydro system on the Columbia and Snake rivers.

At Benton REA, 85% of our electricity is sourced from hydropower and 11% from nuclear power. However, as our region’s energy needs grow, we must explore additional resources to maintain reliability and affordability. Moreover, we must protect all the resources we currently have to ensure we can continue to power this region's people and foster economic growth.

Advanced nuclear reactors

One promising avenue is the development of advanced nuclear reactors. These next-generation technologies offer reliable, carbon-free energy and are gaining support as a critical component of the clean energy transition.

Energy Northwest and X-energy are spearheading efforts to develop a small modular nuclear reactor in Washington, near the Columbia Generating Station, the state’s only commercial nuclear facility.

Benton REA has supported this effort by contributing to the project’s feasibility study, reflecting our commitment to innovative solutions that ensure a sustainable energy future. Such advancements could play a key role in maintaining grid resilience and meeting the growing energy demands of our communities.

The path forward requires strategic investments in our electric systems to enhance grid capacity, integrate new energy resources and support electrification. Collaboration with policymakers, industry leaders and our members will be essential to overcoming these challenges.

Together, we can continue Northwest public power’s legacy of delivering reliable, affordable electricity while embracing the opportunities of a rapidly changing energy landscape.

Ryan J. Redmond is Benton REA’s chief executive officer.