Distribution System Operators Leverage Energy Resources for Grid Optimization

Electric utilities like United Power have historically operated under a traditional distribution model — delivering power, often generated hundreds of miles from the homes and businesses it would eventually energize, using traditional fuels like coal and natural gas. Because members were only consuming energy, electricity only needed to flow in one direction. 

Today, a diverse array of energy resources is helping supplement traditional fuels, and the cooperative is investing in new generation located closer to the communities it serves through a strategy known as “hyper-localization.” Thousands of member-owned rooftop solar systems, occasionally coupled with integrated battery storage, dot the service territory. Many more homes are equipped with Wi-Fi-enabled smart devices, such as thermostats. 

These technologies can help members reduce their reliance on the grid and manage energy more intelligently and efficiently, but they are also forcing utilities to reevaluate the traditional distribution model. Energy no longer flows in one direction from the utility to the consumer. Members are now pushing energy they generate back onto United Power’s system and sharing data that can help the cooperative optimize and modernize its operations to improve system resiliency and power reliability. 

“The way our members use energy and interact with the grid is changing, and it is causing a shift in the energy industry,” said United Power President and CEO Mark A. Gabriel. “We are operating in a new normal, but it has also created opportunities for us to look ahead and plan. Our Cooperative Roadmap outlines the vision for ensuring the cooperative can continue meeting our members’ energy needs through operational adjustments.” 

Our Cooperative Roadmap recognizes that the adoption of grid-accessible technologies and the advancement of United Power’s hyper-localization energy strategy are reshaping the electric grid. The two-way flow of energy and data between the cooperative and its members has allowed it to begin proactively transitioning to a distribution system operator (DSO). A DSO is an emerging operating model for better managing power supply, generation assets, and other energy resources on a dynamic, interconnected, and locally controlled distribution system. 

“A DSO gives us the flexibility to leverage the power of local resources,” Gabriel said. “United Power will always need power generated outside its footprint, but there are concerns about new transmission infrastructure keeping pace with demand. The hub of our electrical system is becoming increasingly more local for this reason, whether that is the solar on our members’ rooftops or new energy projects built right here in our service territory.” 

As a DSO, United Power will coordinate distributed energy resources, or DERs, through a robust distributed energy resource management system (DERMS). DERs are the member-owned generation and storage systems connected to the local system or energy management devices that the cooperative can access through participation in voluntary member programs. A DERMS platform optimizes these energy assets to provide load relief, balance demand, and improve energy resilience. A DSO model is essentially members helping members, communities helping communities — The Power of Local in action.  

Members can participate in this cooperative grid when they: 

• Adopt technologies like rooftop solar, battery storage, or smart devices that can connect directly to the grid and be part of a more responsive system.
• Participate in energy programs like Smart Rewards, which offer incentives for shifting energy use away from peak times, helping reduce strain on the grid.
• Use smart technologies like smart thermostats, delay-start timers, or EV chargers to help manage energy use more efficiently, often automatically.

“Early adoption of energy technologies has led to a generous diffusion of resources connected to our system,” said Tyler Bain, United Power’s Energy Solutions Director. “It gives us the opportunity to consider innovative programs that reward members who participate and help the cooperative manage energy across the system.” 

Simply put, operating as a DSO is an efficient way to leverage the combined resources of members and the cooperative for mutual benefit. Over time, members will have new opportunities to take part in how energy is generated and managed locally. Even if members do not actively participate right away, the system is still being designed to deliver benefits across the entire membership, and every member will have a role to play.