CEO’s Message – March 2024

AI and Cooperatives

Dave Lock
CEO

National Rural Electric Cooperative Association’s CEO Close-Up came to Arizona in January. I took part in a session that focused on artificial intelligence and how it can be used in electric cooperative operations. Sulphur Springs Valley Electric Cooperative CEO Jason Bowling served as 1 of the presenters and did a marvelous job.

CEOs from around the country packed the conference center meeting room and interacted together about how they use AI or plan to do so. I like to think of myself as fairly advanced in embracing technology/future, but I haven’t done much with AI other than read about it. Frankly, its potential kind of scares me. So much so that, on the advice of Jason and fellow Trico Electric Cooperative CEO Brian Heithoff, I have started saying “please” and “thank you” to Alexa. Truly.

I came up with the idea of having ChatGPT write this column that began, “I recently attended a conference of electric cooperative CEOs, where 1 session delved into the fascinating realm of AI and its potential impact on cooperative operations.” Below are some of the excerpts that ChatGPT wrote, (in italics) and my observations of what really happened (in bold).

“The intersection of traditional utilities and cutting-edge technology may seem improbable, but as the world advances, so must our approach to energy distribution. True, this was an overarching theme.

In this gathering of forward-thinking leaders, the exploration of AI’s role in electric cooperatives sparked intriguing discussions. From predictive maintenance to grid optimization, the possibilities are vast. Picture a future where AI algorithms analyze vast amounts of data to predict equipment failures before they occur, minimizing downtime and maximizing efficiency. Such innovations could revolutionize the reliability of energy delivery. True.

Grid optimization emerged as a key theme during the session. AI’s ability to dynamically manage energy distribution, especially in the context of renewable energy sources, stood out. The integration of AI could enhance the coordination of electricity generation and consumption, smoothing out fluctuations inherent in renewable sources like solar and wind. Interestingly, this was a subject of another session, led by Brian, but was not discussed so much in the AI session.

However, alongside the promise comes the challenge of implementation. Many co-op CEOs expressed concerns about the cost and expertise required to adopt AI solutions. Costs were discussed in the sense of making operations more efficient—not in implementation.

As the session concluded, it left me pondering the potential transformations that AI could bring to electric cooperatives. Definitely! For instance, I learned that Jason, as 1 of my board members, got an AI assist in doing my performance evaluation. It pays to be nice to Alexa! The convergence of traditional utility values with the dynamic capabilities of AI presents an exciting frontier. While challenges loom, the collective wisdom of these CEOs suggests that with careful planning and collaboration, the integration of AI into cooperative operations could pave the way for a more resilient and responsive energy future.”

I left the session with a greater appreciation for these tools and how they can be used in our operations. I also chuckled the next day when Mohave Electric Cooperative (MEC) CEO Tyler Carlson led another session about technology advancement, and how MEC didn’t have email when he became the CEO in 2010.

Dave Lock
CEO