Why ‘Extra’ Power Matters

Capacity, reliability and the power of the cooperative difference

July 2026

by Jack McCarthy, Contributing Writer

Few energy organizations have appeared in the news more often in recent years than PJM Interconnection. That’s no coincidence. As electricity costs, reliability and an increase in electricity demand make energy a true kitchen-table topic, more people are starting to ask an important question: Where does my power come from — and how is it kept reliable when I need it most?

PJM doesn’t generate electricity or own power lines in your neighborhood. Instead, it operates behind the scenes, coordinating the flow of electricity in an interconnected grid serving 67 million people across 13 states and the District of Columbia, including regions served by electric cooperatives in Virginia, Maryland and Delaware. Every day, PJM works in partnership with generation partners such as Old Dominion Electric Cooperative and with distribution cooperatives to balance how much electricity people use with how much power is available to meet that demand.

This balancing act becomes most critical when demand surges — when the system is under the greatest strain and the margin for error is smallest. In those moments, reliability reflects years of planning, from PJM’s coordination of the regional grid to the long-term investments cooperative systems make to secure dependable power.

DEMAND VS. CAPACITY

When people think about electricity, they usually think about energy — the power used to light homes, cool buildings and charge phones. In the electric grid, energy refers to the actual generation of electricity over time. It’s measured and priced in very short intervals, typically every five minutes, reflecting real time supply and demand.

But there’s another concept just as important to ensuring reliability: capacity.

Capacity is a commitment. It represents a resource’s promise to be available to produce electricity for the grid. Without capacity, there is no guarantee electricity will be there when you need it. Capacity is paid for in advance, ensuring power plants and other resources are ready to perform when demand spikes. Unlike energy, which is sold as it’s produced, capacity revenues are earned regardless of how often a resource runs because availability itself has value.

Think of it this way: Energy is the electricity you use. Capacity is the assurance that electricity will be there when you need it most. Generation partners such as ODEC, who own and operate generation resources, help provide that assurance. ODEC makes a commitment to the PJM market in advance, stating that when extra power is needed, owned resources can be called upon by PJM to help fill the demand gap.

PLANNING FOR ‘EXTRA’ POWER

According to PJM, electricity demand this summer is expected to peak at about 156,400 megawatts. To meet that demand reliably, PJM has approximately 180,200 MW of generation capacity available, along with about 7,800 MW of demand response — programs that pay participating customers to temporarily reduce electricity use during periods of high demand. Many electric cooperatives, often in partnership with generation partners such as ODEC, offer these programs to their members.

At first glance, that might seem like more power than is necessary. But that margin isn’t excess — it’s protection. In fact, across the broader electric system, resources once considered backup — a safety net for reliability — now play a much larger role. As electricity demand grows and power plants retire, the grid is increasingly relying on committed capacity not merely as a cushion, but as a core part of keeping power available when it is needed.

The electric grid isn’t built for a typical day. It’s built for the worst days — the ones that test the system’s limits.

THE COOPERATIVE DIFFERENCE

This is also where the cooperative model offers a unique advantage. In a system where short-term market conditions can change quickly, long-term planning and investment provide an added layer of stability.

Some electric cooperatives receive their wholesale power from generation partners, including ODEC, which are owned by the distribution cooperatives they serve. Because these generation partners are member-owned and operate within the same not-for-profit system, their approach to planning differs from investor-owned utilities.

Cooperative planning is member-first and member-focused, forecasting for reliability rather than investor profit. Through shared generation ownership, cooperatives benefit from a stable power supply shaped by member needs. By working collaboratively, cooperatives can pool resources to own and operate shared generation facilities, helping ensure capacity is in place before it’s called upon.

Even when electricity is plentiful, these investments pay off because generators are compensated by PJM for their capacity. During heat waves, winter storms and unexpected outages, owning committed capacity — resources already accounted for and ready to perform — can make a critical difference.

Because, in the end, “extra” power isn’t really extra at all. It’s the result of careful planning, shared investment and a commitment to reliability that puts members first.