Innovating Load Management and Energy Efficiency

How Benton County Electric System Empowers Customers and Strengthens the Grid

With energy demand surging and capacity stretched thin, the Tennessee Valley stands at a crossroads. Meeting this challenge head-on requires a collaborative effort that brings together creative action from TVA, local power companies and consumers to shape a smarter, more resilient energy future.

Working through the Valley Vision process, leaders from TVA and LPCs are grappling with the energy challenges facing our communities. As they discuss opportunities for LPCs to innovate and drive solutions to help overcome the energy capacity issues facing the Tennessee Valley, many smaller utilities may question just how much they can contribute to the systemwide collaboration needed to help reinforce grid reliability and resilience — especially while adhering to the public power charge to provide affordable energy. For many, the technologies needed to control energy usage during peak hours — like smart meters, communication networks or control centers — can be cost prohibitive, therefore limiting the options available to them. Meanwhile, Scott Owens, General Manager at Benton County Electric System (BCES) in West Tennessee, is exploring a range of innovative approaches to help improve grid reliability, all while keeping affordability in mind.

Putting Power in the Hands of Consumers

One avenue Owens has explored for reducing power consumption in his system is to educate and empower his customers to better understand their own energy use. The first step in this approach was to introduce an itemized billing statement. “Our statement shows the entire breakdown [of the customer’s energy usage],” says Owens. “We provide a lot of information. Some of our customers take an interest in it and for them, it provides an educational opportunity and demonstrates our equitable and fair billing practices.”

For customers who want a more in-depth understanding of their energy usage plus the ability to pay their bills right from their phones or computers, BCES offer access to the MyUsage app. Accessible via web and mobile platforms, the app developed by Exceleron offers several features aimed at promoting energy efficiency and cost savings. Customers can monitor their daily usage and even hourly demand. “We have seen customers who set up alerts to notify them when their energy consumption exceeds a pre-set threshold, enabling them to take timely action to curb excessive usage. And simply by browsing the app — without participating in any of the app’s specific programs like pre-pay — we have found customers can identify ways that will typically save 5 to 10 percent on their energy cost,” Owens points out.

In addition to sharing user information in the MyUsage app, BCES posts detailed data about system peaks and max times on its website, making it accessible to all customers. Many have found this information useful when combined with their personal usage data, Owens notes. One local hotel, for example, utilized the app to identify specific cost-saving opportunities. “By monitoring their energy usage in our app and applying what they had learned from our peak demand data, this business was able to adjust when they did the hotel’s laundry and change their checkout process to minimize costs,” he says. “We’ve also had residential customers tell us they can pinpoint exactly what it costs them to do laundry or cook based on their exploration of the app.”

Demand Rates: A Smarter Way to Price Energy

While tools like MyUsage help customers better understand their consumption, BCES has found that without strong pricing signals, residential customers are less likely to adjust their behavior. To help address this, BCES implemented a monthly max demand rate for residential customers in October 2025. This new rate structure separates demand-based charges from energy charges, ensuring that high-energy users receive lower per-kWh rates beyond 1,000 kWh while their demand costs reflect how they use the system — similar to commercial customers.

Owens explains that these demand-based charges help fairly distribute system costs. Residential customers contribute to demand alongside businesses, and BCES now applies two demand charges: one for distribution cost recovery and another for the TVA grid access charge. By allocating these costs based on actual demand, BCES ensures that the financial burden of maintaining the system is fairly shared among users. “We are not concerned about highdemand residential customers because distribution costs are now appropriately recovered,” Owens adds.

Still, BCES recognizes that pricing signals will play a key role in shaping future consumer behavior. “There are just some behaviors residential customers will not change unless there are significant pricing signals,” Owens says. “We have the data to set those based on residential contributions to peak demand, but until TVA and other LPCs provide more strategic direction, we are holding off on implementing time-of-use energy rates. However, we do track residential demand data and will re-evaluate as the power grid continues to evolve. The great news is that our 15-year journey has prepared us to adapt quickly and has afforded us the time to educate our customers.”

Load Management and the Road Ahead

While BCES continues to evaluate new pricing structures, one of the biggest challenges remains helping residential customers understand and take accountability for their energy usage. “Our customers can easily grasp the cost of a gallon of milk or water, but electricity is a more abstract concept,” Owens explains. “Many don’t look at their bill beyond the total amount due, and some don’t take personal accountability for their consumption. But for those who engage with the tools we provide, even in small ways, the savings and awareness become clear.”

This knowledge gap presents both a challenge and an opportunity for future programs. Looking ahead, BCES sees time-of-use (TOU) energy and demand rates with stronger pricing signals as a key strategy for improving communication and encouraging smarter energy use. TVA is also launching new initiatives, including smart thermostat programs that allow customers to save energy with automated adjustments. However, Owens remains cautious about their impact in a distressed service area, where participation incentives may not be compelling enough to drive widespread adoption.

Despite these hurdles, BCES is actively working with TVA’s Home Uplift program, which provides energy efficiency upgrades for income-qualified households. “We’ve seen the most success when we can demonstrate real-world savings through testimonials and word-of-mouth,” Owens says. “Even simple changes can make a significant difference in energy consumption.”

As BCES continues to explore new ways to help customers manage their energy use, the focus remains on education, engagement and developing pricing structures that make efficiency a practical choice for everyone.

Reliable, Resilient and Future-Focused

The innovative ideas Owens hopes to apply to strengthening his system and supporting systemwide grid reliability extend beyond customer engagement and rate design. Currently, BCES is in the build-out phase of a 3-MW solar project aimed at providing energy and demand offsets. “Thanks to TVA’s 5 percent load flexibility, this project will help reduce strain on our system,” Owens explains. “We’re hopeful this flexibility could increase to 10 percent in the future, providing even greater benefits. However, a key challenge has been TVA’s technological limitations, which restrict our ability to pair battery storage with our allowed solar capacity. While we were able to install a 3.0 MW solar array, integrating storage would have required reducing the array size. Despite these constraints, we’re excited to continue exploring new opportunities in this space.”

While BCES is not yet ready to pair battery storage with its solar project, Owens shares that his organization is actively exploring energy storage as a tool for peak shaving and grid resilience. A battery storage analysis conducted by Seven States Power Corporation found that, due to BCES’s extended discharge window, neither battery storage nor a natural gas generator would be financially feasible without full grant funding. BCES continues to evaluate the financial viability of utility-scale storage, considering grants, tax incentives, and other funding sources. “However, every LPC’s peak curve is unique, and while BCES’s characteristics do not currently support storage solutions, other LPCs with shorter peak curves may find them more financially viable,” Owens points out.

“We’re working with Seven States to analyze different storage models, and we have a meeting this week to review the results,” Owens explains. “One of the challenges we face is that wholesale demand costs are blended into energy rates in the Valley, making some of these projects less financially viable than they might be elsewhere. But if the numbers work, we plan to move forward — not just for peak shaving but also to power remote loads during upstream repairs or keep critical infrastructure running during outages.”

Looking beyond immediate projects, BCES is also closely monitoring the latest advancements in energy storage technology to determine what solutions may be viable in the future. “We’ve explored Lithium Phosphate technologies, Super Capacitor Storage, Gravity Storage, and Geothermal Storage, both inside and outside the Valley, to evaluate their feasibility,” Owens says. “TVA has a strategic goal of developing a virtual lever of load reduction that can be leveraged across the system, and we hope to collaborate with them to maximize the benefits for  our grid".

The Seven States study on storage and backup generation will play a critical role in shaping BCES’ next steps. Financial feasibility is the key driver, Owens emphasizes, but additional factors like resiliency and redundancy are also being considered. “If the numbers make sense, we’ll move forward full steam ahead,” he says. “Energy prices have never gone down, and while fuel costs may fluctuate with administration changes, the long-term trend is clear. We also need a solid strategic direction from TVA on future rates to ensure we’re making the best decisions for our customers.”

Lessons Learned and the Power of Collaboration

For BCES, innovation has never been about chasing trends — it has been about practical, strategic advancements that keep energy reliable and affordable for its rural customers. From distribution automation schemes and SCADA to advanced metering, BCES has consistently explored solutions that align with its community’s needs while maintaining a commitment to cost efficiency and system reliability.

One of the biggest lessons BCES has learned is that progress happens in steps. “Take the journey,” Owens advises. “Make incremental changes to get where you want to go over time. The key is ensuring that costs are appropriately allocated and that every ratepayer is billed based on how they actually use the system.” He emphasizes that while every LPC may take a slightly different approach, the fundamentals remain the same: balancing power costs and distribution recovery while ensuring fairness for all customers. “Blending costs is sometimes necessary,” he adds, “but the ultimate goal should always be to assign and allocate costs as accurately as possible while minimizing cross-subsidization.”

BCES also recognizes that the energy landscape is evolving, and no utility can navigate this transition alone. That’s why Owens actively participates in the Distributed Energy Resources (DER) section of Valley Vision, a process he sees as a crucial team effort for the Tennessee Valley. “Valley Vision gives us the opportunity to learn from each other — what’s working, what’s not — and to work with TVA on strategies that flatten demand curves, improve system flexibility, and optimize grid performance,” he says. “At the end of the day, public power isn’t driven by shareholders — it’s driven by our mission to provide the lowest-cost, highest-reliability power to the people we serve.”

Looking ahead, BCES remains committed to adapting and innovating in ways that make sense for its customers. Owens is optimistic about the future, knowing that collaboration, datadriven decision-making, and a willingness to evolve will help LPCs navigate the challenges ahead. “We’ve built a strong foundation,” he says. “Now it’s about taking what we’ve learned and continuing to refine our approach — ensuring that every decision we make strengthens our system and serves our community.”

PROMISING TECHNOLOGIES

BCES is actively exploring energy storage solutions to enhance grid reliability and reduce costs for its customers. By evaluating the financial feasibility of utility-scale storage — including potential grants, tax incentives and other funding options — BCES aims to determine how battery storage can support peak shaving and overall system efficiency. In collaboration with Seven States Power Corp., BCES is analyzing storage models and will review initial findings in an upcoming meeting.

TVA has a strategic goal of creating a virtual lever of load reduction that can be leveraged systemwide, and BCES hopes to collaborate with them to maximize the benefits for their own grid. They are currently monitoring several promising projects and technologies that could play a key role in this effort. Read about them below:

• Lithium Iron Phosphate (LiFePO₄) Batteries – A type of lithium-ion battery known for its long life span, thermal stability, and safety. Commonly used in electric vehicles and grid storage due to its high energy density and durability.

• Supercapacitor Storage – Unlike traditional batteries, supercapacitors store energy electrostatically rather than chemically, allowing for rapid charge and discharge cycles. They excel in short-term energy storage and applications requiring bursts of power, such as stabilizing power grids.

• Gravity Energy Storage – Uses excess electricity to lift heavy weights and later releases stored energy by lowering the weights, which turns a generator. This mechanical approach is low maintenance and highly scalable, making it useful for long-duration storage.

• Geothermal Energy Storage – Captures and stores heat from beneath the Earth’s surface or excess thermal energy from power plants, using it for later electricity generation or direct heating applications. It offers long-term, renewable storage with minimal environmental impact.