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Michael (Mike) Beckham, General Manager at Lakeland, joins us alongside the company\u2019s Utilities Marketing Manager, Cathryn Lacy, to discuss the history of the business, its latest developments, and the ongoing global transition to renewable energy.<\/p>\n\n\n\n
Lakeland is vertically integrated, undertaking its own generation, distribution, and transmission, as well as reading and billing for its customers. \u201cWe don\u2019t have any external shareholders, so our true focus is always on our customers here in the Lakeland area,\u201d Cathryn begins. \u201cWe prioritize affordable rates, dependable service, and sustainability, from both an environmental and business standpoint.\u201d<\/p>\n\n\n\n
Mike agrees: \u201cIt\u2019s a constant balancing act between affordability and reliability. We aim to be in the lowest quartile of utility companies in the state in terms of price, while being in the highest quartile for reliability.\u201d<\/p>\n\n\n\n
Aside from maintaining both reliability and affordability, one of the biggest challenges Lakeland must navigate is Florida\u2019s temperamental weather. While the state has historically fallen victim to some of the largest hurricanes in the US, its unique topography makes it a favored environment for thunderstorms.<\/p>\n\n\n\n
\u201cFlorida has the most lightning density in the US and Four Corners, Florida (20 miles away from our service area) is considered the lightning capital of the US,\u201d Mike tells us. \u201cSo, we\u2019re constantly trying to predict the weather, as it can impact the way we manage the load throughout the state. We have strong, robust devices that can rapidly restore power in the event of a lightning strike, as long as equipment is not seriously damaged. Being connected to the larger grid means that, in many cases, we can switch, maintain, or restore power before the consumer realizes the power supply was interrupted.<\/p>\n\n\n\n
\u201cOn the other hand, we have hurricanes. These events are entirely different because we simply cannot work during the storm. Instead, we have to wait until the hurricane passes before we can start restoring power. In these circumstances, we share resources with other utilities across the state, and if it\u2019s a particularly large hurricane, companies from outside the state even offer their help.<\/p>\n\n\n\n
\u201cUnfortunately, we\u2019re quite experienced in recovering from hurricanes, so we can quickly spring into action with our emergency operations plan and restore power relatively quickly,\u201d Mike explains. \u201cWe\u2019re constantly evaluating the ways in which we can be better prepared to withstand the hurricane, as opposed to having to recover.\u201d<\/p>\n\n\n\n
Cathryn adds: \u201cSince Hurricane Irma in 2017, we\u2019ve focused on hardening our grid. We\u2019ve replaced several wooden poles with steel ones, for instance, and added features on our lines to automatically prevent outages.\u201d<\/p>\n\n\n\n
Such investments have enabled Lakeland to significantly reduce the time it takes to restore power. \u201cSixty percent of our customers lost power due to Hurricane Irma,\u201d Mike reveals. \u201cWe restored some of the major damage and got a substantial number of those reconnected within the first 24 hours, but it took us a total of 12 days to restore power completely.<\/p>\n\n\n\n
\u201cHowever, if we compare that to the hurricane we experienced last year, where we had a similar volume of outage, we managed to restore power in just six days. This shows that the investments we\u2019ve made over the last five years or so have halved the time it takes for us to restore power to all those who lost it.<\/p>\n\n\n\n
\u201cWe\u2019ve also investigated the advantages of underground versus overhead power lines, but it can be more or less challenging depending on how populated an area is, as well as its geographical nature,\u201d he continues. \u201cWhile we are installing these lines where possible, we\u2019re strategic about the locations, as not all areas are a successful fit for underground cables, like areas prone to flooding, for example.\u201d<\/p>\n\n\n\n
First for us<\/strong> \u201cWe\u2019re quite excited about the generators, as it\u2019s the first installation of MAN Energy Solutions\u2019 engines for electric generation in the US,\u201d she adds. \u201cThey\u2019re 20 megawatts each and we can move them around to match demand, which is crucial as we increasingly rely on renewable energy, specifically solar.\u201d<\/p>\n\n\n\n Having graduated in 1981, Mike has a unique perspective on the industry\u2019s shift towards renewable energy, as he has directly witnessed the changes throughout his career. \u201cI started out designing and constructing many of the coal plants, as well as nuclear plants, that I then decommissioned later in my career,\u201d he reflects. \u201cIn fact, all the plants I previously worked on are now decommissioned.<\/p>\n\n\n\n \u201cI\u2019ve worked in nearly every piece of the jigsaw puzzle that makes up the industry: public utilities, an independent power producer, and a federal power company. Coming to Lakeland in 2015 was a fantastic opportunity to join a company that still maintained a very active generation \u2013 and it\u2019s not too bad seeing my career out in the sunny State of Florida,\u201d Mike laughs.<\/p>\n\n\n\n \u201cAlthough coal did a lot of great things for our country, it\u2019s time to move on to more sustainable sources,\u201d he proposes. \u201cIt also helps that as companies across the globe are trying to significantly lower their carbon emissions, the US is introducing additional incentives and federal grants to support the adoption of renewable energy.\u201d<\/p>\n\n\n\n Cathryn adds: \u201cWe\u2019ve also just signed a letter of intent with Emera Technologies (Emera) for their BlockEnergy proposition. The concept of micro grids is entirely new to the industry and proprietary technology for them, which we hope to move to fruition within the near future.<\/p>\n\n\n\n \u201cIt means the utility company will own the solar panels within a community, with the generated power shared between the neighborhoods. Each area will have batteries and backup generators to provide a closed system with near 100 percent reliability.<\/p>\n\n\n\n \u201cOne of Emera\u2019s existing micro-grid communities, which comprises 37 residential properties, was able to ride out the last hurricane without any loss of power,\u201d she goes on. \u201cIts design connects the community underground and allows it to be autonomously powered with reliable, renewable electricity.\u201d<\/p>\n\n\n\n Adaptable and sustainable<\/strong> \u201cOur internal focus will be smart devices, BlockEnergy and smart grids, and continuing to match our capacity to demand,\u201d he shares. \u201cPersonally, I think sustainability also refers to ensuring everybody can afford to access our power grid and be able to utilize clean, renewable power where possible.<\/p>\n\n\n\n \u201cAbove all,\u201d Mike concludes, \u201cwe want to position ourselves to be at the forefront of renewable energy developments, while maintaining affordable prices for our customers.\u201d<\/p>\n\n\n\n
Returning to the topic of renewable energy, Cathryn explains: \u201cWe closed our last coal plant in 2021 and we\u2019ve already reduced our carbon emissions by 50 percent. We\u2019ve also recently purchased six reciprocating internal combustion engines (RICE), which fire up much quicker than traditional gas turbines and can take on load in a matter of minutes.<\/p>\n\n\n\n
As our conversation draws to a close, Mike shares his vision for Lakeland\u2019s future. \u201cI want us to remain flexible yet stable, so that we can successfully adapt to market trends and sustainable developments as they arise. With sustainability dominating energy discussions, our workforce is energized and enthusiastic to help shape the world\u2019s energy transition.<\/p>\n\n\n\n