Watts Next: How Electric Co-ops are Using AI & Emerging Technologies

September 17, 2025

Energy efficiency concept. Businessman use laptop with energy efficiency rating system on virtual screen for energy efficient house building rate label audit.

AI is like an eager retriever – it collects data and information quickly and brings it back. However, the answer provided is only as good as the data it’s derived from. One significant flaw with open AI sources is that the data and information are not necessarily reliable, like the well-meaning retriever that brings its owner the neighbor’s paper. If the data sets or information are incomplete or presented in a way that AI can’t understand, it affects the answer. AI scours and aggregates the internet for information on your selected search topic; it does not take a deeper dive, compare and consider sources, weigh the veracity of the information, and return a curated, accurate response, the way a human would research a topic.

This makes it all the more remarkable when considering the widespread use of AI in the energy industry. Utilities are typically one of the most cautious, risk-averse industries in the economy, and with good reason. They carry the heavy burden and responsibility of ensuring that the lights stay on 24/7. However, IBM’s 2023 Global AI Adoption Index found that 74% of energy and utility companies surveyed have either implemented or are actively exploring AI. The potential for its use is enormous, but so are the risks. That’s why utilities, while exploring the uses of AI, are also treading cautiously, and it’s why the integration of AI has been gradual.

In light of the risks, the National Rural Electric Cooperative Association (NRECA) recently advised its 900-plus member electric co-ops to develop an AI policy that governs the use of AI. NRECA developed a sample AI policy guide for its members. The free guide can be tailored for use by individual member co-ops.

Despite the increased risks associated with AI, the AI adoption numbers are not startling, considering that forms of AI have been around for more than a decade. The use of AI has been gradually integrating into all aspects of commerce and the economy. Utilities have been incorporating them into their smart meters, apps, and other systems and operations. The integration of AI into the energy sector is paving the way for smarter grids, more efficient energy use, and a more resilient infrastructure. Just ask Alexa!

A smart electricity meter measuring a home's energy consumption — Smart meters provide real-time data, helping co-ops improve efficiency and better serve their members.

AI in the (Utility) Wild

Here are some notable examples of how utilities are utilizing AI to drive innovation. Tracy Warren, principal at Cirrus Communication, a company focused on technology and policy education in the energy industry, observes that,

While the projected increase in electric demand from data centers to support AI development presents an enormous challenge to utilities, AI applications themselves can help solve the problem they create by shortening the time it takes to connect new generation. In a study conducted by MISO’s Interconnection Working Group, one AI application reproduced the manual study of a large interconnection cluster—which took nearly two years to complete—in just 10 days, arriving at largely similar results.“

There are more than 900 electric cooperatives across the country, and many have been innovating and utilizing AI to enhance the utility’s operational efficiency, consumer engagement, and customer service, as well as to improve grid resiliency and strengthen cybersecurity efforts. Below is a sampling of how electric cooperatives are utilizing AI and emerging technologies.

Emily Thomas, Marketing Manager for Hendricks Power Cooperative in Avon, Ind., reports that,

We’ve integrated Bidgely into member SmartHub accounts, making it easier to analyze household energy use and offer personalized suggestions to help reduce consumption. Internally, we are researching using AI for load and financial forecasting, vegetation management satellite imaging for maintenance, generating programming code, budgeting pole replacements, and more. AI is boosting co-op efficiency and accuracy in different areas. As this technology advances, so do the threats, so keeping member data secure is an ongoing priority. We are currently working on developing a children’s book based specifically on our co-op and using AI to generate the illustrations.”

Dairyland Power Cooperative in LaCrosse, Wisc., developed VoltWrite, a proprietary AI platform to enhance operational efficiency. The co-op has made this tool available to other electric co-ops on a sliding subscription basis. The tool is used for generating data, text, video and images to help anticipate and plan needed maintenance.
Vermont Electric Cooperative in Johnson, Vr., is using AI software to identify vulnerable areas within its power grid that are at risk for damage in severe weather events. Given the small co-op’s limited budget and resources, this investment in technology is helping to make their response to severe storms more efficient.
Paulding Putnam Electric in Paulding, Ohio, created a cybersecurity training program featuring tailored phishing emails based on their employees’ email use to help the co-op defend against cyber attacks.

System hacked warning alert on notebook (Laptop). Cyber attack on computer network, Virus, Spyware, Malware or Malicious software. Cyber security and cybercrime. Compromised information internet. — AI-powered defenses help co-ops stay one step ahead of cyber threats.

Butler Rural Electric Cooperative in Oxford, Ohio, sponsored a capstone project for college seniors that uses AI to manage rolling blackouts. The project helped to inform planning for a preliminary load-shedding plan by the co-op.
Cooperative Energy in Purvis, Miss., is one of many co-ops that use drones to inspect and survey power lines, take videos and photos, and map images for more efficient line and equipment maintenance and for vegetation management. Drones are also used to assess damage after storms and severe weather events.

An engineers or technician are launching drones to inspect the power station for a planned work by generating electricity from a high-voltage transmission tower. — Drones give co-ops a bird’s-eye view of their systems, helping crews inspect power lines, assess storm damage, and manage vegetation more efficiently.

Bandera Electric Cooperative in Bandera, Texas, created Apolloware, a proprietary software and smartphone app that enables their consumer-members to track their energy use in real-time. It also informs them of the energy consumption and cost of a given appliance, allowing consumers to monitor and adjust their energy use at any time.

Tracking energy use in real time with Apolloware.

JCE Co-op in Elizabeth, Ill., uses VR technology to develop virtual environments that mimic co-op substations, enabling employees to navigate the site using VR goggles. On the lighter side, they also created a virtual reality bucket truck demonstration that is a popular feature at their annual meeting.

Innovation with Intention

As AI and emerging technologies continue to evolve, electric cooperatives are proving that innovation doesn’t have to come at the expense of reliability. By balancing curiosity with caution, co-ops are finding ways to harness AI’s potential while staying true to their core mission: keeping the lights on and serving their members. From smarter grids to personalized tools, the possibilities are exciting—but so is the responsibility. For co-ops, the future isn’t about chasing every shiny new tool; it’s about putting technology to work in ways that strengthen communities, improve resilience, and build a more sustainable energy future.