In the United States, there are three general types of electrical suppliers. They are: Investor-Owned Utilities (IOU) Municipally Owned Utilities (MUNI) Customer Owned Rural Cooperatives (Co-op) Investor-Owned Utilities include big names in Electrical & Natural Gas distribution such as Con Ed, Florida Power and Light, and Pacific Gas & Electric. These are investor-owned utilities. There Read more
Jay Egg

In the United States, there are three general types of electrical suppliers. They are:
- Investor-Owned Utilities (IOU)
- Municipally Owned Utilities (MUNI)
- Customer Owned Rural Cooperatives (Co-op)

Investor-Owned Utilities include big names in Electrical & Natural Gas distribution such as Con Ed, Florida Power and Light, and Pacific Gas & Electric. These are investor-owned utilities. There are 168 IOUs in the US that serve about 110 million customers. They are regulated by their respective Public Service Commissions (PSCs) and must conform as a regulated monopoly.
Municipally Owned Utilities (there are 958 of them) include names like Rochester Public Utilities, Tampa Electric Company, and Philadelphia Gas Works. Since these utilities are owned by a municipality or another government agency, they are regulated by their owners, meaning the city or community.
Customer Owned Rural Cooperatives (there are 832 of them) include names like Texas-based Pedernales Electric Cooperative, The Nebraska Rural Electric Association, and New Jersey’s Sussex Rural Electric Cooperative. These utilities exist to bring the best services possible to their consumers, and they are run by the folks that pay also pay for the energy.
Investor-owned electric utilities are typically regulated and operate as vertically integrated monopolies with oversight from public utility commissions. They may operate in deregulated markets in which electric energy prices are set by the market and are subject to federal oversight of their wholesale market.
Before 1990, most investor-owned electric utilities were regulated and vertically integrated. That means that the utilities own electricity generators and power lines (both distribution and transmission lines). Presently about 30% of US electricity demand is serviced by these fully integrated utility markets. In much of the US, states have abandoned this system in favor of deregulation.
In traditionally regulated regions, utilities operate as a monopoly in their territories. That means that customers only have the option to buy power from them. To keep electricity rates reasonable, state regulators oversee these electric utilities and set electricity prices. Retail electricity prices are set based on the utility’s operating and investment costs alongside a fair rate of return, which is called a “revenue requirement”. This revenue is approved by the state’s public utilities commission and prevents utilities from overcharging customers for energy.
Smaller rural electric cooperatives power 56% of the American landscape, serving 42,000,000 residents, including 92% of impoverished counties.
There has been tremendous publicity for geothermal technologies. Direct use and enhanced geothermal systems are providing incredible baseload electricity and thermal energy for infrastructure. Geothermal technologies are strategically vital toward management of peak demand on the grid. The wide-spread power outages in Texas (2021) are an example of a runaway peak demand in the heating season.
“Ground Source Heat Pumps (GSHPs) are the key to managing demand on the electrical grid.”
With the high demand for air conditioning in the summertime, why would a wintertime freeze cause the electrical grid to “spike” as we saw in Texas in 2021? Most people know that air conditioning loads in the middle of August usually drive the greatest demand on the grid. However, electric heaters & air source heat pumps (ASHPs) are often used to handle peak heating loads, and they can double or triple that peak demand in the wintertime, when compared with summertime demand. Here’s a primer on how and why that is:

Energy Facts:
- 1 watt of electricity = 3.412 BTUs
- I kW of heat consumed by an electric heater = 3,412 BTUs of heat output
- I kW of heat consumed by an electric Geothermal Heat Pump (GHP) = 17,060 BTUs of heat*
- It takes 20% the kW to do the same heating with a GHP *(@5.0COP)
As it gets colder outside, Air Source Heat Pumps (ASHPs) must work harder to extract heat from the air. Geothermal Heat Pumps (GHPs) continue to have high efficiency operation regardless of outdoor temperature (because underground temps are reasonably stable).
Cold temperatures can reduce the efficiency of heat pumps, simply because it’s hard to extract heat from outside air as it gets colder. The efficiency of ASHPs drops as it gets colder outside, just as the gas mileage efficiency of a car drops when it’s climbing a hill. Geothermal heat pumps are not normally subject to drastic temperature fluctuations, because they’re coupled with the temperature in the shallow earth, which ranges between about 45 and 75 degrees in the US.
There have been a few Customer-Owned Rural Cooperatives (Co-ops) in recent decades that have been able to capitalize on reduced demand in summer, and increased revenue from electric GHPs in the winter. Look at the demand of two identical office buildings in Oklahoma. One has air-source heat pumps (ASHPs), the other, geothermal heat pumps (GHPs):

It’s obvious that there is a demand reduction in the summer, but the winter savings & peak demand reduction are remarkable. Here are some figures from Boyd Lee, an employee of CKenergy in Oklahoma:
- 2000 new GHPs replaced (both new construction and replacing gas furnaces)
- 4800kW Demand Reduction = $835,000/year.
- New sales totaled an additional 2,600,000 kWh, or about $260,000.
- Net annual increased revenue = $1,095,200.
What this means is that the electrical cooperative has more than $500 per year per home in additional income by going with a geothermal solution when compared to air sourced heat pumps. Electrical utilities typically look for payback in 60 years or less for infrastructure improvements such as power plants or distribution lines. Using that same logic, the utility has $30,000 per home to pay for the upgrades. That will more than cover the cost of the geothermal solution. And while ASHPs last 10 to 15 years, the GHP will last closer to 30 years because it can be installed all-indoors, and has a more stable heat exchange source, meaning it has much better working conditions.
Geothermal Exchangers Extract Energy from the Earth
The geothermal heat pump solution in the CKenergy case totaled 5142 Tons of capacity, and reduced demand by 0.65 kW per ton. That represents a 3.4 MW peak energy generation by the geothermal exchangers in the CKenergy case. Note that they see the geothermal exchangers as a source of energy, producing 3.4 MWs, removing that electrical load from the grid.
Energy Poverty
1 in 4 households served by electric co-ops have an annual income below $35,000. Electric co-ops delivered 4.8% more electricity in 2022 than in the previous year.
Unlike the rest of the electric sector, electric co-ops sell most of their power — 53% — to households. Keeping rates affordable is especially important for these consumers at the end of the line. -NRECA analysis U.S. average annual residential electricity bill: $1,644
Electrical co-ops are perfectly poised to create demand side management (DSM) program setting include deep subsidies for geothermal heat pump (GHP) installations. The numbers seem to bear out a model that could allow the Co-op to pay for the entire ground loop exchanger and offer “on bill financing” for the GHP, electrical, and distribution upgrades needed. With 92% of persistently impoverished communities paying energy bills to electrical cooperatives, these are the folks that could truly benefit with some relief from high energy costs. The cure to energy poverty can be partially met through this demand side management since their energy bills will be drastically reduced with GHPs.
What’s next? We will see electrical co-ops begin to take advantage of this remarkable opportunity, and millions of geothermal heat pumps will be installed over the next 20 years in cooperative communities. As these cooperatives begin to understand the demand side value of GHP’s, they will embrace the opportunity to utilize the energy source that is the earth for heating and cooling within their service areas.
Jay Egg is a geothermal consultant, speaker, writer, and the owner of Egg Geo. He has co-authored two textbooks on geothermal HVAC systems published by McGraw-Hill Professional. He can be reached at jaye@egggeo.com.
Mimi Egg is a social media marketing professional, writer and media technical consultant for Egg Geo, focused on building online connections and educating on social media platforms. Her desire to educate the rising generation about green, sustainable living is a major focus in her career. Egg may be reached at mimieggshell@gmail.com

Geothermal heating and cooling is a well-established technology; it’s been around in simplistic forms for more than half a century and has developed at an impressive rate to become a technology that is providing real solutions for decarbonization and grid management. In its years of growth and innovative development, geothermal has taken on many different Read more
Geothermal heating and cooling is a well-established technology; it’s been around in simplistic forms for more than half a century and has developed at an impressive rate to become a technology that is providing real solutions for decarbonization and grid management. In its years of growth and innovative development, geothermal has taken on many different forms and variations, all of which have their own unique benefits.

The Vanderbilt Breakers Mansion saves $36,000 a year with Direct Geothermal Exchange.
The first recorded closed-loop geothermal design installed was a water-free direct exchange geothermal system in 1945. Robert C. Webber (1911-1984) is acknowledged by most to be the inventor of the ground-coupled heat pump system. In fact, according to a September 1948 issue of “The Refrigeration Industry,” Webber was the first to heat his seven-room home in Indianapolis by reversing the cycle on his home freezer. The issue featured Webber as The Refrigeration Industry’s “Man of the Month.” Webber’s “freezer in reverse” was also featured in Ripley’s Believe it or Not in 1948.

Caption: Robert C. Webber (1911-1984)
Direct geothermal exchange (DGX) waterless geothermal systems, also known as direct exchange systems, offer an innovative and sustainable way to heat and cool your home without requiring water in the loop for heat exchange. Unlike many other types of systems, DX uses a closed-loop refrigerant circuit to release heat from under our feet, eliminating the need for water that other systems require. One of the most vital benefits of Direct Exchange Waterless Geothermal is how efficiently it produces year-round temperature control using safe, reliable refrigerants.
There are many pioneers within the sustainable and renewable energy field, one of which is Bill Buschur, President of Total Green Manufacturing. Bill is a recognizable figure within the geothermal industry, and within the niche of waterless geothermal, with a history in the development of the technology used today. For reference, back in 1980, EarthLinked Technologies (ETI) established itself as a research company in the geothermal industry, becoming the original direct exchange manufacturer. It continued to have great success over the years as it carved out a niche in the geothermal industry. ETI partnered with Total Green Mfg. for five years, and Total Green acquired the 38-year-old DGX Manufacturing company.

Total Green Crew installs a DGX system.
A little history
“At around 12 years old, I began to ride along with my father in the service truck and I would run back and forth from the truck to get him tools or the parts he needed to make the repairs,” Buschur shared with us, “As I got a little older, I began building geo ground loops. I remember we had two football practices a day, and I would come home and build loops for the rest of the day. Eventually, I began to go to the job site with other crew members and help with the installation process.”

Young Bill Buschur working on site.
One of the keys to innovation is passion, and Bill Buschur has no issue with showing his passion through actions and incredible results. Bill has grown his business from a hard-working crew of only four people to becoming the largest direct exchange geothermal contracting company in the U.S., installing over 100 DX systems on a yearly basis.
Establishing the Waterless® brand was no small feat for Bill, but after earning a degree in Business Management and a refrigeration certification, topped off by 30 years of experience in geothermal heat pump technology, he’s become the driving force behind the biggest name in Direct Geothermal Exchange nationwide.
Quality is vital in any field, but Bill has ensured that his geothermal direct exchange units are to the highest standard, stating, “Dad always taught us that ‘If you don’t do things right the first time, you’ll end up doing it again’”. So we made sure we didn’t cut any corners when it came to Designing and Installing a geothermal system.”. This has been a key factor in how effectively Total Green has kept up with the latest technology.
At the end of the day, the million-dollar question is, “Are direct exchange waterless geothermal systems as efficient as water-based geothermal systems?” The answer is yes. Past criticisms of DX systems have primarily revolved around the question of environmentally friendly refrigerants. Today modern DX systems use advanced refrigerants that are both environmentally friendly and efficient with heat transfer, which will enhance the performance of the system altogether.

Bill Buschur in his younger years learning the trade (right).
We’re fortunate to have so many diverse options when considering which geothermal system to choose from, accompanied by so many industry pioneers behind each system. As we continue to push for the world to embrace and prioritize sustainability and energy efficiency, minimizing negative environmental impact and using the natural resources given to us, we should make a conscious effort to do so as one piece of that ever-forming puzzle. Any and every geothermal system contributes to a brighter, greener, world-changing future for us and generations to come.
We are on the same team, we are in the same boat, and we are a part of the geothermal heat pump revolution, changing the world for the better.
Mimi (Hannah) Egg is a Social Media Marketing Consultant with a passion for writing and researching. She has overseen the social media accounts for multiple private and corporate organizations and is constantly learning new ways to understand and optimize demographic outreach and form beneficial business connections through social networking for her clients. She can be reached at Mimieggshell@gmail.com

New York City sees it, and they don’t have a water shortage. Nashville Airport sees it, and they’ve got plenty of water. I hear that even Disney in Florida is doing it. We’d all better know how to do it, or we’ll be playing catch-up. What is it? “It” is cooling- tower-elimination by going Read more

New York City sees it, and they don’t have a water shortage. Nashville Airport sees it, and they’ve got plenty of water. I hear that even Disney in Florida is doing it. We’d all better know how to do it, or we’ll be playing catch-up. What is it?
“It” is cooling- tower-elimination by going to geothermal. If cooling towers were ever “cool,” they have lost their charm (LA Times; NY Times). Cooling towers in commercial buildings are the number two consumer of potable water, using more water than landscape irrigation or the office cafeteria/kitchen facilities. Only the restrooms use more water (national average) than cooling towers in commercial buildings.

In Tennessee, the Nashville Airport is in the process of going 100% geothermal. They will no longer need their cooling towers or boilers. Universities and schools all over the country are going geothermal. In New York City, a new law will require all city-owned buildings to go geothermal when upgrading or building new. What’s the stipulation? They must show a payback in less than 20 years. How much would you like to bet they all fit that category? Save your money, they are all going to be geothermal.
As of 2010, there was 81 billion square feet of commercial space in the US, about 60% of it utilizing cooling towers. That doesn’t count the industrial (commercial and manufacturing) and residential (apartment buildings such as high rise) applications. In fact, the US could save 2 trillion gallons of water each year by converting to geo, not to mention the incalculable combustion heating and resulting CO2 emissions that would be eliminated. That’s enough water savings for the household needs of every person in California AND Georgia for an entire year. Another way to look at 2 trillion gallons is in a swimming pool scenario. A 2 trillion gallon swimming pool 5 feet deep would need to be 1 mile wide by 2000 miles long.
Geothermal sources can be tied to geothermal heat pumps (GHPs), chillers, reversing chillers, swimming pool heat pumps, ice rinks, you name it. Geothermal loops are an abundant source for heating, and a super-efficient repository for heat-sinking (as in cooling; rejecting heat).
Hydronically speaking, geothermal adds unprecedented benefits and possibilities. Moving beyond the scale of single buildings, think of a block, or as it’s sometimes referred to; a “grid.” In the winter the residential apartments are going to need heat at the same time as the commercial buildings are rejecting heat (commercial buildings are often nearly 100% cooling dominant due to internal gains). Instead of those commercial buildings rejecting heat to the outdoors through the cooling towers, that heat is now confined in a geothermal pipe-line, easily distributed to the heat-hungry GHPs serving the residential apartments; energy synergy at its best! It’s not just a theory; read on and I’ll explain how you can learn more about this in a webinar coming next month…
There are several other advantages to cooling tower elimination beyond water and energy savings.

Geothermal is beginning to be legislated into new construction and retrofits. The federal government already does it. Cities and states are working on it. Elimination of combustion heating and the resulting CO2 emissions are a hot topic right now, and only geothermal can make that happen*. It’s only a matter of time until we will all be doing it, so let’s beat the learning curve and get involved now with geothermal industry organizations, GEO and IGSHPA.
CaliforniaGeo is doing a webinar on February 4th that features three case studies that expand upon the replacement of cooling towers with geothermal heat exchange technology. This is the low hanging fruit that can achieve permanent water conservation and increase benefits and comfort. By request, CaliforniaGeo is placing this webinar online, live for a second time. As I mentioned earlier, one of the case studies will illustrate thermal load shifting/sharing.
https://www.californiageo.org/news/two-californiageo-webinars-could-boost-your-sustainability/
Jay Egg is a geothermal consultant, writer, and the owner of EggGeothermal. He has co-authored two textbooks on geothermal HVAC systems published by McGraw-Hill Professional. He can be reached at jayegg.geo@gmail.com.
*…with the exception of electric resistance heating. Electrical resistance heat consumes 300% to 500% more energy than a GHP.