Case Study

Affordable Heating & Cooling for Co-op Members

Case Study Type:

Commercial, Residential

Project Status:

Date Published:

July 7, 2026

Benefits:

Energy Affordability | Infrastructure Investment

State:

Oklahoma

United States

Original Source:

CKenergy’s geothermal heat pump program proves that installing geothermal heat pumps for some saves money for all.

CKenergy Cooperative in western Oklahoma has demonstrated that widespread adoption of geothermal heat pumps can benefit an entire electric cooperative—not just the members who install them. Through a long-term incentive and financing program, the cooperative has helped install nearly 1,650 geothermal heat pump systems across homes, schools, and commercial buildings while improving system efficiency, reducing wholesale power costs, and avoiding electric rate increases for more than eight years.

Although CKenergy does not operate a Utility Thermal Energy Network (UTEN), its experience illustrates how utilities can leverage geothermal technologies to improve affordability, strengthen grid performance, and create long-term value for all ratepayers. The program has become a compelling model for utilities evaluating geothermal investments as part of future energy planning.

Key Findings

Nearly 1,650 geothermal heat pumps have been installed across the cooperative.
The cooperative has avoided an electric rate increase for more than eight years.
Savings from improved load factor allowed the geothermal incentive program to become self-sustaining after approximately 12 years.
Geothermal adoption lowered wholesale power costs, benefiting all cooperative members—not only geothermal customers.
Member adoption now continues primarily through word-of-mouth rather than active marketing.

Key Metrics

Residential Members: 18,000 residential meters
Total Systems Installed: ≈1,650 geothermal systems
Rate Increase: 0 rate increases in 8 years
Estimated Wholesale Power Savings: ≈$32 million
Heating Savings: Up to 50% winter energy savings

Challenge/Opportunity

Utilities often struggle to justify the upfront cost of geothermal heat pump incentives despite the long-term operational savings they can generate. CKenergy recognized that installation costs were preventing widespread adoption and sought a financing strategy that would benefit both participating members and the cooperative as a whole.

Solution

CKenergy created a cooperative-funded geothermal incentive program financed through a temporary system-wide rider on member electric bills. The rider generated funds for installation incentives while allowing members to access additional financing through low-interest utility loans. As geothermal adoption increased, improved load factor and reduced wholesale power costs eventually made the program self-sustaining.

Results

Nearly 1,650 geothermal heat pump installations
Six times the national average installation rate
Improved utility load factor
Approximately $32 million in wholesale power savings
Eight consecutive years without a rate increase
Lower long-term costs for all cooperative members
Increased member capital credits
Continued geothermal adoption through customer referrals rather than utility marketing

Lessons Learned

[mission_geo_lessons_learned]

Utility incentives can overcome high upfront installation costs.
Cooperative ownership enables long-term investment decisions that benefit all members.
Improving load factor can reduce wholesale electricity costs.
Geothermal heat pumps can create system-wide savings beyond participating customers.
Financial benefits combined with improved comfort drive continued adoption.

Quotes & Testimonials

“We haven’t had a rate increase in eight years, and we are years away from one now.”

– Boyd Lee, retired Vice President of Strategic Planning, CKenergy