Grid operators in central US issue advisories amid high load, low wind

MISO, SPP issue operational advisories amid high load, low wind

The Midcontinent Independent System Operator declared conservative operations for June 23 in its North region and the Southwest Power Pool declared a resource advisory for June 26 in its entire footprint, citing concerns about high load and other issues, but the impact on prices was muted.

In MISO, Indiana Hub day-ahead on-peak saw bid activity at $41/MWh on the Intercontinental Exchange during June 23 delivery for June 26 delivery, up $4.50 from its previous settlement of $36.50/MWh.

SPP South Hub day-ahead on-peak was bid at $35/MWh and offered at $49/MWh, in range to its previous settlement of about $40.25/MWh.

MISO said it was declaring conservative operations in many northern regions due to high loads and heavy transfers into the area.

"Although reserves were adequate this morning, tight conditions remain as higher demand from the hot weather could erode reserves," Brandon Morris, a spokesperson for MISO, said in a June 23 email.

Low wind output

"Wind output has been low again today, forecasted at less than 10% at the peak hour, and congestion will continue to create challenges with getting energy into the North region," Morris said.

Wind was forecast to be about 3,150 MWh at the time of peakload on June 23, according to MISO's multi-day forecast. In comparison, wind is expected to produce 12,443 MWh at the peak hour on June 24, the forecast said.

In preparation for these operational challenges, MISO committed long-lead generation to prepare for the day, Morris said.

In the MISO region, high temperatures were expected to be in the 90s Fahrenheit on June 23, according to the National Weather Service. MISO load is expected to peak at 100.73 GW on June 23, according to MISO's Look Ahead Report. That peakload is above the five-year average of 94 GW for that day but below the five-year maximum of 113 GW.

MISO meteorologists had predicted that this summer's heat would likely be front loaded in June rather than July or August. MISO had projected June load would likely peak at 115 GW, and that it would have sufficient capacity to cover peakload if there is a typical amount of generation outages.

MISO's outlook assumed that intermittent capacity would be available at monthly expected generation levels during seasonal peak hours.

SPP advisory

SPP said it was declaring the resource advisory for all hours of June 26. "The advisory has been declared in anticipation of higher-than-normal generator outages, high demand for energy, and uncertainty regarding wind forecasts," SPP said in a notice.

To mitigate risks, SPP may use greater unit commitment notification timeframes, including making commitments prior to standard day-ahead market procedures and may commit resources in reliability status, the notice said.

In SPP, high temperatures on June 26 are expected to be in the 90s F in the southern portion of the footprint, with highs creeping toward 100 F in Oklahoma and northern Texas. SPP's forecast peakload for June 26 was not immediately available.