Dive Brief:
- Texas avoided rolling blackouts, but the Electric Reliability Council of Texas is urging people to cut back on electricity use and has triggered demand response programs for larger energy users. Reserve margins fell below 1,750 MW Monday.
- The PJM Interconnection issued a “maximum emergency generation alert” for Tuesday when the grid operator expects record demand. Natural gas deliveries to power plants might be cut back because of the weather, PJM said. Average next-day power prices doubled in PJM trading hubs to $225/MWh.
- PJM expects peak demand Tuesday to hit 140,000 MW, above the February 2007 winter peak of 136,675 MW. In the Midwest, real-time prices spiked over $1,000/MWh Monday.
Dive Insight:
With the lowest temperatures in about two decades spreading across the eastern two-thirds of the U.S., utilities and grid operators are calling on conservation and demand response programs to keep the power flowing. The "arctic vortex" weather is exactly what utilities spend months and millions planning for. So far, the grid appears to be holding up despite the severe stress.