Dive Brief:
- Tenaska Capital Management's decision to connect a power plant located in the Midcontinent Independent System Operator (MISO) territory with the PJM grid has left lower Michigan with an increased capacity shortfall beginning in 2016, MISO said.
- The 3,000 MW shortfall is contractual and not a need for new power plants, Platts reported. More commercial deals are needed to combat the capacity deficit, according to a MISO official.
- The lower Michigan region, known as Zone 7, is MISO's largest capacity shortfall. Zone 6, which includes Indiana, Kentucky and Ohio, will see a 1,200 MW deficit.
Dive Insight:
Tenaska's decision to connect a 1,100 MW plant near South Haven, Mich., to the PJM grid has led MISO to boost its shortfall estimates for lower Michigan by about a third, to 3,000 MW beginning in 2016, Platts reported. The news outlet quoted Clair Moeller, MISO executive vice president of transmission and technology, as explaining "Michigan is where there is the most turbulence in terms of generation committed to the MISO market."
But a lack of physical capacity is not the issue, MISO officials explained during a system planning committee meeting. Commercial transactions can be used to meet demand, which open up options like demand response and importing nuclear power.
