MISO says it has 18.2% reserve margin headed into summer

Despite power plant retirements, the Midcontinent ISO (MISO) says it is in good shape for the summer air conditioning season with an 18.2% reserve margin that is slightly above MISO’s reserve margin requirement of 15.2%. 

MISO said May 10 that it expects summer demand to peak at 125.9 GW and 148.8 GW of capacity will be available to meet demand. 

Generation retirements across the MISO footprint are driving a tightening of available generation across the region. These tight operating conditions, coupled with hotter weather, increase the likelihood of needing to rely on emergency operating procedures to gain access to additional resources to ensure reliability.

“MISO and its members have worked hard to ensure reliability this coming summer,” said Todd Ramey, vice president of system operations. “While we are predicting adequate resources, generation retirements across the region create a new operating reality. 

“MISO will continue to work with stakeholders to make sure MISO is well-positioned for the future,” Ramey said.

MISO works closely with member companies to prepare for increased demand on the system during hot summer months to ensure reliability is maintained. MISO is holding six Summer Readiness Drills with MISO operators, members and Market Participants to review emergency operating procedures and test communication protocols. 

Additionally, stakeholders can participate in the Summer Readiness Workshop to ensure the region is ready for potential extreme weather conditions.

With the addition of the MISO South region in 2013, MISO is focused on preparing for the possibility of hurricanes. MISO has convened a Hurricane Readiness Team to identify and address any gaps in current operating plans. MISO is working closely with its members in the South region to coordinate on hurricane preparedness and contingency planning. 

MISO continues to work with stakeholders to address long term resource adequacy needs through a range of efforts.  This includes providing increased transparency around future resource projections with the Organization of MISO States (OMS) – MISO survey.  Additionally, MISO continues to work with stakeholders to improve MISO’s resource adequacy construct around locational and seasonal issues. 

It could be a warm summer for MISO

The summer of 2016 could be warmer than normal with normal precipitation, according to documents released by MISO.

The National Weather Service Climate Prediction Center suggest the above average temperatures through the season are consistent with the El Nino climate conditions recently experienced, which may continue into early autumn.

Lower demand has partially blunted the impact of unit retirements, according to MISO. The 2016 Summer Coordinated Seasonal Assessment (CSA) should be completed by the end of May, according to MISO.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.