DOE issues emergency order as SPP, MISO extend weather-related grid advisories

Continued hot weather is driving the Midcontinent Independent System Operator and Southwest Power Pool to extend weather-related grid advisories as the US Department of Energy issued an emergency order to SPP, which could break a peakload record on July 27.

The DOE issued an emergency order to keep the power on during the region's energy emergency brought on by hot weather conditions, the DOE said in a July 26 statement. The order, in effect from July 26 through Aug. 3, directs SPP to dispatch specified generation units and to order their operation as needed to maintain reliability. The order also authorizes SPP to direct backup generation resources to operate as a last resort before declaring an Energy Emergency Alert 3 or during an EEA 3.

The order is intended to provide SPP with additional operational flexibility through Aug. 3 if an energy emergency occurs, SPP spokesperson Seth Blomeley said July 27.

"The order allows SPP to work with generator operators to temporarily identify resources currently with limitations that could be lifted so those resources can provide energy to support grid reliability," Blomeley said. "The order does not direct resources to operate immediately; it simply provides the authority to utilize qualifying resources if emergency conditions warrant."

At this time, no generation has been dispatched under the authority of this DOE order, he added. SPP and its stakeholders are currently assessing available resources to determine which generating facilities could provide additional energy if necessary.

"Current forecasts indicate that conditions should improve as peak summer demand begins to moderate later this week," Blomeley said. "Assuming those conditions materialize, SPP anticipates returning to normal operating conditions."

DOE Secretary Chris Wright wrote in the order that he determined an emergency exists "due to a sudden increase in demand, a shortage of electric energy, a shortage of facilities for the generation and transmission of electric energy, and other causes."

"I direct SPP and backup generation resources defined below to comply with this order," Wright wrote in the order. "SPP is authorized to call upon its transmission owners to implement this order as needed."

Based on discussions with SPP leadership and continued hot weather conditions, SPP verbally requested an order to allow specified generation units to exceed their operating limits as necessary to ensure reliability and requested authority to unlock and deploy backup generation resources at data centers and at other large load industrial and commercial customer sites as another tool to mitigate any undue risk to the bulk-power system, according to the order.

SPP market conditions

According to SPP data, peakload reached 56.553 GW at 4:50 pm July 27, which would set a new all-time peakload record. SPP did not immediately return a request for comment regading setting a new peakload record. Rising temperatures are driving up cooling demand across the region. SPP forecast peakload at 58.53 GW July 27, 6% higher day over day. If reached, it would break the record of 56.184 GW reached on Aug. 21, 2023. Looking ahead, peakload was forecast around 54.5 GW July 28-29, 52.35 GW July 31 and below 50 GW into early August.

SPP ended the Energy Emergency Alert 2 for its West Balancing Authority Area on July 24, but remains under a conservative operations advisory through midnight Aug. 1 based on forecasts of potential high peak loads due to widespread high temperatures, potential increase in resource outages and potential low output from wind and other variable energy resources leading into peak hours, the grid operators said late July 24.

In addition, SPP's East BAA is under a resource advisory through 7 pm July 30 due to high loads, forecast uncertainty, and severe hot weather.

Above-average temperatures are driving the grid advisories. Population-weighted average temperatures are forecast at 89 F July 27 and 85.2 F July 28, which is 12.5% higher than the historical average, according to CustomWeather data. Forecast temperatures through the rest of the week are 83.8 F July 29, 82.8 F July 30, 83.2 F July 31, and then falling to around 80 F into early August.

Potential record-breaking load is pushing up wholesale power prices. SPP South Hub on-peak day-ahead traded at $53.75/MWh for July 28 delivery on the Intercontinental Exchange, 17% lower than the previous day's settlement. North Hub on-peak day-ahead was bid at $65/MWh and offered at $95/MWh.

Real-time prices at North Hub were over $350/MWh as of 2:50 pm CT July 27, while South Hub was around $56.25/MWh and West Hub was below $25/MWh, according to SPP.

So far in July, North Hub on-peak day-ahead locational marginal price has averaged about $69.25/MWh, 44.3% higher than the July 2025 monthly average and up 85% month over month, according to SPP data. The South Hub on-peak day-ahead LMP has averaged about $73.75/MWh, 6.7% lower than a year ago, but 22% higher than the June average.

MISO footprint

MISO's south, central and north regions are under a hot weather alert with temperatures expected to reach above 100 degrees F, according to the alert. The central region's alert runs through July 28, while the south and north regions' alerts run through July 29.

MISO's central region is under a severe weather alert through midnight July 27 due to severe thunderstorms with damaging straight-line winds, large hail and the potential for isolated tornadoes, according to the alert.

Population-weighted average temperatures across the MISO footprint are forecast at 82 F July 27, which is 8% higher than the historical average, according to CustomWeather data. Forecast temperatures through the rest of the week are 76.2 F July 28, 74.7 F July 29, 75.2 F July 30-31 and 76 F Aug. 1.

Due to the expected hot weather, MISO forecast peakload at 125.498 GW July 27, 6% higher day over day. Looking ahead, peakload is forecast around 118.66 GW July 28, 114.23 GW July 29-30 and 109.8 GW July 31, before decreasing to about 103.5 GW Aug. 1.

MISO's all-time peakload record of 127 GW was set on July 20, 2022.

Above-average temperatures and strong demand are driving up wholesale power prices. MISO's Indiana Hub on-peak day-ahead traded at $65.45/MWh for July 28 delivery on ICE, 45% lower than the previous day's settlement. The balance-of-the-week package was bid at $45/MWh and offered at $64/MWh on ICE.

Real-time prices in MISO's south region were in the $50s/MWh to $60s/MWh as of 2:45 pm ET July 27 and prices in the central region ranged from the $80s/MWh to nearly $150/MWh, while in the north region, the Minnesota Hub was over $220/MWh, according to MISO.

Prices have been trending well above year-ago levels due to hotter temperatures. The Indiana Hub on-peak day-ahead LMP has averaged about $117.50/MWh so far in July, 103.6% higher month over month and 46.5% higher than the year-ago monthly average, according to MISO data.