Houston — The Midcontinent Independent System Operator has declared a maximum generation emergency event for its central and north regions, driving up power prices with peakload forecast to jump.
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The step 1a event, in effect from 1 pm ET to 8 pm July 7, was upgraded from a maximum generation emergency alert and a maximum generation emergency warning previously issued by the ISO. The central and north regions also remain under conservative operations starting 1 pm July 6 until further notice.
"The warning provides additional guidance to market participants on actions they can take to assist MISO during challenging operating conditions," MISO Spokeswoman Allison Bermudez said. "The previously issued hot weather alert, capacity advisory and conservative operations declaration also remain in effect for the north and central regions."
A hot weather alert was issued July 1 and was later extended to last through July 10. A maximum generation capacity advisory went into effect at 8 am ET July 6 and remains in effect until further notice for the north and central regions, according to the ISO.
A step 1a event, or NERC emergency alert 1, calls for all available resources to be in use and the use of reserved not yet implemented, instructs generators to start offline resources with emergency pricing offer tier 1 still in effect, according to MISO's Operating Procedures.
MISO forecast peakload would jump 4% day on day to 118.35 GW July 8 from 113.75 GW July 7 and then continue to climb to 120.46 GW July 9. Load was around 111.88 GW at 1:45 pm ET July 7, above the forecast level of 111,351 MW for the hour, according to ISO data.
MISO was importing about 5,725 MW from the PJM Interconnection around 3 pm ET July 7, 39% more than scheduled, even as PJM was under its own hot weather alert for July 7-9, according to PJM data.
The increased demand for power boosted electricity prices in the grid operator's footprint.
Michigan Hub locational marginal prices were about $385/MWh at around 11:45 am ET July 7, while prices at all other hubs ranged from the mid-$20s/MWh to the low $40s/MWh, according to ISO data.
Indiana Hub on-peak balance-of-the-day for July 7 was trading in the low $40s/MWh on the Intercontinental Exchange.
Indiana Hub on-peak day-ahead was bid at $38.25/MWh and offered at $48/MWh for July 8 delivery on ICE, which would be the highest level seen since November. On-peak balance-of-the-week was bid at $39/MWh on ICE.
For comparison, Indiana Hub on-peak has averaged in the low $30s/MWh so far this month, 4.3% higher than where prices averaged a year ago, according to ISO data.
Indianapolis high temperatures are forecast to reach 90 degrees Fahrenheit July 7, some 5 F above normal, according to CustomWeather. Indianapolis highs were forecast to reach 91 F on July 8, 90 F on July 9 and 88 F on July 10.
MISO's grid delivers power across 15 US states and the Canadian province of Manitoba.