On May 12, MISO declared a Maximum Generation (Max Gen) Warning. MISO uses Max Gen procedures to help address grid constraints. In some circumstances, system conditions during a Max Gen scenario will call for electricity demand reduction measures, such as the use of our load management program. On this day, OEC worked closely with DPC to be prepared in case there was a need to reduce our cooperative’s electricity demand. Luckily, we did not have to do anything further than to prepare.
Experiencing a Max Gen Warning so early in the season could be a sign of things to come. A press release from MISO in late April, and the short-term outlook from the U.S. Energy Information Administration, warn of a potential shortage of available generation resources during peak electricity demand this summer.
Some key reasons for the shortfall include:
- Higher, volatile natural gas prices in the United States.
- Coal-fired and nuclear power plant retirements outpacing the installation of new generation resources.
- A significant amount of new generation resources coming online are wind and solar, which are intermittent and not always readily available.
- Electricity consumption continues to return to pre-COVID-19 pandemic patterns, increasing in the commercial and industrial sectors.
