Commodities and Futures News

PJM check power supply for damage during storm in U. S.

2023.01.12 14:34


PJM check power supply for damage during storm in U. S.

By Tiffany Smith

Budrigannews.com – Officials said on Thursday that the largest power grid operator in the United States is looking into why suppliers were unable to provide the necessary power during a storm in late December, when customers narrowly avoided power outages as freezing temperatures fell.

Stakeholders and analysts predicted that generators could face fines of up to $2 billion if they failed to meet increased demand on three days in late December.

In order to keep power systems running, grid operator PJM Interconnection manages and pays on-call generators in a 13-state region. Generators may be required to pay the grid operator for additional power if they are unable to meet demand.

PJM officials said on Thursday that during winter Storm Elliott, more than 90% of the generators that failed gave less than an hour’s notice. PJM admitted underestimating demand by approximately 10%.

According to Brian Fitzpatrick, a fuel supply analyst at PJM, approximately 70% of the units that were short were natural gas-fired generators that experienced pipeline fuel losses from the Marcellus-Utica shale region.

Fitzpatrick stated, “There just wasn’t enough upstream supply to match the demand.”

The operator’s territory extends from New Jersey to Illinois and Washington, D.C., and it intends to publish the results of its investigation in April.

The main regulators of the power system, the Federal Energy Regulatory Commission and the North American Electric Reliability Corp., have started a larger investigation into issues with the bulk-power system’s operation during the freeze.

On-call generators were also blamed for failing to meet demand by grid operators in New England, which experienced some of the worst power outages of any major region during the cold blast. This resulted in fines totaling $39 million.

According to a note from research firm ClearView Energy Partners, PJM’s supply shortages could affect ratepayers. It has raised questions about how markets work.

ClearView Energy Partners stated, “We think that significant upward bill impacts – if they materialize – could further fuel the ongoing debate as to whether PJM’s capacity market is working as intended.”

More New rule on climate-related information by companies will be released in U. S.

PJM check power supply for damage during storm in U. S.

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