A Summer version of the January 2021 Texas Freeze, which saw multi-state electric outages, given the deficiencies of U.S. power generation and distribution, is now forecast for many parts of the U.S.
In Illinois, where President Biden visited May 11, promoting the idea of building 500,000 car- charging stations across the country, electricity brownouts and price hikes are set for this Summer. Crain’s Business reported April 19, “Electricity costs will soar beginning in June in central and southern Illinois, due to inadequate power supplies following coal-fired plant closures.” Customers will be socked with more than $150 more on their yearly power bill, due to the supply limitations, and will have to suck up outages.
In California, the Independent System Operator, which oversees the power grid, warns of blackouts, because gaps in supply are likely, given that “the temperatures are still high, the demand is relatively high,” said Mark Rothleder, ISO Senior Vice President, according to the Sacramento Bee. Gov. Gavin Newsom has even become favorable to extending the 2025 date for the retirement of the Diablo Canyon nuclear station, because of the dire need for power.
The national picture of potential electricity price rises and problems was released May 10 by the Energy Information Administration, in its “Summer 2022 Electricity Industry Outlook.” One factor in the situation is soaring natural gas prices. This is expected to result in a 15% jump in electricity bill rates for New England customers.
U.S. gas and oil producers have not been increasing their output substantially. The big fracking firms, Marathon Oil, Pioneer Natural Resources, APA (formerly Apache), and Devon, have been lowering their domestic oil output, which has fallen per firm, from 2 to 8% in the last quarter, from the prior quarter.
In April the grid operator for the Midwest, midcontinent Independent System Operator, issued its seasonal outlook, which shows that peak expected demand this Summer will exceed the supply of electricity.
