Energy Facts
“We have to face some hard realities. There are immediate and serious challenges to the reliability of our region’s electric grid…”
—John Bear, CEO of MISO
Opening statements, Feb 2024 Reliability Report
- Some Michigan’s major utilities have 80%+ rapid decarbonization and/or renewables goals, which are now enforceable by state law
- Our system operation region (MISO) is facing a number of new challenges from fuel availability, EVs, increased residential & industrial demands, etc.
Michigan‘s electric generation capacity buffer has reached new lows, not seen since the early 20th century
- Since 2020, decreases in the excess electric generation margin have been driven more by reduced generation capacity than increases in demand
- As safety margins drop, electric blackouts driven by periods of high demand will become more common
Data Source: North American Electric Reliability Corporation (NERC)
New policies creating risk for natural gas and similar fuels
- Irregular availability of these fuels affects private backup generators and electric grid capacity alike
- Decommissioning of traditional power plants (e.g. coal, nuclear) increases electric production shortfalls, driving natural gas demand while policy reduces supply
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