Power generators in the 15-state Midcontinent Independent System Operator (MISO) area are burning more natural gas in November than a year earlier despite lower overall electric demand and higher gas prices.
Natural gas-fired power plants in November on average supplied 24pc more electricity than in November 2015 despite higher prices amid coal-plant retirements and a year-over-year decline in wind generation, according to MISO daily generation fuel mix data.
Spot gas prices in Chicago Citygates and Mich Con Citygates are averaging $2.31/mmBtu in November, up by 7pc and 5pc, respectively, from November 2015. Spot prices for gas receipts into Southern Star Central pipeline in Texas, Oklahoma and Kansas are up by 9pc.
Meanwhile, average daily electricity demand has been 3pc lower this November compared with 2015 because of mild weather.
The east north central states, which include the Great Lakes region, in the first three weeks of November had 352 population-weighted heating degree days, 27pc below normal and 5pc lower than a year earlier, according to the National Weather Service.
MISO, the second largest US power market behind PJM, includes three zones. MISO's north zone includes Iowa, western Minnesota, Wisconsin, North and South Dakota and eastern Montana. MISO's central zone covers Michigan, eastern Wisconsin, and parts of Illinois, Indiana, Kentucky and Missouri. MISO's southern zone covers parts of Arkansas, Louisiana, Mississippi and southeast Texas.
Coal units typically provide baseload capacity and account for the largest share of generation across MISO. Since the integration of the south region in December 2013, the overall generation mix has shifted away from coal toward gas.
Coal plants in November on average supplied 13pc less electricity than a year earlier while average wind generation was down 1pc, according to MISO. Average daily output from nuclear plants was up 5pc.
Several coal plants have shut this year in the MISO region and more are scheduled to retire because of low natural gas prices and tighter environmental regulation.
US merchant generator Dynegy closed its 465MW Wood River coal-fired power plant in southern Illinois on 1 June and unit 3 at the Baldwin plant in October. Consumers Energy this year retired 312MW of coal-fired generation.
Midwest Generations plans to retire the 510MW Will County, Illinois, coal plant by the end of 2018.
More than 14 GW of conventional steam coal plants were retired in the US in 2015, according to the US Energy Information Administration. Nearly half of that capacity was in Ohio, Georgia and Kentucky.
