We Energies bills up; no rolling blackouts planned, energy emergency possible

MILWAUKEE - Like the temperature, the price of just about everything is going up – and it is expected to be a very expensive summer, with one group warning of a possible energy emergency, and another warning about possible power outages.

The latest Consumer Price Index shows natural gas is more than 22% higher than it was last year. That natural gas fuels much of your power in Wisconsin. 

Some people may notice their We Energies budget billing is going up for the first time in years. For example, one of the bills we reviewed had been steady from year to year at $138 a month. Now, it's going up to $173.

We Energies says it is the result of a cold winter and surging natural gas prices.

"We spoke a lot about that as early as last fall, telling people that natural gas prices are up, that’s the biggest part of your heating bill is the price of natural gas, that has nothing to do with us, we get no profit on that," said Brendan Conway of We Energies.

The Federal Energy Regulatory Commission (FERC) estimates costs will be up by large amounts this summer. 

"Wholesale electric markets expect to see higher prices this summer because of hotter temperatures, slightly increased demand, and higher natural gas prices. As of May 13, futures prices for some major U.S. electric price points are up over last year’s settled prices by between 77% to 233%," a FERC memo outlined.

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When the air conditioning kicks in or the lights flick on, the electric power used is part of a huge grid. The Midcontinent Independent System Operator (MISO) runs in 15 U.S. states, including Wisconsin, as well as the Canadian province of Manitoba. It extends from Canada down to Louisiana.

"As a grid operator, you're always cautious going into the summer, whether you’ve got a big reserve margin, or a small reserve margin," MISO's John Bear said May 20 during a media briefing with the U.S. Energy Association. "We’ve learned over time that if something can happen, it will happen, so we have to be prepared for all of those situations." 

Midcontinent Independent System Operator (MISO)

J.T. Smith, MISO's executive director of market operations, said energy shortfalls could leave the north and central regions of MISO "at increased risk of temporary, controlled outages to preserve the integrity of the bulk electric system."

"In the short term, I am a little bit concerned, but not so much for the summer," said Bear.

We Energies is confident they are OK.

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"We do not believe that there are going to be any significant issues this summer. We think we have enough energy to meet our customers' needs," Conway said. 

"What they’re saying is the reserve margin is tighter than they want. So they just sent out an alert, the alert was really for utilities to say do your work now on your equipment, so this thing should not be planned to be off in July and August. And it’s not by the way."

The North American Electric Reliability Corporation (NERC), a group that monitors power girds, said MISO "faces a capacity shortfall in its North and Central areas, resulting in high-risk of energy emergencies during peak summer conditions."

An energy emergency does not mean the lights will go out when usage surges. It is a procedural step that can lead to all kinds of things, like bringing in energy from other areas or the later possibility of asking customers to use less.

"We actually might, and this has never been done before, but the first step we would ever do is we would put a call out to our customers to simply reduce their usage," said Conway of options before they would go to what's known as a rolling blackout or a brownout, where energy consumption surges past supply capacity and the power company turns off portions of the power at staggered times and locations.

"For the last few decades, rolling blackouts have not been something here," added Conway. "We do not believe it’s something we are going to see this summer."

A MISO spokesman, Brandon Morris, tells FOX6, "…this is not cause for panic and it does not mean the public should expect the lights to go out in the MISO region this summer. There is increased likelihood that MISO will have to implement its emergency operating procedures – as mandated by the North American Electric Reliability Corporation – to keep the power flowing. This might include importing energy from neighboring systems or deploying emergency-only resources. In the worst-case scenario, MISO may have to implement temporary, controlled power interruptions in order to prevent uncontrolled, cascading outages. Again, we have never taken this step in Wisconsin."

We Energies urges customers to take steps now that could lower their energy bill. That includes things like sealing cracks to keep out the hot air or tuning up your air conditioner.