(Updates with end of alert in paragraph 1, details of consumption cut in paragraph 4, conservation request in paragraph 6)

Jan 13 (Reuters) -

The Alberta Electric System Operator (AESO) lifted the grid alert issued earlier in the day asking customers to reduce their consumption to avoid a power shortfall after a demand spike caused by extreme cold. The AESO earlier declared the grid alert and asked citizens to immediately reduce their electricity use to essential needs in response to ongoing extreme cold temperatures across western Canada, restricted imports and very high demand.

The AESO had projected a shortfall of up to 200 megawatts (MW) of electricity during the peak evening hours and warned of potential rotating outages until demand declined or generation returned to the grid. The operator lifted the alert as of 8:40 p.m. (0340 GMT Sunday).

The AESO said after the alert was issued, it almost immediately saw a 100 MW drop in electricity demand which rose to 200 MW within minutes.

A massive winter storm bringing snow, ice and high winds across the U.S. States and Canada has also knocked out power for hundreds of thousands of homes across U.S. Midwest and Pacific Northwest on Saturday.

Because of cold temperatures forecast through Sunday, the AESO also requested that Albertans continue to conserve energy during the peak demand period from 4 p.m. to 7 p.m.

(Reporting by Chandni Shah in Bengaluru; Editing by Marguerita Choy and Christian Schmollinger)