The Midcontinent Independent System Operator (MISO) has released the results of its 2022-2023 annual Planning Resource Auction (PRA) indicating capacity shortfalls in both the north and central regions of MISO. This encompasses parts of 11 states in the Midwest. MISO remains committed to continue its work with members and state regulators to maintain grid reliability across the entire 15-state MISO footprint.
“We have anticipated challenges due to the changing energy landscape and have communicated our concerns through the Reliability Imperative. We have prepared for and projected resource fleet transformation, but these results underscore that more attention is required to offset the rate of acceleration,” said MISO Chief Executive Officer John Bear. “These results do not undermine our ability to meet the immediate needs of the system, but they do highlight the need for more capacity flexibility to reliably generate and manage uncertainty during this transition.”
The Local Clearing Requirement — capacity required from within each zone — was met for the entire MISO Region, but Zones 1-7 cleared at the Cost of New Entry (CONE).
- Zones 1-7 (parts of Illinois, Indiana, Iowa, Kentucky, Michigan, Minnesota, Missouri, Montana, North Dakota, South Dakota and Wisconsin) all cleared at US$ 236.66/MW-day.
- Zones 8-10 (parts of Arkansas, Louisiana, Mississippi and Texas) cleared at US$ 2.88/MW-day.
Load Serving Entities (LSEs) that entered the MISO auction without enough owned or contracted capacity to cover their requirement (load plus reserves) will pay these prices for the amount of capacity they are ‘short’. The cost impact to consumers of those LSEs with a shortfall will depend on the amount they are short and the LSE’s retail rate arrangement with their state regulator. LSEs that entered the auction with sufficient capacity to cover their requirement will not need to purchase capacity at these prices.
“The reality for the zones that do not have sufficient generation to cover their load plus their required reserves is that they will have increased risk of temporary, controlled outages to maintain system reliability,” said Clair Moeller, MISO’s president and chief operating officer. “From a consumer perspective, those zones may also face higher costs to procure power when it is scarce.”
MISO’s Independent Market Monitor (IMM) has reviewed the offers and results of the 2022/2023 PRA and agrees with the results. This includes reviews of all offers to ensure that all attempts to exercise market power are appropriately mitigated as specified in Module D of the Tariff. This year’s results amplify the need for, and MISO’s efforts around, resource availability and market redefinition as outlined in the Reliability Imperative. This includes the recent FERC filing to enhance MISO’s current Resource Adequacy construct.
MISO hosted the 2022 Planning Resource Auction Results meeting on April 15.
