CARMEL, Ind. — The 2020 OMS-MISO survey indicates that the MISO region will have adequate, but tighter, reserve margins for 2021, and that continued action will be needed to ensure resource adequacy in the extended outlook.
For 2021, this year’s survey shows MISO will have 0.8 gigawatts of surplus committed resources beyond the regional requirement, representing a reserve margin of 18.6%. If all potential resources materialize in 2021, there could be as much as 7.2 gigawatts of surplus generation resources, which would result in a reserve margin of 23.8%.
Compared to last year, these committed resource reserve margins are lower for both the first year and the full five-year period of the survey, which translates into increased reliance on less certain resources to ensure resource adequacy going forward.
In most of the MISO region, load-serving entities with oversight by the applicable state or local jurisdiction are responsible for resource adequacy. The OMS-MISO survey provides a forward-looking view that informs MISO and stakeholders of the potential future resource landscape. The member responses help inform collaborative action by states and MISO members to ensure continued resource adequacy.
“With so much change occurring throughout the footprint, it’s important to step back and look at the entire collection of individual state actions being taken to meet the resource needs of the future,” said Matt Schuerger, president of the Organization of MISO States and Minnesota Public Utilities Commissioner. “This year’s results demonstrate how states and utilities continue to ensure an appropriate amount of resources are available today, and how the large quantity of resources looking to interconnect in the future will continue to drive additional changes.”
Though the 2021 peak demand forecast decreased 0.3 gigawatts from last year’s survey, the regional demand growth rate is up in the first five years, from 0.2 percent last year to just under 0.35 percent this year.
On the supply side, the survey indicates that increasing resource adequacy risk can be avoided by firming up the commitments of additional potential resources.
“These tighter margins are indicative of the trends we’re seeing with the evolving generation portfolio over the last few years,” said John Bear, MISO chief executive officer. “MISO is committed to continuing to work with all of our states and their members to deliver market and transmission system proposals that reliably and efficiently support state resources as well as capture the full value of system diversity that our 15-state footprint provides.”
“MISO appreciates the collaboration with OMS and all the work done by our load-serving entities and resources owners to complete this year’s survey. The survey provides perspective on resource adequacy across the footprint and projects future needs,” said Shawn McFarlane, MISO’s executive director of market operations and resource adequacy.
MISO is briefing stakeholders on the survey results today. Details on the 2020 OMS-MISO survey are available at misoenergy.org
The Organization of MISO States Inc. is a non-profit, self-governing organization of representatives from each state with regulatory jurisdiction over entities participating in the Midcontinent Independent System Operator, Inc. (MISO), a regional transmission organization as defined by the Federal Energy Regulatory Commission (FERC). The purpose of the OMS is to coordinate regulatory oversight among the states, including recommendations to MISO, the MISO Board of Directors, the FERC, other relevant government entities and state commissions as appropriate.
Midcontinent Independent System Operator (MISO) is an independent, not-for-profit organization that delivers safe, cost-effective electric power across 15 U.S. states and the Canadian province of Manitoba. MISO is committed to reliable, nondiscriminatory operation of the bulk power transmission system and collaborating with all stakeholders to create cost-effective and innovative solutions for our changing industry. MISO operates one of the world’s largest energy markets with more than $29 billion in annual gross market energy transactions.