CARMEL, Ind. — The Midcontinent Independent System Operator (MISO) today released results of its seventh annual Planning Resource Auction, which show adequate capacity for the planning year beginning June 1, 2019.
A total of 134,743 megawatts of planning resources were committed to meet forecasted demand and the region-wide planning reserve margin for the 2019/20 planning year.
“MISO’s Planning Resource Auction continues to allow our members opportunities to procure capacity and demonstrate that our region has adequate resources for the upcoming planning year,” stated Patrick Brown, Executive Director, Resource Planning. “We appreciate the continued actions of states and Load Serving Entities (LSEs) to ensure that adequate resources are in place.”
Year-over-year results comparison
The bulk of the MISO region cleared at $2.99/MW-day. The lower peninsula of Michigan (zone 7) cleared at $24.30/MW-day. Last year, the northwest portion of MISO (zone 1) cleared at $1/MW-day, while the remainder of the footprint cleared at $10/MW-day.
Overall, this year’s auction featured lower offer prices from market participants in most of MISO. It also incorporated several process changes, including new requirements for load modifying resources and a new way of treating capacity resources external to MISO. The results also reflect the industry’s ongoing shift away from coal-fired generation and increasing reliance on gas-fired resources and renewables, as well as other trends discussed in the MISO Forward report.
Results align with OMS-MISO survey
This year’s auction results continue to align with the annual Resource Adequacy survey that MISO conducts in partnership with the Organization of MISO States (OMS), which represents the state regulatory agencies in the MISO region. The OMS-MISO Survey is a forward-looking estimate of how much electricity-generating capacity is expected to exist in the region over the next five years, based on forecasts provided by LSEs.
About the Planning Resource Auction and MISO’s Resource Adequacy Construct
MISO’s resource adequacy mechanism is used to demonstrate that resources are available to reliably operate the electric grid over the next planning year. Load-serving entities can demonstrate sufficient capacity with owned resources or contracted resources. The auction provides an additional mechanism for load-serving entities to secure sufficient resources in the right places to maintain reliability across the MISO region.
The auction results have been reviewed and certified by MISO’s Independent Market Monitor (IMM). The IMM evaluates the auction to ensure that the results are reliable and participants’ offers are in line with tariff rules and procedures.
More detailed auction results are posted to the MISO website.
MISO will hold a media teleconference for reporters Monday, April 15, at 3:30 p.m. ET to discuss the results of the 2019-20 Planning Resource Auction. Media representatives may dial in at 1-844-531-9388 and use participation code 968115994. Please RSVP prior to the call at firstname.lastname@example.org.
MISO ensures reliable operation of, and equal access to, high-voltage power lines in 15 U.S. states and the Canadian province of Manitoba. MISO manages one of the world’s largest energy markets, with more than $24.7 billion in annual gross market energy transactions. MISO was approved as the nation’s first regional transmission organization in 2001. The not-for-profit organization is governed by an independent board of directors and is headquartered in Carmel, Indiana.