CARMEL, Ind. — The Midcontinent Independent System Operator (MISO) today released results of its sixth annual Planning Resource Auction, which show adequate capacity for the planning year beginning June 1, 2018.
A total of 135,179 megawatts of planning resources were committed to meet forecast demand and the region-wide planning reserve margin for the 2018-2019 planning year.
“This year’s auction results reflect an adequate availability of resources for the planning window and the grid’s capability to effectively and efficiently transfer resources among local resource zones,” MISO Executive Director of Market Operations Shawn McFarlane said.
Price distribution differs from last year
For the 2018-19 planning year, Zone 1 – the Northwest portion of the MISO footprint – cleared at $1/MW-day, while the remainder of the footprint cleared at $10/MW-day. Last year. , all areas in the MISO footprint cleared at $1.50/MW-day.
The generally higher prices were driven by a combination of modest changes in three factors. Specifically, an increase in the planning reserve margin requirement, a decrease in supply and changes in market participant offer behavior. The MISO footprint saw the continued growth of non-traditional resources to meet capacity needs. Compared with last year’s results, the PRA cleared about 1,600 MW of additional demand response, energy efficiency and behind-the-meter generation. These resources represent about 11,000 MW – 8 percent – of total resources.
Results align with OMS-MISO survey
Auction results indicated continued alignment with the Organization of MISO States (OMS)-MISO Survey.
“The OMS-MISO Survey has been instrumental in highlighting where we may have future resource needs, and the 2017 results provided an accurate supply picture for the upcoming planning year,” McFarlane noted. “We appreciate the continued actions of states and load-serving entities to ensure resource adequacy.”
MISO will continue to focus on the importance of long-term resource adequacy as the industry and generating fleet continues to evolve. MISO will also continue to support state processes around resource adequacy planning.
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, contracted resources or through participation in MISO’s voluntary Planning Resource Auction. 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. This includes reviews of all offers to ensure that any attempts to exercise market power are appropriately mitigated.
More detailed auction results are posted on MISO’s website.
MISO will hold a media teleconference for reporters Friday, April 13, at 2:30 p.m. ET to discuss the results of the 2017-18 Planning Resource Auction. Media representatives may dial in at 1-888-205-5513 and use participation code 177961. Please RSVP prior to the call at firstname.lastname@example.org.