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CARMEL, Ind. — The Midcontinent Independent System Operator (MISO) today released results of its 2020-2021 annual Planning Resource Auction (PRA), which show adequate capacity for the planning year beginning June 1, 2020.
“MISO’s Planning Resource Auction is now in its eighth year, and this year’s results reflect adequate resource availability for the upcoming planning year,” said Shawn McFarlane, executive director, Market Operations and Resource Adequacy. “The grid’s capability to effectively transfer resources among zones remains strong, and we appreciate our members’ participation.”
Year-over-year results comparison
The PRA provides MISO members, who choose not to submit their own Fixed Resource Adequacy Plans or Self-Schedule their capacity, a flexible option for the remaining 5% our footprint’s Resource Adequacy requirements. This year’s auction indicates that the MISO region as a whole will have enough generation capacity and other types of resources to meet its Planning Reserve Margin Requirement for the 2020-2021 planning year, which runs from June 1, 2020 through May 31, 2021.
Specific results include:
The lower peninsula of Michigan (zone 7) fell 123 MW short of its Local Clearing Requirement (LCR) for procuring resources within its own borders. As a result, under MISO’s FERC approved rules, its clearing price will be set at CONE, which is an industry-wide term that reflects the current, annualized, capital cost of constructing a new power plant. Approximately 1,150 MW of load at the wholesale level will pay CONE, which is 6% of Zone 7’s forecasted peak load.
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
The 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 Load-serving Entities (LSE).
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. LSEs can demonstrate sufficient capacity with owned resources or contracted resources. The auction provides an additional mechanism for LSEs 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 at misoenergy.org.
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.