CARMEL, Ind. — MISO released the results of its 2023-2024 Planning Resource Auction (PRA) which indicates sufficient generation capacity to meet electricity demand for the planning year beginning June 1, 2023.
“This year’s results are encouraging and indicate that the new seasonal approach to resource planning is a step in the right direction,” said Clair Moeller, president and chief operating officer at MISO. “As we navigate an unprecedented transformation of the power system, we must continue to make further enhancements to maintain reliability and send the right pricing signals to the market.”
The entire MISO region – including the North/Central and South subregions and all 10 Local Resource Zones – demonstrated sufficient capacity resources to meet their Planning Reserve Margin Requirements and Local Clearing Requirements (LCR) for each zone. The Auction Clearing Prices were identical across all subregions and zones except for Zone 9 (most of Louisiana and southeast Texas).
In Fall and Winter, Zone 9 required higher priced supply within the zone to meet its LCR. Fall prices cleared at $59/MW-day and Winter prices cleared at $19/MW-day.
“With the rapid change of the generation fleet, we continue to see uncertainty and volatility in the auction results year-over-year, and managing the system in real-time is becoming more challenging,” Moeller adds. “Actions taken by market participants this year, such as delaying resource retirements and making additional, existing capacity available via imports may not be repeatable in the future, and this year we are still susceptible to supply shortages in extreme situations.”
Todd Ramey, MISO’s senior vice president of markets and digital strategy added further market enhancements are needed to ensure long-term reliability. “This year’s collectively lower clearing prices should not distract us from urgently moving ahead with market reforms to align resource performance and system reliability needs as the resource mix evolves, extreme weather events intensify and electrification expands,” noted Ramey.
MISO’s Independent Market Monitor (IMM) reviewed and agrees with the results of the 2023-2024 PRA. MISO will host the annual Planning Resource Auction Results workshop on Friday, May 19 at 2pm ET.