This issue is being tracked through MSC012 - Spinning Reserve Selection & Deployment Process Review
Issue modification: MISO currently does not consider the expected costs of deployment when clearing reserve products; rather, the availability offer is the only economic consideration. When deployed, reserve providers are eligible for Revenue Sufficiency Guarantee payments that cover start-up, hourly and incremental energy costs. This results in an inefficient selection of reserve providers. By factoring the expected costs of deployment into the scheduling process, MISO will reduce uplift costs without limiting the ability of high-commitment resources to participate in the market.
Initial issue description: Eliminate guarantee payments to deployed spinning reserves or consider expected deployment costs during clearing/selection of resources for spinning reserve.