MISO runs first auction under new resource adequacy regime

The Midwest ISO said April 5 that it administered the first capacity auction under its recently enhanced resource adequacy construct this week. 

The system wide clearing price for the 2013-2014 planning year was $1.05 per megawatt-day. This result is reflective of the region’s ample supply of generation and demand response resources as well as the robust transmission system, which ensures reliable and efficient delivery of energy to load within the MISO region, the organization said. The auction covers the annual commitment period from June 2013 to May 2014.

“The new annual capacity auction provides greater certainty and ensures sufficient resources will be available to meet peak demand, demonstrating how markets facilitate meeting the region’s electricity needs reliably and cost effectively,” said Richard Doying, MISO’s Executive Vice President of Operations and Corporate Services.

The voluntary annual capacity auction replaces MISO’s former monthly auction process, and includes the ability to self-supply or “opt-out” of the auction clearing process. 

“In addition, these enhancements preserve the existing benefits of state planning processes while providing market mechanisms to ensure prices reflect efficient, competitive market outcomes as well as transmission limitations that might exist between zones,” Doying said.

A total of 97,206 MW of planning resources were cleared to meet the MISO footprint resource adequacy requirements. This volume includes 90,711 MW of generation resources, 3,103 MW of external resources, and 3,393 MW of behind-the-meter generation resources.

These results will be discussed at the April 15 Supply Adequacy Working Group meeting in Carmel, Ind., MISO noted.

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 is governed by an independent Board of Directors and is headquartered in Carmel, Ind., with operations centers in Carmel and St. Paul, Minn.