In an effort to ensure adequate reserve margin, the Midcontinent Independent System Operator (MISO) has completed its third annual planning resource auction and prices were lower than the previous auction.
The auction is designed to ensure there is adequate capacity available across the region for the planning year that starts June 1, 2015.
A total of 136,359 MW of planning resources are available to meet forecasted demand and reserve margins for the 2015-2016 planning year, MISO said in an April 14 news release.
Cleared planning resources include 122,965 MW of generation resources, 3,986 MW of behind-the-meter generation, 5,938 MW of demand resources, and 3,469 MW of external resources, MISO said.
• Zones 1-3 and 5-7 (MISO North/Central, excluding Illinois) cleared at $3.48/MW-day
• Zone 4 (much of Illinois) cleared at $150.00/MW-day
• Zones 8-9 (MISO South) cleared at $3.29/MW-day.
In a statement reviewing common questions, MISO said that prices fell from around $16 last year to $3 this year. “There were small changes in resources and load, but an increase in Fixed Resource Adequacy Plans (FRAPs) in general lowered offers by Market Participants,” MISO said.
MISO explained the higher prices for Zone 4 this way:
“In order to meet the one day in ten year loss of load standard on a footprint basis, and within each Local Resource Zone, a zone must satisfy its Local Clearing Requirement by clearing sufficient capacity within its boundaries to meet its local needs. In Zone 4, the marginal unit required to meet this local requirement set the auction clearing price of $150.00. Additionally, this year, less self-scheduling was seen in the zone, while more economic, price sensitive offers were submitted,” MISO said.