The Midcontinent ISO (MISO) on April 12 released results of its sixth annual Planning Resource Auction (PRA), saying that the auction results show adequate capacity for the planning year beginning June 1.
MISO said that 135,179 MW of planning resources were committed to meet forecast demand and the region-wide planning reserve margin for the 2018-2019 planning year.
For the 2018-2019 planning year, Zone 1 – that is, the Northwest portion of the MISO footprint – cleared at $1/MW-day, while the remainder of the footprint cleared at $10/MW-day, MISO said, adding that last year, all areas in the MISO footprint cleared at $1.50/MW-day.
The generally higher prices were driven by an increase in the planning reserve margin requirement, a decrease in supply, and changes in market participant offer behavior, MISO said.
Noting that its footprint saw continued growth of non-traditional resources to meet capacity needs, MISO said that compared with last year’s results, the PRA cleared about 1,600 MW of additional demand response, energy efficiency and behind-the-meter generation. Those resources represent about 11,000 MW, or 8%, of total resources, MISO said.
MISO also noted that the auction results indicated continued alignment with the Organization of MISO States (OMS)-MISO Survey.
“The OMS-MISO Survey has been instrumental in highlighting where we may have future resource needs, and the 2017 results provided an accurate supply picture for the upcoming planning year,” MISO Executive Director of Market Operations Shawn McFarlane said in the statement. “We appreciate the continued actions of states and load-serving entities to ensure resource adequacy.”
MISO said that it will continue to focus on the importance of long-term resource adequacy as the industry and generating fleet continue to evolve, and that it will continue to support state processes around resource adequacy planning.
Among other things, MISO said that its resource adequacy mechanism is used to demonstrate that resources are available to reliably operate the electric grid over the next planning year. Load-serving entities can demonstrate sufficient capacity with owned resources, contracted resources or through participation in MISO’s voluntary PRA, which provides an additional mechanism for load-serving entities to secure sufficient resources in the right places to maintain reliability across the MISO region, MISO said.
According to a document posted on MISO’s website, MISO’s resource adequacy construct combines regional and local criteria to achieve a least-cost solution for the region subject to:
- MISO-wide reserve margin requirements
- Zonal capacity requirements (local clearing requirement)
- Zonal transmission limitations (capacity import/export limits)
- Sub-regional contractual limitations such as between MISO’s South and Central/North regions
The document also noted that the MISO-wide reserve margin requirement is shared among the zones, which may import capacity to meet that requirement.
As noted in the document, multiple options exist for load-serving entities to demonstrate resource adequacy: submitting a fixed resource adequacy plan; utilizing bilateral contracts with another resource owner; and participating in the PRA.
Among other things, the document noted that next steps include posting of the PRA offer data 30 days after the PRA concludes – May 18.