MISO 2020/2021 PRA Shows Interesting Results

MISO recently recognized our 2020 graduates, including Cindy Lee's son, Ethan. In our most recent employee spotlight, she reflects on her 16-year career at MISO as a working parent.

Many years ago, I remember thinking of the year “2020” and it seemed so far away. This was brought to light when my son, Ethan, was just a toddler and attended a birthday party where he was given a tiny, white t-shirt
COVID-19  has upended the lives of many Americans. Its path of destruction knows no boundaries. We eagerly await the creation of a vaccine or other therapy to stop this menace in its tracks. Such work is underway. Safi Bahcall in the Wall Street Journal writes that “…nearly all the major players in drug discovery and development have taken matters into their own hands. The goal of their insider-only
Nerves of steel, quick decision-making, clear and concise communications. These are the skills that readily come to mind when picturing a race car driver, emergency room doctor, or an air traffic controller. Picture, also, the operators and managers in the MISO Control Centers.

Nothing in our lifetime is impacting our lives and the national economy as the COVID -19 pandemic. It forcefully ends people’s
Identifying where congestions are expected in the MISO footprint is now at your fingertips with the launch of the MISO POI Self-check Tool on the MISO website

The ingenuity and collaboration of four MISO employees (Ron Dawson, Paul Duer, Tung Nguyen, and Kun Zhu) led to the creation and deployment of the MISO “Points of Interconnection (POI)” Self-check Tool. Collaborating with the MISO team was
MISO has been ramping up its intellectual property program by accelerating research work and involving more external partners and collaborators. To do this, several MISO colleagues have collaborated as teams to develop the innovative ideas and formulate the exacting design specifics, while adapting along the way.

All the brainpower, innovation and energy spent in the research, creation, and design
MISO recently concluded its Planning Resource Auction (PRA) where individual Load Serving Entities (LSEs) can procure resources to cover their load and a margin for likely scenarios –jointly called the Planning Reserve Margin Requirement (PRMR). The 2020/2021 auction results indicate that the MISO region as a whole will have enough generation capacity and other types of resources to meet its PRMR for the 2020/2021 planning year (June 1, 2020, through May 31, 2021).

For the first time, however, one of the MISO zones (Zone 7—lower Michigan) did not have enough resources bid in the PRA to meet its Local Clearing Requirement (LCR) for procuring resources within the Zone. As a result, under MISO’s FERC-accepted Tariff, Zone 7’s clearing price will be set at a threshold called the Cost of New Entry (CONE), which is $257.53/MW-day. Approximately 1,150 MW of load will pay CONE, which is 6% of Zone 7’s forecasted peak load.

Zone 7 clearing at CONE is not a surprise as Zone 7 came very close to clearing at CONE last year. The MISO-OMS Survey last year indicated that Zone 7 could be short this year. There are multiple factors that led to this result. Total resources offered within Zone 7 declined by about 336 MW this year compared to last year. That drop-off includes, but is not limited to, 311 MW of coal and 57 MW of oil. These decreases were partially offset by an increase of 138 MW of demand response and 98 MW of energy efficiency resources.

Even with Zone 7 clearing CONE, its shortfall of local resources does not necessarily mean it will face reliability issues. While the zone’s local reserve margin is 0.56% (123 MW) below its target LCR, the zone does have 7.4% (1,490 MW) more local capacity than its forecasted peak-load level, even when outage rates are considered. Moreover, the zone can draw on the support that comes with being a part of the MISO shared resource pool that spans parts of 15 U.S. states and part of Canada.

The South-to-North limit was determined through the Sub-Regional Import/Export Limit analysis to be 1900 MW in advance of this year’s PRA. This limit bound in the auction clearing, causing modest price separation of $0.25 between the MISO Classic and MISO South sub-regions.  This South- to-North limit previously bound in the 2016 auction, as well.

Zone 9 (Louisiana and Texas) exhibited price separation from the rest of MISO South because of higher price offers clearing to meet the zone’s increased LCR, which was an increase of 7%.

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