MISO Says Seasonal Auctions are Working
Caution That Outages are Still Possible in Extreme Heat
MISO Says Seasonal Auctions are Working
Regions Have Capacity to Meet Summer Demand
Caution That Outages are Still Possible in Extreme Heat
The Mid-Continent Independent System Operator (MISO) has announced its 2023-2024 Planning Resource Auction indicates sufficient generation capacity to meet electricity demand for the planning year beginning June 1.
MISO manages the electric grid for 15 states and provinces, including parts of North Dakota. The entire MISO region, including the North/Central and South sub-regions and all 10 Local Resource Zones, demonstrated sufficient electric generation capacity to meet their reserve requirements.
“This year’s results are encouraging and indicate that the new seasonal approach to resource planning is a step in the right direction,” said Clair Moeller, president and CEO at MISO. “As we navigate an unprecedented transformation of the power system, we must continue to make further enhancements to maintain reliability and send the right pricing signals to the market.”
The auction clearing prices were identical across all sub-regions and zones except Zone 9 (most of Louisiana and southeast Texas).
• Summer (June, July and August) prices cleared at $10/MW-day
• Fall (September, October, and November) prices cleared at $15/MW-day
• Winter (December, January and February) prices cleared at $2/MW-day
• Spring (March, April and May) prices cleared at $10/MW-day
In fall and winter, Zone 9 required higher priced supply within the zone to meet its clearing requirement. Fall prices cleared at $59/MW-day and winter prices cleared at $19/MW-day.
“With the rapid change of the generation fleet, we continue to see uncertainty and volatility in the auction results year-over-year, and managing the system in real-time is becoming more challenging,” Moeller said. “Actions taken by market participants this year, such as delaying resource retirements and making additional, existing capacity available via imports may not be repeatable in the future, and this year we are still susceptible to supply shortages in extreme situations.”
Todd Ramey, MISO’s senior vice president of markets and digital strategy added further market enhancements are needed to ensure long-term reliability.
“This year’s collectively lower clearing prices should not distract us from urgently moving ahead with market reforms to align resource performance and system reliability needs as the resource mix evolves, extreme weather events intensify and electrification expands,” Ramey said.
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