FORWARD MARKET MECHANISM Since its founding, MISO has worked with stakeholders to set up rules, processes and markets that ensure applicable reliability standards are met in ways that create value for MISO members. MISO’s Day-Ahead (DA) and Real Time (RT) energy markets utilize security-constrained unit commitment and securityconstrained economic dispatch while using industry best practices and industry-leading price formulation methods, including MISO enhancements such as enhanced LMP (ELMP) and emergency pricing. While market-based unit commitment is an important efficiency enhancing component of the energy market, given the uncertainties and incentives faced by resource owners, most commitment of capacity has occurred prior to the Day-Ahead market due to owner operational, financial, and contractual considerations. For example, given practical operational considerations, nuclear units remain running while not on outage rather than wait for a Day-Ahead market-based unit commitment. Low wholesale energy prices and the increasing volatility and uncertainty of system needs and resources has led a number of stakeholders to request that MISO provide better information in advance of the Day-Ahead market to inform unit commitment decisions. In addition to implementation of the MOM volumetric forecast, MISO is responding to this request by exploring a Forward Market Mechanism. The goal of a such a mechanism is to better inform and incent member decisions about resource availability in advance of the Day-Ahead market – ultimately with a goal of mitigating the risks of insufficient energy in real-time and preventing inefficient production cost. Decisions that could be informed by a FMM in advance of the DA include: •Outage timing & prevention •Commitment of long-lead resources •Fuel procurement decisions •Availability of flexible resources •Import and export scheduling •Flexible load scheduling and LMR use Generation Outages by Lead Time 60,000 - 40,000 - MW 20,000 - 0 - <1d 1-7d 7-90d >90d 13 JAN 17 - FEB 17 - MAR 17 - APR 17 - MAY 17 - JUN 17 - JUL 17 - AUG 17 - SEP 17 - OCT 17 - NOV 17 - DEC 17 - JAN 18 - FEB 18 - MAR 18 - APR 18 - MAY 18 - JUN 18 - JUL 18 - AUG 18 - SEP 18 - OCT 18 - NOV 18 - DEC 18 - JAN 19 - FEB 19 - MAR 19 - APR 19 - MAY 19 - JUN 19 - JUL 19 - AUG 19 - SEP 19 -
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