TRANSMISSION SERVICE DELIVERABILITY Potomac Economics, a Washington, DC-area company that servers as MISO's Independent Market Monitor (IMM), recommended in 2017 that all resources in the MISO region should be able to deliver 100 percent of their accredited Installed Capacity (ICAP) levels to load when needed. MISO agreed to evaluate this recommendation as part of the MISO Integrated Roadmap #65 and the 2019 RASC workplan. In 2019, the FERC encouraged MISO to continue working through the stakeholder process for implementation. The tariff requires that all types of resources be deliverable to load in order for eligibility as capacity resources. Deliverability is determined by, among other things, demonstrating the resource has Network Resource Interconnection Service (NRIS) or Energy Resource Interconnection Service (ERIS) coupled with firm transmission service reservations. MISO is working towards a solution for determining deliverability for all resources based on the entire ICAP of applicable planning resources. This will ensure consistency with MISO’s transmission planning studies, which assume that resources will perform up to their ICAP level when available. By making this change, resources would be required to demonstrate firm transmission service in the amount of their full ICAP level either by having NRIS up to their ICAP level or ERIS along with firm transmission service up to their ICAP level. However, this may not be appropriate for intermittent resources because these resources cannot consistently provide capacity at the level of their full ICAP value. Therefore, MISO is exploring options, in conjunction with stakeholders and the IMM, through the RASC on potential solutions for the intermittent resources deliverability requirement. The requirement to demonstrate deliverability for intermittent resources will be calculated and set at a more appropriate, expected output rather than their full ICAP levels. Next Step • MISO will continue the discussion with stakeholders and the IMM at the RASC in 2020 ENHANCEMENTS TO EMERGENCY PRICING MISO administers competitive electricity markets to deliver reliable and efficient outcomes at the lowest cost. Since the inception of the energy markets, MISO and the Independent Market Monitor (IMM) have analyzed the markets to identify and implement various types of enhancements. For example, pricing should be consistent with the marginal system cost and degree of reserve shortage during emergency events, considering the marginal cost of out-ofmarket reliability actions, costly demand response deployments, the Value of Lost Load (VOLL) and Loss of Load Probabilities (LOLP) during reserve shortages. Said more simply, prices should be high enough to reflect that MISO is running out of resources when it makes emergency declarations. Scarcity pricing should also reflect regional reliability risks and reserve 16
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