FERC orders changes to MISO capacity auctions as #manipulation_probe persists RSS Feed

Read full article at Utility DiveFERC orders changes to MISO capacity auctions as manipulation probe persists

FERC has determined that the rules governing a MISO capacity auction last year need to be revamped, responding to a slew of criticism after prices in Zone 4 cleared $150/MW-day compared to $16.75/MW-day during the same period last year.

The agency has laid out a pair of significant changes, including telling MISO that the grid operator cannot rely on prices set for the PJM system, which allowed the maximum bid price to be set at $155 rather than $25. Second, FERC found that MISO incorrectly accounted for power exports, and must now increase the amount of electricity that is available to the Illinois market. That, according to Illinois Attorney General Lisa Madigan, could result in refunds.

“It’s great news that FERC has acknowledged downstate electric customers deserve relief from an inflated and absurd pricing process,” Madigan said in a statement. “I am pleased with FERC’s decision to fix the auction rules, but FERC still needs to order refunds to consumers for the outrageously high prices.”

Consumer advocate Public Citizen is predicting there will be refunds due, according to the St. Louis Post-Dispatch, but Dynegy disputed that idea.