MISO proposed auction design sparks concerns, questions from stakeholders
Portions of Michigan and Illinois are causing headaches for the grid operator for most of the Midwest, leading to the possible creation of a new capacity market. Platts reports there is significant interest in the new market, which would be a prompt-year solicitation for the portions of those states covered by retail choice.
At a MISO subcommittee meeting last week, stakeholders asked questions about how the capacity auction would utilize the region’s energy supply, and the potential for gaming the market.
Staff of the ISO aim to propose tariff language by the end of the month, so federal regulators cold approve a transitional auction for the 2017-2018 year.
In Michigan, the state enacted a partial deregulation scheme which made resource planning difficult. Utilities were unable to tell how much generation they needed to acquire from one year to the next, because customers were capable of changing their energy provider.