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111111171/8 <br /> IVIIVIWJ Position Statement <br /> / <br /> ,r _7c,__ / - g <br /> 1 <br /> 1 <br /> ti <br /> E <br /> eVr: — <br /> «A �a t <br /> m 'f � <br /> 4� t i ''—1* 4:e:4,27--,----, '.:^.tt-.7,------i,—:.... .'...- <br /> -...#~r ,rx—.., fid"` .....'' ,'" arts41,.4.'"::-,,,,-.:- x'kt,: <br /> �, ,� ,z. ' >r ,,,,---r--;-,17:- dry��.. .?4..,-- . -24---1 <br /> Operation of wholesale electricity markets is closely tied to the operation of the region's electric grid. <br /> Energy Capacity Markets <br /> • A mandatory capacity market in the MISO region volatile, but as the market has matured it has <br /> is unnecessary and would only lead to increased become more stable. <br /> costs for consumers. <br /> In 2012 FERC approved a voluntary capacity <br /> • Congress should exercise its oversight authority at market for MISO but ruled against mandatory <br /> FERC to guard against unwarranted imposition of participation or a minimum offer price rule in <br /> a mandatory capacity market in MISO. that market. In 2016 MISO proposed to develop a <br /> mandatory capacity market for just those utilities <br /> Background that no longer own generation to serve their <br /> The transmission grid in our region of the country customers' load. FERC rejected MISO's proposal <br /> is run by one of the nation's seven federally out of concern that such a bifurcated market would <br /> designated Regional Transmission Organizations result in inefficient and volatile pricing. <br /> (RTO). All seven RTOs are quasi-governmental <br /> entities under supervision of the Federal Energy Mandatory Capacity Markets <br /> Regulatory Commission (FERC). Ours is called Inflated capacity prices in mandatory capacity <br /> the Midcontinent Independent System Operator markets have increased the cost of electricity <br /> (MISO). and account for a significant share of the <br /> total electricity costs paid by consumers and <br /> In addition to managing the region's transmission businesses. Though they are intended to incent the <br /> system, MISO operates mandatory day-ahead development of new generation resources, these <br /> and real-time markets for purchase of wholesale markets have not demonstrated that they incent <br /> electricity. During the early years of MISO's investment in either the generation necessary to <br /> energy market in the last decade, prices were often achieve a reliable and diverse supply of power, or <br /> 2018 Federal Position Statements/10 <br /> 242 <br />