6.1a ERMUSR 08-14-2018 - Laserfiche WebLink

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Product Type 2 that would participate in energy, capacity, and ancillary service markets through the storage and discharge of electrical energy in response to set point instructions. While the above market enhancements seem to address some of the immediate concerns of market participants, other enhancements have not had the desired effect. For instance, in 2013, MISO administered its first annual capacity auction. The system wide clearing price of$1.05 per megawatt-day for the 2013-2014 planning year reflected ample supply of generation and demand response resources in MISO and the robustness of the transmission system. The system-wide clearing price for the 2018-2019 planning year was $10.00 per megawatt-day for all zones except zone 1, which cleared at$1.00 per megawatt-day. Both clearing prices from the most recent MISO auction are low and suggest the abundance of capacity in the near term. However, the absence of long-term capacity markets and price signals for the cost of long-term capacity create planning challenges and discourage long-teiiu investment. The Independent Market Monitor(IMM)that monitors market activity in MISO reported in its 2016 State of the Market Report for the MISO Electricity Markets: "Capacity market design issues described in this report have contributed to understated price signals, which will become an increasing concern as the capacity surplus falls due to retirements and units exporting capacity to PJM. Economic In the context of long-term planning, uncertainty exists because of Uncertainty high budget deficits,the unknown future of entitlement programs, Necessitates Planning the rising cost of living, the challenges addressing climate change, Flexibility and deregulation. Increased economic uncertainty therefore necessitates the need for flexibility in energy supply planning. 81