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MISO capacity prices narrow, jump in most areas

George mcguirk and mark watson | megawatt daily | 18 april 2016 

PA's Pieter Mul, an energy markets expert, is quoted in an article in Megawatt Daily. The article offers insight on the Midcontinent Independent System Operator's (MISO) latest Planning Resource Auction. 

Commenting on this topic, Pieter Mul stated: "Far higher transmission capability into and out of Zone 4 (Illinois), and less overall supply in the market meant that the marginal unit, still likely coming from Zone 4 in Illinois, set the Zone 2 through 7 clearing price at $72/MW-day."

Pieter continued: "MISO’s current one-size-fits-all mechanism does not recognize that [Illinois] is fundamentally different from the rest of MISO."

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Discussing the states other than Illinois that have vertically integrated utilities, Pieter commented that these states must: "proactively manage reliability with their regulators on behalf of their customers." 

Pieter concluded by stating: "In deregulated [Illinois], however, reliability depends critically on the price signal provided by MISO's capacity market."

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