Capacity Market Dynamics and Reforms in MISO

NERC identified MISO in their 2024 Long-Term Reliability Assessment as the ISO with the highest risk of capacity shortfall, raising alarms as soon as this coming year. Capacity Markets are a common tool used to approach resource adequacy, however MISO is in the process of undergoing multiple significant reforms to its capacity market structure. Understanding the future of MISO’s Capacity Market revenue streams carries significant implications for future project development in MISO as thermal retirements and increased intermittency threaten resource adequacy.

During this session, we will explore the following topics:

• Historical Planning Resource Auction (PRA) performance:
  • How has MISO’s Capacity Market performed historically, and what signals do PRA outcomes tell developers for future assets?
• MISO’s Reliability-Based Demand Curve (RBDC):
  • How will changing from a vertical demand curve to a sloped demand curve influence PRA clearing prices?
  • What impact will the new RBDC Opt-Out provision have on PRA participation and the ability to contract capacity with utilities?
• Direct Loss of Load (DLOL) capacity accreditation methodology:
  • How will DLOL accreditation alter Capacity Market revenues for renewable assets?
  • Which regions present the strongest opportunity for renewable energy development post-DLOL reform?