Full Title: Developing a Market Vision for MISO: Supporting a Reliable and Efficient Electricity System in the Midcontinent
Author(s): Samuel A. Newell, Kathleen Spees, Nicholas Powers
Publisher(s): The Brattle Group
Publication Date: January 1, 2014
Full Text: Download Resource
Description (excerpt):
The Midcontinent Independent System Operator’s (MISO’s) current Market Vision and Roadmap process presents a special opportunity to improve its wholesale markets. The Market Vision will define market development objectives and principles, and identify Focus Areas for development that will most improve the market. After MISO and stakeholders finalize the Market Vision this January, they will spend six months developing a Roadmap that prioritizes, sequences, and plans for the execution of initiatives over the next five years (subject to future updates).
In this report, we provide a foundation for the Market Vision and Roadmap process. We start by defining “well-functioning markets” generally an then identifying electricity-specific factors (e.g., network externalities and difficulties balancing supply and demand absent significant storage) that would prevent electricity markets from functioning well absent a centralized coordinator such as MISO. More specifically, we delineate the essential responsibilities of MISO from those of regulators and market participants, leading to a list of “Core Services” that MISO needs to provide to support well-functioning markets. These Core Services include: Scheduling and Dispatch, Energy and Ancillary Service Price Formation, Energy and Ancillary Service Market Administration, Administration of Complex Hedging Products, Market Transparency, Market Monitoring and Mitigation, Resource Adequacy, Transmission Planning, and Public Policy Support.