MISO Corrects APPA Report Interpretation

CARMEL, Ind., June 22, 2011 /PRNewswire/ — APPA’s Competitive Market Plan,
Update 2011, issued earlier this month, states that “…MISO is in the process
of developing a proposal for a centralized forward capacity market resembling
PJM’s Reliability Pricing Model.” This statement is an inaccurate
characterization of MISO’s resource adequacy development activity.

Over the last several months, MISO has been working with its stakeholders to
improve its current resource adequacy construct to address the following issues
of importance:

— Address zonal deliverability concerns and ensure FERC compliance.
— Extend term from a monthly to annual construct to increase efficiencies
and better align to existing planning processes.
— Create increased capacity portability and market efficiency across
market seams.
— Address retail-state specific issues on load shifting.

While MISO is still working with its stakeholders in anticipation of its
scheduled July 15 resource adequacy filing, MISO will be proposing a resource
adequacy construct that has distinct differences from PJM’s Reliability Pricing
Model. MISO’s modified resource adequacy construct is designed to address the
unique needs of utilities operating in retail choice states, while respecting
and building on the success regulators in traditionally regulated states have
built with their integrated resource planning programs.

One of the many key distinguishing features of MISO’s proposed resource adequacy
construct is the ability of Load Serving Entities (LSEs) to either self-schedule
their resources in the auction or “opt out” of the auction entirely by providing
evidence of the resources they have to meet their planning resource margin
requirement. Both provisions are designed to allow LSEs the opportunity to
continue satisfying their resource planning requirements as they do today. In
other words, MISO’s proposed Planning Resource Auction (PRA) creates new options
for utilities to meet their resource adequacy requirements while maintaining
their current options.

An annual Planning Resource Auction is a key element of MISO’s resource adequacy
requirement proposal. The PRA serves several purposes, all related to ensuring
that an adequate supply of resources – not an excess supply – is available to
meet demand. The demand forecast for the region will be based on the sum of the
forecasts from the LSEs in the MISO region. The PRA will determine a
market-based value for all resources on a zonal basis.

MISO strives to provide broad regional benefits to its region. In 2010 alone,
these net benefits exceeded $1.25 billion. The resource adequacy construct
modifications currently under development will increase these benefits in the
future.

AboutMISO
MISO ensures reliable operation of, and equal access to high-voltage power lines
in 12 U.S. states and the Canadian province of Manitoba. MISO manages one of the
world’s largest energy markets, clearing more than $25 billion in energy
transactions in 2010. MISO was approved as the nation’s first regional
transmission organization in 2001. The non-profit 501(C)(4) organization is
governed by an independent Board of Directors and is headquartered in Carmel,
Ind., with operations centers in Carmel and St. Paul, Minn. Membership in the
organization is voluntary.

SOURCE MISO