As of April 29, 2025, MISO’s capacity prices for the upcoming summer season jumped to $666.50/MW-day from $30/MW-day last year across the operator’s footprint, partially driven by declining surplus capacity, according to the results of its latest planning resource auction. [1] MISO used a reliability-based demand curve for the first time, which introduced a reliability-focused pricing structure that reflects the increasing value of accredited capacity as the system approaches minimum resource adequacy targets. [2] In a press release, MISO’s vice president of system planning and competitive transmission stated that the operator’s market reforms continue to assist in providing pricing signals that improve market efficiency and enhance reliability across the footprint. The auction results leave MISO’s northern and central regions with a 10.1% reserve margin for the summer and its southern region with an 8.7% margin for the same period. Most of MISO’s Load Serving Entities (LSEs) either self-supply or secure the capacity they need prior to the auction. Those that enter the auction to procure capacity must pay the Auction Clearing Price and those holding excess sell it at that price. The impact on consumer costs would vary, depending on the size of capacity shortfalls and the terms of wholesale power purchase agreements or state-regulated retail rates.
[1] https://cdn.misoenergy.org/2025%20PRA%20Results%20Posting%2020250428694160.pdf