CARMEL, Ind. — MISO’s Independent Market Monitor last week pointed to other RTOs to illustrate the ineffectiveness of the coordinated transaction scheduling (CTS) between MISO and PJM.
Monitor David Patton told the Market Subcommittee on Thursday that the CTS between ISO-NE and NYISO includes an explicit waiver of uplift and transmission charges between them. As a result, the process last year yielded bids and offers of 700 MW in one direction and 400 MW in the other.
Patton has recommended that MISO remove transmission charges from CTS with PJM. MISO currently applies transmission charges to these transactions when they are offered, not just when they are scheduled, which the Monitor said discourage CTS offers and subsequent savings. (See 7 New Recommendations from MISO IMM.)
Patton admitted that the New England numbers weren’t as high as he’d like, but that it’s important that the coordination is used.
“CTS has basically completely failed between PJM and MISO. Quantities have fallen to essentially zero,” Patton said.
MISO and PJM launched CTS a year ago to allow market participants to schedule economic transmission transactions based on forecasted energy prices in the two RTOs. While CTS should have lowered the cost of serving load in both regions, it has not been used since mid-February because of the double transmission charges.
MISO will respond to the recommendation later this month, when it releases its formal response to the Monitor’s State of the Market Report.
Dynamic Line Ratings
The Monitor is also renewing calls for MISO to adopt dynamic line ratings that are adjusted based on weather conditions, opening up transmission lines for more capacity when temperatures are cooler.
“The hotter the temperature, the less electricity you want through the conductor,” Patton said. “Transmission owners have long recognized that there are benefits to different ratings. … Every additional megawatt you can flow over the line can help you ramp down a higher-cost generator and ramp up a lower-cost generator.”
Transmission lines are rated based on seasonal ambient temperature and wind speeds. Patton said that of MISO’s TOs, “almost none” submit upratings beyond seasonal limits.
Customized Energy Solutions’ Ginger Hodge asked the Monitor how MISO might incentivize TOs to offer dynamic ratings. “I think there are few that offer dynamic ratings because they introduce risk to their system,” she said.
Patton said TOs themselves can benefit from higher ratings. “This capability is valuable, and they should see an economic value from providing it,” he said.
— Amanda Durish Cook
