By Tom Kleckner
Market-to-market (M2M) operations between SPP and MISO continue to show improvement, with the two RTOs on track for their second-lowest exchange of funds since the process began in March.
M2M is designed to improve price convergence on flowgates along the RTOs’ seams. They compensate each other for re-dispatching generation to reduce congestion in a way that reduces overall costs.
SPP staff told the Seams Steering Committee on Nov. 5 that through Oct. 20, SPP is set to receive more than $102,000 for 504 hours in M2M during the month’s first three weeks. Since MISO compensated SPP for congestion costs with almost $7.9 million for March to May, neither RTO has incurred more than $379,000 in a month (see chart).
However, SPP’s Gerardo Ugalde said October’s M2M results will likely need to be recalculated. He said the Western Area Power Administration’s addition to SPP’s footprint Oct. 1 and several allocation changes led to errors in the M2M calculations.
SPP and MISO representatives are meeting this week to discuss whether M2M’s objectives are being met on some of the more troublesome flowgates, along with other issues.
“SPP and MISO agree on most of the principles, so now we’re to the point of developing criteria for those principles and discussing whether to apply that criteria going back to prior periods or only going forward,” said David Kelley, SPP’s director of interregional relations.
The seams committee also reviewed and made additional language changes to the Congestion Management Process baseline, which guides how SPP, MISO, PJM and several other entities manage market flows across their seams. The document is expected to be filed with FERC by Dec. 1, ending a year-long project.
“The idea is to get the parties to agree to a single baseline,” Kelley said.
