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Question

Why did MISO's Independent Market Monitor (IMM) not say anything on MISO's FERC Order 841 extension?

MISO asked FERC for a third time to extend implementation deadline for Electric Storage Resource (ESR).

What is surprising is, MISO's Independent Market Monitor - Potomac Economics is silent on this issue? When we look at who filed protests in the docket # ER19-465, Potomac Economics is no where to be seen. Why is this relevant? FERC mandated RTOs to include a market participation model for ESRs. An independent Board of Directors (elected by MISO members) overlooks MISO management. And MISO Board depends on an independent market monitor to provide them a market view.

https://elibrary.ferc.gov/eLibrary/docketsheet?docket_number=ER19-465&Subdocket=All&dtFrom=2021-03-02&dtTo=2021-03-27&chklegadata=false&PageNm=dsearch&dateRange=custom&searchType=docket&dateType=filed_date&sub_docket_Q=Allsub

If one compared MISO IMM to PJM's IMM - Monitoring Analytics, PJM did not ask for an extension on FERC Order 841, but still - Monitoring Analytics has filed at FERC in 2021 - some 25+ filings. But Potomac Economics, MISO's IMM has yet to file anything at FERC this year.

I don't know what does this mean for RTO governance when more and more entities are trying to follow organized markets. This is one of the reasons why FERC has finally set up an Office of Public Participation.

Ultimately, it is FERC's decision whether or not to approve this third extension request. The most surprising part of this MISO extension request - most of the protests at FERC are mad that MISO did not follow the stakeholder process. When MISO transmission owners like MidAmerican sound surprised - then, we know it is a legitimate surprise for any MISO stakeholder.

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Rao, just a guess. But possibly Potomac Economics views an ESR market as an entirely speculative venture, without significant benefit to grid reliability or savings for customers. Given the current cost of battery storage for anything but ancillary services, perhaps FERC views it in the same light.

Rao Konidena's picture
Rao Konidena on Apr 1, 2021

Bob,

FERC Order 841 on electric storage resources says RTOs should have a market participation model for storage to keep wholesale energy prices just and reasonable. And Potomac Economics plays an important role in this process because they monitor the market participant offers and behavior for any market manipulation and other market oversight.

Because of that unique market role, I expected Potomac Economics to comment on MISO delay in a market participation model.

 

Bob Meinetz's picture
Bob Meinetz on Apr 2, 2021

Rao, why would anyone trust a private vendor to oversee market manipulation? Depending on who is paying Potomac Economics for their services, I can see any number of situations that would give rise to a conflict of interest.

I wouldn't have expected that, especially in this situation where MISO is pointing to the need to first complete some massive market (IT) system overhauls.

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