FERC Allows RTO To Issue Make-Whole Payments In Excess of Offer Cap To Generators Via Uplift

FERC granted the Midcontinent ISO a temporary waiver, to allow MISO to pay generators verifiable costs in excess of the $1,000/MWh offer cap, for the period January 1, 2016 through April 30, 2016

Any such make-whole payments will be recovered through uplift, and not reflected in the LMP

Consistent with a prior waiver granted for last winter, FERC is not allowing market participants with incremental energy costs above $1,000/MWh to submit No Load offers that exceed their newly devised No Load offer reference levels (which will include only the resource’s regular No Load costs plus the incremental energy costs in excess of the $1,000/MWh energy offer cap).

Regarding requests by generators who protested the use of make-whole payments instead of reflecting such costs in LMPs, FERC said, "MISO’s proposed solution is less desirable than an accurate inclusion of costs in the market clearing prices. However, given the immediacy of the need to address the binding offer cap problem for this winter and MISO’s statement that this proposal has the least impact on its market systems, it is reasonable to grant this waiver for the limited time period requested to address the risks posed by high natural gas prices this winter."

Docket No. ER16-248