FERC OKs MISO Waiver To Allow Generators To Include Costs Above $1,000/MWh

FERC has approved a temporary waiver sought by the Midcontinent ISO to allow resources with incremental energy costs above the current $1,000/MWh offer cap to include those costs in the No Load component of their supply offers during the December 1, 2016, through April 30, 2017 period

Costs above $1,000/MWh will be paid via make-whole payments (recovered via uplift), and not reflected in LMP

While FERC recently increased the offer cap in the jurisdictional RTOs to $2,000/MWh, such action does not take effect until 75 days after publication of FERC's rule in the federal register, while, as noted above, the granted MISO waiver is effective December 1.