The price of ensuring adequate electricity supply across much of the central U.S. during the summer months soared twentyfold as coal retirements, power plant capacity losses and the effect of market reforms outweighed the contribution of new power generation.
The results of the Midcontinent Independent System Operator’s (MISO) annual capacity auction highlight a challenge for utilities and grid operators across much of the country — adding enough new power generation to replace aging coal plants and meet rising demand from data centers and advanced manufacturing.
The MISO auction offers a snapshot in time, reflecting the ability of utilities across the 15-state region to meet peak demand and maintain adequate reserves in case power plants unexpectedly go offline. The regional grid stretches from the Canadian province of Manitoba to the Dakotas, into the Midwest, and as far south as Louisiana and a portion of Texas.
Auction results show there’s adequate capacity for the coming 12 months plus more than adequate reserves. Most consumers across MISO are insulated from higher costs, but officials say rising prices are a signal of a tightening market and growing reliability risk.
