Probably should read the fine print before offering an opinion, but who does that? The MISO auction result that prices capacity at $150/MW-day in the Ameren zone of central and southern Illinois may have been conducted properly and according to the rules, but that don’t make it right.
From North Dakota to Louisiana and back up to Michigan, the auction price for capacity set in mid-April is $3.50/MW-day or less. Only in the Ameren IL zone is capacity 4,300% higher than anywhere else in MISO. Because we’re short of capacity in Ameren IL?
No, we are not short of capacity. Well then, did demand spike 4,300% downstate, where the economy must be booming? No, actual demand did not spike. As for the economy . . .
The price of capacity is so far out of line with the rest of MISO that it overshadows the other inconvenient fact that the price of capacity in Ameren went up 895% from last year. Oh. Well, there must be a reason for that.
So far, the likely reason is that the rules permitted the outcome, though I’m not sure even the winning bidders are entirely happy with their windfall. By the time the Attorney General and the General Assembly take their whacks against Big Energy, there will be legislation and collateral damage to the competitive electricity market model.
My personal preference is to set aside the auction outcome because I don’t believe the explainers have enough credibility to explain this outcome in terms of the greater good. That’s the purpose of the auction: to create reliable electric supply for the greater good. The result does not move the needle for reliability or for greater good, in the short term or in the long. And if the result does not move the needle in the right direction, it almost certainly means the needle is moving in the wrong direction.