MISO Agreement

The administration of Governor Rick Snyder and the Midcontinent Independent System Operator (MISO) reached an agreement regarding how alternative electric suppliers would obtain power for their consumers.

The agreement is designed to address a complaint from the utilities about Michigan’s existing system that sets aside 10 percent of the electric market to alternative electric suppliers. The complaint is that the alternative suppliers may not have agreements for the source of the power they sell, instead buying surplus energy off the market managed by MISO.

The Michigan Public Service Commission (PSC) would likely take control of managing capacity and the price of it. If the PSC assumes this role, suppliers would no longer have the ability to purchase electricity at auction. In that case, they would either sign a contract to purchase from a power-generating entity or they would purchase power from a utility at a price set by the PSC.

The agreement requires approval from the Federal Energy Regulatory Commission. No decision will likely be made until 2017.

posted by PAA Online , Friday, September 23, 2016 9:58 AM
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