A central U.S. grid operator’s annual auction for power plant capacity saw prices surge to maximum levels in parts of Missouri for next fall and the spring of 2025 because of the planned shutdown of a coal-fired power plant and limited transmission.
The Planning Resource Auction conducted by the Midcontinent Independent System Operator (MISO) measures supply for generating capacity — the ability of power plants to produce electricity at times of peak demand — against expected demand. The prices are a component of overall electricity costs.
MISO’s auction, which covers a 12-month period starting June 1, is an indicator of whether there is adequate power supply in specific regions within the grid operator’s 15-state footprint. Higher prices are a signal that more capacity is needed.
The North American Electric Reliability Corp. has labeled the MISO region among the areas at “high risk” of inadequate electricity supplies during periods of extreme cold and heat over the coming decade as the retirement of aging fossil plants outpaces additions of new power supplies.
