Planning Reserve Margin Requirement (PRMR)

This is the PRMR LSEs are required to procure sufficient ZRCs to meet their RAR in the PRA. Each LSE will have a Final PRMR determined based upon how they choose to satisfy their RAR. 

1) RBDC Clearing 

• For the majority of LSEs, Final PRMR is determined based off final clearing under the Reliability Based Demand Curve (RBDC). The Final PRMR (by subregion) will be allocated back to each LSE depending upon their share of initial PRMR. 

Example: 

• LSE Initial PRMR = 110.3 MW (Summer Season)
  • Assume LSE located in MISO North/Central subregion
• North/Central total Initial PRMR = 101,116.7 MW (Summer Season)
• State-Set PRM (North/Central, Summer Season)
  • Assume 0 MW
• ​​​​​​RBDC Opt Out (North/Central, Summer Season)​​​​​
  • Assume 0 MW​​​​​​​​
• North/Central total Final PRMR = 104,958.3 MW (Summer Season)
• LSE Final PRMR = (North/Central total Final PRMR) * (LSE Initial PRMR / {North/Central total Final PRMR – State set PRM – RBDC Opt Out} )
• LSE Final PRMR = (104,958.3 ) * (110.3 / {101,116.7 – 0 – 0} )
• LSE Final PRMR = ( 104,958.3 ) * ( 0.001090819… )
• ​​​​LSE Final PRMR = 114.4905 MW or 114.5 MW (rounded to nearest 0.1 M)​​​​​​

2) Fixed Resource Adequacy Plan (FRAP)

• LSEs electing to dedicate ZRCs to a FRAP will have Final PRMR that is either determined by final clearing under the RBDC of the amount of ZRCs dedicated to the FRAP. In cases where clearing under RBDC results in the Final PRMR greater than Initial PRMR, the LSE's Final PRMR will be calculated based on RBDC Clearing (as described in #1 above).
• However, LSEs electing to dedicate ZRCs to a FAP will not have Final PRMR reduced below the amount of ZRCs dedicated. For example, if an LSE fully dedicates ZRCs in the FRAP to cover 100% of its Initial PRMR and RBDC clearing results in the Final PRMR less than Initial PRMR, the LSE will have its Final PRMR equal to its Initial PRMR. 

3) RBDC Opt Out

• LSEs electing RBDC Opt Out will have Final PRMR determined based upon the LSE’s submitted CPF, the PRM% established by MISO, and the RBDC Opt Out Adder.  LSEs electing RBDC Opt Out commit to leveraging RBDC Opt Out for a minimum of three (3) consecutive Planning Years for all Seasons and are subject to significant penalties if they do not fully satisfy their Final PRMR through commitment of ZRCs.​​​​​

Example:

• ​​​CPF = Coincident Peak Forecast (MW; by Season)
  • Assume 100 MW​​​​​
• FRP = Full Responsibility Purchase (MW; by Season)
  • Assume 0 MW
• ​​​​FRS = Full Responsibility Sale (MW; by Season)
  • Assume 0 MW
• TL = Transmission Loss (%; by LBA and Season)
  • Assume 2.2%
• PRM = Planning Reserve Margin (%; by Season)
  • Assume 15%
• LSE Final PRMR = ( CPF - FRP + FRS ) * ( 1 + TL ) * ( 1 + PRM )
• LSE Final PRMR = ( 100.0 – 0.0 + 0.0 ) * ( 1 + 0.022 ) * ( 1 + 0.15 )​​​​​​
• LSE Final PRMR = ( 100.0 ) * ( 1.022 ) * ( 1.15 )
• LSE Final PRMR = 117.5300 MW or 117.5 MW (rounded to nearest 0.1 MW)

LSEs with Final PRMR will be obligated to procure capacity (ZRCs) equal to their Final PRMR.  LSEs may satisfy this requirement through committing ZRCs in a FRAP or RBDC Opt Out, or by “purchasing” ZRCs through the PRA.  In this latter case, no direction action is needed by the LSE, rather the LSE will be charged the relevant Auction Clearing Price (ACP) for the Local Resource Zone (LRZ) where they have Final PRMR less any Final PRMR the LSE has covered in a FRAP

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