Power Producers Ask FERC to Reverse MISO $280M Auction

Power producers file complaints asking FERC to reverse MISO's $280 million 'adjustment' to a capacity auction due to a software error.

Power producers have filed formal complaints with the Federal Energy Regulatory Commission (FERC), demanding it reverse a $280 million adjustment made by the Midcontinent Independent System Operator (MISO) to its latest capacity auction. The complaints center on MISO's handling of a software error that materially affected the auction's clearing prices and resource accreditation. This dispute places intense scrutiny on the market oversight and corrective action protocols of one of the nation's largest regional transmission organizations (RTOs), with hundreds of millions in market participant revenues at stake.

This regulatory complaint contrasts with MISO's attempted internal fix, arguing the grid operator overstepped its authority. The core issue is whether the software glitch constituted a market design flaw requiring FERC intervention or a correctable administrative error. Obtaining a FERC order to nullify the adjustment is the critical deliverable sought by generators. This matters because it tests the limits of an RTO's discretion to alter auction results post-hoc, a precedent that could impact market confidence and investment signals in capacity markets nationwide.

For utility commissioners, merchant generators, and electricity traders, the implications are financial and procedural. This complaint necessitates a detailed review of auction rules and bid data to assess the error's true impact. The forecast is for a complex, technical FERC proceeding that will delay final revenue settlements. Decision-makers must now evaluate financial exposure and potential litigation strategies. The next imperative for FERC is to rule swiftly and clearly on the bounds of RTO authority, ensuring its decision reinforces market integrity and procedural fairness to maintain the long-term reliability and economic efficiency of the organized wholesale markets it oversees.