Capacity benefit margin methodology

Capacity Benefit Margin (CBM) is the amount of firm transmission transfer capability preserved to enable access by Load Serving Entities (LSEs) to generation from interconnected systems to meet generation reliability requirements, such as meeting firm load obligations during a capacity emergency. Preservation of CBM for an LSE allows that entity to reduce its installed generating capacity below that which may otherwise have been necessary without interconnections to meet its generation reliability requirements. The transmission transfer capability preserved as CBM is intended to be used by the LSE only in times of emergency generation deficiencies.

As in MISO planning studies, ATC planning studies (other than the flow based analysis required for MISO transmission service studies) will not model CBM. CBM is instead accommodated by ensuring that zones have the necessary emergency import capability through Loss of Load Expectation (LOLE) studies performed by MISO and governed by the obligations of the MISO Module E of Energy Markets Tariff (EMT). If a deficiency is identified, any resulting incremental import capability requirements will be incorporated into ATC’s overall transmission expansion plan

MISO performs annual LOLE studies to determine the installed planning reserve margin that would result in the MISO system experiencing one loss of load event every ten years on average. This equates to a yearly LOLE value of 0.1 days per year. This value is determined through analysis using the GE Multi-Area Reliability Simulation (MARS) software. PROMOD software is used to perform a security constrained economic dispatch analysis which determines congestion related zones which are used in the MARS modeling. This analysis occurs on an annual basis to determine the zones and planning reserve margin for the next planning year as well as two other analysis years in the ten-year horizon.

As part of the LOLE studies, MISO calculates the Generation Capability Import Requirement (GCIR) for each zone. An import level equal to the GCIR level for each zone is simulated, and the MW impacts on each defined flowgate are recorded. For each flowgate, the highest MW impact due to a GCIR import into a zone becomes the calculated CBM for that flowgate.

Then, for each flowgate MISO compares the flowgates calculated CBM to the Automatic Reserve Sharing (ARS) component of the Transmission Reliability Margin (TRM) for that same flowgate. Since the worst case loss of a single resource is already covered by the ARS component of TRM, this amount of capacity is not redundantly preserved as part of CBM. If the ARS component is greater than the calculated CBM, no CBM will be preserved on that flowgate. If the ARS component is less than the calculated CBM, the incremental amount of CBM that is needed above the ARS component will be preserved as CBM for that flowgate.


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