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Currently, a local resource zone cannot be smaller than an entire Local Balancing Authority (LBA).  In some cases, however, capacity is needed in certain load pockets within an LBA.  For example, Narrow Constrained Area (NCAs) in MISO South have substantial capacity needs to satisfy local reliability requirements.  In neither case, however, can the capacity prices in the PRA reflect the need for capacity because of the limited transmission capability into the areas.  Therefore, as discussed under SOM 2014-6, the IMM recommends that MISO adopt procedures for defining capacity zones that would allow the zones to be determined by transmission constraints and other local reliability needs when warranted.  The load pockets in Texas are a prime example of this need.  Capacity is insufficient in these areas, which caused MISO to almost have to shed load on August 13, 2019 and led to larger quantities of lost load following Hurricane Laura on August 27, 2020.  Establishing a capacity zone in this area, and potentially other vulnerable load pockets, would allow MISO to procure the planning resources it needs to operate the system reliably.   

Submitted by the Independent Market Monitor (IMM).