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The absence of a sloped demand curve in the Planning Resource Auction (PRA) continues to result in inefficient market outcomes and inefficient price signals. Moreover, the current vertical demand curve in the PRA has consistently produced clearing prices that are divorced from the marginal value of reliability and the capacity needs of the region.  Consistent with the Independent Market Monitor’s State of the Market Report Recommendation 2010-14, “A reliability-based demand curve that is sloped (rather than vertical) would more accurately reflect the reliability value of capacity in excess of the minimum requirement. It also would produce more efficient and stable capacity prices, particularly as the capacity market moves toward the minimum planning reserve requirement.” See, 2021 MISO State of the Market Report at 127. This Recommendation continues to caution that “Understated capacity prices are particularly harmful to MISO’s integrated utilities, most of which own surplus capacity and are compelled to sell it at inefficiently depressed prices. They are also problematic for unregulated participants that rely on the market to retain adequate resources to ensure reliability.” Id.  As such, MISO, the Organization of MISO States, and market participants should work to improve the modeling of demand in the PRA. Otherwise, the region will continue to experience a high number of emergency actions as needed resources leave the footprint due to improper economic signaling.