After the Planning Resource Auction is complete, Market Participants (MPs) wishing to request an Installed Capacity (ICAP) Deferral may do so, so that the ICAP Deferral credit requirement is relieved.
The MP that submitted the ICAP Deferral request is responsible for completing ICAP or resource replacement by the last Business Day of May for all deferred (Zonal Resource Credit) ZRCs that cleared in the (Planning Resource Auction) PRA or were included as part of a FRAP.
MISO will adjust the Market Participant’s credit requirements within ten (10) Business Days of the full ICAP being met and validated by MISO or when the MP provides written notification to the Capacity Market Administration team that a Planning Resource replacement has been completed.
Any ICAP not completed or replaced by the last Business Day of May will be subject to the ICAP Deferral Non-Compliance Charge for each day the ICAP or the Planning Resource replacement is not completed. The ICAP Deferral Non-Compliance Charge will be based on the sum of the Auction Clearing Price (ACP) and daily CONE based on the LRZ or ERZ of the Planning Resource, multiplied by the number of ZRCs that have not been replaced or tested.
When the resource does not clear in the auction, but has tested, and MISO has validated, the Market Participant’s credit requirement will be relieved within ten (10) Business Days from the auction approval.
More information on ICAP Deferral can be found in the Resource Adequacy Business Practices Manual (BPM-011)