2009 State of the Market Report
increase in the forecasted peak load (to 107.6 GW) is entirely due to the additions of new members.
Despite the surplus of capacity that currently exists, more than 3,000 MW of new capacity is scheduled to be added prior to the summer of 2010, 1,600 MW of which is wind. Only 756 MW of generation is scheduled to retire. The rapid development of wind resources in the western portion of the footprint provides substantial environmental benefits, although it also creates forecasting and operational challenges that the Midwest ISO is working to address.
One significant benefit of the Midwest ISO energy markets is accurate and transparent locational price signals that reflect congestion on the network. Figure E-6 below shows the total congestion costs in the day-ahead and real-time markets. Total congestion costs shown in this figure were $305 million in 2009, a decrease of more than 39 percent from 2008 and almost 52 percent from 2007. The decrease was caused by a number of factors, including lower load, lower fuel prices, and transmission upgrades that reduced congestion into WUMS.
Figure E-6: Day-Ahead and Real-Time Congestion Costs 2007 – 2009
DA Congestion Cost RT Congestion Cost
J F MAMJ J AS ONDJ F MAMJ J AS ONDJ F MAMJ J AS OND
2007 2008 2009