MISO is filing at FERC to remove reactive power compensation for reactive power provided within the power factor range in the IA. The notice does not address compensation for reactive power outside the power factor range. But my guess is that MISO is going with the SPP approach where compensation is paid when reactive power is provided outside the power factor range, which does not happen often. MISO is moving from a cost of service compensation model essentially to no compensation.
Notice from MISO:
Dear Stakeholders,
On November 11, 2022, MISO received the following:
Pursuant to Appendix K, Section IV.A & C of the Transmission Owners Agreement, a majority of the Owners that own or control generation or other resources capable of providing ancillary services (offered to customers pursuant to the MISO Tariff) provide notice that they voted on October 21, 2022 to file with the Federal Energy Regulatory Commission, pursuant to section 205 of the Federal Power Act, revisions to the MISO Tariff to eliminate the charges for Reactive Supply and Voltage Control from Generation or Other Sources Service under Schedule 2 from Transmission Owner resources or Transmission Owner affiliated resources. As a result, there will be no separate charge to compensate any generating resource for reactive service provided within the standard power factor range. The revisions will result in a rate decrease.
Consistent with the obligations specified in Appendix K, Section IV.A of the MISO Agreement of Transmission Facilities Owners to Organize the Midcontinent Independent System Operator, Inc., a Delaware Non-Stock Corporation (“Transmission Owners Agreement”), MISO hereby shares this information with its Members, the MISO Advisory Committee, and state Commission representatives. The Transmission Owners Agreement specifies that the Owners provide MISO and all other Owners with at least thirty (30) days’ notice before submitting a filing subject to Appendix K, Article IV unless circumstances require a shorter notice, in which case the Owner(s) shall use reasonable efforts to provide as much notice before the filing as possible.