Excepted Benefits Production Results Production Cost Savings 4.2 Million/Year Reduced Price Volatility ~7% Improved DA /RT Convergence ~3% Reduced Short-Term Scarcities and Price Spikes (in Figure) (a) 250 LMP with RCP LMP Without RCP Average Hub LMP (US$) 200 150 100 50 17 July 2016 15:00 17 July 2016 15:10 17 July 2016 15:20 17 July 2016 15:30 17 July 2016 15:40 17 July 2016 15:50 17 July 2016 16:00 17 July 2016 16:10 17 July 2016 16:20 17 July 2016 16:30 17 July 2016 16:40 17 July 2016 16:50 17 July 2016 17:00 17 July 2016 17:10 17 July 2016 17:20 17 July 2016 17:30 17 July 2016 17:40 17 July 2016 17:50 17 July 2016 18:00 17 July 2016 18:10 17 July 2016 18:20 17 July 2016 18:30 17 July 2016 18:40 17 July 2016 18:50 17 July 2016 19:00 17 July 2016 19:10 17 July 2016 19:20 17 July 2016 19:30 17 July 2016 19:40 17 July 2016 19:50 17 July 2016 20:05 17 July 2016 20:15 17 July 2016 20:25 17 July 2016 20:35 17 July 2016 20:45 17 July 2016 20:55 17 July 2016 21:05 17 July 2016 21:15 17 July 2016 21:25 17 July 2016 21:35 17 July 2016 21:45 17 July 2016 21:55 0 Source: MISO (b) MW figure 5. A comparison of market outcomes with and without the MISO ramp capability product (RCP). LMP: locational marginal price. C A Day 1 Source: CISO D B Day 2 figure 6. The different flexible capacity needs in CAISO: largest (A/C) and smallest (B/D) and daily primary (A/B) and secondary (C/D) ramps in the month. 78 ieee power & energy magazine reflecting the value of lost load, the result can be lower realized prices. This contributes to reduced revenue for the supply side, thus reducing incentives to invest in new generation. This lack of sufficient revenue for the supply side is referred to as the "missing money" problem. With missing money, there is a concern that investment in new supply-side resources could dry up and, in the long run, lead to insufficient resource adequacy. With VER contributing to reductions in energy prices and the production of other resources, this missing money issue can be amplified. Many regions have implemented capacity markets or capacity requirements that must be met by load-serving entities. november/december 2017