Capacity-2: I understand that there could be a payment adjustment on delivered ZRCs under the (AIC) Capacity Agreement if the ZRCs are not from the compliance zone. Can you provide an example where the adjustment will add to the payment to Seller?

Under the terms of the (AIC) Capacity Agreement, payments to Seller will only be adjusted to reflect an increased payment if the Source Zone ACP in a season is greater than the Compliance Zone ACP in that season where the Compliance Zone is LRZ4.

For purposes of the below example, the “ACP” refers to the Auction Clearing Price from the MISO Planning Resource Auction (“PRA”) for the Summer season for the 2023/2024 Planning Year and the Compliance Zone is LRZ4. The example below is hypothetical. The results of the 2023/2024 MISO PRA are not yet available.

No. of ZRCs delivered by Seller: 25 ZRCs for the Summer season from Zone 3
Average Winning Bid Price for the Summer season under the (AIC) Capacity Agreement: $10/MW-day
Payment to Seller = $10 x 25 ZRCs x 92 days = $23,000
MISO Summer 2023/2024 PRA Results:
LRZ 4 ACP = $6/MW-day
LRZ 3 ACP = $20/MW-day
Adjustment to Payment = ($20 – $6) x 25 ZRCs x 92 days = $32,200
Adjusted Payment = $23,000 + $32,200 = $55,200