In my last blog I introduced the Merchant Operations Center (MOC) and the job it does managing electric load and generation in two different regional markets: MISO and PJM. I discussed their mission of ensuring affordability, but I didn’t go into much detail. The actual tools, rules, and strategies the MOC uses to accomplish its two-part job are very complicated, in part because, in addition to operating in two regional power markets, each market has two sub-markets: the day-ahead and hourly markets. Wolverine’s MOC folks need to know lots of rules, forms, terminology, computer interfaces, bills … whew!

Each day, our men and women in the MOC manage Wolverine’s generation in the PJM and MISO markets. They follow daily changes in natural gas prices, weather, season, transmission congestion, and the health of the generators in neighboring systems for the sole purpose of creating bidding strategies for the next day. The MOC group also manages the electric load of our members. This means every morning, they have to produce an hourly forecast for tomorrow’s electric demands. Their decisions are monitored and scored for accuracy and performance. This takes a special set of talents. They need to be good at math, good communicators, and competitive game players. Oh, and they have to work nights, weekends, and holidays too.

The MOC presently resides in a glorified closet located in a hallway behind the ECC. The nearly $350 million dollars each year in business the MOC manages probably makes this the most valuable “closet” in Michigan. I look forward to moving them into a professional environment in our new headquarters.

Many G&Ts hire out this market function to another company. I disagree with this approach. Wolverine uses the daily market ebb and flow to make long term generation investment decisions. Our MOC remains accountable to our members — advancing Wolverine’s mission of affordability. And … who should care more about our members than Wolverine?