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The PRMR is calculated using the following equation, by Asset Owner, by Local Resource Zone (LRZ):
 
𝑃𝑅𝑀𝑅𝐿𝑅𝑍= Σ [(𝐶𝑃𝐷𝑓𝐹𝑅𝑃+𝐹𝑅𝑆)×(1+𝑇𝐿%) ×(1+𝑃𝑅𝑀𝑅𝑇𝑂)]
 
       𝐿𝐵𝐴 Where:
PRMRLRZ = Planning Reserve Margin Requirement per LRZ
CPDf = Coincident Peak Demand forecast per LBA
FRP = Full Responsibility Purchase per LBA
FRS = Full Responsibility Sale per LBA
TL% = Transmission Loss Percentage of LBA
PRM RTO = Planning Reserve Margin in Unforced Capacity set by LOLE Studies
 
REFERENCE
BPM-011 Resource Adequacy
https://www.misoenergy.org/legal/business-practice-manuals/