Midcontinent Independent System Operator

Last updated
Midcontinent Independent System Operator
AbbreviationMISO
Type Nonprofit organization
Legal status 501(c)(4) [1]
Headquarters Carmel, Indiana, U.S.
Coordinates 39°58′00″N86°08′37″W / 39.966715°N 86.143745°W / 39.966715; -86.143745
Services Independent System Operator; Regional Transmission Organization
John R. Bear [2]
Todd Raba [3]
Revenue$400,001,689 [1] (2018)
Expenses$400,001,689 [1] (2018)
Employees1,096 [1] (2018)
Website www.misoenergy.org
MISO Reliability Footprint 2015 MISO Map.png
MISO Reliability Footprint

The Midcontinent Independent System Operator, Inc., formerly named Midwest Independent Transmission System Operator, Inc. (MISO) [4] is an Independent System Operator (ISO) and Regional Transmission Organization (RTO) established in 1998. It provides open-access transmission service and monitors the high-voltage transmission system in the Midwestern United States, in Manitoba, Canada, and in a southern U.S. region that includes much of Arkansas, Mississippi, and Louisiana. MISO also operates one of the world's largest real-time energy markets. [5] [6] The 15 states covered by MISO are: Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin. [7]

Contents

Definition of ISOs and RTOs

Both Independent System Operator (ISO)s and Regional Transmission Organization (RTO) are organizations formed with the approval of the Federal Energy Regulatory Commission (FERC) to coordinate, control and monitor the use of the electric transmission system by utilities, generators and marketers. An ISO is a non-profit organization which combines the transmission facilities of several transmission owners into a single transmission system to move energy over long distances at a single lower price than the combined charges of each utility that may be located between the buyer and seller. The ISO provides non-discriminatory service and must be independent of the transmission owners and the customers who use its system. [8]

RTOs also provide non-discriminatory access to the transmission network. However, they are required to meet specific FERC regulations that deal with transmission planning and expansion for an entire region, the use of energy markets to deal with system congestion, of power users and owners. RTOs offer regional wholesale electric transmission services under one tariff. [8]

FERC first required transmission owners to provide non-discriminatory access to their lines in Order Nos. 888 and 889, building on the model it had used to require interstate natural gas pipelines to provide access to pipeline capacity. In those orders, FERC noted that ISOs could provide the additional assurance of independence from the owners and eliminate multiple ("pancaked") rates to transmit electricity over long distances. Shortly after that, FERC Order No. 2000 encouraged the formation of RTOs to regionally manage portions of North America's electricity grid. [9]

There are nine ISOs, five of which are RTOs, operating in North America. They manage the systems that serve two-thirds of the customers in the U.S. and over half the population of Canada. [9] Over time, the distinction between ISOs and RTOs in the United States has become insignificant. Both organizations provide similar transmission services under a single tariff at a single rate, and they operate energy markets within their footprints. [9]

History

The Midcontinent Independent System Operator (MISO) was established in 1998 as Midwest Independent Transmission System Operator, Inc., an independent and member-based non-profit organization, and was approved as the nation's first RTO by FERC in 2001. The organization is headquartered in Carmel, Indiana with operation control centers in Carmel and Eagan, Minnesota and Little Rock, Arkansas. [10]

MISOs members include 54 transmission owners with more than 75,000 miles of transmission lines. Members include investor-owned utilities, public power utilities, and cooperatives, such as: Entergy, AES Indiana, International Transmission Company, Great River Energy, Xcel Energy, and City Water Light and Power. [11]

MISO began its operation on "Day 1", a development phase between 1998 and 2005. Throughout this period, the company initiated and built up transmission services to increase grid reliability. MISO was established as an ISO in 1998 after voluntary discussions led to its formation. One year later, the first board of directors was elected. By the end of 2000, the organization had more than 70 employees. In 2001, FERC approved MISO as the nation's first RTO. [12]

In 2005, MISO announced the opening of the MISO Energy Markets. The new services ushered in MISO's "Day 2" development phase, providing a wholesale electricity market that settles $2 billion in transactions each month. During this period, MISO grew its employee base to more than 600 staff, and moved the corporate headquarters and operations center under one roof in Carmel, Indiana. [12]

In addition to Day-Ahead and Real-Time markets, MISO operates an ancillary services market that began on January 6, 2009. This market provides energy and operating reserves and regulation and response services supporting reliable transmission services. [12]

The name was changed from Midwest Independent Transmission System Operator, Inc. to Midcontinent Independent System Operator in April 2013.

In December 2024, the MISO board of directors approved a transmission plan calling for a 765-kV transmission “backbone” in the area served, assisting in managing power load increases, changing generation resources and reacting to adverse weather. The estimated investment for the project is $30 billion (US) and, with regulatory review and approval, will be operational from 2032 to 2034. Long range net benefits are projected at $23 billion to $72 billion over 20 years. [13]

Workforce

MISO is governed by an independent ten-member Board of Directors, consisting of nine independent directors elected by the membership, and the president of MISO. [14] No board member may have been a director, officer, or employee of a member, user, or affiliate of a member or user for two years before or after the election to the Board. Under MISO's Standards of Conduct, all MISO board members, employees, and their immediate family members must divest themselves of any financial holdings in member or user companies. [15]

In 2018, MISO employed a staff of 1,096 employees [1] between its regional offices and control centers.

Technology

MISO uses a computer model called a State Estimator that analyzes real-time conditions of the MISO power grid. The system has been in operation since December 31, 2003. It serves as the primary management tool for the reliability of transmission facilities throughout the organization's footprint. The State Estimator is one of the world's largest computer systems and provides 303,800 data points that are updated every 5 seconds. [16]

Operations

As the primary RTO in the Midwest and South United States, MISO carries out operational responsibilities to maintain energy flow.

Grid management and reliability

Data is evaluated by reliability coordinators and reliability analysts, monitoring the grid 24/7. Projecting power movement in real-time, MISO's control room staff monitors and manages activity on the electric transmission system.[ citation needed ]

MISO performs regional planning in accordance with FERC principles.[ citation needed ] As of 2015 MISO infrastructure planning had four primary objectives:

The open market began on April 1, 2005, and has provided financially binding day-ahead and real-time energy pricing. MISO Markets include a Financial Transmission Rights Market, a Day-Ahead Market, a Real-Time Market, and a market for operating reserves and regulation. They are operated and settled separately, providing a clear look at day-to-day price changes. [18]

Planning efforts

Since its inception in 2003, MISO Transmission Expansion Plan (MTEP) has been a long-term annual planning study which identifies and supports the development of transmission infrastructure that is sufficiently robust to meet local and regional reliability standards and enables competition among wholesale energy suppliers. The MISO Board of Directors has been reviewing the MTEP annually during its December meeting. MTEP includes recommendations for transmission infrastructure additions and electric grid improvements. MTEP plans have recommended almost $6.9 billion in transmission projects, totaling $2.2 billion already in operation. [19]

In cooperation with PJM Interconnection (PJM), the two organizations developed a Joint and Common Market (JCM) to align market rules between them and to reduce the operating impact of the many transmission interconnections between the two RTOs. In December 2003, the two RTOs filed a Joint Operating Agreement with FERC, detailing how the organizations will share information and phase in their respective operations. [20]

Related Research Articles

<span class="mw-page-title-main">Federal Energy Regulatory Commission</span> Independent agency of the US federal government

The Federal Energy Regulatory Commission (FERC) is an independent agency of the United States government that regulates the interstate transmission and wholesale sale of electricity and natural gas and regulates the prices of interstate transport of petroleum by pipeline. FERC also reviews proposals to build interstate natural gas pipelines, natural gas storage projects, and liquefied natural gas (LNG) terminals, in addition to licensing non-federal hydropower projects.

<span class="mw-page-title-main">North American Electric Reliability Corporation</span> Non profit Electric Reliability Organization

The North American Electric Reliability Corporation (NERC) is a nonprofit corporation based in Atlanta, Georgia, and formed on March 28, 2006, as the successor to the North American Electric Reliability Council. The original NERC was formed on June 1, 1968, by the electric utility industry to promote the reliability and adequacy of bulk power transmission in the electric utility systems of North America. NERC's mission states that it "is to assure the effective and efficient reduction of risks to the reliability and security of the grid".

<span class="mw-page-title-main">Electric power industry</span> Industry that provides the production and delivery of electric energy

The electric power industry covers the generation, transmission, distribution and sale of electric power to the general public and industry. The commercial distribution of electric power started in 1882 when electricity was produced for electric lighting. In the 1880s and 1890s, growing economic and safety concerns lead to the regulation of the industry. What was once an expensive novelty limited to the most densely populated areas, reliable and economical electric power has become an essential aspect for normal operation of all elements of developed economies.

The Open Access Same-Time Information System (OASIS), is an Internet-based system for obtaining services related to electric power transmission in North America. It is the primary means by which high-voltage transmission lines are reserved for moving wholesale quantities of electricity. The OASIS concept was originally conceived with the Energy Policy Act of 1992, and formalized in 1996 through Federal Energy Regulatory Commission (FERC) Orders 888 and 889.

<span class="mw-page-title-main">Regional transmission organization (North America)</span> Electric power coordinator

A regional transmission organization (RTO) in the United States is an electric power transmission system operator (TSO) that coordinates, controls, and monitors a multi-state electric grid. The transfer of electricity between states is considered interstate commerce, and electric grids spanning multiple states are therefore regulated by the Federal Energy Regulatory Commission (FERC). The voluntary creation of RTOs was initiated by FERC in December 1999. The purpose of the RTO is to promote economic efficiency, reliability, and non-discriminatory practices while reducing government oversight.

<span class="mw-page-title-main">Transmission system operator</span> Energy transporter

A transmission system operator (TSO) is an entity entrusted with transporting energy in the form of natural gas or electrical power on a national or regional level, using fixed infrastructure. The term is defined by the European Commission. The certification procedure for transmission system operators is listed in Article 10 of the Electricity and Gas Directives of 2009.

<span class="mw-page-title-main">Great River Energy</span>

Great River Energy is an electric transmission and generation cooperative in the U.S. state of Minnesota; it is the state's second largest electric utility, based on generating capacity, and the fifth largest generation and transmission cooperative in the U.S. in terms of assets. Great River Energy was formed in 1999 when Cooperative Power Association and United Power Association merged.

<span class="mw-page-title-main">Midwest Reliability Organization</span> Regional electric energy reliability organization

The Midwest Reliability Organization (MRO) began operations on January 1, 2005, as the successor to the Mid-continent Area Power Pool (MAPP), which was formed in 1965. MRO is one of six regional entities under North American Electric Reliability Corporation (NERC) authority. NERC and the regional reliability councils were formed following the Northeast Blackout of 1965. MRO's offices are located in St. Paul, Minnesota. MRO members include municipal utilities, cooperatives, investor-owned utilities, a federal power marketing agency, Canadian Crown Corporations, and independent power producers.

<span class="mw-page-title-main">Southwest Power Pool</span> American power-grid non-profit in the central Southern US

Southwest Power Pool (SPP) manages the electric grid and wholesale power market for the central United States. As a regional transmission organization, the nonprofit corporation is mandated by the Federal Energy Regulatory Commission to ensure reliable supplies of power, adequate transmission infrastructure and competitive wholesale electricity prices. Southwest Power Pool and its member companies coordinate the flow of electricity across approximately 60,000 miles of high-voltage transmission lines spanning 14 states. The company is headquartered in Little Rock, Arkansas.

<span class="mw-page-title-main">Black start</span> Restoring of electric power station without external electric power

A black start is the process of restoring an electric power station, a part of an electric grid or an industrial plant, to operation without relying on the external electric power transmission network to recover from a total or partial shutdown.

<span class="mw-page-title-main">ISO New England</span> Oversees the operation of New Englands bulk electric power system

ISO New England Inc. (ISO-NE) is an independent, non-profit regional transmission organization (RTO), headquartered in Holyoke, Massachusetts, serving Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont.

<span class="mw-page-title-main">PJM Interconnection</span> Major electric grid coordinator in northeastern USA

PJM Interconnection LLC (PJM) is a regional transmission organization (RTO) in the United States. It is part of the Eastern Interconnection grid operating an electric transmission system serving all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia, and the District of Columbia.

The United States has the second largest electricity sector in the world, with 4,178 Terawatt-hours of generation in 2023. In 2023 the industry earned $491b in revenue at an average price of $0.127/kWh.

Open Automated Demand Response (OpenADR) is a research and standards development effort for energy management led by North American research labs and companies. The typical use is to send information and signals to cause electrical power-using devices to be turned off during periods of high demand.

<span class="mw-page-title-main">California Independent System Operator</span> Non-profit Independent System Operator serving California

The California Independent System Operator (CAISO) is a non-profit Independent System Operator (ISO) serving California. It oversees the operation of California's bulk electric power system, transmission lines, and electricity market generated and transmitted by its member utilities. CAISO is one of the largest ISOs in the world, delivering 300 million megawatt-hours of electricity each year and managing about 80% of California's electric flow.

<span class="mw-page-title-main">North American power transmission grid</span> Series of electrical grids that power the US and Canada

The electrical power grid that powers Northern America is not a single grid, but is instead divided into multiple wide area synchronous grids. The Eastern Interconnection and the Western Interconnection are the largest. Three other regions include the Texas Interconnection, the Quebec Interconnection, and the Alaska Interconnection. Each region delivers power at a nominal 60 Hz frequency.

<span class="mw-page-title-main">Bernard McNamee</span> American lawyer

Bernard L. McNamee is an American attorney and former government official who served as Commissioner of the Federal Energy Regulatory Commission (FERC) from 2018 to 2020. Nominated to the position by President Donald Trump, McNamee was confirmed to the position by the United States Senate on December 6, 2018.

<span class="mw-page-title-main">Regional entity</span> Regional electric energy reliability organization

A regional entity (RE) in the North American power transmission grid is a regional organization representing all segments of the electric industry: electric utilities, federal agencies, independent power producers, power market operators, and end-users of the energy. North American Electric Reliability Corporation (NERC) delegates to REs authority to enforce reliability standards, collectively REs, together with NERC, are known as an "ERO Enterprise".

The Western Resource Adequacy Program (WRAP) is an electricity planning and sharing agreement between electric utilities of the Western Power Pool. Its goals are to improve regional reliability and adequacy while decreasing costs by moving utilities from an individual utility framework to a regional approach. Program operations are based in Oregon.

References

  1. 1 2 3 4 5 "Form 990: Return of Organization Exempt from Tax". Midcontinent Independent System Operator Inc. Internal Revenue Service. December 31, 2018.
  2. ↑ "John R. Bear". Midcontinent Independent System Operator. Retrieved November 11, 2020.
  3. ↑ "". Midcontinent Independent System Operator. Retrieved May 21, 2024.
  4. ↑ url=https://www.misoenergy.org/AboutUs/MediaCenter/pages/MediaCenter.aspx%7Cformat=https |accessdate =2013-07-03
  5. ↑ "MIDO". api.misoenergy.org. Retrieved 2019-01-10.
  6. ↑ "What We Do" (https). Retrieved 2009-02-24.
  7. ↑ https://brookfieldrenewableus.com/wp-content/uploads/2020/05/Market_Information_MISO_0-1.pdf [ bare URL PDF ]
  8. 1 2 "FERC" . Retrieved 2009-02-24.
  9. 1 2 3 "IRC Sourcebook" (PDF). Archived from the original (PDF) on 2011-07-26. Retrieved 2009-02-24.
  10. ↑ "MISO Locations".
  11. ↑ "MISO Fact Sheet".
  12. 1 2 3 "History" (https). Midcontinent Independent System Operator. Retrieved February 24, 2009.
  13. ↑ Howland, Ethan (13 December 2024). "MISO board approves $22B regional transmission plan with 765-kV backbone". Utility Dive.
  14. ↑ "Board of Directors". Midcontinent Independent System Operator. Retrieved November 11, 2020.
  15. ↑ "Careers". Midcontinent Independent System Operator. Retrieved February 24, 2009.
  16. ↑ "Improved State Estimator Gives MISO Most Comprehensive View of Power Grid" (pdf). Midwest Independent Transmission System Operator. 2004-01-15. Retrieved 2009-02-24.
  17. ↑ "Archived copy". Archived from the original on 2015-09-25. Retrieved 2015-09-25.{{cite web}}: CS1 maint: archived copy as title (link)
  18. ↑ "Archived copy". Archived from the original on 2015-09-25. Retrieved 2015-09-25.{{cite web}}: CS1 maint: archived copy as title (link)
  19. ↑ MISO Transmission Expansion Plan
  20. ↑ "Midwest Independent Transmission System Operator, Inc. and PJM Interconnection, L.L.C., Docket Nos. ER04-375-017, ER04-375-018" (PDF). Midwest ISO. 2006-10-26. Retrieved 2009-02-24.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.