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]
Phyllis E. Currie [3]
Revenue (2018)
$400,001,689 [1]
Expenses (2018)$400,001,689 [1]
Employees (2018)
1,096 [1]
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) providing open-access transmission service and monitoring the high-voltage transmission system in the Midwest United States and Manitoba, Canada and a southern United States region which 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 ISOs and RTOs 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 that 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]

Incorporation under FERC

MISO was established in 1998 as an ISO 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]

Footprint/membership

MISO is an independent and member-based non-profit organization. Its members include 51 transmission owners with more than 65,800 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]

History

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 in April 2013.

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. [13] 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. [14]

In 2018, MISO employed a staff of 1,096 employees [1] between its three operation control centers and its transmission planning office in Metairie, Louisiana.

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. [15]

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.

Infrastructure planning and energy alternatives

MISO performs regional planning in accordance with FERC principles. MISO infrastructure planning has four primary objectives:

MISO Markets

This open market began on April 1, 2005, and provides 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. [17]

Planning efforts

MISO Transmission Expansion Plan (MTEP)

MTEP is a long-term annual planning study that 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 reviews the MTEP annually during its December meeting. MTEP includes recommendations for transmission infrastructure additions and electric grid improvements throughout the MISO footprint. Since its inception in 2003, MTEP plans have recommended almost $6.9 billion in transmission projects, totaling $2.2 billion already in operation. Page text. [18]

MISO – PJM Interconnection Joint and Common Market (JCM)

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. [19]

Related Research Articles

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

The Federal Energy Regulatory Commission (FERC) is the independent agency of the United States government that regulates the transmission and wholesale sale of electricity and natural gas in interstate commerce and regulates the transportation of oil by pipeline in interstate commerce. 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".

In a broad sense, an electricity market is a system that facilitates the exchange of electricity-related goods and services. During more than a century of evolution of the electric power industry, the economics of the electricity markets had undergone enormous changes for reasons ranging from the technological advances on supply and demand sides to politics and ideology. A restructuring of electric power industry at the turn of the 21st century involved replacing the vertically integrated and tightly regulated "traditional" electricity market with multiple competitive markets for electricity generation, transmission, distribution, and retailing. The traditional and competitive market approaches loosely correspond to two visions of industry: the deregulation was transforming electricity from a public service into a tradable good. As of 2020s, the traditional markets are still common in some regions, including large parts of the United States and Canada.

<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 commodity sold is actually energy, not power, e.g. consumers pay for kilowatt-hours, power multiplied by time, which is energy. The commercial distribution of electricity 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 Order No. 2000, issued on December 20, 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">ReliabilityFirst</span> Regional electric energy reliability organization

ReliabilityFirst (RF) is one of the six Federal Energy Regulatory Commission (Commission)-approved regional entities responsible for ensuring the reliability of the North American Bulk-Power System, pursuant to the Energy Policy Act of 2005. ReliabilityFirst performs this function pursuant to and under its delegation agreement with North American Electric Reliability Corporation (NERC), which is the Commission-approved Electric Reliability Organization. NERC and the Regional Entities are non-governmental, self-regulatory organizations that were created in recognition of, among other things, the complex, interconnected, and international nature of the North American Bulk Power-System.

<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">Western Electricity Coordinating Council</span> Regional electric energy reliability organization

The Western Electricity Coordinating Council (WECC) promotes Bulk Electric System (BES) reliability for the entire Western Interconnection system. WECC is the Regional Entity responsible for compliance monitoring and enforcement. In addition, WECC provides an environment for the development of Reliability Standards and the coordination of the operating and planning activities of its members as set forth in the WECC Bylaws.

<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 or a part of an electric grid 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.

There is a large array of stakeholders that provide services through electricity generation, transmission, distribution and marketing for industrial, commercial, public and residential customers in the United States. It also includes many public institutions that regulate the sector. In 1996, there were 3,195 electric utilities in the United States, of which fewer than 1,000 were engaged in power generation. This leaves a large number of mostly smaller utilities engaged only in power distribution. There were also 65 power marketers. Of all utilities, 2,020 were publicly owned, 932 were rural electric cooperatives, and 243 were investor-owned utilities. The electricity transmission network is controlled by Independent System Operators or Regional Transmission Organizations, which are not-for-profit organizations that are obliged to provide indiscriminate access to various suppliers to promote competition.

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> Oversees the operation of the U.S. states electric power grid

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. The regions are not usually directly connected or synchronized to each other, but there exist some HVDC interconnectors. The Eastern and Western grids are connected with 1.32 GW.

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. ↑ "Phyllis E. Currie". Midcontinent Independent System Operator. Retrieved November 11, 2020.
  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
  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. ↑ "Board of Directors". Midcontinent Independent System Operator. Retrieved November 11, 2020.
  14. ↑ "Careers". Midcontinent Independent System Operator. Retrieved February 24, 2009.
  15. ↑ "Improved State Estimator Gives MISO Most Comprehensive View of Power Grid" (pdf). Midwest Independent Transmission System Operator. 2004-01-15. Retrieved 2009-02-24.
  16. ↑ "Archived copy". Archived from the original on 2015-09-25. Retrieved 2015-09-25.{{cite web}}: CS1 maint: archived copy as title (link)
  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. ↑ MISO Transmission Expansion Plan
  19. ↑ "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.
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