MTEP15 Chapter 9.1: MISO Overview
MISO is a not-for-profit, member-based organization that administers wholesale electricity and ancillary services markets. MISO provides customers a wide array of services including reliable system operations; transparent energy and ancillary service prices; open access to markets; and system planning for long-term reliability, efficiency and to meet public policy needs.
|By improving grid reliability and increasing the efficient use of generation, MISO saves the average residential customer $40 to $56 a year, at an annual expense of $5 per customer|
MISO has 51 Transmission Owner members with more than $31.4 billion in transmission assets under MISO’s functional control. MISO has 122 non-transmission owner members that contribute to the stability of the MISO markets.
The services MISO provides translate into material benefits for members and end users. By improving grid reliability and increasing the efficient use of generation, MISO saves the average residential customer $40 to $56 a year at an annual expense of $5 per customer. The MISO 2014 Value Proposition explains the various components of this benefits calculation.
The value drivers are:
- Improved Reliability, which captures the value of MISO’s broader regional view and state-of-the art reliability tool set. Improved Reliability in the region is measured by the availability of the transmission system.
- Dispatch of Energy, which quantifies the real-time and day-ahead energy market’s use of security constrained unit commitment and centralized economics dispatch. Improved Reliability and Dispatch of Energy optimize the use of all resources within the region based on bid and offers by market participants.
- Regulation, which represents the savings created by use of MISO’s regulations market. With the regulation market in place, the amount of regulation required within the MISO footprint dropped significantly. The drop results from a regional move to a centralized common footprint regulation target rather than several non-coordinated regulation targets.
- Spinning Reserve, which includes the formation of the Contingency Reserve Sharing Group and the implementation of the Spinning Reserves Market. Both aspects contributed to the decline of the total spinning reserve requirement, freeing low-cost capacity to meet energy requirements.
- Wind Integration, which quantifies the value of regional planning of wind resources. The centralized look at the footprint allows for more economic placement of wind resources. Economic placement of wind resources reduces the overall capacity needed to meet required wind energy output.
- Compliance, which shows the time and money savings associated with MISO consolidating FERC and NERC compliance obligations. Before MISO, utilities in the MISO footprint were responsible for managing FERC and NERC compliance.
- Footprint Diversity, which captures the value of MISO’s large footprint. MISO’s size increases the load diversity, allowing for a decrease in regional planning reserve margins from 18.08 percent to 14.98 percent. The decrease in the planning reserve margins delays the need to construct new capacity.
- Generator Availability Improvement, which displays the savings created by improved power plant availability. MISO’s wholesale markets increased power plant availability by 1.9 percent, which delays the need to construct new capacity.
- Demand Response, which MISO enables through dynamic pricing, direct load control and interruptible contracts. MISO-enabled demand response further delays the need to construct new capacity.
- Cost Structure, through which MISO provides these services. It is expected to stay relatively flat. The costs of these services represent a small percentage of the benefits and real savings to MISO customers.
MISO provides these services for the largest RTO geographic footprint in the U.S. MISO undertakes this mission from control centers in Carmel, Ind.; Eagan, Minn.; and Little Rock, Ark., with regional offices in Metairie, La., and Little Rock, Ark. (Figure 9.1-1).
Generation Capacity (as of June 2015)
- 178,396 MW (market)
- 192,803 MW (reliability)
Historic Peak Load (set July 20, 2011)
- 127,125 MW (market)
- 133,181 MW (reliability)
Miles of transmission
- 65,800 miles of transmission
- 8,400 miles of new/upgraded lines planned through 2023
- $37 billion in annual gross market charges (2014)
- 2,446 pricing nodes
- 413 Market Participants serving over 42 million people
- 15,215 MW active projects in the interconnection queue
- 14,162 MW wind in service
- 14,532 MW registered wind capacity (Jun. 2015)