The Midcontinent Independent System Operator, Inc., formerly named Midwest Independent Transmission System Operator, Inc. (MISO) 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.
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.
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.
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 the elimination of multiple (“pancakedâ€) rates to transmit electricity over long distances. Shortly thereafter, FERC Order No. 2000 encouraged the formation of RTO’s to regionally manage portions of North America’s electricity grid.
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. 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.
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.
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, Indianapolis Power & Light, International Transmission Company, Great River Energy, Xcel Energy, and City Water Light and Power.
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 and by the end of 2000 the organization had more than 70 employees. In 2001, FERC approved MISO as the nation's first RTO.
Northeast blackout of 2003 The following is the blackout's sequence of events on August 14, 2003 (times in EDT): 12:15Â p.m. Incorrect telemetry data renders inoperative the state estimator, a power flow monitoring tool operated by the Indiana-based Midwest Independent Transmission System Operator (MISO). An operator corrects the telemetry problem and forgets to restart the monitoring tool.
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.
Now, in addition to Day-Ahead and Real-Time markets, MISO operates an ancillary services market which began on January 6, 2009. This market provides both energy and operating reserves as well as regulation and response services that support reliable transmission service.
Name was changed in April 2013.
Value Proposition
The Value Proposition is a study demonstrating MISO’s major benefits as an RTO provider for the heartland region. MISO participants see $700 million to $900 million in annual benefits due to improvements in reliability, efficiency and development:
- Reliability â€" MISO monitors the state of the grid every 30 seconds. This allows the organization to detect potential issues and identify effective responses within minutes. Its reliability function also maintains seamless management between neighboring ISO and RTO providers and ensures that all government regulations are met.
- Efficiency â€" MISO maximizes the efficient use of the transmission system and energy under fluctuating power demands. The Security Constrained Economic Dispatch software matches energy needs with resources in terms of capability and price.
- Development â€" Regional planning efforts have resulted in almost $8.4 billion in new infrastructure and improvements to the transmission system. The development of the transmission system supports the reliable operation of the interconnected grid and maintains a competitive energy market.
Workforce
MISO is governed by an independent nine-member Board of Directors, with eight independent directors elected by the membership, plus the president of MISO. 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 election to the Board. Under MISO’s Standards of Conduct, all MISO board members, employees and their immediate family members are required to divest themselves of any financial holdings in member or user companies.
MISO employs a staff of approximately 900 full-time employees between its three operation control centers and its transmission planning office in Metairie, LA.
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, and 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.
Operations
As the primary RTO in the Midwest and South United States, MISO carries out operational responsibilities to maintain the flow of energy.
Grid management and reliability
Data is evaluated by Reliability Coordinators and Reliability Analysts, monitoring the grid 24/7. Projecting the movement of power 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:
- provide an efficient and reliable transmission system
- access a diverse number of energy resources, including renewable energies
- expand energy trading opportunities
- meet state and federal energy policy objectives
MISO Markets
This open market began on April 1, 2005, and provides financially binding day-ahead and real-time pricing of energy. 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.
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.
MISO â€" 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.
More info can be found at http://www.miso-pjm.com/
Awards and honors
- 2011 Franz Edelman Winner - In April 2011, MISO was named winner of the 2011 Franz Edelman Award, an international accolade for achieving excellence in operations research that benefits society. The award recognizes MISO's outstanding achievement in Operations Research and the Management Sciences for implementing wholesale energy and ancillary services markets. The award from INFORMS, an internationally acclaimed scientific and academic society, recognizes extraordinary innovation in applying operations research to make a major impact on an organization and society.
- NERC Examples of Excellence â€" In May 2007, the North American Electric Reliability Corporation (NERC) awarded MISO six “Examples of Excellence†for its real-time operations and practices that maintain the reliability of the interconnected bulk electric system. NERC also gave MISO 13 positive observations for its commitment to employee growth and professional development.
- Computerworld Honors â€" MISO received two awards for IT innovation from Computerworld Magazine. In June 2007, the organization received a Computerworld honor for its implementation of an advance data storage system at its headquarters in Carmel, IN. The magazine also named Jim Schinski, former Vice President and Chief Information Officer for MISO, as one of the Premier 100 IT leaders in 2008.
- Wind Integration Honors â€" The Utility Wind Integration Group(UWIG) honored MISO in March 2008 for its use of wind energy resources. MISO was recognized for incorporating economic-based planning for energy resources, as opposed to more traditional reliability-based capacity planning. It was also recognized for implementing wind energy resources into its MTEP plan.
- 2011 Compliance Award - The Open Compliance and Ethics Group (OCEG) named MISO a recipient of the 2011 Governance, Risk Management and Compliance (GRC) Achievement Award for MISO’s comprehensive compliance framework and technology solution, each known as the Compliance Model and Compliance Platform.
The 2011 GRC Achievement Awards were presented May 24, 2011, at Compliance Week’s 5th Annual Conference in Washington, D.C. MISO was one of five winners including Adecco, Constellation Energy, Humana, and Visa. A committee of OCEG's Fellows reviewed and selected winners for the GRC Achievement Award. For more information, see MISO's winning presentation.
References
External links
- JCM Contour Map
- MISO
- The Federal Energy Regulatory Commission (FERC)
- The North American Electric Reliability Corporation (NERC)
- Midwest ISO â€" PJM Interconnection Joint and Common Market (JCM)
- The Organization of MISO States
- MISO LinkedIn Profile
- BusinessWeek company snapshot
- Entergy aiming to join MISO end 2013, spurns SPP
- Map of MISO transmission grid