Midcontinent Independent Operator (MISO) | Practical Law

Midcontinent Independent Operator (MISO) | Practical Law

Midcontinent Independent Operator (MISO)

Midcontinent Independent Operator (MISO)

Practical Law Glossary Item w-016-8616 (Approx. 3 pages)

Glossary

Midcontinent Independent Operator (MISO)

One of seven regional transmission organizations (RTOs) and independent system operators (ISOs) operating in the US, MISO is a not-for-profit quasi-governmental organization that ensures the reliable, least-cost delivery of electricity across all or parts of 15 US states (Arkansas, Illinois, Indiana, Iowa, Kentucky, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Montana, North Dakota, South Dakota, Texas, and Wisconsin) and one Canadian province (Manitoba). It is geographically the largest ISO in the US.
MISO is one of the four RTOs and ISOs, together with ISO New England, the PJM Interconnection, and the New York Independent System Operator, that operates a capacity market. It manages about 65,000 miles of high-voltage transmission and 200,000 megawatts (MW) of generation resources.
In addition to its capacity market, MISO also operates:
  • Day-ahead and real-time energy markets. These markets use the lowest-cost resources to satisfy the system's demands without overloading the transmission network.
  • A financial transmission rights (FTRs) market. FTRs represent the economic property rights associated with the transmission system and serve as a hedge against day-ahead congestion costs.
  • An ancillary services market. These products include operating reserves and regulation. The ancillary services and energy markets are jointly optimized to allocate resources efficiently.