MISO Energy Storage Study Phase 1 Report - Utility Wind ...
MISO Energy Storage Study Phase 1 Report - Utility Wind ...
MISO Energy Storage Study Phase 1 Report - Utility Wind ...
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1<br />
INTRODUCTION<br />
Background and Objectives<br />
The Midwest Independent Transmission System Operator (<strong>MISO</strong>) is a non-profit member based<br />
organization regulated by the federal energy regulatory commission (FERC). As a Regional<br />
Transmission Organization (RTO), <strong>MISO</strong> provides electricity consumers in 13 states with<br />
regional grid management and open access to transmission facilities at a tariff closely regulated<br />
by FERC.<br />
The guiding philosophy behind RTO’s is to deliver safe and reliable wholesale energy markets<br />
for utility members. <strong>MISO</strong> does not own generation capacity or transmission so its planning<br />
activities center on ensuring that transmission capacity delivers generation at the best price for<br />
consumers. <strong>MISO</strong> is required to engage in comprehensive planning in order to meet reliability<br />
criteria in its region and with its neighbors. In addition, <strong>MISO</strong> runs the wholesale energy and<br />
ancillary market for electricity. The balancing market price mechanism (locational marginal<br />
pricing, LMP) is designed to attract investment in new generation when congestion raises prices.<br />
The <strong>MISO</strong> transmission-planning process accommodates new generation interconnections.<br />
When RTO’s were first created in the early 2000’s, the transmission planning emphasis was<br />
purely on reliability and security. During the past ten years there has been a change in emphasis<br />
for <strong>MISO</strong> and other RTO’s to expand their transmission planning activities beyond a pure focus<br />
on reliability and security in order to meet economic planning goals (FERC Order 890) as well as<br />
broader public policy goals.<br />
<strong>MISO</strong> currently follows a top-down (regional) and bottoms-up (local) transmission planning<br />
process intended to address reliability, economic, and public policy driven transmission issues 2 .<br />
<strong>MISO</strong>’s guiding principles in transmission planning are as follows:<br />
• Provide access to the lowest possible delivered electric energy cost<br />
• Reliability<br />
• Support for State and Federal renewable energy objectives<br />
• Provide an appropriate transmission cost allocation mechanism<br />
• Develop a transmission system scenario model and make it available to stakeholders in<br />
general.<br />
2 See http://www.midwestiso.org/Planning/TransmissionExpansionPlanning<br />
1-1
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