Regional coordination becomes even more valuable during the energy transition
CARMEL, Ind. — Today, the Midcontinent Independent System Operator (MISO) announces the Forward View of the Value Proposition which projects the benefits of MISO membership for 2030 and 2040. The Forward View will reflect expanded value streams including the projected value of sharing flexible resources and decarbonization savings across the MISO footprint.
“In the future, MISO will continue to play a significant role in ensuring reliability and optimizing flexibility in our large and diverse footprint as it transitions towards a more decarbonized system,” said MISO’s Chief Executive Officer John Bear. “Today our benefit to cost ratio is about 11:1. By 2040 we estimate that benefit to cost ratio to be about 26:1. That’s a significant increase in value delivery to MISO membership.”
The Forward View of the Value Proposition builds upon the existing, historical view of MISO’s Value Proposition, which is the annual calculation of benefits to end-use customers from increased reliability, more efficient use of existing assets and savings associated with needing additional assets. In the Forward View, MISO is also reflecting:
- The value of sharing carbon-free energy from areas with higher levels of renewables to regions with lower levels.
- The value of sharing flexibility attributes required to integrate those new renewables while maintaining reliability.
“These changes are consistent with previous refinements to the Value Proposition as the energy industry landscape has evolved,” said Wayne Schug, vice president – corporate strategy & business development at MISO. “As described in the Reliability Imperative, the accelerated transition to a low carbon future will create challenges, which can be more reliably and efficiently solved using the region’s scope and diverse resources, creating even more value for customers in the future.”
Established in 2007 through an extensive stakeholder process, MISO’s Value Proposition is an annual process that quantifies the value MISO provides to the region. To date, improved reliability, more efficient use of existing assets, and reduced need for additional assets have resulted in over $36 billion of value realized, net of administrative costs.
Midcontinent Independent System Operator (MISO) is an independent, not-for-profit organization that delivers safe, cost-effective electric power across 15 U.S. states and the Canadian province of Manitoba. 42 million people depend on MISO to generate and transmit the right amount of electricity every minute of every day. MISO is committed to reliable, nondiscriminatory operation of the bulk power transmission system and collaborating with all stakeholders to create cost-effective and innovative solutions for our changing industry. MISO operates one of the world’s largest energy markets with more than $22 billion in annual gross market energy transactions.