Energy affordability is a growing crisis for people throughout Louisiana; utility bills are increasing, along with seemingly almost every other monthly bill. Amidst all these rising costs, Louisiana ratepayers have saved millions of dollars by joining one of the largest energy markets in the world. In 2013, Entergy, Cleco, and other Louisiana municipalities and cooperatively owned utilities joined the Midcontinent System Operator, commonly known as MISO — although it wasn’t by choice for some of them.
Following the Department of Justice (DOJ) antitrust investigation from 2010-2012 all Entergy entities (Entergy Louisiana, Texas, Arkansas, and New Orleans) were required to join a Regional Transmission Organization (RTO) because the investigation discovered Entergy participated in anti-competitive practices, specifically regarding grid development. Entergy was also directed to sell its transmission assets, which ultimately never happened.
The Midcontinent Independent System Operator, commonly known as MISO (pronounced MY-so), is a nonprofit organization that manages the flow of electricity across 15 states, including most of Louisiana.
Think of it like this: Transmission lines are like highways for power. MISO helps ensure we have enough highways, or transmission lines, to move electricity from where it’s generated to where it’s needed.
There are 7 regional transmission organizations across the country that perform similar functions as MISO. They exist for the express purpose of providing consumer focused planning — which utilities in their territories may not otherwise provide.
Since joining MISO, Louisiana ratepayers in the MISO footprint have saved millions of dollars from energy, capacity, and ancillary services cost savings. In a nutshell MISO membership means ratepayers get access to the lowest cost energy available on the bulk power market. It also means our utilities can sell excess power on the wholesale power market. Every year MISO publishes a Reliability Imperative Report which shows the annual benefits realized by all 15 states in the MISO footprint.
If MISO’s reporting doesn’t convince you, how about reports from Entergy and Cleco? Mandatory utility annual reporting also shows the value of MISO membership. In the first 5 years of MISO membership alone, Entergy reported that its customers saved $1.3 billion on monthly bills (this includes all Entergy customers in AR, LA, MS, and TX). These figures clearly demonstrate the undeniable benefits of MISO membership.
Louisiana-based investor-owned (for profit) utilities that are MISO members are required to file an annual report with the Louisiana Public Service Commission, detailing the costs and benefits of MISO membership. Entergy New Orleans is also required to file similar annual reporting with the City Council of New Orleans. To better understand the benefits ratepayers receive from MISO membership, we compiled the annual reported savings for Cleco, Entergy Louisiana, and Entergy New Orleans from 2020 to 2024. The data we used is from the publicly available annual reports filed at the LPSC and the City Council of New Orleans. Transmission costs and the economic value of reliability are not included in the report due to the limited scope of the annual reporting. Also important to note is that Cleco and Entergy report revenue and expenses differently, which is expressed in the charts below.
The Entergy New Orleans and Entergy Louisiana reports demonstate that both customers have accessed at least $25 million in annual savings since 2020. Cleco’s most recent MISO Participation Annual Reports did not provide individual year by year costs and savings, but instead compared historic and future cost benefit analysis for a two year period. If Cleco had not been a member of MISO from 2022-2024 ratepayers would have paid an additional $1.62 billion! Both the historic and future cost benefit analysis show that maintaining MISO membership is the most cost effective path.
However, the truth is we’re saving even more, because these data points do not capture the comprehensive benefits that come from MISO membership. Some benefits are difficult to quantify, and are not included in the annual reporting including:
The facts speak for themselves. MISO membership brings benefits and cost savings to Louisiana ratepayers and business-owners who rely on the electric grid.
Reviewing Annual Utility MISO Membership reports revealed discrepancies in both the data reported, and in the approach used to determine overall benefits and costs. The Alliance has developed the following policy recommendations for advocates and regulators so we can better understand the benefits of RTO membership.
New Orleans City Council policy recommendation
Louisiana Public Service Commission policy recommendation
At a time when residents are struggling under the weight of power bills any and all cost savings are welcome. It only makes sense to maintain membership in an entity which saves Louisiana ratepayers millions of dollars every year.
MISO’s work can seem technical, but public engagement matters. You have a say in how our grid is planned and operated.
Take Action
