What is a Regional Transmission Organization, and why is it important?

By Andy Kowalczyk 

Louisiana is a part of a multi-state organization called the Midcontinent Independent System Operator (MISO).

​This organization was approved by the Federal Energy Regulatory Commission (FERC) in 2001 for the purpose of coordinating the dispatch of the most affordable power generating resources to meet the demand for electricity across 11 states, and to independently assess the transmission grid for upgrades needed to deliver electricity to consumers more affordably, reliably and efficiently.

​There are 7 organizations across the country that perform similar functions as MISO. They exist for the express purpose of providing more competition and consumer focused planning and operation of the grid - which utilities in their territories may not otherwise provide. 

In 2012, to alleviate concerns expressed by the Department of Justice regarding anticompetitive transmission planning and power generation dispatch on behalf of Entergy corporation - MISO integrated Entergy’s service territory covering Arkansas, Texas, Louisiana and Mississippi. This established the ‘MISO South’ region and increased the number of states in MISO to 15. 
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Q: Does MISO decide which energy source is dispatched when? 

Yes, and it is exclusively limited to the cheapest source of energy at that moment. With adequate transmission, Louisiana can benefit from low cost wind resources from the midwest at night, while selling local solar power to the north during the day.
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Q: How does MISO make sure there’s enough power for everyone in their footprint?

​MISO balances the demand and the energy throughout the region to make sure the power supply is stable and reliable across the grid and doesn’t cause unexpected power outages. 
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Q: Does MISO regulate the transmission grid and power plants? 

MISO is not a regulator. It is an organization that receives dues from members like utilities and power generators, developers of transmission projects in exchange for their service in providing technical assistance in planning the grid in their territory for optimal performance, as well as ensuring that power demand is met throughout their footprint with the lowest cost resources. 

Q: Does MISO regulate the transmission grid and power plants?

MISO is not a regulator. It is an organization that receives dues from members like utilities and power generators, developers of transmission projects in exchange for their service in providing technical assistance in planning the grid in their territory for optimal performance, as well as ensuring that power demand is met throughout their footprint with the lowest cost resources.
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Q: Does MISO have renewable energy goals? 

MISO doesn’t have goals, because that would mean they would have to force their members to build more solar and wind, but they do plan according to a forecast of how much renewable energy will be on their system, and how much fossil fuel generation will be retired, because of the unique system needs related to the transition to renewables. 

For example, here’s one projection of the power generation mix in their footprint in 2039:

Q: How do they make decisions about transmission planning and what level of renewables are going to be in their territory?

MISO considers the input of stakeholders through public meetings that gather information and perspectives from a diversity of viewpoints including utilities, consumer advocates, state regulators, large power consumers, renewable energy developers, and environmental groups.

Q: Can anyone be a stakeholder? 

Yes, but if you’d like to have a vote on the major decisions at MISO, as well as coordinate with like-minded advocates, it’s best to join a stakeholder group. Here’s the most current list of stakeholders in MISO. 

Q: Does MISO require utilities to accept their transmission plans? 

MISO has no legal standing to force state public service commissions, or utilities to accept transmission lines. In fact, for high voltage transmission projects over 230 kilovolts, typically referred to as ‘regional transmission’ lines there has to be a presumption that a state commission will accept transmission projects, otherwise they will not even propose these projects for the region. This is in their federally approved rules for proposing projects

“MISO shall not require that projects be undertaken where it is expected that the necessary regulatory approvals for construction and cost recovery will not be obtained.”

Q: Does MISO build transmission projects? 

MISO only provides planning support and operation of the grid in their territory. Furthermore, under Federal mandate, MISO must maintain independence and impartiality in their assessment of the transmission system. 

There are minimum characteristics as approved by FERC regarding what an organization like MISO can do:

Minimum Characteristics:

1. Independence
2. Scope and Regional Configuration
3. Operational Authority
4. Short-term Reliability



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Minimum Functions:

 1. Tariff Administration and Design
2. Congestion Management
3. Parallel Path Flow
4. Ancillary Services
5. OASIS and Total Transmission Capability (TTC)
and Available Transmission Capability (ATC)
6. Market Monitoring
7. Planning and Expansion
8. Interregional Coordination

​To learn more about why MISO is important for renewable energy, watch this short video!

MISO Must Lead for Clean Energy Era from Sustainable FERC Project on Vimeo.

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About the Author

Andy Kowalczyk is a renewable energy and power grid consultant, as well as cleantech writer residing in New Orleans. He has worked in Louisiana’s rooftop solar industry and advocates for the Louisiana renewable energy economy. He has also been an active stakeholder in developing rules for a Renewable Portfolio Standard in New Orleans since July 2018, and has acted as an official intervenor for City Council proceedings on Community Solar, and Entergy New Orleans’ Triennial IRP. ​