The Midcontinent Independent System Operator’s (MISO) annual transmission planning activities, known as the MISO Transmission Expansion Plans (MTEP), are designed to optimize the grid’s performance by enhancing reliability, reducing congestion, and integrating new generation resources, especially renewables.
In this blog post, we’ll explore how MISO’s transmission planning process works.
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To ensure the health of the grid, MISO must consider several challenges as part of its ongoing transmission planning process:
- Much of the grid’s infrastructure is outdated and in need of modernization
- Increased demand poses a significant challenge to MISO grid reliability and stability
- The integration of renewable resources is necessary for decarbonization, but the intermittency of those renewables must be managed to ensure power quality and reliability
- Regulatory markets are complex and evolving to meet national decarbonization goals
Navigating complexities of MISO transmission planning
Market participants must navigate a complex landscape when engaging in MISO transmission planning. Factors like transmission congestion, renewable integration, and evolving market rules require advanced forecasting and decision-making tools, though these processes are driven primarily by MISO and participating utilities. While PCI doesn’t directly manage transmission planning, our platform helps market participants make informed decisions that align with grid needs and reduce operational inefficiencies.
MISO’s transmission planning process
The MTEP process, a collaboration between MISO and utilities, state regulators, and other stakeholders, determines which transmission projects will ensure MISO meets its mandate to provide reliable, affordable electricity now and in the future. Projects follow MISO’s tariff and must meet North American Electric Reliability Corporation (NERC) reliability standards, standards followed by Regional Reliability Organizations, and MISO’s own guiding principles.
Transmission owners submit projects in one of the following categories, which are designed to enhance MISO’s transmission network performance:
- Baseline Reliability Projects (BRP): Essential for MISO to comply with NERC standards and local reliability requirements
- Generator Interconnection Projects (GIP): Ensure the reliable integration of new power generation, including renewables, into the transmission system
- Market Efficiency Projects (MEP): Reduce congestion within the MISO region or address issues across regional boundaries
- Market Participant Funded Projects (MPFP): Network improvements financed entirely by a market participant but managed and maintained by an existing transmission owner
- Multi-Value Projects (MVP): Long-range transmission planning projects with a 10-year time horizon. These large-scale strategic initiatives aim to achieve regional policy, economic, or reliability objectives by addressing how grid modernization efforts and anticipated changes in the generation mix will impact long-term transmission needs.
- Other projects: Tackle local reliability concerns and/or offer regional economic advantages but do not meet the criteria for classification as MEPs
- Targeted Market Efficiency Projects (TMEP): Cost-effective, short-term projects that alleviate specific market-to-market congestion issues
- Transmission Deliverability Service Projects (TDSP): Upgrades to the network needed to support long-term point-to-point transmission service requests
Optimizing the use of the transmission network
To make the most of MISO’s transmission network, participants need access to accurate, real-time data and predictive analytics. PCI helps participants optimize their operations by providing insights that improve performance and reduce costs.
- Renewable integration analytics:
- Financial optimization through CRRs: PCI supports managing financial instruments like Congestion Revenue Rights (CRRs), allowing participants to hedge against congestion costs and secure more predictable returns.
Each proposal undergoes an 18-month vetting process and more than 75 stakeholder meetings, including public Subregional Planning Meetings, which ensure the planning process is open and transparent, as well as Technical Study Task Force meetings. Projects considered ready to build are further reviewed by the Planning Advisory Committee, which sends final recommendations to the MISO Board of Directors. The Board approves projects each December.
Except for MVPs, most transmission projects solve local, near-term needs, with many being put into service within three to five years of approval. Under MISO’s recent large transmission expansion plan, the organization has approved approximately $10.3 billion in transmission projects aimed at supporting the integration of 53 gigawatts of renewable energy, including wind and solar. This significant investment represents one of the largest efforts to modernize the grid and meet future energy demands.
Ensuring compliance with NERC standards
Compliance with North American Electric Reliability Corporation (NERC) standards is essential for MISO transmission planning. While PCI doesn’t provide direct NERC compliance tracking tools, our solutions help market participants align their operational strategies with MISO’s broader regulatory and reliability frameworks. By optimizing energy management, forecasting, and decision-making processes, PCI enables participants to remain efficient and competitive in a highly regulated environment.
Optimize your MISO market participation
PCI Energy Solutions provides powerful tools to help manage your organization’s participation across MISO’s energy, capacity, and ancillary service markets. Discover how our superior analytics and timely insights can drive your profitability and operational efficiency.
