CARMEL, Ind., Jan. 17, 2012 /PRNewswire/ -- MISO announced today its annual Value Proposition study, which details between $2.2 and $2.7 billion in quantitative benefits that MISO provided for the region in 2011. The regional transmission organization provides these benefits through its ongoing grid reliability and efficiency measures.
"MISO's Value Proposition continues to affirm our commitment to deliver the greatest benefits to end users, our members, and potential members through a collaborative, region-wide approach to grid planning and management," said John R. Bear, president and CEO of MISO. "This study breaks down and analyzes hard data to show exactly how those savings occur," he added.
The study identifies $2.2 to $2.7 billion in economic benefits delivered to the region in 2011 from the following areas:
- Improved reliability ($320 - $479 million)
- Market commitment and dispatch ($426 - $470 million)
- Dispatch of energy
- Spinning reserves
- Wind integration ($163 - $196 million)
- Compliance ($62 - $93 million)
- Generation investment deferral ($1.4 - $1.7 billion)
- Footprint diversity
- Generator availability improvement
- Demand response
New in the 2011 analysis was the addition of compliance as a quantitative benefit. In its role as both a balancing authority and planning authority, MISO performs many compliance activities that would otherwise fall to its members to complete. These efforts alone save members between $62 million and $93 million per year.
In addition to quantitative benefits, MISO also continues to demonstrate significant qualitative benefits for its wholesale market participants including:
- Price and informational transparency
- Planning coordination
- Seams management
For more information, the complete 2011 Value Proposition study, including detailed calculation methodologies, is available online at www.misoenergy.org.
About the Value Proposition Study
After launching the energy-only market in 2005, the value MISO adds to the region became apparent. To quantify this value, MISO – in collaboration with its stakeholders – created the MISO Value Proposition. The annual Value Proposition study began in 2007 and quantifies the value MISO provides to the region, including MISO market participants and their customers. The Value Proposition study does not calculate the value for any individual market sector or state.
For 2007 through 2011, the Value Proposition studies revealed that the MISO region realized between $4.3 billion to $5.7 billion in cumulative savings.
MISO ensures reliable operation of, and equal access to high-voltage power lines in 11 U.S. states and the Canadian province of Manitoba. MISO manages one of the world's largest energy markets, clearing nearly $27 billion in energy transactions annually. MISO was approved as the nation's first regional transmission organization in 2001. The non-profit 501(C)(4) organization is governed by an independent Board of Directors and is headquartered in Carmel, Ind., with operations centers in Carmel and St. Paul, Minn. Membership is voluntary.